The Finance Committee of the City of London Council met on Tuesday 2 June 2026 to discuss a range of financial matters, including the extension of a highway construction and maintenance contract, proposals for homelessness outreach and support services, and the procurement of inpatient detoxification beds for substance misuse programmes. 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 safety and environmental standards, and effective cost management. It was recommended that the contract be extended to June 2032 to ensure continuity of service delivery and mitigate potential cost increases associated with a full retender. The recommendation included instructing the Comptroller and City Solicitor to prepare a Deed of Variation to formalise the extension.

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 service aims to consolidate three existing contracts into a single, flexible contract with an estimated value of up to £8.3 million over an initial three-year term, with an optional two-year extension. The recommended 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. The report noted a significant rise in street homelessness in the City of London over the past five years, underscoring the need for an agile and adaptable service.

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

The committee was scheduled to review a report from the Executive Director of Community and Children's Services concerning the procurement of inpatient detoxification provision for London. The Pan-London Substance Use Programme, hosted by the City of London Corporation, sought approval to undertake a competitive procurement exercise under Regulation 11 of the Health Care Services (Provider Selection Regime) Regulations 2023. The estimated total value of the contract over three years was £7.9 million, funded by protected drug and alcohol funding within the Public Health Grant and local authority banked reserves. The report highlighted the limited market for such services and the need to secure provision following the end of the current contract with Guy's and St Thomas' NHS Foundation Trust. The recommended evaluation criteria were 55% Quality, 15% Responsible Procurement, and 30% Price, with a strong emphasis on clinical quality.

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

An update was provided on the financial status of the City of London Corporation's 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 indicated that investments in the City Corporation's building and open spaces estate had generated £53 million in savings, meaning the climate delivery had more than covered its costs. The strategy was reported to be broadly on track to meet its climate goals, with the portfolio delivery remaining under budget, placing the Corporation in a strong financial position.

Update of Finance Regulations

The committee was asked to consider proposed changes to the City's Financial Regulations, which set out procedures for officers managing the City's financial affairs. The annual review, conducted by the Chamberlain's department and other relevant departments, identified several updates to address gaps and inconsistencies. Notable changes included the replacement of Corporate Project Procedures with the Portfolio, Programme and Project (P3) Policy Framework, updates to resource allocation and budget management, and revised guidance on investments, borrowing, and trust funds. A delegation was also requested for the Chamberlain to make further amendments resulting from the ongoing review of the Procurement Code.

Finance Committee's Forward Plan

The committee received a report outlining its Forward Work Plan. This included scheduled updates on various financial matters throughout the year, such as budget setting processes, medium-term financial planning, MPO dashboard reporting, and risk management updates.

Public Updates of the Projects and Procurement Sub-Committee Meeting - 19 May 2026

The committee was provided with public updates from the Projects and Procurement Sub-Committee meeting held on 19 May 2026.

Risk Management Update Report

A report from the Chamberlain provided an update on financial corporate and departmental risks. As of June 2026, there were two RED-rated risks on the Corporate Risk Register: Unsustainable Medium-Term Finances – City Fund (CR35) and Housing Revenue Account (HRA) Finances (CR42). Significant mitigation work was reported to be underway for these and other red and amber-rated risks. The report detailed the causes, events, and effects of these risks, along with current and target risk assessments and ongoing actions to address them.

The meeting also included agenda items for the approval of the minutes of the previous meeting, questions on matters relating to the work of the committee, and any other business that the Chairman considered urgent. A motion was scheduled to exclude the public from the meeting for specific non-public and confidential agenda items.