The Finance Committee met on Tuesday 28 April 2026 to discuss the City Fund budget, City's Estate budget, and the GLA sub-regional sector hubs programme. Key decisions included approving budget envelopes for both City Fund and City's Estate, and authorising the acceptance of grant funding for the sector hubs programme.

City Fund Budget and Medium-Term Financial Strategy

The Committee considered the 2026/27 Budget and Medium-Term Financial Plan for City Fund. While welcoming the Government's extension of transitional relief arrangements, members expressed caution about the need for long-term certainty. Concerns were raised that the proposed savings targets were too modest, with £13 million seen as a starting point, and further options for savings were requested. Members also urged caution regarding tax increases, particularly for small and medium-sized businesses, noting that the City was becoming less competitive. The impact of Council Tax increases on the small resident population was also discussed, with a query about the future status of the second home council tax premium.

The Committee endorsed recommendations for onward approval to the Court of Common Council, including:

• Approving overall budget envelopes for City Fund, with budget uplifts for inflation, audit fees, and grants to the Museum of London and the London Symphony Orchestra.
• Identifying a minimum of £13 million in cashable savings by 2027/28, with further savings required in future years.
• Approving the application of transitional funding to address funding gaps for national, pan-London, and day-time-population services.
• Approving the overall financial framework and revised Medium-Term Financial Strategy, including a City Fund Net Budget Requirement of £214.6 million.

Further recommendations included additional savings requirements of £18 million by 2028/29 and £23 million annually by 2029/30, and securing additional government grants. The use of reserves, including Income & Expenditure reserves and Transitional Funding Reserves, was also approved. The Committee agreed to an increase in Council Tax by 2% for the social care precept and 2.99% for core Council Tax, resulting in a 4.99% increase for Band D properties. The continuation of a fully funded means-tested council tax reduction scheme and discounts for care leavers were also approved. Premiums on long-term empty properties and second homes were maintained.

The Committee also approved an increase in the Standard City Business Rate Premium from 0.022p to 0.032p, and the Small Business City Premium from 0.020p to 0.029p. The application of the Business Rates Premium to include services for the daily workforce population was approved, as was a discretionary discount for qualifying nursery schools. An increase of 4.8% on rents for social tenants within the Housing Revenue Account was approved.

Capital expenditure approvals included the Capital Strategy, capital budgets for City Fund, and the Prudential Code indicators. Authority was delegated to the Chamberlain to determine the final financing of capital and supplementary revenue project expenditure. The Treasury Management Strategy Statement and Annual Investment Strategy for 2026/27 were approved, along with an authorised limit for external debt of £356.4 million.

City's Estate Budget and Medium-Term Financial Strategy

The Committee considered the City's Estate Budget and Medium-Term Financial Strategy. Initial comments highlighted the need for a 20-year long-term plan, the importance of implementing the Corporation's Charity Review recommendations, and the aim to avoid launching new major capital projects for at least 15 years.

The Committee endorsed recommendations for onward approval to the Court of Common Council, including:

• Approving the overall budget envelope for City's Estate 2026/27 revenue budgets, with budget uplifts for inflation, audit fees, and concierge services.
• Approving one-off pressures and opportunities for transformation in 2026/27, funded from forecast carry forward underspends.
• Noting the reset forward capital programme, with new capital bids restricted to £5 million for 2026/27 and continuing at £2 million per annum thereafter.
• Approving the overall financial framework and the revised 5-year Financial Strategy.
• Approving the Capital and Supplementary Revenue Project Budgets for City's Estate, amounting to £323.2 million over five years.
• Approving the principle that no new major capital projects should be approved for at least the next 9 years, unless savings or alternative funding sources are found.

GLA Sub-Regional Sector Hubs Programme – Grant Receipts

The Committee approved the acceptance of up to £337,500 from the Greater London Authority (GLA) in each of the financial years 2026/27, 2027/28, and 2028/29. This funding will support Central London Forward (CLF) in delivering the central London sector hub, focusing on financial and professional services, life sciences, the visitor economy, and construction. Authorisation was also given for the City's Solicitors to sign all related agreements. CLF, a partnership of 11 central London local authorities and the City of London Corporation, acts as the contracting body for CLF and promotes inclusive and sustainable growth in central London through employment and training programmes.

Update - Improving Compliance and the Proper Use of Corporate P-Cards

The Committee received an update on actions being taken to address non-compliance with financial controls on the use of Corporate P-Cards. Following an Internal Audit report highlighting significant issues, a three strikes and you're out policy has been implemented, with cardholders receiving a strike for each monthly statement period they fail to submit transactions by the deadline. Regular and high-volume offenders have been personally contacted, and a general email has been sent to all P-Card holders outlining the new controls and sanctions. Further controls being explored include enhanced management reports from Lloyds Bank and visibility of unsubmitted transactions for approvers. The report noted that increased compliance would also enable the Corporation to recover VAT in full.

Chamberlain's Business Plan End of Year 2025/26 Update

The Committee received an overview of the progress made by the Chamberlain's Department against its 2025/26 Business Plan priorities. Key achievements included the successful implementation of the P3 Framework and the go-live of Core HR as part of Programme SAPphire. Statutory, regulatory, and assurance-led programmes remained on track. A small number of complex workstreams, including income generation, SAP Finance modules delivery, the Chart of Accounts review, and the Financial Improvement Transformation Strategy, remain in progress and are subject to replanning and strengthened oversight.

Finance Committee's Forward Plan

The Committee endorsed an initiative to decrease the number of Finance Committee meetings from eight to seven across 2026/27, as part of efforts to reduce costs in the Town Clerk's Department.

Appointments to Committees

The Committee was asked to make appointments to various sub-committees and other City Corporation positions for the 2026/27 civic year, including the Projects and Procurement Sub-Committee and the Efficiency and Performance Review Group.

Budget Monitoring Q3

The Committee considered the forecast position for the 2025/26 financial year as at the end of Quarter 3. In response to a query, the Executive Director of Environment confirmed that the City Corporation would revive its delayed plan to dispose of the West Ham Park nursery site, following a decision by the London Borough of Newham to amend its Local Plan. An options appraisal for the future of the site is being undertaken by the West Ham Park Committee. The Committee approved the extension of limiting recharges to the HRA and approved that potential deficits on West Ham Park and legal costs incurred by the Executive Director of Environmental Services be met through allocations from the City Estate's Finance Committee Contingency.

Chamberlain's Departmental Risk Management Update

The Committee received an update on financial corporate and departmental risks within the Chamberlain's department. Two RED-rated risks were identified on the Corporate Risk Register: CR35 Unsustainable Medium-Term Finances – City Fund, and CR42 Housing Revenue Account (HRA) Finances. Mitigation measures for these risks include engaging with government departments, delivering savings programmes, income generation, strengthened capital oversight, and close monitoring of capital schemes and repairs.

Central Contingencies

The Committee received information regarding the current balance of the Finance Committee Contingency Funds for the current year.

Any Other Business

The Chairman thanked Daniel Peattie, Assistant Director (Strategic Finance) in the Chamberlain's Department, for his contributions as he was departing the Corporation for a new role.