Agenda item

City of London School for Girls Loan – to consider a budget adjustment associated with a loan for the City of London Girls School.

(A) Expansion of the City of London Girl’s School

In April 2019, the Policy & Resources Committee and Resource Allocation Sub-Committee had agreed that a loan should be approved for the proposed expansion of the City of London School for Girls, in the event that it proceeded.

Following that decision, the Finance Committee was required to approve a revision to the Corporation’s budget of up to £15.3m to facilitate the loan. In-year budget adjustments of this nature were required to be considered by the Finance Committee prior to consideration by the Court of Common Council. The Court was recommended to approve the requisite budget adjustment, noting that scheme would be subject to full planning approval and draw down of the loan would happen only in the event that the project was approved at the various relevant stages.

The Chair of Policy and Resources spoke to introduce the debate, clarifying that the provision of a loan was standard practice for the City Corporation in respect of major capital funding requirements for the independent Schools, as they were prohibited from seeking loans directly, as other Schools would do, and so had to seek them via the City Corporation. The same mechanism was being employed in respect of the ongoing project at the City of London Freemen’s School, as Members would note at Item 16(B).

The Chairman of Finance also spoke to introduce the item, clarifying that, whilst he was opposed to the School’s current expansion proposal, the loan proposal that the Court was being asked to consider here was not scheme specific, as demonstrated by the explicit provision for abortive costs within the overall sum. The appropriate committees would take a view on the merits of particular schemes in the normal fashion; the role of the Finance Committee and the Court at this stage was to consider the in-year budget adjustment. He expressed his hope that this provided some reassurance to concerned parties, as he was conscious that there was a misconception that the approval to be made would constitute explicit support for the currently mooted expansion proposal.

During debate, a number of Members spoke to oppose the proposal, with it suggested that undertakings had been made on the occasion of previous expansions that there would be no further enlargement in the future. It was suggested that the School had clearly outgrown its current site and that there was a real need to pause and reflect on the long-term strategy and future of the School, developing a Master Plan such as created by the City of London Freemen’s School, prior to coming to any decision in respect of an expansion within the Barbican Estate. The urgency of a funding decision within the context of the ongoing Fundamental Review and Education Review processes was also queried, with it argued that it would be prudent to wait until the conclusion of these processes, particularly given the significant weight of feeling amongst residents of the Barbican Estate.

A number of Members also spoke in support of the proposal, emphasising the importance of separating the consideration of the budget adjustment from the question of the current expansion proposal and the merits or otherwise of a particular scheme. Whilst it might be simpler or preferable if the three Schools were genuinely independent and could seek loans directly, this was not the case at the present time; therefore, this proposal should be viewed in the context of the funding arrangements utilised for major capital projects at the Schools. It was observed that there had been no objection in respect of the same arrangements for the City of London Freemen’s School at Item 16(B) and it was important that the two Schools be treated consistently. Members reiterated that the consideration before the Court was a funding matter and that any approval would not represent a green light for development; whilst there would likely be many objections from residents and other stakeholders, these would be listened to carefully by the School during its consultation process and by the Planning and Transportation Committee during consideration of any planning application, in the event that a proposal materialised. Members urged colleagues to have confidence in the established processes and the relevant committees to discharge their responsibilities appropriately.

Resolved – That approval be granted to an allocation up to £15.3m from the general reserves of City’s Cash to provide loan funding for the Girls’ School expansion project.