The Markets Board of the City of London Council met on Wednesday, 22 July 2026. The meeting primarily focused on addressing significant issues with the cooling tower and condenser water supply system at Smithfield Market, which had led to operational difficulties and stock losses for tenants during a period of high temperatures. The Board also received updates on the financial performance of the markets, with a notable underspend reported for the 2025/26 financial year.

Cooling Towers and Condenser Water Supply Issues at Smithfield Market

A major concern discussed was the failure of the cooling towers and condenser water supply (CWS) system at Smithfield Market during June 2026. This was exacerbated by exceptionally high ambient temperatures, leading to elevated CWS temperatures, reduced cooling performance, and subsequent disruption to tenant refrigeration systems, resulting in stock losses.

Officers, along with CBRE and specialist contractors, implemented an intensive programme of monitoring, repairs, and operational interventions. While a temporary bypass chiller system was considered, specialist advice indicated significant operational and system risks. The focus therefore shifted to restoring the existing cooling tower infrastructure. This involved repairs to failed equipment, bringing cooling towers back to full operational capacity, enhancing temperature monitoring, and providing additional operational support. These measures, aided by a drop in ambient temperatures, successfully reduced CWS temperatures from approximately 30°C to below 20°C by July 3rd, significantly improving refrigeration performance.

The report, presented by Ben Milligan, Director of Markets, and authored by Dan Ritchie, Deputy Director of Markets & Smithfield General Manager, highlighted that the City of London Corporation is obliged under lease agreements to provide CWS temperatures between 20-24°C. Prior to the extreme weather, maintenance had focused on cleaning regimes to mitigate the impact of nearby construction work by the Museum of London.

During a meeting with the Smithfield Market Tenants' Association (SMTA), tenants expressed concerns about the prolonged high CWS temperatures and the potential for stock loss. The SMTA requested an investigation into a temporary chiller system. However, officers advised that a complete overhaul of the cooling towers would take until the end of July 2026. CBRE mobilised specialist engineers who concluded that while a temporary chiller system was technically feasible, it presented significant constraints and risks, including space limitations, extensive temporary pipework, potential scaffolding requirements, generator and fuel supply concerns, and the risk of damaging tenant equipment or causing wider system failures.

The current position is that the overhaul of the cooling towers, including the replacement of defective pumps, motors, contactors, and control equipment, is ongoing. An enhanced planned preventative maintenance regime and continued manual interventions remain the primary focus. Discussions are also underway with the Energy team and Facilities Management regarding a more permanent solution, potentially moving from an open-loop system to a closed-loop refrigeration system supplied by a contractor. The SMTA will receive daily flow temperatures to tenant plants for assurance, and the Corporation will manage any claims received in accordance with its normal processes.

Councillor Henry Pollard expressed concern about the performance of CBRE, stating, the performance has been not good. He suggested writing to CBRE to express displeasure and concern, noting that they need to up their game. Councillor Wendy Mead OBE emphasised the need to stress to other areas of the corporation where they rely on help or contracts that their input is crucial. Councillor George (unnamed in transcript) suggested a readiness program for the cooling system, similar to off-season readiness programs for parks, to prepare for inevitable hot weather. Councillor Jim (unnamed in transcript) noted that it had taken too long to resolve the issue, with a significant delay between flagging the problem and finding a resolution. He also highlighted a critical issue: they do not have a system for measuring the rate of flow of water through the pipe. They do not know how much water is coming through that tube.

Tony Lyons, Chair of the Billingsgate Market Tenants Association, thanked the damages team for their work but noted that it's still not fixed. We've had a meeting this morning, good productive meeting. It's still not fixed and certain shops are still working illegally. He expressed worry that we're only halfway through this summer, let alone next summer. Gaby Robertshaw inquired about insurance for loss of stock and business disruption, and it was confirmed that the Corporation's insurance would be claimed against, with support for tenants.

The Board agreed to delegate the challenge to CBRE to the Chairman, in consultation with the Town Clerk and Director, and to request a report back at the next meeting.

Public Updates from General Managers

Updates were received from the General Managers of Smithfield, New Spitalfields, and Billingsgate Markets.

Smithfield Market: Dan Ritchie, Deputy Markets Director and Smithfield General Manager, reported stable staffing levels, with recruitment underway for a cleaning team vacancy. Cleaning issues related to dust accumulation in service corridors and boot wash facilities were noted following an inspection by the Food Standards Agency (FSA). Temporary measures to supply cooling towers with mains water during extreme temperatures led to a substantial increase in usage. The Safe 365 score for health and safety was 71%, above the target of 65%. Tenant association priorities included issues with the chilled water supply, detailed in a separate briefing note.

Billingsgate Market: Julia Kanji, General Manager, reported stable staffing, with extensions for acting Security Manager and Sergeant roles. Recruitment is pending approval for a General Maintenance Operative. Cleaning standards remain good, with ongoing work on recycling initiatives and QR code reporting for maintenance issues. Energy consumption is being monitored, with a 39% reduction in energy consumption observed since retrofitting Sabien M2G technology to boilers. The Safe 365 score was 72%. Tenant concerns were raised regarding the impact of the proposed two-day London Marathon in 2027, with representations being made to Tower Hamlets Highways and marathon organisers.

New Spitalfields Market: Emma Beard, General Manager, reported the successful recruitment of a new Market Sergeant and ongoing work to recruit a Business Administration Apprentice. Mitie Waste and Environmental is reconfiguring its recycling area for improved efficiency. The Felix Project, an excess food charity partner, has collected over 70 tonnes of surplus produce from market tenants. The solar panel project is progressing, with completion scheduled for the end of July for the Market Hall installation. The Safe 365 performance score was 75%. Tenant association priorities include finalising and issuing new lease documentation following agreement on 2025 lease renewal terms.

Markets Revenue Outturn 2025/2026

The Board received a report from the Chamberlain detailing the revenue outturn for the 2025/26 financial year. The report showed a net underspend of £1.1 million against a budget of £2.32 million. This underspend was attributed to various factors, including savings in the City Surveyor's local and central risk budgets, and a re-phasing of projects within the Cyclical Works Programme. The Markets Operating Statement for 2025/26 indicated a combined net operating income of £1.1 million for the budgets overseen by the Board. New Spitalfields Market generated a surplus, while Billingsgate and Smithfield markets reported net expenditures.

Other Business

The Board noted the public minutes from the meeting held on 20 May 2026. There were no questions raised on matters relating to the work of the Board, and no urgent other business was brought forward. The Board then moved to exclude the public for the remainder of the meeting.