Agenda item

Report of the Director of Economic Development.

The Committee received a report of the Economic Development Director in respect of Corporate Risk CRO2 (Loss of Business Support for the City).

The Director of Economic Development advised that, whilst there would always be some flow of jobs away from the City, his team were focussed on balancing this with inward flow, ensuring losses were minimal and potential new markets were being developed.  Members accepted that there would be a ‘slower burn’ internationally and an immediate focus on European business.

Following an uplift of the Economic Development Team’s resources after Brexit, a special Advisor for Asia had been appointed and the team were now able to focus more on preparing for overseas visits and ensuring that opportunities were followed up.

Members noted the challenges in respect of how the City might look in 20 years’ time and the ways in which we might be doing business by then; i.e. robotics, artificial intelligence and the uncertainty as to which technologies and businesses would be driving the transformation.  Future Immigration Policy was also key in terms of the expectations of future workforces in respect of salaries and career plans.

In response to a question about how Members of the Audit and Risk Management Committee might gain assurance of need v allocation; the Deputy Chamberlain advised that the Resource Allocation Sub and Policy and Resources Committees would shortly be asked to approve £570k for the Brussels Office and £2.7m for promoting the City.  Members noted that future regulations were likely to be at a global, not European level and this would indicate where we need to direct resources to ensure strong relationships with key markets.  The Trump Administration’s Policy on Taxation was also likely to affect the City.

Members commended a very good report and agreed that the red risk rating gave assurance that it was being managed at the right level.  Members also asked whether the 18th March 2018 target was too ambitious and how the likelihood and impact ratings had been arrived at?  The Director advised that they had arisen following a debate at the Chief Officers’ Risk Management Group (CORMG) and in response to the key dates for trade negotiations by the end of April this year.  Members noted that, by this date, businesses should be confident about revisiting their investments.  Furthermore, on-going work outside of Brexit would help with business planning and the wider global impact and might dictate a different target date.  The Director accepted that this risk could have been rated red earlier and the mitigations could have been more visible in the appendix to the report. Members were further assured that the City Corporation were working in partnership with various UK industries and this collaboration would intensify over the next 2-3 years.  Members agreed that this risk would always be deep amber, if not red, for the time being.

Members agreed that the City had always been able to reinvent itself and, with robust risk management, challenges were approached as opportunities.  Members noted that despite the predicted 10,000 jobs moving out of London, they were not relocating to just any one or two locations and this was good news for the City.

RESOLVED, that - the report be noted.