Agenda item

To view a presentation on the background to the Committee budget.

The Committee viewed the presentation of the Head of Finance, Chamberlain’s Department that presented the following information:

•       Explanation of Local, Central Risk and Recharges;

•       5 Year Summary of Budgets by Service Area; and

•       Review of budget, assets and service of each main service area.

Members noted that the Committee’s total 2025/26 net budget amounts to £24.610m which is split between Local Risk, Central Risk and Recharges (inc. Cyclical Works Programme):

LOCAL RISK BUDGETS (£8.127m): - These are budgets deemed to be largely within the Chief Officers control (e.g. employees). 

CENTRAL RISK BUDGETS (£7.237m): - These are specific revenue items where a Chief Officer manages the underlying service but where the eventual outturn can be strongly influenced by external factors outside of their control (eg interest on cash balances). Inflation is not added to these budgets other than by exception.

RECHARGES (£9.246m) : This relates to expenditure / income that was first recognised in another service area and transferred to the Committee. The control of these costs is exercised at the point where the expenditure / income first arises as Local or central risk. (e.g. Central support costs).

The Committee noted the figures set out below:

The Committee also noted the income, expenditure and funds allocated to Guildhall Art Gallery, City Information Service & Outdoor Arts, Guildhall Library, London Archives, City Records Services, Keats House, Monument, Barbican and Shoe Lane Libraries, and Artizan St Library & Community Centre, noting that individual budget-holders are accountable for each set of figures for each asset.

Members asked for clarification on the Recharge element, noting that it constitutes the largest element of the budget and that the Committee has no control over it, noting also that the total allocation increase for 2025/26 (of approximately £3.2M) relates mostly to recharges and changes in the way recharges have been allocated particularly around the Directorate figures that have been reallocated to more accurately reflect the fund destinations, over and above an additional recharge amount of approximately £2M.

Members asked whether the figures could be supplied with the recharge figures stripped out, and the meeting heard that those figures would be circulated by February 2025.   

Members sought clarification on the uplift on funds allocated to the Mayoralty and Shrievalty in the coming year.  The meeting noted that further figures detailing that allocation would be provided by February 2025.

Members expressed concern at the apparent paucity of staff at Guildhall Art Gallery.

On the increased projected income for Keats House (£81K in 2024/25 to £118K in 2025/26) a Member asked how that would be achieved. The meeting heard that the projected income is achievable on the basis of assumptions about the post-pandemic recovery, some exciting programmes, and cost reductions. 

A member asked for further information on the projected increase in income at City Records Service (zero in 2024/25 to £41K in 2025/26). The meeting heard that the City Records Service income has been moved over from the London Archives income.

The meeting noted the challenging 2025/26 income target for Monument (£556K). A Member asked whether the CoLC is compensated when The Monument is closed due to staffing shortages when Tower Bridge is prioritised (noting that the City Bridge Foundation is allocated the funds to staff The Monument). The meeting heard that further information on The Monument is given at agenda item 11 and that a rebate is given when The Monument is not staffed and closed as a result of that, though the financial and reputational costs to The Monument being closed at short notice are significant.

A Member commented that there is merit in taking a broad overview of the cultural retail offering. 

A Member asked for information on the latitude that the Committee had in budget allocation. The meeting heard that the overall envelope is fixed though Chief Officers (to whom budget responsibility is allocated)

A Member commented that the budget should reflect the Strategy being developed and noted that the 2026/27 period was the earliest point at which the budget could be adjusted to align with the strategy, noting also that future income generation opportunities.