The Finance Committee of the City of London Corporation is scheduled to meet on 9 December 2025 to discuss a range of financial and strategic matters. These include the operational budget estimates for 2026/27, the Housing Revenue Account position, and the Integrated Facilities Management (IFM) forward strategy. Members will also consider proposals for allocating the International Disaster Fund.

Operational Budget Estimates 2026/27

The committee will be asked to review and approve the operational budget estimates for 2026/27, which total £73.783m. This represents a £5.239m (7.6%) increase from the 2025/26 budget of £68.544m. Key changes include:

• A £5.539m increase in City Surveyor Repairs & Maintenance, primarily for the agreed Cyclical Work Programme backlog at Guildhall.
• A £1.849m increase to the insurance premium.
• A net 3% increase to account for inflation, amounting to £1.317 million.

These increases are partially offset by a £3.466m net decrease, which includes the removal of a one-off contingency and carry forward funds (£2.532m), central and capital recharges (£0.564m), and other net movements (£0.370m). The report pack notes that the estimate for 2026/27 does not include forecast energy price increases, other than the 3% budgetary inflation allowed.

Housing Revenue Account Position

The committee will be asked to note a report on the Housing Revenue Account (HRA) position. The City's ring-fenced HRA is under significant pressure, and low levels of revenue reserves mean that any in-year budget overspend could lead to a breach of statutory responsibilities. Management accounts for Period 06 showed a potential £1.3m in-year overspend, but the latest forecast has reduced this to a £0.05m deficit, which can be funded from brought forward reserves. According to the report pack, identifying which repairs can be capitalised has helped ease pressure on the revenue account.

The report pack states that most local authorities are finding their commitments to quality social housing funded by the HRA under severe pressure due to a number of external factors, including:

• Rental income capped by central government at below inflation for a number of years.
• Construction sector instability causing delays and high build cost inflation.
• New health and safety requirements.

The City of London Corporation faces additional pressures due to its small, dispersed estate, which complicates centralised service delivery and increases operational costs.

IFM Forward Strategy to 2033

The committee will be asked to consider a report outlining the proposed strategy for the integrated facilities management (IFM) approach across the Corporation's property (non-housing) portfolio to 2033. The current model involves a 10-year contract across 6 Lots, which commenced in 2022 and includes a break clause available at the end of year 5. The report pack states that the IFM model is proving to be very successful, and the paper proposes not utilising the break clause but instead taking advantage of economies of scale and further consolidating the IFM model.

Members will be asked to approve the further consolidation strategy, and associated increase in contract value, of outlying facilities management contracts (Building Management System ¹ and Lifts) into the relevant IFM contract to deliver financial and operational efficiencies. The report pack states that Lift & Escalator servicing and Building Management System (BMS) servicing remain key services that currently sit outside of the IFM contracts. These were awarded to Amalgamated Lifts Limited and Schneider Electric Limited. It is intended to incorporate the Lifts and BMS provision into the IFM Lot model.

International Disaster Fund – Proposals for Allocation

The committee will be asked to consider proposals for allocating the International Disaster Fund (IDF). Each year, the Finance Committee sets aside £100,000 to allocate towards funding appeals made in response to international disasters. In the Autumn of 2024, the Finance Committee awarded £75,000 to REACT, a rapid response charity which is specifically set-up to send volunteer Response Teams to humanitarian emergencies within six hours in the UK and 24-48 hours internationally. In addition, the Finance Committee provided funding to the Disaster Emergency Committee (DEC), to support its Middle East Humanitarian Crisis Appeal.

Members will be asked to:

• Approve funding of £50,000 to REACT for the 2025/26 financial year to support with the costs of responding to International Humanitarian Disasters.
• Provide £25,000 to the Disaster Emergency Committee, to support its current Appeal.
• Approve an ongoing grant of £75,000 to REACT and designate £25,000 to the DEC for each financial year, with regular review points and annual reporting to the Finance Committee.

Bury Street Public Inquiry Consultancy Contract Contingency Funding

The committee will be asked to approve a budget of £750,000 from the City Fund Contingency to enable the relevant Consultancy and Legal Contacts to be agreed to secure representation of the Corporation at the forthcoming Public Inquiry relating to Bury Street.

An Environmental Impact Assessment Planning Application (24/00021/FULEIA) and Listed Building Consent Application (24/00011/LBC) at the Planning Applications Sub-Committee were resolved not to be granted recommendation. An appeal has now been lodged to the Secretary of State, and the City Corporation is required to defend the decisions on appeal. The report pack states that legal advice from Counsel has confirmed that it is advisable for City officers not to give evidence in this instance and to seek external witnesses instead.

Annual On-Street Parking Accounts 2024/25 and Related Funding of Highway Improvements and Schemes

The committee will be asked to note a report on the Annual On-Street Parking Accounts for 2024/25 and related funding of highway improvements and schemes. The City of London is required to report to the Mayor for London on action taken in respect of any deficit or surplus in its On-Street Parking Account for a particular financial year, as per Section 55(3A) of the Road Traffic Regulation Act 1984.

The report pack states that the surplus arising from on-street parking activities in 2024/2025 was £9.04m, and a total of £8.488m was applied in 2024/25 to fund approved projects. The surplus remaining on the On-Street Parking Reserve at 31st March 2025 was £60.563m, which will be wholly allocated towards the funding of various highway improvements and other projects over the medium term.

Business Plan - Q2

The committee will be asked to note a report providing an update on the progress of the Chamberlain's Department against the Business Plan during quarter two of 2025/26. The Chamberlain's Department has a total of 13 workstreams across the seven divisions. Two workstreams are Digital Information and Technology Service (DITS) focused and are under the oversight of Digital Services Committee. The remaining 11 workstreams updates are reporting to Finance Committee. Five of the eleven workstreams are currently rated amber due to various factors.

Risk Management

The committee will be asked to note a report on risk management within the Chamberlain's Department. There are currently three financial corporate risks on the Corporate Risk Register under the Chamberlain's responsibility, of which two are RED rated risks:

• CR35 Unsustainable Medium-Term Finances - City Fund
• CR42 Housing Revenue Account (HRA) Financials