The Policy and Resources Committee of the City of London Council met on Thursday 29 January 2026 to discuss a range of financial and strategic matters. Key topics scheduled for consideration included the positioning of an overnight stay levy, the 2026/27 pay policy statement, and departmental budget estimates for the upcoming financial year.

Overnight Stay Levy Positioning

The committee was scheduled to consider the City of London Corporation's response to government consultations regarding an overnight stay levy, often referred to as a tourist tax. The report outlined that modelling suggested such a levy could generate between £10m and £20m per annum in the City of London. The proposed position was to support an implementation model that limits the impact on visitors and the hospitality sector, advocating for a 75:25 revenue split in favour of local authorities, and opposing central government direction on how the revenue should be spent. The report noted that the Mayor of London had welcomed the announcement of this levy.

London Councils Grants Scheme

A report was presented concerning the London Councils Grants Scheme, which provides funding for critical issues across the capital, including homelessness and domestic violence. The committee was asked to approve the overall expenditure for the scheme in 2026/27, set at £6.734m, and the City Corporation's contribution of £11,177. The scheme's subscriptions are calculated based on residential population, and the City Corporation's contribution for 2026/27 represented an increase from the previous year. The report highlighted that the City Corporation is responsible for issuing levies to other London local authorities for their contributions to the scheme.

2026/27 Pay Policy Statement

The committee was scheduled to review and agree the draft Pay Policy Statement for 2026/27. This statement, required annually under the Localism Act 2011, outlines the City of London Corporation's policies on the remuneration of its highest-paid staff in relation to its lowest-paid staff. The statement details policies on chief officer remuneration, recruitment, pay progression, performance-related pay, and termination of employment. It also includes information on pay structures, including the Senior Management Grade and the main pay and grading structure for other employees, and confirms the Corporation's accreditation as a Real Living Wage Employer.

Departmental 2026/27 Budget Estimates

The committee was presented with the annual submission of revenue budgets for operational services directly overseen by the committee for the 2026/27 financial year. The proposed total net expenditure for these services was £51.393m, representing a significant increase from the previous year, largely due to the inclusion of the Market Site Regeneration Programme under the City Surveyor's remit. The report detailed budget estimates for various departments, including the Deputy Town Clerk, Executive Director of Innovation & Growth, Remembrancer, Executive Director of Environment, Executive Director of Corporate Communications & External Affairs, Chief Strategy Officer, and City Surveyor.

Draft CSO Business Plan 2026-2029

The committee was asked to approve the high-level Business Plan for the Chief Strategy Officer (CSO) function for the period 2026-2029. This plan outlines how the CSO's work in strategy, business planning, corporate performance, risk management, Chief Officer Governance, and Equity, Equality, Diversity, and Inclusion (EEDI) will contribute to organisational success. The plan focuses on enhancing impact, creating a culture of resilience, fostering innovation, and ensuring effective business as usual operations. The report noted that regular progress updates would be provided to the committee.

Allocation of OSPR (Quarter 3 2025/26)

A recommendation was put forward to allocate £150,000 per annum from the On Street Parking Reserve (OSPR) to the City Gardens revenue budget, commencing in 2026/27, with a review after five years. This funding was sought to address an identified shortfall in maintaining the current staffing levels required for the essential maintenance of the City Gardens, ensuring they remain accessible and enjoyable. The report indicated that the OSPR reserve had a sufficient surplus to cover this allocation.

The meeting also included agenda items for the election of a Vice-Chair, and noted minutes from various sub-committees. Part of the meeting was scheduled to be held in private to discuss confidential matters.