The Finance Committee of the City of London Council 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 procurement strategy for a new street homelessness outreach and support service. The committee also reviewed updates on the Climate Action Strategy's finances and the City's Financial Regulations.

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 Key Performance Indicators (KPIs), and effective cost management. It was noted that FM Conway's rates remain competitive and that a full retender at this stage would likely incur higher costs due to market volatility and mobilisation expenses. The report recommended activating the five-year extension to ensure continuity of service delivery and mitigate potential cost increases.

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 outlined the proposed 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 recommendation was to use the Open Procedure under the Procurement Act 2023, with an evaluation criteria ratio of 55% Quality, 15% Responsible Procurement, and 30% Price. This new service aims to consolidate three existing, separately contracted services into a single contract with one provider, offering a more flexible and integrated approach to supporting rough sleepers in the Square Mile. The report highlighted a significant rise in street homelessness in the City of London over the past five years, underscoring the need for an enhanced and adaptable service.

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

An update was provided on the financial status of the Climate Action Strategy (CAS) up to the end of the financial year 2025/2026. The total CAS portfolio budget is £68 million from April 2021 to March 2027. As of 31 March 2026, 55% of this budget had been spent (£38 million), with an additional £3.8 million committed and £11 million leveraged in grant funding. The report indicated that investments in the City Corporation's building and open spaces estate had generated £53 million in savings, meaning the climate delivery had already more than covered its costs. Performance data for FY2024/25 suggested the City was broadly on track to meet its climate goals, with the portfolio delivery remaining under budget, placing it in a strong financial position.

Update of Finance Regulations

The committee was scheduled to review proposed changes to the City's Financial Regulations. These regulations, last reviewed in April 2025, set out procedures for officers managing the City's financial affairs. The annual review by the Chamberlain's department, in consultation with other relevant departments, identified several recommendations for updates to address gaps and inconsistencies. Notable proposed changes included updating references to the Portfolio, Programme and Project (P3) Policy Framework, refining resource allocation procedures for Natural Environment charities, and incorporating guidance on VAT invoices for P-Card transactions. The report also requested a delegation to the Chamberlain to make further amendments resulting from the ongoing review of the Procurement Code.

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

A report detailed the proposed procurement strategy for drug and alcohol inpatient detoxification provision across London. 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 estimated total contract value over three years is £7.9 million. The current contract with Guy's and St Thomas' NHS Foundation Trust (GSTT) was due to end on 31 March 2026, necessitating a new procurement exercise. The recommendation was to use Regulation 11 (Competitive Process) of the Health Care Services (Provider Selection Regime) Regulations 2023, with an evaluation criteria ratio of 55% Quality, 15% Responsible Procurement, and 30% Price.

Other items scheduled for discussion included:

• Finance Committee's Forward Plan: An overview of the committee's planned work.
• Public Updates of the Projects and Procurement Sub-Committee Meeting - 19 May 2026: Information from a previous sub-committee meeting.
• Risk Management Update Report: A report on financial corporate and departmental risks within the Chamberlain's department.

A number of items were scheduled for discussion in a non-public session, including updates on insurance procurement, interest rates for loan facilities, and various project updates.