The Finance Committee met on Wednesday 15 July 2026 to review the 2025/26 revenue outturn for operational services, which showed a net overspend of £771,000. The committee also discussed the 2025/26 outturn report for City Fund and City's Estate, noting significant underspends in both.

Revenue Outturn 2025/26 - Finance Committee Operational Services

The committee received a report detailing the 2025/26 revenue outturn for operational services, which revealed a net overspend of £771,000 against a budget of £70.019 million. This overspend was primarily driven by an increase in central risk budgets, which offset underspends in local risk budgets. The Chamberlain's department saw an increase in net expenditure of £2.776 million, largely due to higher insurance premiums and claims. Conversely, the Town Clerk and City Surveyor reported underspends of £770,000 and £781,000 respectively. The Remembrancer reported a significant underspend of £1.443 million, attributed to increased income from events.

Members raised concerns about the clarity of the report, particularly regarding the distinction between genuine recurring savings and delayed expenditure. Councillor Sandra Jenner highlighted the need for revenue and income to be shown separately for greater transparency. The Chamberlain, Sonia Virdee, acknowledged these points and stated that work was underway to improve the reporting, including the potential introduction of a savings tracker.

A total of £438,000 in budget carry-forwards from 2025/26 to 2026/27 was proposed, primarily for the Chamberlain's department to support ongoing workstreams and for the Director of Community and Children's Services to cover remaining security and health and safety works at the Gresham Almshouses.

2025/26 Outturn Report for City Fund and City's Estate

The committee received an update on the provisional outturn for City Fund and City's Estate for the financial year 2025/26. City Fund reported a revenue underspend of £39.6 million, an increase from the previous forecast, while City's Estate had a revenue underspend of £12.5 million. These underspends were attributed to increased income from money market funds, slippage in supplementary revenue project costs, and higher-than-forecast external dividends for City's Estate.

For capital expenditure, City Fund saw an underspend of £64.8 million against its budget, and City's Estate had an underspend of £12.2 million. These variances were largely due to slippage and reprofiling of capital programmes throughout the year. Significant slippage was noted in the Environment, Community Services, and City Surveyors departments for City Fund's capital programme. For City's Estate, the City Surveyor and Property department reported variances due to the purchase of John Stow House and reduced expenditure on corporate projects like Programme Sapphire.

Carry-forward requests totalling £1.2 million from City Fund and £1.1 million from City's Estate were noted, to fund delayed activities from 2025/26. These requests would be reviewed by the Chamberlain in consultation with the Chair and Deputy Chair of the Resource Allocation Sub-Committee (RASC).

Risk Management Update Report

The committee received an update on the Chamberlain's departmental risks, noting that two RED-rated financial risks remained on the Corporate Risk Register: CR35, Unsustainable Medium-Term Finances – City Fund, and CR42, Housing Revenue Account (HRA) Finances. Mitigation efforts were ongoing for both.

For CR35, the report highlighted the ongoing structural funding gap for City Fund, exacerbated by inflationary pressures and the impact of the Fair Funding review. Discussions with central government regarding funding for services not captured by the current formula were continuing. For CR42, the HRA finances, pressures remained acute due to the Regulator of Social Housing's C3 grading, delays in new unit delivery, and ongoing repairs and maintenance costs. Progress was being made in securing approval for an uplift to the major improvement works programme and Exceptional Financial Support.

Members also discussed CR33, Project portfolio strategic impact and/or financial value, noting that the P3 (Projects, Programmes and Portfolio) Framework was being embedded, with work underway on a Project Management Academy and the integration of finance modules. The risk of inconsistent application of internal controls across the Corporation (CHB 003) was also highlighted, with actions being taken to improve compliance, including the implementation of a three-strike rule for purchase card users.

Central Contingencies (Quarterly Report)

The committee was asked to approve the carry-forward of £1,269,000 to meet existing allocations and £496,000 in uncommitted balances for Project Reserve Contingencies from 2025/26 to 2026/27. This would ensure sufficient contingency provision for the upcoming financial year. The report detailed the year-end position of 2025/26 contingencies and the uncommitted balances for 2026/27.

Questions on Matters Relating to the Work of the Committee

Councillor Steve Goodman OBE raised questions regarding the Corporation's relationship with e-bike providers in the city and whether lessons could be learned from other London boroughs. He questioned whether the Corporation was receiving sufficient financial recompense for the benefits these providers accrued from using public infrastructure. The Chamberlain, Caroline Al-Beyerty, confirmed that the memorandum of understanding with e-bike providers was under review and negotiation and would be presented to the Streets and Walkways subcommittee of the Planning and Transportation Committee. The committee agreed to seek a reply on the financial terms of these arrangements.