The Finance Committee was scheduled to discuss a range of financial matters, including the Pan-London Sexual Health eService, the Climate Action Strategy, and central contingencies. They were also scheduled to receive updates on risk management and Barbican leaseholder service charges.

Pan-London Sexual Health eService (SHL.UK)

The Finance Committee was scheduled to consider a joint report from the Director of Community & Children’s Services and the Chamberlain regarding the Pan-London Sexual Health eService (SHL.UK).

Local authorities have a legal obligation under the Health and Social Care Act 2012 to provide open access sexual health services, including STI testing, treatment, and contraception. The report pack stated that the existing SHL.UK service is considered a public health success story because it provides a discreet, convenient, and cost-effective online platform. The report pack stated that the service ensures that everyone, regardless of their circumstances, can get the support they need from their own home.

The current service contract was due to expire in August 2026, and a second iteration of SHL.UK is required to replace it. The new service will be required to provide enhanced communication, use inclusive imagery, and provide awareness training for other organisations who work with key communities. Specific changes to service requirements include making contraception a core service, exploring multi-lingual support, and improving result communication. The new service also aims to lower the minimum age for access and increase testing kit limits to better meet the needs of the population.

The successor service aims to enhance communication, inclusivity, and access to sexual health services. It includes aspirations for remote PrEP¹ care, multi-lingual support, and targeted promotion for underserved populations. The service will continue to provide core STI testing and treatment, with optional modules for contraception, PrEP care, and condom distribution. The successor service is set to commence in August 2026 with an initial term of 5 years, until 2031. There is an option for two additional extensions of 2 years each, potentially extending the contract to August 2035. The estimated contract value is £235 million over 9 years, with annual costs rising from £22 million to £29 million.

The report pack stated that soft market testing has confirmed market competition, and therefore, the Competitive Process is deemed the most suitable route to market.

The report pack included a recommendation that:

Members are asked to endorse the procurement to Court of Common Council for the replacement E-services contract, due to commence on 15 August 2026.

This recommendation is made following the approval of City Corporation continuing to act as the Lead Authority and accountable body for the procurement of a new Pan-London Sexual Health E-services contract and the host of the programme management service under an inter-authority agreement.

As the Projects & Procurement Sub-Committee meets after the Finance Committee in June, FC Members are requested to provide Delegated Authority to the Town Clerk, in consultation with the Chairman and Deputy Chairman of the Finance Committee to approve this recommendation, once PPSC Members have scrutinised the Report.

Climate Action Strategy Finance Update

The Finance Committee was scheduled to receive a report from the Executive Director of Innovation & Growth, Damian Nussbaum, on the Climate Action Strategy (CAS).

The City Corporation’s Climate Action Strategy (CAS) was adopted at Court of Common Council on 8 October 2020 and became operational in April 2021. The CAS has a £68m budget for implementation from April 2021 through to March 2027. As of March 2025, 59% of the revenue budget and 16% of the capital budget has been spent, with a further £11m leveraged in grant funding. The remainder is expected to be spent by March 2027.

The CAS is delivering long-term value to the City Corporation, maintaining asset value and reputation. Investment in the operational estate to date has already resulted in over £32m in avoided energy costs.

Progress against targets to the end of Year 3, 2023/24 (latest available data), shows the council is not on track to meet net zero for its own operations in 2027 due to lack of national grid decarbonisation and changing timelines of Corporation major projects. The underspend to date has left the council in a strong financial position to recover from exogenous factors and deliver additional works within the same budget envelope. The council is on track to meet net zero for its full value chain in 2040, supporting the Square Mile to reach net zero by 2040, and building resilience in buildings and public spaces.

Central Contingencies

The Finance Committee was scheduled to consider a report from the Chamberlain on central contingencies for 2025/26.

Service Committee budgets are prepared within the resources allocated by the Policy and Resources Committee, and with the exception of the Policy and Resources Committee, such budgets do not include any significant contingencies. The budgets directly overseen by the Finance Committee therefore include central contingencies to meet unforeseen and/or exceptional items that may be identified across the City Corporation’s range of activities. Requests for allocations from the contingencies should demonstrate why the costs cannot, or should not, be met from existing provisions.

The report pack stated that of the previous allocations agreed by Committee, a sum of £1,587,000 will be required in future years, therefore it is proposed that these committed sums are carried forward from 2024/25 to 2025/26, thereby ensuring that a full year’s contingency provision is available during 2025/26.

Due to expected increased revenue pressures it is also proposed that the uncommitted balances for Central Contingencies 2024/25 of £923,000 are ring-fenced for inflationary pressures and carried forward from 2024/25 to 2025/26.

Chamberlain’s Departmental Risk Management Update

The Finance Committee was scheduled to receive a report from the Chamberlain, Caroline Al-Beyerty, on the risks faced by the Chamberlain’s department.

The report pack stated that the Chamberlain’s department currently has one financial RED Corporate Risk and one RED Departmental risk, all risks are regularly reviewed, and several mitigating measures are in place to prevent the realisation of these risks or future risks.

The risk score for CR35 Unsustainable Medium-Term Finances – City Fund (current score RED 16) is unchanged. The May/June Officer Star Chamber meetings will scrutinise the necessary resources to achieve strategic objectives, evaluating efficiencies and carefully prioritising actions amidst ongoing financial pressures. While some Star Chambers are organised by department, efforts will be cross departmental to achieve a comprehensive view of income generation and budget planning. The impact of inflation continues to be monitored and there is a key focus on achievable savings initiatives. In addition, progress against existing planned savings will be considered by the June Efficiency and Performance Working Party.

CR38 Unsustainable Medium-Term Finances – City’s Estate (current score AMBER 12) is unchanged. Monthly monitoring of major programmes continues, with any issues being reported to the Chamberlain’s Assurance Board. The Natural Environment Charity review began its two-year implementation phase in April 2025, with progress updates anticipated by the end of 2025. The May/June Star Chamber meetings will also focus specific pressures such as Guildhall School alongside cross cutting themes to enhance current income generation strategies and review of grants. As with City Fund, a report on existing planned savings is being prepared for the June Efficiency and Performance Working Party.

CHB002 Housing Revenue Account (HRA) Finances has a risk score of RED 16 and is unchanged from the previous update. A comprehensive 10-year plan is currently being developed, incorporating the latest projections for work. The report is anticipated to be completed by July 2025. Additionally, capital schemes, as well as repairs and maintenance expenditures, are being closely monitored. Many other London Boroughs also have very fragile HRAs and the council is working with local government colleagues as well MHCLG and Treasury on wider solutions to the current challenges.

Two risks have emerged and have been added to the Chamberlain’s Departmental Risk Register, following endorsement from the Chamberlain’s Senior Leadership Team.

CHB004 – Vetting Delays has been added as a risk with a risk score of AMBER 6, due to the high demand for vetting services Chamberlain’s staff applications (especially those in IT, Procurement and Projects) for security vetting are experiencing significant delays (both new applications and renewals), which could lead to reduced resource availability to support City of London Police and their operations. Whilst the resourcing is currently being managed, it has been identified that there is weakened resource resilience compared to other areas, due to the limited number of staff who have had their vetting completed.

CHB005 – Change Fatigue has been added to the risk register with a risk score of AMBER 12. Currently, numerous transformation/improvement programs and new strategies are being implemented across the Chamberlain department and the wider City of London Corporation supported by the Chamberlain’s department. This increases the risk of change fatigue and the likelihood of not effectively implementing changes, in addition to failing to deliver business as usual services.

Review of Recharges - Barbican Leaseholder Service Charges

The Finance Committee was scheduled to consider a joint report from the Director of Community & Children’s Services and the Chamberlain on the recharges applied to the Barbican leaseholder service charge.

The report pack stated that the report gives a summary breakdown of the budgeted £1.331m annual charge to the Barbican Residential Service Charge which covers primarily allocation of management staff time for the Barbican Estate Office and the wider technical services provided by the Housing department, as well as costs for Information Services (IS) licenses and Insurance.

Detailed schedules showing the individual percentage allocations of individual roles that support these figures are to be provided to the next Service Charge Working Party (on 2nd June), which reports back to the Barbican Residential Consultation Committee.