The Finance Committee of the City of London Corporation met on Tuesday 2 June 2026 to discuss a range of financial matters, including a proposed extension to a highway construction and maintenance contract, and the financial update for the Climate Action Strategy. The meeting also scheduled discussions on homelessness outreach services and the Pan London Substance Misuse Programme.

Highway Construction & Maintenance Term Contract – Proposed Contract Extension

The committee was scheduled to consider a report from the Executive Director, Environment, regarding a proposed extension to the Highway Construction & Maintenance Term Contract. The current contract, held by FM Conway, was awarded in June 2022 for an initial five-year period, with an option to extend for a further five years. The report highlighted FM Conway's consistent high performance, adherence to safety and environmental standards, and effective cost management. It was noted that their rates remain competitive and below typical industry standards. The report recommended activating the five-year extension to mitigate potential cost increases associated with a full retender, citing current market volatility and cost pressures in the wider highway construction industry. The recommendation was to agree the extension of the contract with FM Conway for a further five years from June 2027, ensuring continuity of service delivery and sustained performance.

Stage 1 - City of London Street Homelessness Outreach and Support Service

A joint report from the Chamberlain and the Executive Director of Community and Children's Services was scheduled for discussion, outlining the procurement strategy for a new Street Homelessness Outreach and Support Service. The estimated contract value was up to £8.3 million over a core term of three years, with an optional extension of two further years. The proposed procurement strategy was to use the Open Procedure under the Procurement Act 2023, with evaluation criteria weighted at 55% for Quality, 15% for Responsible Procurement, and 30% for Price. This service aims to identify and support rough sleepers within the Square Mile, integrating existing outreach, temporary accommodation support, and long-term casework services under a single provider. The report highlighted a continued rise in street homelessness in the City of London over the past five years, supporting the need for a flexible and adaptable service.

Stage 1 - Pan London Substance Misuse Programme - Inpatient Detoxification and Stabilisation Beds

The committee was scheduled to consider a report from the Executive Director of Community and Children's Services concerning the procurement of inpatient detoxification provision for London. The estimated total value of the contract over three years was £7.9 million. The City of London Corporation acts as the lead commissioner for the Pan-London Substance Use Programme, funded by protected drug and alcohol funding within the Public Health Grant and local authority banked reserves. The current contract with Guy's and St Thomas' NHS Foundation Trust (GSTT) was due to end on 31 March 2026. The report recommended undertaking a competitive procurement exercise under Regulation 11 (Competitive Process) of the Health Care Services (Provider Selection Regime) Regulations 2023, with evaluation criteria weighted at 55% for Quality, 15% for Responsible Procurement, and 30% for Price. This approach was chosen due to the limited market for such specialist services and the collective decision of London partners to procure a new model of care.

Climate Action Strategy Finance Update to End of Year 5 (FY2025/2026)

A report from the Executive Director, Innovation and Growth, provided a financial update on the Climate Action Strategy (CAS) up to the end of the financial year 2025/2026. The total CAS portfolio budget from April 2021 to March 2027 was £68 million. As of 31 March 2026, 55% (£38 million) had been spent, with an additional £3.8 million committed and £11 million leveraged in grant funding. The report highlighted that investments in the City Corporation's building and open spaces estate had generated £53 million in savings (avoided and realised), indicating that the climate delivery had more than covered its costs. The latest performance data for FY2024/25 suggested the strategy was broadly on track to meet its climate goals, with portfolio delivery remaining under budget, positioning the Corporation favourably to address external factors and deliver prioritised works within the existing budget.

Update of Finance Regulations

The committee was scheduled to review and consider proposed changes to the City's Financial Regulations. These regulations set out procedures for officers managing the City's financial affairs and are maintained by the Finance Committee. The report indicated that the annual review by the Chamberlain's department, in conjunction with other relevant departments, had identified several changes to update the regulations, address gaps, and improve consistency. Notable changes were detailed in an appendix, including updates to reflect the Portfolio, Programme and Project (P3) Policy Framework, revised resource allocation procedures for Natural Environment charities, and updated guidance on procurement and payment of accounts, particularly concerning P-Card transactions and VAT invoices. A delegation was also requested for the Chamberlain to make further amendments resulting from the ongoing review of the Procurement Code.

Other Scheduled Discussions

The committee's agenda also included:

• Minutes of the Previous Meeting: To agree the public minutes and non-public summary of the meeting held on 28th April 2026.
• Finance Committee's Forward Plan: For information, outlining the committee's planned work.
• Public Updates of the Projects and Procurement Sub-Committee Meeting - 19 May 2026: For information.
• Risk Management Update Report: A report from the Chamberlain on financial corporate and departmental risks.
• Non-Public Agenda Items: Several items were scheduled for discussion in a non-public session, including non-public minutes, updates from the Projects and Procurement Sub-Committee, insurance property procurement strategy, interest rates for loan facilities, Project Sapphire updates, former Barking Power Station, City Fund disposals, delegated authority requests, and the Efficiency and Performance Working Party's forward plan.