The Finance Committee convened to discuss a range of financial matters, including approving the 2026/27 operational budget estimates, allocating funds from the International Disaster Fund, and addressing the financial challenges facing the Housing Revenue Account¹. The committee also reviewed the Integrated Facilities Management strategy and approved contingency funding for the Bury Street public inquiry.

Operational Budget Estimates 2026/27 Approved

The committee approved the operational budget estimates for 2026/27, totaling £73.783 million. This represents a £5.239 million (7.6%) increase from the 2025/26 budget of £68.544 million. Key changes include:

• An increase in the City Surveyor's repairs and maintenance budget, primarily for addressing the cyclical work programme backlog at Guildhall (£5.539 million).
• An increase to insurance premiums (£1.849 million).
• A net 3% increase to account for inflation (£1.317 million).

These increases were partially offset by a net decrease of £3.466 million, resulting from the removal of a one-off contingency, carry forward funds, and adjustments to central and capital recharges. The report, Finance Committee Estimate 2026-27 Report FINAL for TC V3, detailed that the estimate incorporates a 3% adjustment for inflation to the net local risk budgets for pay, non-pay, and income.

International Disaster Fund Allocation

The committee approved the allocation of £100,000 from the International Disaster Fund (IDF). Of this, £50,000 will go to REACT, a rapid response charity, to support their work in international humanitarian disasters. A further £25,000 was allocated to the Disaster Emergency Committee (DEC) to support its current appeal. The committee also agreed to an ongoing grant of £75,000 to REACT and £25,000 to the DEC for each financial year, subject to regular review.

The report, IDF Report - Final, noted that in Autumn 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. Since funding was awarded, REACT has been active in responding to several humanitarian incidents including Hurricane Beryl in the Caribbean, the Myanmar Earthquake, the Earthquake in Afghanistan and most recently Hurricane Melissa.

Housing Revenue Account Position

The committee discussed the Housing Revenue Account (HRA) position, noting the ongoing financial pressures. A report, 2025-26 Housing Revenue Account Position v4, highlighted that the HRA continues to face significant challenges, with low levels of revenue reserves making it vulnerable to budget overspends. Management accounts for Period 06 showed a potential £1.3 million in-year overspend, which has been reduced to a £0.05 million deficit in the latest forecast. This small deficit is being funded from brought forward reserves.

The committee noted that a separate report on options for a sustainable HRA would be presented in December.

IFM Forward Strategy to 2033

The committee supported the continuation of the six Integrated Facilities Management (IFM) contracts and approved a strategy for further consolidation. The committee agreed not to utilise the break clause in the existing contracts and to consolidate outlying facilities management contracts (BMS and Lifts) into the relevant IFM contracts to deliver financial and operational efficiencies.

The report, Finance Committee Report _09.12.2025 updated, recommended that members approve the integration of BMS and Lifts & Escalator servicing into the relevant IFM contract on the basis that this delivers financial efficiencies with a target of 10% reduction.

Bury Street Public Inquiry Consultancy Contract Contingency Funding

The committee approved a budget of £750,000 from the City Fund Contingency to cover consultancy and legal costs for the upcoming public inquiry regarding the appeal for a development at Bury Street. The funding will enable the City Corporation to secure expert witnesses and legal representation at the inquiry.

The report noted that the Environmental Impact Assessment Planning Application (24/00021/FULEIA) and Listed Building Consent Application (24/00011/LBC) at the Planning Applications Sub-Committee, contrary to officers' recommendation, were resolved not to be granted. 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

The committee noted the Annual On-Street Parking Accounts for 2024/25. The surplus arising from on-street parking activities in 2024/25 was £9.04 million. A total of £8.488 million was applied in 2024/25 to fund approved projects, leaving a surplus of £60.563 million in the On-Street Parking Reserve at 31 March 2025. This will be allocated towards funding various highway improvements and other projects over the medium term.

Chamberlain's Business Plan - Q2

The committee received an update on the progress of the Chamberlain's Department against the Business Plan during quarter two of 2025/26. The report, Chamberlains Business Plan Q2 Finance Committee, noted that the department continues to make progress on all workstreams, with the successful completion in Q2 of the Implementation of the Jaggaer Contract Management System and the appointment of an Integrated Service Provider (ISP) for the incoming Pensions Dashboards.

Risk Management

The committee considered a report on the risks faced by the Chamberlain's Department. The report, 1. Dec 25 - CHB Risk Update Report, highlighted three financial corporate risks, all of which undergo regular review, with multiple mitigation strategies implemented to prevent these or future risks from materialising. The two currently RED rated risks are:

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

Other Matters

The committee also:

• Noted the Finance Committee Forward Plan.
• Noted the public summary of the Projects and Procurement Sub-Committee meeting held on 14 October 2025.
• Agreed the risk appetite level for new corporate risk CR42 Housing Revenue Account Financials.
• Received a report on the Climate Action Strategy Finance Update to end of Q2 Year 5 (2025/2026).