The Policy and Resources Committee were scheduled to discuss Community Infrastructure Levy (CIL) and On Street Parking Reserve (OSPR) allocations, and to consider capital bids for 2026/27. They were also scheduled to discuss modifications to the City Plan 2040.

City Plan 2040

The committee was scheduled to discuss the main and additional modifications to the City Plan 2040. The City Plan was submitted for independent examination in August 2024, and formal examination hearings have now concluded. A list of main and additional modifications to the plan has been prepared by inspectors. These amendments require formal consultation. The report pack seeks member approval to commence this consultation and provide a City Corporation response to the matters raised within the consultation. This would then be sent back to the planning inspectors to be considered in their final report. Once the inspector's report has been received, the City Corporation would be able to commence the governance process for adoption. The City Plan would then form part of the Development Plan for decision making purposes.

The report pack notes that the planning inspectors only have powers to address matters of soundness through the examination, and a failure in relation to legal compliance in plan preparation cannot be rectified. However, a local plan can be amended on the direction of the inspectors, and there are opportunities to put forward some suggested changes to the inspectors during the examination process. Each potential change then needs to be agreed by the inspectors and 'recommended' back to the Corporation by the inspectors in their report. The agreement of main and additional modifications is a normal part of the examination process.

The main modifications to the City Plan are included in the report pack as Appendix 1 Main Mods. The report pack states that it makes clear, with reference to the tests of soundness (justified, effective or positively prepared) why each modification is required. The inspectors have approved these modifications (without prejudice) and are recommending these changes back to the City Corporation. The inspectors consider the main modifications to be required to make the plan 'sound', ie without these changes the City Plan would be considered 'unsound' and the City Corporation could not proceed to adoption. Therefore, at this stage this list is finite and cannot be amended by the Corporation.

Many of the changes relate to changes to the heritage and tall buildings chapter, including:

• clarifications on the need to preserve (and where possible) enhance the Conservation Areas
• use of the St Paul's Setting Study in assessments
• how the Outstanding Universal Value of the Tower of London should be utilised and interpreted
• changes to the contours at the southeastern corner of the City Cluster and to include a new tall building site at Broadgate

Other notable main modifications are:

• the articulation of a 'Vision' for the City Plan
• additional information relating to the expected housing completions, including within a new appendix to the plan
• inclusion of the minimum office requirement in gross internal area¹ (GIA) (in addition to net internal area² (NIA))
• further explanation of the cultural contributions from developments of different scales
• infrastructure provider engagement through the development process
• exceptional circumstances where lower long-stay on-site cycle provision may be acceptable

Other more minor 'Additional Modifications' have also been proposed during the examination (see Appendix 2 Additional Modifications). These do not go to the heart of soundness and include minor amendments to text or figures, correction of typographical errors or factual update only. The inspectors have agreed that these amendments do not relate to soundness but will be consulted upon for completeness.

The report pack also included a Sustainability Appraisal Review of Main Mods, App 4 Polciies Map Atlas of Change, App 5 HRA Review Matrix and App 6 City Plan 2040 Proposed Modifications.

City CIL and OSPR (Quarter 2 2025/26) and Capital Bids 2026/27

The committee was scheduled to discuss a joint report of the Executive Director, Environment, Katie Stewart, and the Chamberlain, Caroline Al-Beyerty, regarding the City Community Infrastructure Levy (CIL) and On Street Parking Reserve (OSPR) for Quarter 2 of 2025/26, and capital bids for 2026/27.

The report pack notes that the City Corporation's Priorities Board met to consider the allocation of funds from the Community Infrastructure Levy and On Street Parking Reserve, and to consider capital bids as required.

The Priorities Board recommended the following allocations:

• Community Infrastructure Levy allocations:
  • £1,500,000 for the Heat Network Strategy
  • £500,000 for the Lombard Street Highway Improvements
  • £10,024,825 for Barbican Podium Phase Two
• Capital bid allocations:
  • £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 s278 project to fund the shortfall in the London Museum's budget for Section 278 works³ (of which £875,000 would in due course be returned to the Smithfield public realm project); and to delegate to the Executive Director Environment authority to agree the final sum required to meet the Museum's funding gap.

The report pack notes that up to the end of 2024/25, £96.0m has 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 is projected up to 2029/30.

Heat Network Projects

The report pack states that heat networks are essential energy infrastructure for delivering the Climate Action Strategy's goal of a net zero Square Mile by 2040 and provide a solution to the most significant challenge - the decarbonisation of non-domestic buildings. The CIL funding would be used to fund work undertaken by a Heat Network Delivery Partner to undertake design and commercialisation actions.

The funding will also be used to support the governance and delivery aspects of the construction phase of the heat network, due to commence in the second half of 2027. These actions would include contract management, stakeholder engagement and heat supply planning. These functions would form part of the Zone Coordinator role which the City Corporation would take on under the forthcoming Heat Network Zoning regulations.

The report pack notes 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 report pack states that Lombard Street is a key walking and wheeling route between Bank, Fenchurch Street and the City Cluster. This project will deliver critical 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). The improvements include pavement widening, raised carriageway, changes to traffic movement, waiting and loading, and public realm enhancements.

Barbican Podium Phase Two

The report pack notes 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 immediate intervention, water ingress will continue to compromise the integrity of the building fabric, leading to escalating damage and costly remediation.

The project will provide long-term protection against water penetration, as well as presenting an opportunity to transform and reimagine the design, layout and function of the Podium, with substantial new planting, seating, improvements to the tiling surface, lighting, and making the space more accessible.

Corporate Device Replacement

The report pack notes a proposal of £1.61m for replacing the remaining City of London Corporation Microsoft Surface end-user devices (approx. 58% and 1,815 devices) that are now end-of-life, having been rolled out in 2020.

Superintendents House Redevelopment

The report pack states that there is £1.64m required for demolition of the Superintendents House and the creation of a prestige burial space that would provide at least 10 years of additional space and consequently income. The bid is for £1.40m with a further £0.24m of existing CWP funding to be reallocated (subject to be approval). The City of London Cemetery and Crematorium is a 200-acre site in the juncture between Manor Park and Wanstead.

GSMD Lighting Upgrade in Venues

The report pack notes the full replacement of end-of-life tungsten lighting infrastructure in Milton Court Concert Hall (MCCH) and Silk Street Music Hall (SSMH) with modern, energy-efficient LED fixtures, control infrastructure, and power distribution systems. 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.

Other Matters

The committee was also scheduled to:

• Consider the minutes of the meeting held on 16 October 2025, and the public minutes of the Capital Buildings Board meeting held on 24 September 2025.
• Receive the Corporate Strategy and Performance Business Plan 2025-2026: Mid-Year Progress Report.
• Receive the Policy and Resources Contingency/Discretionary Funds report.
• Consider questions on matters relating to the work of the committee.