The Resource Allocation Sub (Policy and Resources) Committee was scheduled to meet to discuss funding allocations from the Community Infrastructure Levy and the On Street Parking Reserve, as well as capital bids for 2026/27. Also on the agenda was a report on the installation of air source heat pumps and photovoltaic panels at the Mansion House, and an update on energy costs and savings. Some items on the agenda were marked as being for information only, and would be taken without discussion unless a member requested otherwise.

City CIL and OSPR and Capital Bids

The committee was scheduled to discuss a joint report from Katie Stewart, Executive Director, Environment, and Caroline Al-Beyerty, Chamberlain, regarding the allocation of funds from the City Corporation's Community Infrastructure Levy (CIL) and On Street Parking Reserve (OSPR), as well as capital bids for 2026/27.

The Priorities Board met on 25 September 2025 to consider bids for CIL funding, and recommended that funding be allocated for the Heat Networks Project, Lombard Street Highway Improvements, and Barbican Podium Phase Two. The Priorities Board also recommended reallocating funding from the West Smithfield Area Public Realm and Transport project to the London Museum's budget for Section 278 works, to cover a shortfall.

The recommendations to the committee included:

• £1,500,000 for the Heat Network Strategy
• £500,000 for the Lombard Street Highway Improvements
• £10,024,825 for Barbican Podium Phase Two
• £1,610,000 for Corporate Device Replacement
• £1,400,000 for Superintendents House Redevelopment
• £1,910,000 for GSMD Lighting Upgrades
• £7,660,000 for Barbican Podium Phase Two (subject to approval of CIL bid)
• Reallocation of £1.75m of OSPR from the West Smithfield Area Public Realm and Transport project to the Museum of London Section 278 project

Community Infrastructure Levy

The report pack stated that up to the end of 2024/25, £96.0m had been received in CIL income, with £70.1m of this spent on infrastructure projects, leaving an opening balance for 2025/26 of £25.9m. Further CIL income of £63.1m was projected up to 2029/30.

Bids for the City CIL were invited from departments in August 2025, with three bids received.

Heat Network Projects

The committee was scheduled to consider a bid for £1,500,000 for heat network projects. According to the report pack, heat networks are essential energy infrastructure for delivering the Climate Action Strategy's goal of a net zero Square Mile by 2040¹ and provide a solution to the most significant challenge - the decarbonisation of non-domestic buildings. The funding would be used to:

i) fund the design and commercialisation phase of a strategic heat network in the Square Mile (£1m) and ii) to undertake governance and development actions during the construction of the network (£500k).

The report pack stated that up to 340 buildings will be connected within the initial phase of construction, representing around 30% of large building heat demands in the Square Mile. The construction phase will involve around £273m of private sector investment in the heat network infrastructure and is expected to deliver heat that is 75% lower carbon than gas boilers.

Lombard Street Enhancements

The committee was scheduled to consider a bid for £500,000 for enhancements to Lombard Street. The report pack stated that Lombard Street is a key walking and wheeling route between Bank, Fenchurch Street and the City Cluster. The project would deliver accessibility, pedestrian priority and public realm improvements to Lombard Street that will accommodate increased footfall arising from recent and permitted developments and enable the future growth of the City Cluster. The project will be match funded by the Eastern City Business Improvement District (EC BID).

Barbican Podium Phase Two

The committee was scheduled to consider a bid for £10,024,825 for Barbican Podium Phase Two. The report pack stated that the Barbican podium is an integral part of the Barbican Estate, providing both a publicly accessible walkway and open spaces that weaves through the estate and links the residential towers and terraces with the Barbican Centre. The existing waterproofing has reached the end of its serviceable life, and the surface drainage system is currently ineffective due to blockages and calcification. Without intervention, water ingress will continue to compromise the integrity of the building fabric, leading to escalating damage and costly remediation.

On Street Parking Reserve

The report pack stated that as of 22 August 2025, the City Corporation held an opening balance for 2025/26 of £60.6m in OSPR². Further OSPR surplus monies of £55.8m are projected up to 2029/30.

Re-allocation of OSPR for London Museum

The committee was scheduled to consider a reallocation of OSPR for the London Museum. The report pack stated that the London Museum is obligated to fund Section 278 (S278) works to deliver on-street improvements necessary to enable the museum development. These works include security measures and pavement widening to safely accommodate visitors.

The Museum has a fixed budget for the Museum Site S278 Works of £1.8m, against a total estimated cost of £3.55m. To address the funding gap, it was proposed that the Museum signs the S278 with the City Corporation for the full amount and formally records the estimated funding gap of £1.75m as a recognised cost expenditure under the scope of the wider project.

Capital Funding Bids

The committee was scheduled to discuss capital funding bids for the 2026/27 financial year. The report pack stated that the committee had provisionally approved £10m in new bids for City fund and £5m from City Estate for capital projects in the 2026/27 financial year.

Corporate Device Replacement

The committee was scheduled to consider a proposal of £1.61m for replacing the remaining City of London Corporation Microsoft Surface end-user devices (approximately 58% and 1,815 devices) that are now end-of-life, having been rolled out in 2020.

Superintendents House Redevelopment

The committee was scheduled to consider a bid for £1.40m for demolition of the Superintendents House and the creation of a prestige burial space at the City of London Cemetery and Crematorium. The report pack stated that the strategic plan is to extend the operational life of the Cemetery past its current position of 6 years of virgin lawn graves and 8 years of virgin traditional graves.

GSMD Lighting Upgrade in Venues

The committee was scheduled to consider a bid for £1.91 million for the full replacement of end-of-life tungsten lighting infrastructure in Milton Court Concert Hall and Silk Street Music Hall with modern, energy-efficient LED fixtures, control infrastructure, and power distribution systems. The report pack stated that the proposed upgrade offers long-term operational savings of over £100,000 per annum in electricity costs alone, alongside significant reductions in maintenance and consumables.

Barbican Podium

The report pack stated that there was a financial pressure within the Barbican podium programme. After taking account of other available funding, and the recommendation in this paper, there is a need for £15.9m of additional City Fund resources.

Air Source Heat Pump and Photovoltaic Installation at the Mansion House

The committee was scheduled to discuss a report from the City Surveyor regarding the installation of air source heat pumps (ASHP) and photovoltaic (PV) panels on the roof of the Mansion House to provide low carbon heating and hot water and to generate green electricity for the building's consumption.

The report pack stated that the total estimated cost of the project (excluding risk) is £2.3M, a decrease from an estimated £3M from the Gateway 3-4 on 25 June 2025. Spend to date is £44,097, and the costed risk provision utilised is £206,000.

The requested decisions were:

1. That additional budget of £0 is approved to reach the next Gateway;
2. Note the revised project budget of £2,058,750 (excluding risk);
3. Note the total estimated cost of the project at £2,264,630 (including risk);
4. That a Costed Risk Provision of £205,880 is approved (to be drawn down via delegation to Chief Officer).
5. That Option 5.1 is approved

Option 5.1 was for the committee to approve the uplift in scope and costs.

The report pack stated that the original Gateway 2 paper outlined a project where the ASHP would sit on the mansard roof of the staff bedrooms and would supply heated water to the basement plant room via the flow and return pipes in the riser. However, the detailed design has shown that new steel work will be required to straddle the mansard roof which will require penetrations through the existing roof and anchoring to the walls. In addition, the design works have shown the mansard roof is in far worse condition than originally anticipated and will need replacing beneath the ASHP.

Other Matters

The committee was also scheduled to approve the minutes of the previous meeting held on 9 September 2025.

The agenda included an update for energy cost and savings, and questions on matters relating to the work of the sub-committee.