AGENDA

Meeting Budget Monitoring Sub-Committee Date Thursday 23 March 2017 Time 2.00 pm Place Committee Room 5, City Hall, The Queen's Walk, , SE1 2AA Copies of the reports and any attachments may be found at www.london.gov.uk/mayor-assembly/london-assembly/budget-monitoring

Most meetings of the and its Committees are webcast live at www.london.gov.uk/mayor-assembly/london-assembly/webcasts where you can also view past meetings.

Members of the Committee AM (Chairman) (Deputy Chair) AM Dr AM

A meeting of the Committee has been called by the Chairman of the Sub-Committee to deal with the business listed below. Mark Roberts, Executive Director of Secretariat Wednesday 15 March 2017

Further Information If you have questions, would like further information about the meeting or require special facilities please contact: Shumus Mattar, Telephone: 020 7983 4011; email: [email protected]; Minicom: 020 7983 4458.

For media enquiries please contact Sonia Labboun; telephone: 020 7983 5769; email: [email protected] If you have any questions about individual items please contact the author whose details are at the end of the report.

This meeting will be open to the public, except for where exempt information is being discussed as noted on the agenda. A guide for the press and public on attending and reporting meetings of local government bodies, including the use of film, photography, social media and other means is available at www.london.gov.uk/sites/default/files/Openness-in-Meetings.pdf.

There is access for disabled people, and induction loops are available. There is limited underground parking for orange and blue badge holders, which will be allocated on a first-come first-served basis. Please contact Facilities Management on 020 7983 4750 in advance if you require a parking space or further information.

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If you, or someone you know, needs a copy of the agenda, minutes or reports in large print or Braille, audio, or in another language, then please call us on 020 7983 4100 or email [email protected].

Certificate Number: FS 80233

Agenda Budget Monitoring Sub-Committee Thursday 23 March 2017

1 Apologies for Absence and Chairman's Announcements

To receive any apologies for absence and any announcements from the Chairman.

2 Declarations of Interests (Pages 1 - 4)

The Sub-Committee is recommended to:

(a) Note the list of offices held by Assembly Members, as set out in the tables at Agenda Item 2, as disclosable pecuniary interests;

(b) Note the declaration by any Member(s) of any disclosable pecuniary interests in specific items listed on the agenda and the necessary action taken by the Member(s) regarding withdrawal following such declaration(s); and

(c) Note the declaration by any Member(s) of any other interests deemed to be relevant (including any interests arising from gifts and hospitality received which are not at the time of the meeting reflected on the Authority’s register of gifts and hospitality, and noting also the advice from the GLA’s Monitoring Officer set out at Agenda Item 2) and any necessary action taken by the Member(s) following such declaration(s).

3 Minutes (Pages 5 - 34)

The Sub-Committee is recommended to confirm the minutes of the meeting of the Budget Monitoring Sub-Committee held on 14 December 2016 to be signed by the Chairman as a correct record.

The appendices to the minutes set out on pages 9 to 30 are attached for Members and officers only but are available from the following area of the GLA’s website: www.london.gov.uk/mayor-assembly/london-assembly/budget-monitoring

4 Summary List of Actions (Pages 35 - 36)

Report of the Executive Director of Secretariat Contact: Shumus Mattar; [email protected]; 020 7983 4011

The Sub-Committee is recommended to note the completed and outstanding actions arising from previous meetings of the Budget Monitoring Sub-Committee.

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5 Quarter 3, 2016/17 GLA Group Monitoring Reports (Pages 37 - 186)

Report of the Executive Director of Secretariat Contact: Shumus Mattar; [email protected]; 020 7983 4011

The Sub-Committee is recommended to note the monitoring report for Quarter 3 of 2016/17.

The appendices to the report set out on pages 39 to 140 are attached for Members and officers only but are available from the following area of the GLA’s website: www.london.gov.uk/mayor-assembly/london-assembly/budget-monitoring

6 OPDC (Pages 187 - 188)

Report of the Executive Director of Secretariat Contact: Will King; [email protected]; 020 7983 5596

The Sub-Committee is recommended to note the report, put questions to the invited guests on the OPDC, financial performance of future plans and note the subsequent discussion.

7 Mayor's Decision Lists: 1 December 2016 to 6 February 2017 (Pages 189 - 224)

Report of the Executive Director of Secretariat Contact: Shumus Mattar, [email protected], 020 7983 4011

The Sub-Committee is recommended to discuss any issues arising in respect of the Mayor’s Decision Lists for the period 1 December 2016 to 6 February 2017 (previously made available as background papers to the relevant Mayor's Report to the Assembly), and decide whether to refer any issues to the Budget and Performance Committee for detailed consideration.

The Mayor’s Decision Lists set out on pages 145 to 178 are attached for Members and officers only but are available from the following area of the GLA’s website: www.london.gov.uk/mayor-assembly/london-assembly/budget-monitoring

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8 Payments over £250 (Pages 225 - 242)

Report of the Executive Director of Resources Contact: Ashraf Ali, [email protected], 020 7983 4652

The Sub-Committee is recommended to note the report.

The appendices to the report set out on pages 181 to 195 are attached for Members and officers only but are available from the following area of the GLA’s website: www.london.gov.uk/mayor-assembly/london-assembly/budget-monitoring

9 Date of Next Meeting

Subject to confirmation at the Annual Meeting of the Assembly on 3 May 2017, the next meeting of the Budget Monitoring Sub-Committee is scheduled for Wednesday 12 July 2017 at 2.00pm in Committee Room 4.

10 Any Other Business the Chairman Considers Urgent

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This page is intentionally left blank Agenda Item 2

Subject: Declarations of Interests

Report to: Budget Monitoring Sub-Committee

Report of: Executive Director of Secretariat Date: 23 March 2017

This report will be considered in public

1. Summary

1.1 This report sets out details of offices held by Assembly Members for noting as disclosable pecuniary interests and requires additional relevant declarations relating to disclosable pecuniary interests, and gifts and hospitality to be made.

2. Recommendations

2.1 That the list of offices held by Assembly Members, as set out in the table below, be noted as disclosable pecuniary interests1;

2.2 That the declaration by any Member(s) of any disclosable pecuniary interests in specific items listed on the agenda and the necessary action taken by the Member(s) regarding withdrawal following such declaration(s) be noted; and

2.3 That the declaration by any Member(s) of any other interests deemed to be relevant (including any interests arising from gifts and hospitality received which are not at the time of the meeting reflected on the Authority’s register of gifts and hospitality, and noting also the advice from the GLA’s Monitoring Officer set out at below) and any necessary action taken by the Member(s) following such declaration(s) be noted.

3. Issues for Consideration

3.1 Relevant offices held by Assembly Members are listed in the table overleaf:

1 The Monitoring Officer advises that: Paragraph 10 of the Code of Conduct will only preclude a Member from participating in any matter to be considered or being considered at, for example, a meeting of the Assembly, where the Member has a direct Disclosable Pecuniary Interest in that particular matter. The effect of this is that the ‘matter to be considered, or being considered’ must be about the Member’s interest. So, by way of example, if an Assembly Member is also a councillor of London Borough X, that Assembly Member will be precluded from participating in an Assembly meeting where the Assembly is to consider a matter about the Member’s role / employment as a councillor of London Borough X; the Member will not be precluded from participating in a meeting where the Assembly is to consider a matter about an activity or decision of London Borough X.

City Hall, The Queen’s Walk, London SE1 2AA Enquiries: 020 7983 4100 minicom: 020 7983 4458 www.london.gov.uk v2/2016 Page 1

Member Interest AM Member, LFEPA; Member, LB Richmond OBE AM Committee of the Regions Gareth Bacon AM Member, LFEPA; Member, LB Bexley AM Shaun Bailey AM Sian Berry AM Member, LB Camden AM Congress of Local and Regional Authorities (Council of Europe) AM Member, LFEPA; Member, LB Wandsworth AM AM Member, LB Newham AM Member, City of Westminster AM Member, LFEPA Len Duvall AM AM Member, LFEPA; Member, LB Lambeth AM AM Member, LFEPA Joanne McCartney AM Deputy Mayor Steve O’Connell AM Member, LB Croydon MBE AM AM Member, LB Redbridge AM Member, LFEPA; Member, LB Islington Dr Onkar Sahota AM AM Fiona Twycross AM Chair, LFEPA; Chair of the London Local Resilience Forum Peter Whittle AM

[Note: LB - London Borough; LFEPA - London Fire and Emergency Planning Authority. The appointments to LFEPA reflected above take effect as from 17 June 2016.]

3.2 Paragraph 10 of the GLA’s Code of Conduct, which reflects the relevant provisions of the Localism Act 2011, provides that:

- where an Assembly Member has a Disclosable Pecuniary Interest in any matter to be considered or being considered or at

(i) a meeting of the Assembly and any of its committees or sub-committees; or

(ii) any formal meeting held by the Mayor in connection with the exercise of the Authority’s functions

- they must disclose that interest to the meeting (or, if it is a sensitive interest, disclose the fact that they have a sensitive interest to the meeting); and

- must not (i) participate, or participate any further, in any discussion of the matter at the meeting; or (ii) participate in any vote, or further vote, taken on the matter at the meeting

UNLESS

- they have obtained a dispensation from the GLA’s Monitoring Officer (in accordance with section 2 of the Procedure for registration and declarations of interests, gifts and hospitality – Appendix 5 to the Code).

3.3 Failure to comply with the above requirements, without reasonable excuse, is a criminal offence; as is knowingly or recklessly providing information about your interests that is false or misleading. Page 2

3.4 In addition, the Monitoring Officer has advised Assembly Members to continue to apply the test that was previously applied to help determine whether a pecuniary / prejudicial interest was arising - namely, that Members rely on a reasonable estimation of whether a member of the public, with knowledge of the relevant facts, could, with justification, regard the matter as so significant that it would be likely to prejudice the Member’s judgement of the public interest.

3.5 Members should then exercise their judgement as to whether or not, in view of their interests and the interests of others close to them, they should participate in any given discussions and/or decisions business of within and by the GLA. It remains the responsibility of individual Members to make further declarations about their actual or apparent interests at formal meetings noting also that a Member’s failure to disclose relevant interest(s) has become a potential criminal offence.

3.6 Members are also required, where considering a matter which relates to or is likely to affect a person from whom they have received a gift or hospitality with an estimated value of at least £25 within the previous three years or from the date of election to the London Assembly, whichever is the later, to disclose the existence and nature of that interest at any meeting of the Authority which they attend at which that business is considered.

3.7 The obligation to declare any gift or hospitality at a meeting is discharged, subject to the proviso set out below, by registering gifts and hospitality received on the Authority’s on-line database. The on- line database may be viewed here: http://www.london.gov.uk/mayor-assembly/gifts-and-hospitality.

3.8 If any gift or hospitality received by a Member is not set out on the on-line database at the time of the meeting, and under consideration is a matter which relates to or is likely to affect a person from whom a Member has received a gift or hospitality with an estimated value of at least £25, Members are asked to disclose these at the meeting, either at the declarations of interest agenda item or when the interest becomes apparent.

3.9 It is for Members to decide, in light of the particular circumstances, whether their receipt of a gift or hospitality, could, on a reasonable estimation of a member of the public with knowledge of the relevant facts, with justification, be regarded as so significant that it would be likely to prejudice the Member’s judgement of the public interest. Where receipt of a gift or hospitality could be so regarded, the Member must exercise their judgement as to whether or not, they should participate in any given discussions and/or decisions business of within and by the GLA.

4. Legal Implications

4.1 The legal implications are as set out in the body of this report.

5. Financial Implications

5.1 There are no financial implications arising directly from this report.

Local Government (Access to Information) Act 1985 List of Background Papers: None Contact Officer: Hannah Cleary, Principal Committee Manager Telephone: 020 7983 4415 E-mail: [email protected]

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Page 4 Agenda Item 3

MINUTES

Meeting: Budget Monitoring Sub- Committee Date: Wednesday 14 December 2016 Time: 2.30 pm Place: Committee Room 4, City Hall, The Queen's Walk, London, SE1 2AA

Copies of the minutes may be found at: http://www.london.gov.uk/mayor-assembly/london-assembly/budget-monitoring

Present:

Gareth Bacon AM (Chairman) Len Duvall AM (Deputy Chair) Dr Onkar Sahota AM

1 Apologies for Absence and Chairman's Announcements (Item 1)

1.1 There were no apologies for absence.

2 Declarations of Interests (Item 2)

2.1 Resolved:

That the list of offices held by Assembly Members, as set out in the table at Agenda Item 2, be noted as disclosable pecuniary interests.

City Hall, The Queen’s Walk, London SE1 2AA Enquiries: 020 7983 4100 minicom: 020 7983 4458 www.london.gov.uk Page 5 Authority Budget Monitoring Sub-Committee Wednesday 14 December 2016

3 Minutes (Item 3)

3.1 Resolved:

That the minutes of the Budget Monitoring Sub-Committee meeting held on 3 November 2016 be signed by the Chairman as a correct record.

4 Summary List of Actions (Item 4)

4.1 The Committee received the report of the Executive Director of Secretariat.

4.2 Resolved:

That the actions arising from previous meetings of the Budget Monitoring Sub- Committee be noted.

5 Quarter 2, 2016/17 GLA Group Monitoring Reports (Item 5)

5.1 The Committee received the report of the Executive Director of Secretariat.

5.2 Resolved:

That the monitoring reports for Quarter 2 of 2016/17 be noted.

6 LLDC and the London Stadium (Item 6)

6.1 The Committee received the report of the Executive Director of Secretariat as a background to putting questions on the London Legacy Development Corporation (LLDC) and the London Stadium to the following invited guests:  David Goldstone, Chief Executive, LLDC; and  Gerry Murphy, Executive Director of Finance and Corporate Services, LLDC

6.2 A transcript of the discussion is attached at Appendix 1.

6.3 During the course of the discussion written confirmation of the proportion of land at the Olympic Park that has detailed planning permission and outline planning permission was requested from the guests.

6.4 Resolved:

That the report and discussion be noted.

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Page 6 Budget Monitoring Sub-Committee Wednesday 14 December 2016

7 Mayor's Decision Lists: 4 October 2016 to 30 November 2016 (Item 7)

7.1 The Committee received the report of the Executive Director of Secretariat.

7.2 Resolved:

That the Mayor’s Decision Lists for the period 4 October 2016 to 30 November 2016 be noted.

8 Payments over £250 (Item 8)

8.1 The Sub-Committee received the report of the Executive Director of Resources.

8.2 Resolved:

That the report be noted.

9 Date of Next Meeting (Item 9)

9.1 The next meeting of the Sub-Committee was scheduled for 23 March 2017 at 2pm in Committee Room 5.

10 Any Other Business the Chairman Considers Urgent (Item 10)

10.1 There were no items of business the Chairman considered urgent.

11 Close of Meeting (Item 11 )

11.1 The meeting ended at 3.50pm

Chairman Date

Contact Officer: Shumus Mattar, Telephone: 020 7983 4011; email: [email protected]; Minicom: 020 7983 4458.

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Page 8

Appendix 1

Budget Monitoring Sub-Committee – 14 December 2016

Transcript of Item 6 – LLDC and the London Stadium

Gareth Bacon AM (Chairman): Item 6 is the main item of business today, which is the London Legacy Development Corporation (LLDC) and the London Stadium. I would like to welcome our guests, David Goldstone CBE, who is the Chief Executive of the LLDC, and Gerry Murphy, the Executive Director of Finance and Corporate Services at the LLDC.

It is a subject that seems to be in the news all the time, the LLDC, and obviously we will cover elements like the stadium and various other things a bit later on. In the first question, though, I am going to focus a bit on the financial performance in Q2. I will take revenue first, and then we will come on to capital. Will the LLDC ever become financially sustainable in revenue terms?

David Goldstone CBE (Chief Executive, LLDC): I will hand over to Gerry in a moment to pick up some of the detail on that. Yes, the long-term objective always has been, as you know, to become financially self- sustaining, and I think we are on the right track to do that, but it has always been a long-term aspiration. I do not think it was ever anticipated to be achieved in the short term. The trend we are moving on is of our income growing and our cost base coming down and the gap between the two narrowing as we move in that right direction. There is effectively a first objective to get so that we are sustainably within the grant level that is now planned into the Greater London Authority (GLA) budgets, and then to move forward from there, and I think we are on a trajectory to do that. Yes, absolutely, the long-term aspiration has always been to make the park financially self-sustaining. That remains the objective.

Gareth Bacon AM (Chairman): That was supposed to happen sooner rather than later, though, was it not? You said “long-term” two or three times in that answer. It has been reprofiled in the last year or so, but it was going to be happening rather sooner than you just implied, was it not?

David Goldstone CBE (Chief Executive, LLDC): I do not think us being financially self-sustaining has ever been short-term. I am not sure what you have in mind. No, I do not think it has.

Gerry Murphy (Executive Director of Finance and Corporate Services, LLDC): The long-term financial sustainability is based on the collection of the fixed estate charge, which grows as the park is developed out. That is a relatively long-term proposition. Over the next ten to 15 years, that grows to significant levels: £10 million to £12 million per annum. It is at that time we would expect that that, along with any other rental income, would be a sustaining proposition. That would depend a lot on the cost base of the organisation or the type of organisation at that time the LLDC will become.

David Goldstone CBE (Chief Executive, LLDC): The GLA budgets have had significant grants into our budget for the last few years, anticipated always for a number of years ahead. I do not think that has changed.

Gareth Bacon AM (Chairman): Yes, but that was due to taper and then stop.

David Goldstone CBE (Chief Executive, LLDC): Yes, eventually.

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Gareth Bacon AM (Chairman): Yes, but that has been changed and put into the almost dim and distant future, has it not? If I were to ask you for a date of when you think the LLDC will be self-sustaining, what would you say?

David Goldstone CBE (Chief Executive, LLDC): As Gerry [Murphy] said, fixed estate charge coming through is long-term. It is 15 to 20 years away, I think. We are in the 2030s probably, but I do not think I am saying anything new there. As some of the future development sites that have not started being developed yet get developed in future and as those get fully developed and residents move into those, the income builds up. It was always long-term.

Gareth Bacon AM (Chairman): What assurances has the Mayor given you around future funding for the LLDC?

David Goldstone CBE (Chief Executive, LLDC): In that respect, we are much the same as other functional bodies, that we annually agree a budget on the profile of the number of years that we are looking at. You will know obviously what is already profiled into existing budgets. There is no long-term guarantee different to other organisations. We manage within the budget profile set for the period that the Assembly and the Mayor are looking at at each budget round.

Gerry Murphy (Executive Director of Finance and Corporate Services, LLDC): Yes. I think we will be returning to discuss in more detail the proposed budgets, and we do have a short-term deficit against funding position that we have been managing year by year, very transparently, with the GLA. I think that will probably be a subject for discussion at a future meeting.

David Goldstone CBE (Chief Executive, LLDC): In terms of the Mayor and the administration and the Assembly, there is the fact that this was a long-term programme and that there was investment for a period, there are long-term capital receipts that come through and, as Gerry said, the fixed estate charge provides a revenue stream. That is an investment that successive mayors have backed. I do not think anything has changed on that.

Gareth Bacon AM (Chairman): OK. Some of the various different parts of the park like the slide and the tower - you touched on it before the meeting started - have brought the tower into surplus for 2016/17, which is something we are very pleased to see. By how much, if I may ask?

David Goldstone CBE (Chief Executive, LLDC): The introduction of the slide has turned what we have talked about in the past, an attraction that was costing us money and needed subsidy. This year we are looking at a surplus somewhere between £100,000 and £150,000, but the slide only opened in June [2016] so it is not a full year. Sustainably, long term, we expect it to generate surpluses year on year and, therefore, to reverse the previous pattern of it being something that required subsidy. The slide itself has been a great success in that respect, turning the whole Orbit attraction around from something requiring subsidy to one generating a surplus, and it has been a successful visitor attraction, adding to what else is in the park and adding to people’s range of things they can do if they come for a day out or for the weekend in the area. They can use all the other facilities and there is another attraction to use. I think it has made a real difference.

Interestingly, the number of people using it, just going up the Orbit without going down the slide but just for the views and the experience and to see the sculpture, have increased as well since the slide opened, so it has had an all-around beneficial effect.

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Gareth Bacon AM (Chairman): That is good. The Aquatics Centre was forecast to lose £2.9 million but only lost £1.8 million. In a way, that is positive. Do you anticipate a time when the Aquatics Centre will break even and not require subsidy going forward?

David Goldstone CBE (Chief Executive, LLDC): Publicly-owned swimming pools - it is a fantastic and globally iconic feature, but at heart it is a swimming facility – which traditionally have required subsidy. It has been a great success in terms of visitor numbers, and that is still growing. We have had over 2 million visitors through in the two-and-a-bit years since it reopened, so we are really pleased with the performance.

It is bearing in mind that the pricing is set to be comparable to other local facilities, and that is something we are proud of and was a commitment that was made a number of years ago in relation to the Games facilities in legacy, but it does mean it is priced comparable to other local swimming facilities, where we have an iconic and world-class venue in itself. Again, a bit like my comments about the long-term sustainability, I do not think we have ever anticipated the Aquatics Centre would itself cover its own costs. It is part of the package of facilities on the park, but together, over time, we are expecting that with the fixed estate charges coming in, which can effectively provide the revenue to provide that subsidy, the whole can be sustainable. It is a package of visitor attractions that will bring people [in], as well as the businesses and the house-builders and the homes, to make the whole park sustainable in all. We have never necessarily required each individual asset to try to achieve that status.

Gareth Bacon AM (Chairman): On the capital side, we see the forecast income for 2016/17 or the budgeted income for 2016/17 was due to be £61.6 million, and the current forecast indicates that you are going to be short of that by about two thirds. What is the reason for that?

Gerry Murphy (Executive Director of Finance and Corporate Services, LLDC): Sorry, I just have a breakdown of that. £27 million is a delay on the Chobham receipt, so this is our development at Chobham Manor. At the time of budgeting, which would have been this time or earlier last year, we were assuming that the rest of phase 1 would complete within the year. We now think that will take longer.

Gareth Bacon AM (Chairman): What is the reason for that?

Gerry Murphy (Executive Director of Finance and Corporate Services, LLDC): Taylor Wimpey has taken --

David Goldstone CBE (Chief Executive, LLDC): It is delays with the contractor in terms of completions. Some of the aspects of the design that went through planning initially for an incredibly high-end, sustainable and very innovative design have proved challenging to deliver through their supply chain. The important point with this is it is a timing difference, not a loss of receipt, first of all. They are slipping into the early part of the next financial year, not lost altogether. The completion of the phase 1 homes is going on. There are around 60-odd complete now, and we expect that to get beyond 100 by the end of the financial year, but that is a bit behind which is why that income is later. The phase 2 works have now started on site as well, and what we have tried to do with Taylor Wimpey and London and Quadrant, the joint developers, is to resolve for phase 2 the issues that have caused delay in phase 1. I have had a series of meetings with the senior teams from both organisations to say, “What caused those delays? What are the underlying reasons, and what can we do to fix them?” We keep all the key features that were crucial to them winning the bid and the sustainability standards, but ease some of the things that have caused delay during this project during the first phase so that the future phases can roll out more efficiently. The good progress that they are making now on phase 2, which they have on site, on time - it was due in September and they did it in September, and the planning has gone

Page 11 through - is showing that that is working well. We have had delays on phase 1 slipping into the new year, but for the future phases we are more confident.

Gareth Bacon AM (Chairman): On phase 1, when do you expect to make up the ground? By how much is it going to delay?

Gerry Murphy (Executive Director of Finance and Corporate Services, LLDC): By quarter 1 next financial year, and in fact we have taken a fairly prudent approach to that.

Gareth Bacon AM (Chairman): By the end of June 2017?

Gerry Murphy (Executive Director of Finance and Corporate Services, LLDC): Yes. We would expect to have received all of the balance of phase 1 money. It may come in by March, but we have been quite prudent about that forecast.

David Goldstone CBE (Chief Executive, LLDC): That means houses complete, first of all, for the local people, and therefore the money follows the completions.

Gerry Murphy (Executive Director of Finance and Corporate Services, LLDC): Phase 1 is all presold, so there is no market risk on those receipts.

Gareth Bacon AM (Chairman): Of the £61.6 million that was budgeted for in 2016/17, we are missing around about £40 million of that.

Gerry Murphy (Executive Director of Finance and Corporate Services, LLDC): Yes.

Gareth Bacon AM (Chairman): That £40 million: we will have taken that in by the end of June, will we?

Gerry Murphy (Executive Director of Finance and Corporate Services, LLDC): That is one part. About £13 million or £14 million of that reduction in revenue relates to the Cultural and Education District, where we had been intending to do the work on one of the university’s phase 2 and 3 design, and they are actually doing the work.

Gareth Bacon AM (Chairman): That is University College London East (UCLE), is it not?

Gerry Murphy (Executive Director of Finance and Corporate Services, LLDC): Yes.

Gareth Bacon AM (Chairman): We are talking about what used to be known as the Olympicopolis, are we not?

Gerry Murphy (Executive Director of Finance and Corporate Services, LLDC): Yes.

Gareth Bacon AM (Chairman): See, I can still say the word.

Gerry Murphy (Executive Director of Finance and Corporate Services, LLDC): The point here is that in the original plans, we were going to do the work for UCLE’s design at each stages, and they were going to reimburse part of the cost to us, so we would have had a capital income line. In practice, they have taken it on

Page 12 and they are incurring the costs themselves, which means our costs are lower and our income is lower by equal amounts. There is no net effect from that; it is just a transfer of responsibility.

Gareth Bacon AM (Chairman): Looking forward into the future, how much of the land bank is left unaccounted for on the Olympic Park? Is everything now under planning? Is there anything left that you can pull out?

Gerry Murphy (Executive Director of Finance and Corporate Services, LLDC): Do you mean developable?

Gareth Bacon AM (Chairman): Yes.

Gerry Murphy (Executive Director of Finance and Corporate Services, LLDC): I think it is all allocated. The Legacy Communities Scheme planning permission from 2012 identified the planning designation for the whole park, so in that sense it is all spoken for.

Len Duvall AM (Deputy Chair): Spoken for as in that it is for disposal, or have you disposed of it?

David Goldstone CBE (Chief Executive, LLDC): No. Sorry. It is spoken for, as in its intended long-term use is identified. We can, as we have to introduce the Cultural and Education District - erstwhile Olympicopolis - go back and reopen that and change it and say, “Actually, we had planned to have housing there, and now we are going to have universities and cultural facilities”. It is an outline planning permission, but it did identify which areas stay as parkland and public open space and which areas are developable for housing and other development.

Gareth Bacon AM (Chairman): What we are talking about is a planning brief and planning permission. They are different things. You are saying the planning brief has been applied across the whole park. That is fine.

David Goldstone CBE (Chief Executive, LLDC): There is planning permission across the whole park.

Gerry Murphy (Executive Director of Finance and Corporate Services, LLDC): An outline.

David Goldstone CBE (Chief Executive, LLDC): Outline planning permission for the whole park.

Gareth Bacon AM (Chairman): Yes, but we do not have specific, detailed planning permissions across the park at this point, so you can still change it.

David Goldstone CBE (Chief Executive, LLDC): Correct, for the sites that do not already have it.

Gareth Bacon AM (Chairman): Yes, indeed. It is my fault for not asking a sufficiently precise question. How much of the park does not have detailed planning permission on it at the moment?

David Goldstone CBE (Chief Executive, LLDC): That is a very precise question to which I do not think I can give you the answer off the top of my head.

Gareth Bacon AM (Chairman): A percentage?

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David Goldstone CBE (Chief Executive, LLDC): Let me come at it this way. The two sites that will make up the Cultural and Education District, so the Stratford Waterfront, a long, thin site opposite the Aquatics Centre, and the site by the orbit where UCLE will be based all have the outline permission. The housing sites, basically for East Wick and Sweetwater, have outline permission, and the first part of that now has detail, and it will go and get detail in phases, like Chobham Manor has, as the developer brings those forward. Chobham Manor is going through the same process. Most of the park will stay under the existing outline because it is parkland. I could find out a proportion for you, but effectively it is the developable sites that have developers who will bring them forward for detailed planning site by site. At the moment, Here East has planning detail, Chobham Manor phase 1, and the first stage of East Wick and Sweetwater. The venues clearly had from their original development. It is not really a very precise answer, but it is plot by plot, in effect.

Gareth Bacon AM (Chairman): I will come to Len [Duvall AM] in just a second. Just while it is in my memory because you have just made the offer, could we take you up on that, please, if you could write to us afterwards?

David Goldstone CBE (Chief Executive, LLDC): The proportion that has detailed planning and the proportion that has the outline. Yes.

Gareth Bacon AM (Chairman): Indeed, and if you can indicate which bits do not have the detail, that would be great.

David Goldstone CBE (Chief Executive, LLDC): Yes, we can do that.

Gareth Bacon AM (Chairman): Thank you.

Len Duvall AM (Deputy Chair): For the timescale, the reason why we got 2030 that you answered earlier is around how you think that land is going to be developed over that period of time. Is that how you have reached that timescale, or is there some other factor that is coming to be?

Gerry Murphy (Executive Director of Finance and Corporate Services, LLDC): No. That is it. There is still development, the long-term view going out to 2050, but at the back end of that are sites like Rick Roberts Way, which are --

Len Duvall AM (Deputy Chair): That is in the London Borough of Newham’s ownership, is it not?

David Goldstone CBE (Chief Executive, LLDC): No, it is joined.

Gerry Murphy (Executive Director of Finance and Corporate Services, LLDC): It is joined.

David Goldstone CBE (Chief Executive, LLDC): Rick Roberts Way is a complicated patchwork quilt of ownership. There is some that we own, there is some that Newham owns, and there is some that we jointly own. Broadly, yes, it is jointly owned. It is jointly owned because we own some and they own some and because we jointly own some. What we are talking about is the existing approved plan, when we are talking about those long-term horizons. We have been working with Newham about accelerating the development of Rick Roberts Way, bringing it forward, and meeting the new Mayor’s objectives more quickly, but we do that jointly with Newham as joint landowners.

Page 14

Len Duvall AM (Deputy Chair): I would like that information back so I completely understand that. That falls inside your planning zone, that you decide --

David Goldstone CBE (Chief Executive, LLDC): Correct. We are the planning authority for that. Rick Roberts Way and Pudding Mill Lane are both --

Len Duvall AM (Deputy Chair): Can I just ask? In terms of tensions within your budget, the Mayor has certain aspirations, you clearly have an agenda in terms of what you need to do in making your money and making your return. In terms of more affordable versus high-end luxury to get the ‘spondoolies’ in, to be as straightforward as that, how do you reconcile that? How do you think you are going to reconcile that over this administration?

David Goldstone CBE (Chief Executive, LLDC): There are always tensions, choices and trade-offs. What we are trying to achieve, where we have a common agenda, is we are trying to develop a park to meet all the legacy promises about regenerating the area and for the benefit of local people in terms of transforming those opportunities, but we need to do so in a way that is financially sustainable long-term. Financially, there are two really high-level objectives. From a capital side, to state the obvious, we have to be able to repay our borrowings. We have to meet all the statutory obligations around public bodies borrowing and the local authority requirements. Revenue: we are trying to reach the position of self-funding and being self-sufficient in revenue long-term, and we move towards that.

The Mayor absolutely, as you say, has the priority around affordable housing. For example, we have anticipated that where we already have housing planned that does not meet the Mayor’s affordable priorities but it is effectively being used to subsidise other priorities, such as cultural infrastructure, we should carry on in that direction. We are doing so looking at other sites and saying, can we help meet the Mayor’s agenda on housing delivery and affordable housing by accelerating other sites, accelerating their delivery and bringing in more affordable housing? We are a Mayoral body, we absolutely have to work to the Mayor’s agenda and the Mayor’s priorities, but we have to do so in a way that is financially sustainable. I do not think that is a tension between us and City Hall and the Mayor so much as it is a tension of reconciling the priorities to achieving the overall maximum benefit from the regeneration programme in a way that is long-term financially sustainable in revenue and capital.

Len Duvall AM (Deputy Chair): Chairman, just before we move on, just remind us. You have no Chair [of the LLDC Board] at the moment.

David Goldstone CBE (Chief Executive, LLDC): Correct.

Len Duvall AM (Deputy Chair): Your Board is having to reapply for its own positions because you are in transitional arrangements. Do we have a timescale for that at the moment?

David Goldstone CBE (Chief Executive, LLDC): Just to slightly nuance it, under our governance, the deputy chair can step in and become Chair. Philip Lewis, who was the Deputy Chair, can now do whatever a chair would do, so there is not a limbo, if you like, to avoid in terms of governance. The advertisement for a permanent Chair went out last Sunday, so there is now a search started for a permanent chair. The board’s terms of appointment will be due to expire during December, and because of that issue around the Chair position, they have all been asked to extend for a period I think of up to six months to see us through to when the new chair would be appointed, and the Chair could then reactivate the board appointment process. The intention is that that is all completed within the first few months of the new calendar year. The existing board

Page 15 is staying in place for the time being. We have a Deputy Chair who can do what the full Chair will do. When there is a new Chair, the Board appointments will recommence. I think it is clear how that works through.

Len Duvall AM (Deputy Chair): To be clear, maybe you can nuance the rest of the piece. The review that the Mayor has put in place, is that into the stadium or is it into the entire LLDC?

David Goldstone CBE (Chief Executive, LLDC): No. The review is specific to the stadium.

Len Duvall AM (Deputy Chair): It is specific to the stadium. OK. We will come back to that later on today.

Gareth Bacon AM (Chairman): We are coming back to that shortly. Do not worry; we could not possibly have this discussion without talking about the stadium.

David Goldstone CBE (Chief Executive, LLDC): I will be very happy to do it if you want to do it.

Gareth Bacon AM (Chairman): I am sure you will be delighted to.

David Goldstone CBE (Chief Executive, LLDC): We are very happy to talk about it as well.

Gareth Bacon AM (Chairman): Indeed we are.

Len Duvall AM (Deputy Chair): Sorry. On the flagship project, Chair, is it the right time to ask the question? Where are we on the cultural -- I cannot pronounce it. I am from south London.

Gareth Bacon AM (Chairman): So I am. Olympicopolis.

Len Duvall AM (Deputy Chair): Where are we in terms of the aspirations? They were pretty big aspirations, not just on the part of your organisation but on the part of the previous Mayor and, I assume, the current Mayor.

David Goldstone CBE (Chief Executive, LLDC): Exactly. If I can pick that theme up, we think it is a fantastic project that will bring enormous benefits, but it is, in doing so, also quite a complex and challenging thing to deliver. The long-term benefits from bringing world-class universities and cultural partners to the area we think are absolutely enormous in terms of local benefits, and really creating a new heart of London in Stratford and in the park and the surrounding area in a way that the original vision anticipated. I think we have made really good progress. It is pretty much exactly two years since the project was launched at the time of the autumn statement in 2014 when the Government and the Mayor’s commitments were confirmed. We have had extensive public consultation during that time. We have had I do not know how many events in the park and surrounding area over the last few months, consulting on the emerging designs for Stratford Waterfront and for the University College London (UCL) site. We launched the images in the summer, and we are working now with the partners towards planning applications going in and the business case going in to secure the funding, which we hope to take forward in the new year. Yes, it is challenging, but it is an enormous project with enormous potential benefits.

Len Duvall AM (Deputy Chair): The role of your organisation in terms of whether it is just land, or is it monetary contribution that you are making? Is there a subsidy for bringing these organisations in or not? Just be clear on that.

Page 16

David Goldstone CBE (Chief Executive, LLDC): We are leading the delivery of the whole project. The land has gone. We have had a land transaction in relation to UCL’s land. The Stratford Waterfront: it is anticipated that each partner will take a lease of space on that site. Through our budgets that are in this process, through the budgets as part of the GLA group budgeting process, there is funding going in that supports this project, absolutely, yes. It is not the case that it is all funded from elsewhere. It is a complex package of funding, so there is funding from Government, funding from the residential development we anticipate on the site, significant contributions from the partners themselves, the philanthropic element, and there is also the part that comes from reinvesting proceeds from development through the GLA budgeting. Yes, there is money in this budget that is supporting the project.

Gareth Bacon AM (Chairman): Thank you. We are going to move on and ask about the 2017/18 budget now.

Dr Onkar Sahota AM: Thank you. I understand that you have made a submission for the 2017/18 submission, but you put it through as a part 2 confidential document to the Board, while the Mayor said this would be a public document. Can you explain why you have done that, please?

Gerry Murphy (Executive Director of Finance and Corporate Services, LLDC): It was our intention to publish the preamble and the submission that we made to the GLA, but we were asked by officers to hold that in private until such time as the Board had approved it and until such time as it had been consolidated into the Mayor’s budget. Following discussion with officers, we have now published the papers on 2 December 2016, so they are on our website.

David Goldstone CBE (Chief Executive, LLDC): They have been fully published.

Gerry Murphy (Executive Director of Finance and Corporate Services, LLDC): They have been fully published.

Gareth Bacon AM (Chairman): Which officers were you discussing that with who told you to put it in under part 2?

Gerry Murphy (Executive Director of Finance and Corporate Services, LLDC): I would have to come back to you.

Gareth Bacon AM (Chairman): You do not have to give me the names. Working where? Here? Working for the Mayor?

Gerry Murphy (Executive Director of Finance and Corporate Services, LLDC): I think it was through the team that manage Board papers on our behalf at the GLA.

Gareth Bacon AM (Chairman): The GLA?

Gerry Murphy (Executive Director of Finance and Corporate Services, LLDC): Yes.

Gareth Bacon AM (Chairman): Working on whose instructions?

Gerry Murphy (Executive Director of Finance and Corporate Services, LLDC): I would have to come back to you on that.

Page 17

Gareth Bacon AM (Chairman): Sorry, I am interrupting your question, Onkar. Shall I pass it back to you?

Dr Onkar Sahota AM: The Mayor gave an undertaking that this would be a public document. You backed this, that you have put it in the public domain, but he said this would be a public document. I am just wondering why there was a need to go from a confidential, private document, then having something done to it, before coming out to the public.

David Goldstone CBE (Chief Executive, LLDC): I think we have absolutely complied with what the Mayor said because the intention was that it was a public document. As soon as the Board approved it, we made it a public document.

Dr Onkar Sahota AM: It is your document, and something has happened to it in the meanwhile before you released it out to the public.

David Goldstone CBE (Chief Executive, LLDC): All that has happened is the Board approved it, but that is the important step in terms of corporate governance, that the board needed to be able to consider it. There is no point having a Board reviewing and approving and applying that corporate governance overview if they do not have the ability to make changes. The view was that it was not final and, therefore, ready to go into the public domain until the Board had approved it. To be clear, as soon as it was approved by the Board, we made it public and put it on the website. Immediately, at that point, we made it public.

Dr Onkar Sahota AM: I just want to understand this, just to get it clear in my mind. You made a recommendation to your Board. It then would have been approved by the Board - I can understand that - but was it shared with the GLA before the Board approved it?

Gerry Murphy (Executive Director of Finance and Corporate Services, LLDC): No. It was submitted on 30 November, after the Board --

Dr Onkar Sahota AM: After your Board approved it.

Gerry Murphy (Executive Director of Finance and Corporate Services, LLDC): Yes. It was submitted on the 30th and published on our website on the 2nd [December 2016].

David Goldstone CBE (Chief Executive, LLDC): I think there was a weekend in between, but literally there were no working days in between.

Dr Onkar Sahota AM: Thank you.

Gareth Bacon AM (Chairman): We have danced around it long enough, so now we are going to talk about the stadium, and I know you are desperate to get it off your chest, David. Len is going to lead on that for us.

Len Duvall AM (Deputy Chair): David, you have made a number of statements including your previous chair. We can talk about figures, but figures we recognise in terms of the total cost of the stadium from the Olympics onwards. It is a big, big figure. Let us see if we get some agreement on the figures. There was an estimate at one time of a new stadium at a cost of £250 million. Three years on from hosting the games, that stadium’s costs tripled to £752 million, yes? Do we have that evidenced?

Page 18

David Goldstone CBE (Chief Executive, LLDC): I am trying to think how you get to £752 million.

Gareth Bacon AM (Chairman): Shall I give you a helpful summary, David?

Len Duvall AM (Deputy Chair): Yes, please do that if you have it.

Gareth Bacon AM (Chairman): I anticipated this, so I wrote it down before we moved on. The original bid estimate was £250 million. That was back in 2004, so land values are different, construction costs are different. We accept that that was going to go up. The completion cost of the Olympic Stadium was £429 million. The original contract to Balfour Beatty to convert the stadium was £154 million, so that took the estimated cost to £583 million. After that, we had an extra £36 million given to Balfour Beatty because of problems over the retractable seating the roof, which takes it to £619 million. Then, in June of this year, the LLDC announced that the contracts for the transformation now sat at £272 million, so the £272 million plus the £429 million, which was the completion cost, takes you to £701 million. Then we had the announcement a few weeks ago of an extra £51 million, which we are led to believe is associated with the seating. That takes you up to a cost now of £752 million.

Len Duvall AM (Deputy Chair): Leaving aside the £51 million, leaving all of that, in terms of that, you have made no public statement that has been reported, or we could not find a public statement. Is that a figure you accept, the £51 million increase that was reported in the media last month? Presumably someone leaked it to the media or gave it to the media. We do not assume it was you, with your organisation. Do you recognise this figure?

David Goldstone CBE (Chief Executive, LLDC): Yes. Just to help you slightly further, we made the announcement of the £272 million in the summer of 2015. We said at that time that there was still a lot of work to do - there was a year’s plus work still to go until completion - and we said that we would not give a running commentary on it, but we committed that once the work was complete we would announce the final cost, which we expected to be this autumn. The information you are referring to, you are right, there was a leak, wherever that came from, but the Mayor made a statement very soon after which confirmed the £323 million number you are talking about and I think referred to the £51 million increase over what had been previously announced. Effectively, those numbers were confirmed in that statement by the Mayor when he announced that there would be the investigation into the stadium. I think the numbers are as you say. We are not arguing about those numbers.

I would just start by saying - I will come on to the numbers in detail in a second - the stadium has been completed, and in doing so we have had a series of really successful events. It is proving itself a really successful venue for major events. Last year, you will know we had over 500,000 spectators in through the Rugby World Cup, through our first concert, through rugby league internationals and all that before it opened permanently this year. You go to West Ham [Premier League football club] matches; over 500,000 people have already attended this season. That just shows how much it will be a major contributor to the legacy more broadly in the park because it is a big part of creating a vibrant place, a visitor attraction, and bringing very large numbers of people, probably over 1 million people a year, itself into the area. That does help. That is a really significant part of us creating a place where new businesses and house builders and all the aspects we want of a complete regeneration with new homes and jobs comes together. That has absolutely happened.

The costs are clearly as we have said, as you have described, and the Mayor announced that there would be an investigation into that. The increase of £51 million is a combination. A lot of it is to do with the seating, which we can talk about more if you want. Some of it was things that were to enhance the stadium for its

Page 19 long-term viability. There were some conscious decisions to make further investments. I can go through that, if you want.

Len Duvall AM (Deputy Chair): As I think you have said to the [London] Assembly Plenary, if I can recall rightly, you want to give absolute clarity to the situation. This is the opportunity to do so.

David Goldstone CBE (Chief Executive, LLDC): If we go through the difference between the £272 million and the £323 referred to in the £51 million increase, a chunk of it was to do with the very unfortunate failure of the seating contractor, who had been appointed to introduce the seating system. That happened just before the Rugby World Cup last summer, so an inopportune moment. Effectively, in the effort of installing the new seating system, the contractor failed and were unable to meet the requirements of the contract. We were left with a partially installed system with a Rugby World Cup imminent, with very large crowds and a very high profile event. We had to step in and make it ready for that event. It had been a joint venture. One partner, the main designer and installer of seating systems, went bust. The other inherited it but was not the most suitable long-term contractor. They took it forward during 2016, but we had to settle out with them because they were not suitable to provide that service long-term. It was only really for the 2016, this summer’s seat moves, that we were able to do the first moves with the fully installed system and understand fully what that would involve.

The seating issues we have had, starting with the collapse of the appointed contractor in mid-2015, have caused about £21 million of that increase. It is not all of the £51 million. About £21 million is seating. The other parts are a chunk that were, I am going to say, sort of discretionary, further investment that E20, the joint venture between ourselves and the London Borough of Newham, agreed, which would enhance the long- term viability and the commercial sustainability of the stadium. Things like we put in enhancements to enable concert crowds and bigger concert crowds to come, so better gangways for concert movements. We have enhanced the lighting system so it can take more sports, different sports. We have increased the robustness of the pitch, again to hold more events. There is the large screen, which you will have seen at matches, which is a potential source of revenue from advertising and sponsorship. All that came to about £14 million. £21 million related to the seats. £14 million related to those enhancements. We had held some contingency, and we refer to that in the press release we did when we announced the £272 million. We said there was contingency - that was about £12 million - which we had to use for things that happened and risks that had been anticipated, and then the balance, which is about £4 million, was basically insurances and our own management costs. To give a complete picture, we have included our own costs of management. The £51 million is the £21 million for the seats, the £14 million for the discretionary enhancements, the £4 million for insurance, and £12 million for contingency.

Len Duvall AM (Deputy Chair): Some of that would be revenue. The insurance would be revenue. What is the one-off capital, the bulk of that?

David Goldstone CBE (Chief Executive, LLDC): Gerry will correct me on the accounting.

Gerry Murphy (Executive Director of Finance and Corporate Services, LLDC): That was all capitalised.

David Goldstone CBE (Chief Executive, LLDC): Yes. Because it is a capital project, even what looks like revenue costs of people and staff and things gets capitalised on a capital project. Project management and that sort of thing all gets capitalised.

Page 20

Gerry Murphy (Executive Director of Finance and Corporate Services, LLDC): Yes. They were project insurances specific to the stadium works.

Len Duvall AM (Deputy Chair): Just for clarity around the seating issue, what is the £8 million? I do not know why that was in the media. £8 million annual revenue costs reported in the media. Where does that figure come from? What do you think it is? We have a view of it. It is all associated with the so-called retractable seating. Let us say the scaffolding seating. Shall we call it what its real word is? Do you know what I mean? What is that about, and is that an ongoing revenue commitment?

David Goldstone CBE (Chief Executive, LLDC): What I just described was the finalisation of all the upfront capital, the transformation and those enhancements I referred to to get the stadium complete and opened this summer. The £8 million, again, was in the information that was leaked, and I am not validating it completely, but it was an estimate of what the future --

Len Duvall AM (Deputy Chair): Let us be fair.

David Goldstone CBE (Chief Executive, LLDC): I am answering your question.

Len Duvall AM (Deputy Chair): Let us be fair to you. It is between £0.3 million to £8 million, so somewhere in there is the --

David Goldstone CBE (Chief Executive, LLDC): What that is referring to is this cost of the annual - annual as in both ways - moves for the whole seating system between football modes and athletics, or athletics and concerts. It is the cost of moving seating back from pitch to athletics, all four stands, and then moving forward again at the end of the summer ready for pitch sports again. It is an estimate of the total costs of those seat moves, but I should say that is not a confirmed amount. We are in a tendering process at the moment for the long-term operator. We have literally just had the tenders in in the last few days, so we will know a real cost out of that, and that is why it is uncertain what that number will be. The Mayor’s statement referred to the issue around seating costs as one of the things that will be looked at in the review, so we are not pretending it is not an issue, but we will know firmly what the costs are in the near future.

Len Duvall AM (Deputy Chair): Are there any more surprises and other costs that you think you could share with us at this stage?

David Goldstone CBE (Chief Executive, LLDC): I do not think there are any other surprises. I will answer a slightly different question in the interests of full transparency regarding the challenges we are looking at going forward in relation to the business plan generally for the stadium. We have talked about the seating. I think it is well known that - you were at the Police and Crime Committee - there are some challenges, in the very early days at the moment, of the stadium operations, which we are working with. I think it has already got considerably better, and the crowd management arrangements have considerably improved. We talked then around the fact that Chris Allison [CBE, former National Olympic Security Co-ordinator] has been working with us to make sure the egress arrangements get settled down. That is the other challenge I would refer to, but again we have made really good progress there and we are confident that will get into a steady state where that is not a significant ongoing burden.

Len Duvall AM (Deputy Chair): You rightly referred to that earlier meeting, and the Police and Crime Committee was looking around the issues of disturbance, the police and the security issues associated with the stadium. In terms of the cost of policing, as in we talked to you in terms of the stadium, the fact that the

Page 21 surrounding land of the stadium is private, is that when the police start charging you, as it is not a public highway? The roads are, presumably.

David Goldstone CBE (Chief Executive, LLDC): Correct. The roads are.

Len Duvall AM (Deputy Chair): The walkways are not public highways, are they?

David Goldstone CBE (Chief Executive, LLDC): Correct. I have to say this may be beyond my expertise because there are particular issues between the police and football clubs generally in the United Kingdom (UK) in play here. We have an agreement with the police now for the policing of the stadium, and the police do deploy to the park for major events. There is a match tonight. They will be deployed to support that. I think there is an issue generally being considered around the police’s ability to recharge to deploy outside the stadium but on private land, and I think we will be part of however that is resolved.

Len Duvall AM (Deputy Chair): What I am trying to get at is that may well be a further cost that you will need to factor in.

David Goldstone CBE (Chief Executive, LLDC): It may be. What we are working towards - and I think we have been making good progress with all the partners, and again that appointment came through in that discussion - is that there are a range of partners working together on the management of crowds between the stations and the stadium and across the park. The objective is that we minimise, if not completely remove, the need for the police to deploy at all. That is where we are trying to get to, that with the arrangements for the movement of spectators, the interface with everybody else going around their normal daily business, and the management of the stewarding and how that is deployed, we will not need the significant police presence that there has been, not at all the games but at a small number.

Len Duvall AM (Deputy Chair): You will know that this Committee, along with many others across the GLA, is always questioning the transparency. We have a role in the questions of not just your operations but also other functional bodies of the GLA. It is not just you. I do not want anyone thinking, listening in, that it is about you, that you are hiding from transparency. The question we do need to ask, and we should not wait for it, is about some of these extra costs. When was your organisation - not the stadium, though that might be my secondary question - or when were you aware of these extra costs?

David Goldstone CBE (Chief Executive, LLDC): We are going back to the transformation, the capital?

Len Duvall AM (Deputy Chair): Yes. Let us talk about transformation and the seating issues. That is the big one, is it not? When was your organisation aware of that?

David Goldstone CBE (Chief Executive, LLDC): If I go back to that breakdown I gave you, the seating, I gave you a brief history. We only knew what the estimates were for the future transition costs for moving the seating between the modes as a result of the work we did this summer. That came through effectively around the period before the start of the football season. Recognising that in the spirit of transparency, as you say, we had committed last year that we would announce it this autumn, that is what we were planning to do as part of the total transformation costs. We were not sitting on that information for a long time before it came out.

The announcement we had made in summer 2015 with the £272 million figure in it had made clear there was contingency, but we had not specified the number. We did that because we need to hold a contingency, and

Page 22 our contractor is not to know what that is for us to be able to have any ability to negotiate and resolve outstanding issues. If they knew the pot of money we are sitting on, our position would be much cheaper, and I think everyone accepted that was reasonable at the time.

The only other two parts were the discretionary enhancements, as I called them, for improving the commercial viability of the stadium, which we had plans for when we announced the £272 figure, but they were not firm, and they have been worked on really right through over the last 12 months. They were not actually part of the transformation. They were additional things that E20 commissioned. Insurance and management: technically, we could have included it. It was the £4 million. We could have included it originally, but when we announced the £272 million we were answering a specific question, which was the value of the contracts for transformation, and that was the question we answered. The seats we only knew latterly. That was the big change. The others were progressively going on. We only really reached the end of the work for this summer’s events, and we always planned to announce them this autumn. The leak slightly pre-empted that, but then the Mayor’s statement confirmed it in the public domain. I think we did what we said we were going to do.

Len Duvall AM (Deputy Chair): In terms of the governance, there is your organisation, then the stadium management. Correct me if I am wrong. That looks after the day to day side.

David Goldstone CBE (Chief Executive, LLDC): Yes.

Len Duvall AM (Deputy Chair): The finance side is you, or is it them? Are they a subsidiary of you?

David Goldstone CBE (Chief Executive, LLDC): No.

Len Duvall AM (Deputy Chair): Is it a joint venture?

David Goldstone CBE (Chief Executive, LLDC): It is a joint venture. The important point is that we are in a joint venture with the London Borough of Newham.

Len Duvall AM (Deputy Chair): A joint venture with Newham. What is the relationship back with your main board, then? What is the monetary relationship between this? Do they draw down on a grant from you, or do they make a business case to you, and you empty your wallet? Is that how it works?

David Goldstone CBE (Chief Executive, LLDC): There are two parts to the answer. The transformation is different to the future-looking. The transformation was an LLDC responsibility. Under previous decisions from way back, it had been agreed that, effectively, under the GLA’s auspices, we would take responsibility for the transformation. Newham made a fixed contribution to that. You may remember a £40 million amount. That was Newham’s contribution. There were other contributions from others, including West Ham and UK Athletics, etc, but we held the ring, if you like, and therefore we were responsible for the transformation and had the financial risk. It was funded through LLDC, went through Gerry’s [Murphy] finance team, went through our books, and we received the contributions and we paid the contractors, etc.

Once the transformation was complete, effectively this summer, E20 has operational - exactly what you said - day-to-day responsibilities. E20, as a joint venture between LLDC and Newham, has that responsibility. It is a joint venture that is owned 65% us, 35% Newham. To the extent that E20 needs funding, that is the split of contributions. Then if it makes surpluses in time, as we hope it will, long-term, then surpluses get shared as well. Newham’s contribution was a loan which went through Newham’s own governance, and there are

Page 23 provisions pertaining to repayment of that loan as well. Basically, if it needs more money, we both commit 65% - 35%, and that is what we will be doing this year.

Len Duvall AM (Deputy Chair): Your exit strategy will be from the stadium management for the joint venture, because it is not complete yet, complete exit strategy, but in terms of that stand-alone entity to get on with it, to do it --

David Goldstone CBE (Chief Executive, LLDC): You are looking forward to when we come --

Len Duvall AM (Deputy Chair): It is never really going to be like that, is it? You said it. If it needs some more money, there will be an element that will come from Newham and there will be an element that will come from your good selves if a business case can be made and you have the cash to do it.

David Goldstone CBE (Chief Executive, LLDC): Correct. That is how it is today. We have not determined if, how or when we would exit. To state the obvious, we are a development corporation so we are not intended to be here forever. That is not news; we have said that before. Quite what our exit from individual developments, venues etc looks like, we have done some early work looking at it now, but how that will pan out for the stadium is not determined yet. Again, the fact that the Mayor has announced this review to look at the financial consequences of the decisions on the stadium may well inform the thinking on that. Ultimately, that would be the Mayor’s decision.

Len Duvall AM (Deputy Chair): David, over the years we have crossed swords. We have also shared things together across the table. Would you make it clear that you inherited some of these issues? Olympic Stadium: great for the Olympics, great for athletics. I think we can all agree on that. As we move to the next stage, multi-purpose stadium, no. If we could go back to a different point, either designing the stadium to be for a multi-purpose activity post the Olympics, we would have done so, presumably. Do you think now, with hindsight, that maybe we should have started again in terms of the stadium, in terms of the cost that we have put into this, in terms of the transformation process? It was a great venue for the Olympics, it is a great athletics stadium, but that is not what is required post-Olympics. Even though that is what it was designed for at the time, as the reality dawns on people about what needs to take place, what is your view?

David Goldstone CBE (Chief Executive, LLDC): I disagree with you. I think it is actually a great multi-use venue. I have been to football, I have been to rugby, I have been to --

Len Duvall AM (Deputy Chair): At a price, is it not? At a price.

David Goldstone CBE (Chief Executive, LLDC): Absolutely, but I think it is not fair --

Len Duvall AM (Deputy Chair): Do you accept that?

David Goldstone CBE (Chief Executive, LLDC): Yes. I think it is not fair to say it is not a great multi-use venue. I think it is. All the events it has hosted - bearing in mind football, rugby league, rugby union, Race of Champions, motorsport, concerts, we have three fantastic concerts next summer - it has been fantastic for all of those, and more. I do think it works fantastically as a multi-use arena, and we have been really delighted how it has hosted each of those different activities. Yes. You are right, obviously, at a cost.

I think the right decisions have been made, and I would go back to what I said right at the beginning when we started on the stadium. It is an important part of the vibrancy and the visitor attraction of the area that go

Page 24 with the rest of the regeneration. We should not lose sight of that aspect. If we want an area that feels like a new heart of London, Premier League Football is an enormous global brand, if we can talk in those terms for a moment, in terms of image, in terms of rights, in terms of marketing and in terms of perception of a place. Having Premier League Football there is a really big benefit to the park and the area of Stratford and the surrounding communities’ location and attracting other businesses and other significant activity, whether that is universities, cultural venues, new homes and the new communities coming. It all helps, and I think it is a significant contributor.

With hindsight, might you have made that decision in 2007 to build a multi-use one, rather than the one that was built for the games, which was demountable to a 25,000-seat bowl? With hindsight, you may, and that I can completely see may be a view. That is the sort of thing the review will absolutely look into. I would say the information available - as I believe, at the time, because that was before even my involvement in the Olympics started - was there was not a football club that would commit then, so it would have been slightly speculative. It would have risked it being a white elephant. West Ham went bust, as you all know, in the intervening period, and the new ownership came in after that. It would have been a hard decision to take at that time. On the information available, you can sort of understand why that decision was taken. You said I have inherited a problem. I do feel that. I think that is probably true, but it is one where I can understand the decisions that were made at each point, and it will be interesting to see the review as it now, with the benefit of hindsight, looks back and says how we have got here in terms of the decisions that were made in late 2006, early 2007, about what we should build for the games. Then the subsequent decisions: yes, we are going to keep a multi-use venue in legacy for athletics and football. If I look back now and look at that point, and there were those expectations made and commitments made in 2011, but what was not known was how it would transition between the two modes. That will be part of what the review will look at, but that assumed a solution to move between being able to host concerts, athletics - particularly athletics, as it was a commitment to athletics - and football from the new competition that was run then when the solution to how to do that was not known.

Len Duvall AM (Deputy Chair): Thank you.

Gareth Bacon AM (Chairman): I have one or two sweeping-up questions, David, before we move on. Firstly, thank you for the breakdown of that £51 million because, up until today, I do not think anybody knew what the constituent parts were.

David Goldstone CBE (Chief Executive, LLDC): I think that is true too.

Gareth Bacon AM (Chairman): To summarise it, the £21 million is for the seating. You mentioned the £14 million was for better gangways, better lighting, the big screen that is there, toughening the grounds so it could be used for different things. £4 million was spent on balances, so insurance etc. The contingency of £12 million was utilised and spent. Was that spent on anything specific, or was it just chucked in the pot for everything else?

David Goldstone CBE (Chief Executive, LLDC): When we announced the £272 million, we said we had a contingency. £12 million was the contingency we were holding at the time, but we did not announce the number at the time, for reasons that I said earlier.

Gareth Bacon AM (Chairman): Was it spent on anything specific?

Page 25

David Goldstone CBE (Chief Executive, LLDC): It was. Can I tell you now precisely what? The way we build the contingency is not a lump we just put in as allocation. It is built up from known risks, so we quantify risk in all our capital projects and we say, “What is the likelihood? What is the outcome if it happens? How much contingency do we need?” It had been an assessment of risks that were known at the time and were likely to be needed. I have to say I do not have the breakdown now, but again it is something we could get.

Gareth Bacon AM (Chairman): Was £12 million the full contingency, then, for the whole project?

David Goldstone CBE (Chief Executive, LLDC): £12 million was the contingency at the time we announced the £272 million, and we used it.

Gareth Bacon AM (Chairman): It was fully utilised.

David Goldstone CBE (Chief Executive, LLDC): What I described was the extra over on top of that.

Gareth Bacon AM (Chairman): In other words, then, the worst-case scenario on your risk planning is what turned out to be correct?

David Goldstone CBE (Chief Executive, LLDC): I cannot say it is the worst-case scenario because we had all the issues with the seats that came through on top, as I have described. On all the risks, yes --

Gareth Bacon AM (Chairman): The contingency that was set, the £12 million --

David Goldstone CBE (Chief Executive, LLDC): If we left out the seats, then yes.

Gareth Bacon AM (Chairman): Yes, so the £12 million contingency was set before you knew there was a problem with the seats?

David Goldstone CBE (Chief Executive, LLDC): Correct, because when we announced £272 million, that was before we knew we had a problem with the seats.

Gareth Bacon AM (Chairman): The way that you have packaged it today in the breakdown you have just given - you are quite smooth at doing this, so I am not surprised - sounded very controlled and it was all part of the plan and it is all OK, so it is all under control. That is how it has come across. The £51 million leaked into the public domain. I am interested in how that got into the public domain but I am not going to ask you about it because for the purposes of this question it is irrelevant. On 1 November, the Mayor, having heard this figure, announced that there would be a review, an inquiry, into why the costs were going up all the time. Two days later, the Chair resigned. If it was under control and it was all part of the plan, why did the Chair resign two days after that announcement from the Mayor?

David Goldstone CBE (Chief Executive, LLDC): Can I take that in parts? First of all, I certainly did not say it was all part of a plan. The seating issue and that extra £21 million incurred was not something we planned or intended. It was caused by a contractor going into administration.

Gareth Bacon AM (Chairman): I understand that, but that would not cause the resignation of your Chair, though, would it?

David Goldstone CBE (Chief Executive, LLDC): No. I was --

Page 26

Gareth Bacon AM (Chairman): Sorry. I am being rude. Carry on.

David Goldstone CBE (Chief Executive, LLDC): The Chair chose to resign for his own personal reasons, and I do not think I should go into more than. We did have a leak. There was an announcement about the inquiry and, following all those things, the Chairman made his decision for his own reasons to resign.

Gareth Bacon AM (Chairman): His own reasons?

David Goldstone CBE (Chief Executive, LLDC): Absolutely for his own reasons.

Gareth Bacon AM (Chairman): OK, so entirely unconnected with the fact that the Mayor had launched an inquiry into the escalating costs of the stadium?

David Goldstone CBE (Chief Executive, LLDC): I did not say unrelated. I just said it was for his own reasons.

Gareth Bacon AM (Chairman): OK. The way that this stuff has come out into the public domain -- because you and I are veterans of this. We have been in these committees many times and we have asked you about the cost of the stadium and retrofitting the stadium and preparing for legacy mode, and the costs seem to be creeping up. The LLDC’s stock answer is, “We would like to say that but we cannot, because it is commercially confidential and we cannot put it in the public domain”. There are reasons for that, which we understand.

David Goldstone CBE (Chief Executive, LLDC): I think I have not said that at all today, to be fair.

Gareth Bacon AM (Chairman): You have not said that today, I agree. I might ask you if there are any more costs coming, so I might give you the opportunity to say it. The point is, though, that I ran through the summary of how we have gone from £250 million in 2004 to £752 million at the end of 2016, and how we have gone from the £429 million completion costs for the Olympic Stadium to £752 million, which is £323 million more, so 75% roughly of the build costs of the Olympic Stadium has been spent on retrofitting it to legacy mode. You could almost build another stadium in that time. The way it has come into the public domain, piece by piece by piece, is almost like death by 1,000 cuts, is it not? Again, another hindsight question. If you could go back and say, “It is going to cost this much” and just give us the figure, would that not have been better for the LLDC than letting it leach out bit by bit?

David Goldstone CBE (Chief Executive, LLDC): You are putting together things that are completely different, with respect. The £429 million was the cost that was incurred by the Olympic Delivery Authority to build the Olympic Stadium for the Olympic Games. These are decisions that go back to the Olympic board and various previous administrations ten or so years ago, but there was a decision made to build a venue that was suitable for the Games and then could be largely demounted, a largely temporary venue demountable to a 25,000 seat bowl for athletics, because there was the commitment to the athletics legacy.

There was no way at that time, because decisions had not been made about future legacy use, that the whole figure we are now talking about could have been announced. The announcements that were around earlier Balfour Beatty contract prices were specific about one contract, which actually was not all of the works. Now, with hindsight, could we have given a total budget for transformation? That is the issue where I think as a public body it is very difficult to give out a budget when you are having multiple contracts, dealing with contractors. There is a lot of work, complex work, to do. The scale and scope of this transformation, you said

Page 27 it was sort of 75% on top of the original. We have almost completely rebuilt the stadium. The bowl at the bottom, which was the only bit that was going to stay, has been redeveloped to put in the seating system. Everything above ground that was temporary has now been made permanent, with the largest roof of its kind in the world, massive enhancements to the structure, all the spectator facilities, the toilets, the catering, the turnstiles all being put in as permanent and the seating system. It has been complete rebuilt, effectively. We call it transformed.

But we could not have announced the total at a very much earlier point. If we had given a budget for transformation at an early point, we would have been, I think, really weakening a commercial position. We announced the £272 million as soon as we had let the final contract and that is exactly the same. I did a lot of this on the Olympic Games budget, releasing progress reports, media briefings, and we always announced budgets for projects once the final contract had been let and not before. Actually, we were praised for our transparency on that, and effectively I think we followed the same practice here. I think we have been pretty transparent. We did announce the £272 million last year. That was genuinely the number at the time. Things have happened about the seating that have made that wrong.

I understand why you add them together. It is not wrong to add them together, but they are two completely different things. There was a stadium built for the Games. There was then a decision taken relatively soon before the Games to say, “Actually, no, we are going to change the plans for the legacy. We are not going to have the demountable. We are going to have a multi-use, full-scope stadium, almost unique in the world in terms of its ability to hold multiple events” and that is a different thing. We announced the £272 million. We have been now transparent. It came out in a way we had not intended, but we were going to announce the full cost. Yes, that is where we are. I think we have been as transparent as we reasonably could be on this and I think we have followed the same practice we followed in all the lead-up to the Olympic Games in terms of financial reporting, when we were praised for our transparency.

Gareth Bacon AM (Chairman): There are a number of things there. The first thing is the stadium, as I understand it, is fabulous. I have not been to it in legacy mode yet. I went to it during the Olympics and I went to the Anniversary Games, but I hear from Len [Duvall AM] here that it has clean beer, which is good, and it has clean toilets and all sorts.

David Goldstone CBE (Chief Executive, LLDC): We would be delighted to host you if you would like to come over again. In their capacity, the members of the Police and Crime Committee are coming to watch operational arrangements around crowd management. We would be delighted if you would like to visit the stadium.

Gareth Bacon AM (Chairman): I am sure we can sort that out. The point that I was trying to make though is that to the people on the receiving end of the information that you have just given, such as ourselves - we are all very simple souls - this is a public asset funded by the taxpayer. I appreciate lots of other things happen there as well, but it houses a Premier League football club. Now, rightly or wrongly, Premier League football clubs are seen to be extraordinarily rich. I realise that a lot of football clubs, the way they run their finances, they do not have lots of cash in the bank, they pay their players and it is not as rich as you might imagine, but nevertheless, there are eye-watering sums of money being bandied around, paying players, buying players etc. West Ham’s contribution to this £750 million stadium has been £15 million, I understand, which is not a lot. Again, rightly or wrongly, people will focus in on that, but the way it has dribbled into the public domain, we heard first that the contract to Balfour Beatty was £154 million to convert the stadium. Then there was an additional £36 million, which you came to one of our previous Committee meetings and discussed. Then the £272 million, which you say was the final figure, then it went up by £51 million. It creates the impression

Page 28 among the general public that it is more, then more, then more, then more. It feels like Oliver Twist, “Please, sir, can I have some more?” That cannot be good. Surely you would look back on that and think, “We could have done that differently”?

David Goldstone CBE (Chief Executive, LLDC): I can see your point. I think you are almost criticising us for being transparent at different points. Look, if we had known the seating issue was going to happen, we would have announced a bigger figure before. We did not know that was going to fall out in the way it did, and therefore we announced a figure that has turned out to be an underestimate. I can sort of apologise, if you like, but I do not think it is our fault directly, but it is an unfortunate consequence of what has happened.

Gareth Bacon AM (Chairman): It clearly is not your fault the contractor went bust. There might be some questions around the due diligence that was done on that contractor though.

David Goldstone CBE (Chief Executive, LLDC): Yes, so due diligence was done on that contractor. They were publicly procured through an Official Journal of the European Union procurement and that puts lots of obligations on us, which were followed, around evaluation of their financial standing and their technical competency etc. That was all done. Again, that may well be looked at in the review and we would be happy if you want to look at that in more detail, but that was all done. It was a complex task and it is pretty much a one-off task, because we were looking to retrofit a seating system into an already-built stadium. The contractor was unable to do that and failed in the task.

In the way the information has been announced, we have tried to be transparent. That has meant we have made announcements at various points. For the reasons we have said, the numbers have gone up. I can see that people may react in the way you have and that is, I think, part of the reason why the Mayor said there should be a review to look back. We feel we have tried to manage it professionally and recognise the commercial dynamics, but also recognise the obligations on us to be transparent. Those things are often quite difficult things to balance in positions like ours, where you are doing large commercial contracts in a public sector environment, where there are the obligations on transparency.

Gareth Bacon AM (Chairman): We will await the outcome of the review. Are you approaching that review with confidence?

David Goldstone CBE (Chief Executive, LLDC): Yes. I think it will be really helpful. Yes, I am pleased it is happening. I think it will be helpful for all of us, in a way, some of the things we have talked about, understanding how we got here and the decisions made at key points that have led us to this position. I think it will be really helpful in terms of actually what you just said about the public understanding and sort of head- scratching, there must be a little bit of, “How did we end up here?” I think it will be really helpful, so I am glad that is happening and I think it is something that will be very helpful.

Gareth Bacon AM (Chairman): Do you see it as an opportunity to clear the air?

David Goldstone CBE (Chief Executive, LLDC): Yes, and the record will be put straight and hopefully it will be a good factual objective report. I absolutely welcome it and look forward to working with the team appointed.

Gareth Bacon AM (Chairman): Sitting here today on 14 December 2016, can you rule out any additional stadium costs for the foreseeable future?

Page 29

David Goldstone CBE (Chief Executive, LLDC): The £323 million, that is the final number.

Gareth Bacon AM (Chairman): That is it?

David Goldstone CBE (Chief Executive, LLDC): Yes. The work is finished, yes, so that is the final number. The challenge we have now is making the ongoing business work and we referred to the issues of the seating and making sure the operation is working as smoothly as possible, but yes, the transformation is complete, so that is the final figure.

Gareth Bacon AM (Chairman): OK. I am going to move on to the next part, which is funding the extra costs, because at the Budget Performance Committee in November, we heard that the increased costs will be paid for through capital receipts. Is that correct? That came from the Head of Resources at the GLA. Is that correct?

David Goldstone CBE (Chief Executive, LLDC): Yes. In high level - and Gerry [Murphy] might pick this up in more detail - our contributions into E20 are our capital payment and it becomes part of our capital plan, which long-term we generate receipts which more than repay that, so yes, it goes into that profile.

Gareth Bacon AM (Chairman): Long-term receipts, so that depends then on future capital receipts, so there is not cash in the bank at the moment?

David Goldstone CBE (Chief Executive, LLDC): Correct, correct. At the moment we borrow from the GLA for our capital expenditure and we borrow on the basis that we have capital receipts that are generated in future, largely out of housing developments and other developments that will repay that borrowing and generate a surplus on the back of that. The capital contributions into E20 are part of that capital expenditure.

Gareth Bacon AM (Chairman): When will the additional costs become payable? Upon receipt of the capital receipts?

Gerry Murphy (Executive Director of Finance and Corporate Services, LLDC): Contractors have been paid for the additional costs, as in when their entitlement means they bill and we are happy to pay. The model that we have with the GLA is that we draw down; we do not hold very much cash reserve at all, just a working balance. We draw down from the GLA the net capital requirement, so any expenditure net of any receipts that have come in. In some years, we will actually end up paying money back to the GLA, so I think the budget that we have put in, I believe it is 2018/19, has a net repayment back to the GLA. At any time, our borrowing is the net of our requirement less any receipts that we have, and if those receipts are in excess of the requirement, it goes back. The overall long-term model gets paid back with a surplus over quite a long period of time.

Gareth Bacon AM (Chairman): How long?

Gerry Murphy (Executive Director of Finance and Corporate Services, LLDC): The model goes out, as I said previously, to 2050 I think in the mid-2020s, the GLA gets repaid its borrowing and then we are into surplus. I could confirm that.

Gareth Bacon AM (Chairman): Yes, that might be useful, because we have noted in the accounts --

Page 30

David Goldstone CBE (Chief Executive, LLDC): Sorry, I suppose the point is it is not different from any other bit of our capital expenditure.

Gerry Murphy (Executive Director of Finance and Corporate Services, LLDC): Yes.

David Goldstone CBE (Chief Executive, LLDC): It is a capital item within a very large bucket of capital expenditure that is all funded from borrowing, all of which gets repaid from receipts, so it is not different to any other capital item, whether that is on stations or housing or universities that we might incur.

Gareth Bacon AM (Chairman): Yes. No, that is fine. In the published accounts of the LLDC in 2015/16, it stated that you were planning on paying back £54.6 million in 2017/18. However, one year later you are not doing that, you have deferred that, and you are borrowing £47 million instead. Is this simply debt reprofiling?

Gerry Murphy (Executive Director of Finance and Corporate Services, LLDC): It is not. There are changes in assumptions about the phasing of spend and of income, so we discussed earlier that the profile of the Chobham receipts had changed due to delays to close out phase 1 on the site. That will have factored into those shifts. There are two things going on: one is any kind of reprofiling of income and the other then is the reprofiling of capital spend.

Gareth Bacon AM (Chairman): We are going to move on to our final section, which is next steps, and Onkar is going to lead us through that.

Onkar Sahota AM: Yes, and certainly this is about what happens next. I think the last football game will be played, on 30 May 2017 by West Ham, and a few weeks later you are going to have a concert there. This all depends upon you changing it from the football mode into the concert mode. Do you foresee any problems with that happening?

David Goldstone CBE (Chief Executive, LLDC): No. We did it within that time period this summer. Let me just get my points right. After the Diamond League Athletics and before the first West Ham match there was less than that time available and we got the seats moved through in that period. We are appointing a new contractor, so I suppose there is a caveat that we need to get that appointment completed - and that is due to happen early in the New Year - and then they will have time to get familiar to manage that. That should be a manageable timescale, so yes, we are not unduly worried about that.

Onkar Sahota AM: OK, that is great, thank you. The other thing is this additional £51 million we were speaking about earlier on. The GLA’s Director of Resources said that this additional cost will impinge upon your priorities when it comes to affordable housing or regeneration. Do you agree with that comment?

David Goldstone CBE (Chief Executive, LLDC): I would never disagree with the Director of Resources from the GLA. That would not be a good thing to do. It impinges in the sense that it adds to the capital profile in the way we discussed and we have to make sure that we generate receipts that are obviously more than sufficient to repay that. What it is not doing is changing our plans in terms of the regeneration that we are delivering and the investment that we are delivering, because actually it would be counterproductive, for example, to do less housing, because housing generates the receipts that help repay the borrowing and are obviously both good from a regeneration point of view and good from a financial point of view. I do not think the stadium is changing our plans.

Page 31

Obviously there is a financial capital addition to our capital cost, capital borrowings, that goes into what we repay. If we were at the point where we are able to repay our borrowings, that would create a material point where we had to really make sure we were not going to borrow what we could not repay. We are not at that point, so in terms of our plans for housing, in terms of the new employers we are bringing into the area, by and large we are not incurring capital, it is done through our planning and sort of regeneration activities. The work on the park and venues, those are not affected and those are carrying on as planned.

Onkar Sahota AM: The proportion of affordable housing will not go down?

David Goldstone CBE (Chief Executive, LLDC): As a result of the stadium? No, I do not think the stadium affects it. Obviously the new Mayor’s policies we are very mindful of in relation to affordable housing. I mentioned earlier that we are looking at some of our future development sites to say can we do more affordable housing and do it more quickly to respond, if you like, not just to the Mayor’s policy, but the wider issues in London, for the need for more housing and particularly affordable housing. We are looking to accelerate that and to build more affordable, but that is not a consequence of the stadium.

Onkar Sahota AM: I think earlier on you did answer the Chairman when he asked whether there were any more conversion costs you envisaged, so there is a line in the sand drawn there, that we should not expect any more conversion costs coming along, no unexpected costs coming along, did I understand it right?

David Goldstone CBE (Chief Executive, LLDC): Yes, you did.

Onkar Sahota AM: Great, OK. Can you also categorically rule out that there will not be any athletics events being hosted within the stadium for the next ten years?

David Goldstone CBE (Chief Executive, LLDC): No, there will be athletics. There absolutely will be athletics events.

Gareth Bacon AM (Chairman): I think, for clarity, the question was badly-written, actually, so it is not Onkar’s fault. It said, “Can you categorically rule out not hosting athletics events?” Can you assure us that there will be athletics events?

David Goldstone CBE (Chief Executive, LLDC): To start off, we have the World Athletics Championships and the International Paralympic Committee World Power Athletics next summer, which we are really looking forward to and it will be a major event. We have got a long-term agreement with UK Athletics for them to have access. I have forgotten, is it 25, 30 years? I cannot remember.

Gerry Murphy (Executive Director of Finance and Corporate Services, LLDC): Fifty years.

David Goldstone CBE (Chief Executive, LLDC): Fifty years. Yes, so there is a long-term agreement with UK Athletics with an athletics window each summer, when they have the right to host athletics events, so that is in place.

Len Duvall AM (Deputy Chair): Could we just be clear, so the £0.328 million figure is revenue, so you are contracted for some events, but if you do not want to reconfigure the stadium, you do not pay that cost, do you?

David Goldstone CBE (Chief Executive, LLDC): Correct, yes. If you did not need to --

Page 32

Len Duvall AM (Deputy Chair): Are we only reconfiguring the stadium - just for our benefit - for the athletics meetings or is it for other events?

David Goldstone CBE (Chief Executive, LLDC): The concert capacity is bigger with the seats back.

Len Duvall AM (Deputy Chair): Bigger?

David Goldstone CBE (Chief Executive, LLDC): Yes, because more people can stand on the field of play.

Len Duvall AM (Deputy Chair): Fine. Yes.

David Goldstone CBE (Chief Executive, LLDC): OK? It holds more people with the seats back and therefore you can get more income and you can have bigger events and all the benefits that go with that, but if I sense where you are thinking of going, there is a judgement that could be made each year about whether it is worth moving the seats in the light of the events. We have a commitment about athletics, but for the other events --

Len Duvall AM (Deputy Chair): The commitments that you have - just for us to understand - now for athletics events are up until when? It cannot be forever and a day, can it?

David Goldstone CBE (Chief Executive, LLDC): It is not forever. I cannot help you on that.

Gerry Murphy (Executive Director of Finance and Corporate Services, LLDC): Fifty years again.

David Goldstone CBE (Chief Executive, LLDC): Is it 50 years? Yes, I think it is 50 years.

Len Duvall AM (Deputy Chair): Fifty years?

Gareth Bacon AM (Chairman): If, for example, London were to host a Diamond League Athletics meeting every year, obviously you would reconfigure for that. If for whatever reason London lost the right to do that - I do not know how these things work with the International Weightlifting Federation, but let us say they did - and there were no other athletics events that were required that year, you would not convert the stadium, you would leave it as it is and therefore not incur that cost?

David Goldstone CBE (Chief Executive, LLDC): That would be an option we would have and we might look at what concerts we might have and see whether it is worth it. UK Athletics have the right to that period if they so --

Len Duvall AM (Deputy Chair): Do you have the right to charge them though for holding the booking fee for this period of time? If they pull out, for whatever reason, can you not say to them, “Thank you very much, we have set this aside. We could have marketed this and you have to pay a fee” or was that not built into the contract?

David Goldstone CBE (Chief Executive, LLDC): No, it was not. They have a right to it for I think it is a month each year, each summer.

Page 33

Gareth Bacon AM (Chairman): That brings us to the end. Can I thank our guests for their contributions today? Helpful as ever.

Page 34 Agenda Item 4

Subject: Summary List of Actions

Report to: Budget Monitoring Sub-Committee

Report of: Executive Director of Secretariat Date: 23 March 2017

This report will be considered in public

1. Summary

1.1 This report sets out the actions arising from a previous meeting of the Sub-Committee.

2. Recommendation

2.1 That the Sub-Committee notes the completed and outstanding actions arising from a previous meeting of the Sub-Committee, as listed below.

No actions arising from the meeting of 14 December 2017.

Actions arising from the meeting of 3 November 2016: Agenda Topic Status For action by Item

5 Quarter 1, 2016/17 GLA Group Monitoring In progress The Assistant Reports (Item 5) Director Group Finance, GLA

During the course of the discussion the Assistant Director - Group Finance, GLA undertook to provide written information with regards to the difference between the two bodies established to oversee the performance of the GLA family and the GLA core activities under the previous administration.

Actions arising from the meeting of 12 July 2016: Agenda Topic Status For action by Item

6 Quarter 4, 2014/15 GLA Group Monitoring In progress Chief Reports (Item 6) Superintendent Jeff Boothe Session One – CCTV

City Hall, The Queen’s Walk, London SE1 2AA Page 35 Enquiries: 020 7983 4100 minicom: 020 7983 4458 www.london.gov.uk Agenda Topic Status For action by Item

During the course of the discussion Chief Superintendent Jeff Boothe agreed to provide an overview of the review of CCTV provision in London.

6 Quarter 4, 2014/15 GLA Group Monitoring In progress MPS Reports (Item 6)

Session Two – MOPAC & MPS

During the course of the discussion the MPS agreed to provide the following additional information:

 Further information on what was driving an increase in claims against the MPS, and what action is being taken to mitigate that;  A breakdown of the budget for supplies and services; and  A breakdown of the overspend on overtime payments, including on what the budget was being spent on and the strategies to manage the budget.

List of appendices to this report: None Local Government (Access to Information) Act 1985 List of Background Papers: None

Contact Officer: Shumus Mattar, Committee Assistant Telephone: 020 7983 4011 E-mail: [email protected]

Page 36 Agenda Item 5

Subject: Quarter 3, 2016/17 Greater London Authority Group Monitoring Reports

Report to: Budget Monitoring Sub-Committee

Report of: Executive Director of Secretariat Date: 23 March 2017

This report will be considered in public

1. Summary

1.1 This report sets out, as annexes, the individual monitoring reports submitted by the GLA group on its finance and performance issues for Quarter 3 of 2016/17, including, where relevant, details of when and to which body the reports were submitted.

1.2 The bodies submitting financial reports are: the Greater London Authority (GLA); the Mayor’s Office for Policing and Crime (MOPAC) and the Metropolitan Police Service (MPS); the London Legacy Development Corporation (LLDC); Transport for London (TfL); the London Fire and Emergency Planning Authority (LFEPA); and the Old Oak and Park Royal Development Corporation (OPDC).

2. Recommendations

2.1 That the Sub-Committee notes the monitoring reports for Quarter 3 of 2016/17.

3. Background

3.1 At its meeting on 28 June 2016, the Budget and Performance Committee agreed to refer automatically to the Sub-Committee for the 2016/17 Assembly year quarterly monitoring reports from the GLA and Functional Bodies.

4. Issues for Consideration

4.1 The monitoring reports submitted by the GLA group on finance and performance for Quarter 3 of 2016/17 are included as follows:

 Annexe A (i) – GLA Finance & Performance Monitoring Report, Quarter 3 2016/17  Annexe A (ii) – Housing and Land Directorate – Affordable Housing Quarterly Update  Annexe B – MOPAC Financial Performance Report for Quarter 3 2016/17;

City Hall, The Queen’s Walk, London SE1 2AA Enquiries: 020 7983 4100 minicom: 020 7983 4458 www.london.gov.uk

Page 37  Annexe C – LLDC Corporate Performance: October to December 2016/17, Q3 2016/17;  Annexe D – TfL Quarterly Finance, Investment and Operational Performance Reports – Quarter 3 2016/17  Annexe E – LFEPA Financial Position as at end of December 2016 (Quarter 3)  Annexe F – OPDC, Quarter 3 [2016/17] Finance Report

5. Legal Implications

5.1 There are no direct legal implications arising from the report.

6. Financial Implications

6.1 Financial issues are integral to the quarterly monitoring reports.

List of annexes to this report: As set out at paragraph 4.1 Local Government (Access to Information) Act 1985 List of Background Papers: None Contact Officer: Shumus Mattar, Committee Assistant Telephone: 020 7983 4415 E-mail: [email protected]

Page 38 Annexe A (i)

Greater London Authority Finance and Performance Report Q3 2016-17

Contents

1 Introduction

2 Financial position

3 Capital programme

4 Performance

Appendix 1: Revenue forecast

Appendix 2: Capital forecast

Appendix 3: Programme performance

Page 39 Annexe A (i)

1. Introduction

1.1. This report provides a summary of the Greater London Authority’s (GLA) financial and performance position as at 7 January 2017, the end of the third quarter of 2016-17 (at the end of period 10 out of the 13 four week periods in SAP).

2. Financial position

Revenue forecast

2.1. Table 1 below provides a summary of the revenue forecast; i.e. the expected position as at the end of 2016-17.

Table 1 - Revenue Forecast

Revised Budget Forecast Forecast Expenditure Variance Directorate £m £m £m

Development, Enterprise & Environment 24.0 23.5 -0.5 Housing & Land 23.8 20.3 -3.5 Communities & Intelligence 25.2 24.4 -0.9 External Affairs 9.8 9.8 0.0 Resources 26.9 26.7 -0.2 Corporate Management 1.6 1.2 -0.4 Mayor’s Office 3.9 3.8 -0.1 Elections 15.6 16.5 0.9 Assembly & Secretariat 7.2 7.0 -0.3 Corporate Items 102.1 76.5 -25.7 Sub-Total 240.2 209.6 -30.5 Reserves -58.4 -58.4 0.0 Budget Requirement 181.8 151.2 -30.5

Revenue: Directorates

2.2. Directorates are forecasting a net underspend of £4.9m at the end of Quarter 3. This is made up of a combination of under and overspends, of which £6m is related to budget re-profiling requests, resulting from a combination of delays in project delivery and rephasing of grant agreements. It should be noted that slippage of £2.7m was identified by Directorates at Quarter 2. The most significant elements of the Quarter 3 variance are summarised below.

Page 40 Annexe A (i)

Variance Directorate Commentary £m This is slippage of £3.4m which primarily relates to £2.1m on Housing & -3.5 GLAP Land & Property & Estates and £0.6m on London Land Land Commission & Property. This represents a forecast overspend, which can be charged against the Elections Reserve at year-end, on the budget for the Maximum Recoverable Amount (which is expenditure on specified services and expenses for each constituency at the Elections 0.9 2016 Mayor and London Assembly Elections). This is offset by underspends in the budgets for the e-counting contract, training, Election count venues and advertising and additional income received from candidate deposits. Governance This reflects a forecast underspend on the central statutory and -0.4 strategy budget. Resilience This is slippage of £0.8m which primarily relates to £0.4m on Development, the LEAP. Enterprise & -0.5 The slippage is offset in part by pay overspends due to the Environment temporary backfilling of a number of posts held by staff on maternity leave. There is slippage of £1.4m which relates primarily to A Communities Sporting Future for London of £0.8m and Team London of -0.9 & Intelligence £0.3m. The slippage is offset in part by exchange rate fluctuations on the H2020 project.

Revenue: Corporate Items

2.3. On corporate items, there is a favourable variance of £1.1m due to the receipt of additional investment income, reflecting effective cash management within strict risk parameters resulting in an increased rate of return, underspends on the grants payable to OPDC (£2.8m) and to LLDC (£8.3m) in both case due to reduced forecast expenditure for the year and, as reported at Quarter 2, unbudgeted income of £13.8m arising from recharges to GLAP for interest payable and shared service costs.

2.4. The balance of £0.4m is made up of unbudgeted income received following the completion of the liquidation of Visit London (£0.2m) and an underspend against LPFA past service adjustment amounting to £0.5m offset by costs incurred by the redundancy costs arising from the departure of the former Mayoral team (£1.1m).

Contingency

2.5. The GLA budget includes a sum for contingency of £2m. Any allocation of contingency is not added to base budgets but is instead available on a non-recurring basis to provide transitional support for specific budget areas.

2.6. The approved applications of contingency to date for 2016-17 are listed in Table 2 below.

Page 41 Annexe A (i)

Table 2 – Contingency Allocation 2016-17

£m Original Budget 2.0

Directorate Item External Affairs London is Open 0.2 Resources Corporate Training Budget 0.1 Resources Executive Search Services for TfL Board Members 0.1 External Affairs 2016 Olympics Homecoming Celebration 0.5 Development, Enterprise and Environment London Finance Commission 0.1 Development, Enterprise and Environment Flamingo Park Club, Public Inquiry 0.1 Communities & Intelligence Culture Programmes 0.3 Total Adjustments 1.4

Revised Budget 0.6

Reserves

2.7. Table 3 below details the reserve adjustments at the end of the third quarter, with the transfers from the Directorate Programme Reserve reflecting the application of the agreed carry-forward of Directorate budgets from the 2015-16 closure of accounts processes (as per MD2010) to fund projects that were delayed and are due to start or be completed within this financial year.

2.8. As reported at Quarter 2, in finalising the budget for next year, changes are expected to be made to the reserves in order to: (a) Identify resources that can be applied/set aside for new priorities and/or increasing financial risks (e.g. underwriting of events); (b) Rationalise the number of reserves having regard to the increased level of resources now under the Mayor’s control (which means that some of reserves established to cover relatively low value risks are no longer necessary) and to changing mayoral priorities (e.g., budget carry forwards no longer required); and (c) More clearly distinguish those reserves maintained in respect of the GLA’s group- wide budget and funding responsibilities from those to support the GLA’s own activities and corporate risks.

2.9. In line with the above, and included in the Final Draft Consolidated Budget for 2017- 18, £48.6m of general reserves balances has been earmarked to create a new capital reserve. In addition to this, it is also intended that the balance on the additional retained business rates and council tax income of £19.3m (after allowing for other allocations elsewhere) be allocated to the capital reserve. Consequently, it is estimated that this reserve will have an opening balance of £67.9m at 1 April 2017. This reserve may provide a source of funding for potential projects which fall outside of the Government funded schemes in Housing and Land and those arising from the Government’s Growth Deal 3.

Page 42 Annexe A (i)

Table 3 – Forecast Transfers (to)/from Earmarked Reserves

Balance at 31 Transfers in Transfers Out Balance Mar 2016 2016-17 2016-17 at 31 Reserve March 2017 £m £m £m £m Assembly Development & Resettlement - 1.8 - - - 1.8 City Hall Lease Smoothing - 3.3 - - - 3.3 Compulsory Purchase Orders - 1.4 - - - 1.4 Development Corporations - 34.2 - 11.1 11.4 - 33.9 Development - 3.0 - - - 3.0 Directorate Programme - 19.1 - 10.2 13.0 - 16.2 Election - 13.1 - 4.5 15.6 - 2.0 Environment Drainage - 0.4 - - - 0.4 Estates - 3.9 - - - 3.9 Legal Fees - 0.7 - - - 0.7 London & Partners - 2.2 - - - 2.2 Major Events - 13.5 - - - 13.5 Mayoral Resettlement - 0.1 - - - 0.1 New Homes Bonus - 32.0 - - - 32.0 NDR Backdated Appeals Speading - 30.0 - - - 30.0 Planning Smoothing - 0.2 - 0.2 0.1 - 0.3 Pre Application Planning - 0.5 - 0.3 - 0.1 Recycled Capital Grant Fund Interest - 2.1 - 0.3 - 1.8 Business Rates - 196.4 - 74.1 - 122.3 Rev Grants Unapp Res - 52.8 - 19.4 40.3 - 32.0 Self - Insurance - 1.0 - - - 1.0 - 411.8 - 45.4 155.2 - 302.0

Page 43 Annexe A (i)

3. Capital Programme 2016-17

Financial Position at Quarter 3 Forecast

Analysis of 2016/17 Capital Budget

Directorates £m Corporate 287.6 43% Regeneration 84.0 13% Housing & Land 287.6 43% DEE 0.6 0% C&I 1.5 0% 661.3

3.1. The 2016/17 Capital Spending Plan was re-profiled at the end of Quarter 2 to align the 2016/17 programme budget to the expected delivery milestones of the capital programme. As a result of the re-profiling some projects are forecasting spend in line with the re-profiled budget at Quarter 3.

3.2. The total re-profiled capital programme budget for 2016/17 is £661.3m, as set out above. A full analysis of the capital programme budget is appended. An analysis of the budget allocation by business units is shown below. The total forecast capital outturn at quarter 3 is £613.4m, and the actual spend was £318.3m.

Analysis of 2016/17 Capital Budget

0.1% 0.2%

Corporate Regeneration 43.5% 43.5% Housing & Land DE&E C&I 12.7%

Page 44 Annexe A (i)

Housing and Land

Actual to 2016/17 Forecast Forecast Actual Forecast Budget Outturn Variance Spend Qtr3 Spend £m £m £m £m (%) Affordable Housing Programme 106.9 61.0 (45.9) 25.1 41% Care & Support 6.0 8.7 2.7 4.2 48% Homelessness Change and Platform for Life 10.9 12.3 1.4 10.9 89% London Housing Bank 21.0 21.0 0.0 0.0 0% Housing Zones (Loans) 30.0 30.0 0.0 7.7 26% Housing Zones (Grants) 65.3 60.0 (5.3) 31.7 53% Custom Build 0.7 0.1 (0.6) 0.1 100% Home Retrofitting 2.2 2.2 0.0 0.8 36% Land and Property 30.4 30.4 0.0 30.0 99% Compulsory Purchase Orders 14.1 14.1 0.0 0.6 4% 287.5 239.8 (47.7) 111.1 46%

Affordable Housing Programme

3.3. This financial year has been one of transition to a new funding programme, with significant changes to products and funding levels. The programme is backloaded with significant delivery and spend in Q4 but is now expected to spend below the Q2 forecast. Reasons for this are outlined below and teams will continue to proactively work with partners to maximise delivery to year-end.

3.4. There are three primary reasons for lower than previously expected expenditure. Firstly, grant reclaims from previously funded schemes have resulted in £15m (14% of the annual budget) of unexpected credits. Secondly, the launch of the new funding programme has resulted in some expected delivery moving into that programme. Finally, due to a more proactive approach by the GLA to reclaiming unspent recycled capital grant funding (RCGF), we are seeing partners prioritising use of RCGF over new grant. This has the effect of delaying GLA spend but will also mean that increased numbers of affordable homes can be delivered for a given programme budget.

Care & Support

3.5. This project is forecasting overspend of £2.7m to budget. The forecast overspend has resulted from: new allocations identified as result of continuous engagement within the sector and a positive response by the housing associations to the Government’s announcement on top-up rent, to support the Local Housing Allowance cap. These two factors have resulted in increased allocations for additional delivery of supported homes.

Page 45 Annexe A (i)

Homelessness Change and Platform for Life

3.6. This project is also forecasting overspend of £1.4m. The factors driving this overspend is similar to that of Care and support, which are continuous market engagement and the Government’s top-up on Local Housing Allowance cap.

London Housing Bank

3.7. The London Housing Bank is forecasting spend to budget. The full expected spend relates to one transaction with one provider. The contracts for this are in the process of being finalised, which should ensure contract sign-off and funds drawdown by the end of this financial year.

Housing Zones (Grants)

3.8. The housing Zones grant project show a small forecast underspend of £5.3m. The reduction in forecast spend relates to slippages anticipated at the year-end, on a small number of the pipeline schemes due to contracting and drawdown milestone dates slipping beyond this financial year.

Housing Zones (Loans)

3.9. The Housing Zones loans project is forecasting spend to budget. To-date £7.7m has been drawdown by Cambridge Road (Swan Housing). Further drawdowns are expected on the Cambridge Road project and just over £9m are expected on Blackwall Reach (Swan Housing). The contract has been executed on Blackwall Reach and engrossed copies are being produced; the developer intends to drawdown the £9m of funding by the end of this financial year, once the initial contract precedents have been discharged.

Custom Build and Home Retrofitting

3.10. The forecast spend for Home Retrofitting and Custom Build relates to carry forward budgets from 2015/16. The forecast spend for Custom Build is £0.7m, however 12% of this has been spent to date. Inhabit Homes is expected to drawdown the full amount by the end of this financial year.

3.11. Included in the Home Retrofitting forecast are: £2.1m to cover the costs of the Boiler Cashback and the Fuel Poverty Boiler Replacement schemes. Also included is forecast spend of £0.1m for the ‘Fit for Schools’ and the ‘New PRS’ projects. The Service expects this budget to be fully spent by the end of the current financial year. To-date 37% of the forecast has been spent.

Land and Property

3.12. Land and Property mainly relates to capital expenditure associated with land acquisition and major works to the stock portfolio; most of the budget has been spent. This spending related to the acquisition of land and building (Siemens Crystal) and major works towards improvements of the Millennium Mills and the LSIP sites. The Service expects to achieve the budgeted spend by the end of the year, as no slippage is expected in delivering the projects.

Page 46 Annexe A (i)

Regeneration

3.13. The table below provides and analysis of slippage within the Regeneration capital programme for 2016/17. The total forecast spend to-date is £61.9m, and 37% of the programme forecast has been spent. Significant spend is anticipated in Q4 and details of slippage on projects are also provided. Underspend and slippage issues are managed by the Regeneration project leads to ensure project outcomes are maintained while project delays are minimised.

Actual Actual 2016/17 Forecast Forecast Spend to Budget Outturn Variance Qtr3 Forecast Spend (%) £m £m £m £m London Regeneration Fund 6.1 2.2 (3.9) 0.2 9% Mayor's Regeneration Fund 11.7 11.5 (0.2) 8.1 70% Woolwich 5.0 0.0 (5.0) 0.0 0% London Enterprise Fund 5.0 3.7 (1.3) 0.0 0% Growing Places Fund 36.5 29.7 (6.8) 7.9 27% Crystal Palace Park 0.5 0.4 (0.1) 0.0 0% Further Education Capital Programme 14.6 11.3 (3.3) 5.7 50% High Street Funds 4.6 3.1 (1.5) 0.9 29% 84 61.9 (22.1) 22.8 37%

London Regeneration Fund

3.14. The London Regeneration Fund is forecasting underspend of £3.9m at quarter 3. To date actual spend is 9% of forecast. The projected underspend is a result of slippage across several LRF projects. The delays have been caused by several factors which are: changes in site locations, restructuring/resourcing issues within Local Authorities, changes in procurement strategy to planning application delays. Significant spend is anticipated in Q4.

Mayor’s Regeneration Fund

3.15. Mayor’s Regeneration Fund is forecasting underspend of £0.2m. The underspend is as a result of slippage on the North Woolwich project, which is expected to slip into 17/18 due to issues relating to match from Crossrail.

Woolwich

3.16 No spending on the Woolwich project is forecast for 2016/17 and delivery of the full project has been deferred to the next financial year.

Page 47 Annexe A (i)

London Enterprise Fund

3.17 The London Enterprise Fund shows forecast underspend of £1.3m. The underspend relates to slippage on the LB Haringey Opportunity Investment Fund project. The project has experienced a high turnover of lead officers at Haringey, which has undermined the consistency of roll out. There has been progress in this financial year. However it is likely that £1.3m will slip to the next financial year.

Growing Places Fund

3.18 The Growing Places Fund shows forecast underspend of £6.8m. The underspend is mainly due to slippage, as follows: approximately £4.3m for Barking Riverside due to delays in planning and utilities; £0.1m for the Cube project, delays caused by changes in the approach to purchasing equipment for the workspace to a needs basis, rather than upfront, £0.8m for Imperials Innovation project caused by delays in approval and £1.5m for the Southall.

Crystal Palace Park

3.19 The Crystal Palace Park project shows forecast underspend of £0.1m. The underspend is the result of slippage on two remaining capital elements of the project: the Skate park, and the new Café. The slippage was caused by delays in the negotiation period with tenderers to get the project in budget.

Further Education Capital Programme

3.20 The Further Education Capital Programme is showing a forecast underspend of £3.3m. This underspend is mainly due to slippage from the following projects: approximately £0.5m for Lambeth College caused by delays to planning determination; £1.8m for Richmond College Phase 1 and a further £0.5m from Phase 2 caused by delays to a planning condition being met for development to commence; and £0.3m for Barnet and Southgate College.

High Street Funds

3.21 The High Street Funds programme is showing forecast underspend of £1.5m. The forecast underspend is a result of: £0.6m underspend against aborted Harrow Road project; £0.5m underspend against Walthamstow, Whitechapel and Social Supermarket projects and £0.3m for slippage against 2 HSF projects (Whitechapel and Wood Green). Firm delivery plans are in place for both projects.

Page 48 Annexe A (i)

DEE and C&I

Actual to 2016/17 Forecast Forecast Actual Forecast Budget Outturn Variance Spend Qtr3 Spend £m £m £m £m (%) EPBU Skills (DEE) 0.5 0.0 (0.5) 0.0 0% London and Partners (DEE) 0.0 0.0 0.0 0.0 0% London Outdoors Park (DEE) 0.1 0.1 0.0 0.1 100% Museum of London (C&I) 0.8 0.8 0.0 0.4 50% A Sporting Future for London (C&I) 0.7 0.7 0.0 0.5 71% 2.1 1.6 (0.5) 1.0 62%

Development Enterprise and Environment (DEE)

3.22 No spending on the EBPU Skills is forecast for 2016/17 and delivery of the full project has been deferred to the next financial year. The project has been delayed as issues around match funding from the European Social Funds are being resolved.

Communities and Intelligence (C&I)

3.23 The Museum of London – through capital repairs to its buildings at Docklands and Mortimer Wheeler House – has spent 52% of its budget and is forecasting to fully spend its budget by the year end. Sporting Future for London is forecasting spend to budget. 75% of the sporting budget was spent to-date.

Corporate

Actual to 2016/17 Forecast Forecast Actual Forecast Budget Outturn Variance Spend Qtr3 Spend £m £m £m £m (%) Northern Line Extension (NLE) 193.0 165.0 (28.0) 125.4 76% London Legacy Development Corporation 88.0 88.0 0.0 58.7 67% City Hall Infrastructure 1.1 1.1 0.0 0.2 18% Education Fund Agency 5.0 5.0 0.0 5.0 100% Technology Group 0.5 0.3 (0.2) 0.2 67% 287.6 259.4 (28.2) 189.5 73%

Northern Line Extension

3.24 Payments to NLE are driven by request for payments from TfL. TfL is forecasting a reduction in the level of payments to be claimed compared with budget, as a result of slippage on the programme. However, this is not expected to affect the timetable for the opening of the Line.

Page 49 Annexe A (i)

4. Performance

4.1 Significant financial issues are set out above in the financial paragraphs of the report. There were four red-rated projects at the end of the third quarter:  Two High Streets Fund projects are now rated red. The Portobello project is experiencing delivery slippage. At the time of writing, approval of the final design was not anticipated until the end of March. The social supermarkets project now has a shortfall of funding.  Various issues have resulted in a significant delay to the Camden Cobden Junction project (Mayor’s Regeneration Fund). TfL and the borough are looking at design solutions so works can progress.  Lettings for both the housing moves and seaside and county homes schemes (housing mobility project) are below target due to the low number of properties becoming vacant and minimal demand for some specific areas/properties.

4.2 One project has moved out of the red:  The London Sustainable Industries Park (LSIP) has been upgraded to amber because one of the largest remaining individual infrastructure works packages budgeted for this project is now ready to be commissioned.

4.3 The table below sets out the main changes in rating over the past quarter. The full project table is appended.

Page 50 Annexe A (i)

Project rating changes at Quarter 3

Period 4 Q2 Q3 (Q1, 2016-17) 85 78 88  GPF The Cube HSF Small Projects OLF Crystal Palace Park MRF Tottenham Projects MRF Croydon Wellesley Crossings LRF Abbey Wood MRF Croydon High Streets LRF Harrow Town Centre MRF Tottenham Projects LRF West Ealing HSF Station Road (Harrow) LRF London Riverside HSF Forest Hill (Lewisham) LRF Barking Town Centre HSF Ealing (Acton) GPF Hackney Wick Station LRF Meridian Water Workspace LRF Loughborough Junction GREEN GPF West Anglia Route FE Bromley College (Hospitality) Smart Cities RE:FIT HyFive Royal Albert Docks Busk in London Volunteering: 2work

54 60 49

FE NCDS Crystal palace MRF West Croydon Interchange FE Bromley Hospitality LRF Loughborough Junction LRF CEME: London Riverside FE Richmond College Phase 2 LRF The Mill Co: Silvertown FE ELATT FE Westminster Kingsway LRF Blackhorse lane FE Colindale Skills Centre LRF Abbey Wood ELACP LRF Harrow Town centre  LRF West Ealing 

LRF North Woolwich  LRF London Riverside  LRF Cell Hackney Wick LRF South Kilburn

AMBER LRF Dalston Works LRF Barking Town Centre Busk in London

   GPF Hackney Wick Station HSF Whitechapel Sustainable Industries Park (LSIP) Mayors Affordable Housing  FE Capital Lambeth College GPF Tempus Energy

8 2 4  

HSF Whitechapel Housing Mobility MRF Camden Cobden Junction

RED LRF Anerley Town Hall HSF Portobello LRF Mainyard Studios HSF Social Supermarkets

146 142 141

Total Total active

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Page 52 Annexe A (ii)

Budget Monitoring Sub Committee Data to end December 2016 Housing and Land Directorate – Affordable Housing Quarterly Update

1) 2016-17 Affordable Housing Completions Delivery Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total outturn Completions Outturn 123 299 1,141 1,563

2) 2016-17 Affordable Housing Starts on Site Delivery Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total outturn Starts on Site Outturn 537 1,241 570 2,348 Page 53 Page Appendix 1. GLA Affordable Housing Starts and Completions, by borough

2016-17 - to end of December 2016 Completions Starts Achieved Achieved

Barking and Dagenham 1 185 Barnet 50 103 Bexley 58 59 Brent 3 113 Bromley 71 21 Camden 0 0 City of London 0 17 Croydon 2 186 Ealing 10 189 Enfield 13 32 Greenwich 178 111 Hackney 10 35 Hammersmith and Fulham 6 56 Haringey 102 0 Harrow 4 55 Havering 14 20 Hillingdon 7 6 Hounslow 191 156 Islington 22 166 Kensington and Chelsea 2 3 Kingston upon Thames 20 0 Lambeth 1 1 Lewisham 110 164 Merton 2 28 Newham 80 0 Redbridge 1 32 Richmond upon Thames 40 45 Southwark 25 195 Sutton 39 0 Tower Hamlets 241 142 Page 54 Page Waltham Forest 30 126 Wandsworth 161 12 Westminster 0 39 Not Specified 69 51 Total 1,563 2,348 2016-17 Quarter 3 Objective Revenue Summary by Directorate Appendix 1 GLA

Q3 Outturn Net Year End Revised Budget Expenditure/ Forecast Variance Q3 Income

2016/17 2016/17 2016/17 2016/17 £000 £000 £000 £000

Corporate Management Team Core CMT 310 245 310 0 Committee 161 92 161 0 Standards 18 11 18 0 Governance and Resilience 1,105 502 755 -350 1,594 850 1,244 -350

Elections Elections 15,638 14,745 16,531 893

Mayor's Office Mayoral Support 1,328 976 1,317 -11 Government & International Relations 918 556 849 -69 Mayoral Advisors 1,611 1,090 1,614 3 3,857 2,622 3,780 -77

Resources Executive Director 120 170 164 44 EPMU 738 547 660 -78 Financial Services 3,480 2,751 3,444 -36 Group Finance 472 593 399 -73 Facilities Management 15,656 13,467 15,901 245 HR & OD 2,184 1,644 2,226 42 Technology Group 4,292 3,182 3,939 -353 26,942 22,354 26,733 -209

Development, Enterprise & Environment Executive Director 740 136 755 15 London Enterprise Action Panel (LEAP) 1,127 44 775 -352 Planning 3,446 1,543 3,293 -153 Transport 542 459 560 18 Environment 4,090 2,201 4,106 16 Economic and Business Policy 6,882 2,678 7,045 163 Regeneration 6,491 3,090 6,395 -96 Delivery Unit 712 567 590 -122 24,030 10,718 23,519 -511

External Affairs Directorate Support 167 132 177 10 Public and Community Engagement 912 694 962 50 External Relations 7,924 4,764 7,802 -122 Press Office 752 847 834 82 9,755 6,437 9,775 20

Communities & Intelligence Executive Director 647 149 647 0 Health & Communities 20,357 10,906 19,257 -1,100 Intelligence 2,180 1,228 2,674 494 Team London 2,050 866 1,772 -278 25,234 13,149 24,350 -884

Assembly & Secretariat Executive Director 219 155 192 -27 Committee and Member Services 4,392 3,348 4,224 -168 Scrutiny 1,566 1,073 1,509 -57 Special Projects 1,036 774 1,036 0 7,213 5,350 6,961 -252

Housing and Land Executive Director 194 154 205 11 Investment and Operations 2,156 1,672 2,156 0 Programmes Policy and Services 15,325 8,713 14,801 -524 Strategic Projects and Property 2,299 -4,956 1,484 -815 CPO revenue 0 56 0 0 19,974 5,639 18,646 -1,328

Housing & Land GLAP Strategic Projects and Property 3,805 2,932 1,635 -2,170 3,805 2,932 1,635 -2,170

Corporate Items Contingency 613 0 613 0 Olympic Funding Agreement 28,347 0 28,347 0 London Legacy Development Corporation 36,000 0 27,700 -8,300 Museum of London 8,023 5,688 8,023 0 London and Partners 11,385 11,385 11,385 0 OPDC 11,400 4,042 8,600 -2,800 Contributions to Reserves 23,904 7,235 23,904 0 Contributions from Reserves -82,289 -11,863 -82,289 0 Interest Receivable (GLA &LDDC) -18,900 -7,638 -20,040 -1,140 Interest Payable 6,960 0 6,960 0 Voluntary Revenue Provision 10,510 0 10,510 0 LPFA Past Service Adjustment 816 316 316 -500 Business Rates Retention Levy 5,970 0 5,970 0 Business Rates Maximisation Projects 1,120 582 1,120 0 GLAP Shared Services Recharge 0 0 -3,810 -3,810 GLAP Interest Payable Recharge 0 0 -9,990 -9,990 Government Grants 0 0 0 0 LEP Recharge -500 -500 -500 0 Visit London Liquidation Pay Out 0 -214 -214 -214 Private Office Old Administration 368 1,467 1,467 1,099 43,727 10,500 18,072 -25,655 Total 181,769 95,296 151,246 -30,523

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Page 56 Appendix 2

Accumulated Revised Forecast Period 10 Qtr3 Budget at Variance at Budget at Outturn Forecast 2016/17 Qtr2 Qtr2 Qtr3 Actual Spend (P10 Q3) Variance £m £m £m Cross-Rail 0.0 0.0 0.0 0.0 0.0 0.0 Northern Line Extension 193.0 0.0 193.0 125.4 165.0 (28.0) London Legacy Development Corporation 46.4 41.6 88.0 58.7 88.0 0.0 Land Acquisitions 0.0 0.0 0.0 0.0 0.0 0.0 City Hall Infrastructure 1.1 0.0 1.1 0.2 1.1 0.0 Education Fund Agency 5.0 0.0 5.0 5.0 5.0 0.0 London and Partners 0.4 (0.4) 0.0 0.0 0.0 0.0 Technology Group 0.5 0.0 0.5 0.2 0.3 (0.2) Museum of London 0.8 0.0 0.8 0.4 0.8 0.0 A Sporting Future for London 0.7 0.0 0.7 0.5 0.7 0.0 London Outdoors Park 0.0 0.1 0.1 0.1 0.1 0.0 Mayor's Regeneration Fund 11.7 (0.0) 11.7 (1.2) 11.5 (0.2) London Enterprise Fund 5.0 0.0 5.0 (0.7) 3.7 (1.3) Outer London Fund 0.0 0.0 0.0 (0.8) 0.0 0.0 New Homes Bonus 0.0 0.0 0.0 0.0 0.0 0.0 Growing Places Fund 33.6 3.0 36.5 7.9 29.7 (6.8) Further Education Capital Programme 17.9 (3.3) 14.6 5.7 11.3 (3.3) High Streets 0.0 4.6 4.6 0.1 3.1 (1.5) Woolwich 5.0 0.0 5.0 0.0 0.0 (5.0) Crystal Palace Park 1.9 (1.4) 0.5 (0.1) 0.4 (0.1) London Regeneration Fund 7.1 (1.0) 6.1 0.2 2.2 (3.9) Super-Connected Cities 0.0 0.0 0.0 3.0 0.0 0.0 EPBU Skills 1.0 (0.5) 0.5 0.0 0.0 (0.5) GLA Housing & Land 0.0 North East London 0.0 (0.0) 0.0 (3.1) 0.0 0.0 South London 0.9 (0.8) 0.0 0.4 0.0 (0.0) Kidbrooke Regeneration 0.0 0.0 0.0 0.0 0.0 0.0 Decent Homes 0.0 0.0 0.0 1.9 0.0 0.0 Affordable Housing Programme 106.9 0.0 106.9 25.1 106.9 0.0 Care & Support 6.0 0.0 6.0 4.2 8.7 2.7 Custom Build 0.0 0.7 0.7 0.1 0.7 (0.0) Homelessness Change and Platform for Life 7.5 3.4 10.9 10.9 12.3 1.4 Home Retrofitting 0.1 2.1 2.2 0.8 2.2 0.0 London Housing Bank 51.8 (30.8) 21.0 0.0 21.0 0.0 Housing Zones (MHC) 20.0 10.0 30.0 31.7 30.0 0.0 Housing Zones (DCLG) 31.3 34.0 65.3 0.0 64.2 (1.1) Other Property 0.8 (0.7) 0.1 39.6 0.1 (0.0) Housing North East 0.0 0.0 0.0 0.0 0.0 0.0 Housing Land & Development (Millennium Mills) 1.5 (0.0) 1.5 1.3 1.5 0.0 Recycled Capital Grant 0.0 0.0 0.0 0.0 0.0 0.0 Land and Property 0.0 28.8 28.8 0.0 28.8 (0.0) Compulsory Purchase Orders 14.1 0.0 14.1 0.6 14.1 0.0 Total 571.9 89.4 661.3 318.3 613.4 (47.9)

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Page 58 Appendix 3 Appendix 1 Ref Area Project Name Cap GLA 16-17 net Approved Budgeted GLA gross GLA gross GLA gross Spend at Q1 Spend at Q2 Spend at Q3 Project Performance Update at February 2017 Overall

No / budget carry Forward external annual budget annual budget annual budget project Risks Issues Budget Rev from 15-16 income at Q1 at Q2 at Q3 (if rating Targets different) Timescale

ECONOMIC AND BUSINESS POLICY (DEE) A1 DEE London & Partners R 10,954,000 431,000 11,385,000 5,719,000 5,719,000 11,490,000 L&P have been addressing the challenges arising from Brexit with a number of G C 200,000 180,000 380,000 25,000 0 0 initiatives including the Retention Taskforce and London Growth Network. #Londonisopen continues to run across all campaigns including a retail launch in November. Note spend figures need to be delineated between rev and cap.

A2 DEE Food Programme R 300,000 60,000 360,000 300,000 49,949 73,316 193,898 5 Boroughs will receive grant funding to develop Food Poverty Action Plans in G 2017 following the end of the application period. Work continues on delivering Healthier High street projects. A3 DEE Food Flagships R 32,000 560,000 592,000 54,549 201,309 306,335 The two Food Flagship boroughs (LB Lambeth and LB Croydon) are close to G submitting their evaluation reports with the final programme evaluation due in March. The GLA is working with LB Lambeth to ensure as many of their project

Page 59 Page outputs as possible will be delivered. A5 DEE Digital skills R 1,220,000 1,780,000 3,000,000 8,526 28,571 82,725 The programme was reviewed to reflect the Mayor's tech skills objectives and is REPORTING FROM C 1,000,000 1,000,000 0 0 0 currently going through approval. It will start reporting at the next quarter when NEXT QUARTER implementation starts. . OLF and other Regen (DEE) . B5 DEE OLF LB Enfield: North East C 0 0 0 0 0 This project is complete and all claims have been processed. Borough provided COMPLETED Enfield draft evaluation report which is under review by GLA project lead and will form the basis of the closure report. Project lead is coordinating with the borough lead to complete a project closure form (and until received and satisfactory, we will keep the project in this table). B3 DEE Crystal Palace Park C 920,000 858,000 1,778,000 1,920,000 520,000 -62,000 -62,000 -62,000 The tender submissions for the skate park have now been received from three G suppliers. The next stage requires that the suppliers complete a requirements gathering exercise with the skate park user group and this will inform the designs that will complete their submissions. . MAYOR'S REGENERATION FUND . (DEE) MRF MRF General (and unallocated) R 0 700,000 700,000 52,000 0 0 24,465 Amounts allocated here are awaiting distribution to the projects below (rather than BUDGET MONITORING C 0 10,110,000 10,110,000 11,696,000 3,746,000 0 0 0 being unallocated amounts). ONLY C2 MRF MRF LB Camden: Cobden C 0 805,000 805,000 0 0 0 This project has been changed from amber to red whilst a solution to implement R Junction final delivery is being considered by TfL. C3 MRF MRF LB Croydon: West Croydon C 0 0 0 -4,199,084 -4,199,084 -4,199,084 This project is rated amber due to the delays in completing outstanding works. A Interchange C4 LEF MRF LB Croydon: West Croydon R 0 102,000 102,000 0 -25,683 -3,683 The project is now complete. Closure forms are with the GLA for review. It will then COMPLETED Investment Programme be removed from the project monitoring table and all accruals have been processed. C5 MRF MRF LB Croydon: Innovation R 0 0 0 0 0 0 This project is now rated green because the capital project has been completed and G Centre the incubator space is in operation and continues to attract new occupants. C 0 0 0 -877,940 -877,940 -877,940

C6 LEF MRF LB Croydon: Business Rate R 0 901,000 901,000 0 0 0 0 The scheme is now closed to new applicants. The project is rated amber because A Relief the project's final outputs are expected to be slightly below target, with some underspend. The project evaluation is overdue. C7 LEF MRF LB Croydon: Wellesley Road C 0 1,611,000 1,611,000 1,738,000 -9,672 -9,672 -9,972 The project rating has changed from amber to green because works continue to G Crossings progress well. LB Croydon is in discussions with Tramlink to resolve outstanding technical details. C8 MRF MRF LB Croydon: High Streets R 0 278,000 278,000 0 0 0 This project is now substantively complete and has been upgraded to green G / LEF accordingly. There are some delays to the signing of the Deed of Variation and C 0 2,634,000 2,634,000 2,627,000 -4,032,523 -4,032,523 -4,032,523 receiving claims. C9 MRF MRF LB Croydon: New Addington R 0 0 0 0 0 0 This project is now substantively complete. There are some delays to the signing of G C 0 585,000 585,000 75,883 75,883 75,683 the Deed of Variation and receiving claims. C10 MRF MRF LB Ealing: Dine in Southall R 0 3,000 3,000 0 0 0 The project continues to schedule in refurbishing the derelict Manor House. A G kitchen specialist has been appointed for the design of the kitchen and café. C 0 575,000 575,000 0 0 0 Appendix 3

Ref Area Project Name Cap GLA 16-17 net Approved Budgeted GLA gross GLA gross GLA gross Spend at Q1 Spend at Q2 Spend at Q3 Project Performance Update at February 2017 Overall

No / budget carry Forward external annual budget annual budget annual budget project Risks Issues Budget Rev from 15-16 income at Q1 at Q2 at Q3 (if rating Targets different) Timescale

C11 MRF MRF LB Ealing: Shaping Southall C 0 0 0 1,000 0 0 0 Most of the project has now been delivered with some minor elements remaining. G

C12 MRF MRF LB Enfield: Market R 0 20,000 20,000 0 0 0 The project is now complete and the formal closure form is awaited. It will then be COMPLETED Gardening removed from the monitoring table. C14 MRF MRF LB Hackney: Fashion Outlet R 0 0 0 0 0 0 The project is now almost complete. Closure forms are now with the GLA for G Hub review. C15 LEF MRF LB Haringey: Opportunity R 0 0 0 1,000 0 0 0 The project is rated amber as a significant amount of funding remains unallocated A Investment Fund. due to limited officer capacity. Applications totalling £605k were to be recommended for approval in February and a £90k loan has been approved. A C 0 2,040,000 2,040,000 2,076,000 0 0 0 further pipeline of applications is likely to be received and recommended for approval in March, with a conservative estimate of their value of £165k.

C16 LEF MRF LB Haringey: 639 R 0 37,000 37,000 -12,140 -4,535 -4,535 The 639 project continues to deliver in line with agreed targets and negotiation G Tottenham High Road C 0 10,000 10,000 -13,000 0 0 between GLA and LYST on the new lease is underway.

C18 MRF MRF LB Haringey: Tottenham R 0 1,000 1,000 0 0 0 Working towards full completion by end of financial year (Bus priority measures, G / LEF Projects (Access and Parking, C 0 2,099,000 2,099,000 2,099,000 0 0 8,000,000 Park Lane–Northumberland Park Station walking and cycling improvements, Park CPZ, Growth on the High Road, Lane and Lansdowne Rd re-surfacing, Chestnut Road Walking Route). Traffic Station Approach) Signal issue now resolved Financial Services comment: The budget was re-profiled in Q3. Expenditure is to be recovered by other Haringey budgets. Work will take place to query the actuals with the team.

C19 MRF MRF LB Haringey: Employment R 0 355,000 355,000 36,726 176,850 293,720 The project is now rated green because it is overall delivering against its main G Support (incl Haringey 100 outcomes. There are still concerns that one of the delivery partners is slightly project) below two of its targets. C20 MRF MRF LB Merton: Colliers Wood R 0 1,000 1,000 0 0 0 The project is rated amber due to delays, although the final phase is now on site A C 0 592,000 592,000 0 0 0 and near completion. Final reporting from the borough is now awaited. C21 MRF MRF LB Southwark: Gateway to C 0 3,578,000 3,578,000 0 0 0 The project is rated amber as it will not be completed before March 2017. A CPO A Peckham enquiry was being held from 31 January 2017. (Peckham Rye Station) . HIGH STREET FUND . Page 60 Page DEE High Street Fund General R 0 799,000 799,000 453,000 100,000 0 0 0 Amounts have been split onto individual projects below where relevant, now that BUDGET MONITORING C 0 4,941,000 4,941,000 300,000 0 0 0 0 carry forward has been approved. ONLY D1 DEE HSF Barking (Barking and R 0 0 0 0 0 0 There is no update to the public realm improvements following the Q2 report G Dagenham) because works were due to be completed from February to remove of street clutter C 0 0 0 0 0 0 and install feeder pillars. The implementation of new back to back market stall layout will follow on from these initial works. Despite some slippage, it is expected that the project will be delivered on time and within budget.

D2 DEE HSF Burnt Oak (Barnet) R 0 0 0 -59,914 -39,914 -39,914 Rated amber due to slippages caused by delays to approvals and permissions across A C 0 0 195,000 -14,189 -14,189 0 the capital project before works can take place. There are still a number of issues that need to be resolved around the various advertising consents required to allow some of the works to take place.

D3 DEE HSF Wembley (Brent) R 0 0 23,000 0 0 0 Rated amber due to delays in both mobilising construction works and signing off A C 0 0 446,000 0 0 7 agreed designs. There has been significant progress made to the shopfronts on Wembley Park Drive and discussions are ongoing with the contractors to include two additional shopfronts.

D4 DEE HSF (Bromley) C 0 0 50,000 49,000 -13 -13 -13 The GLA funded elements of the project are complete with only the delayed non- G GLA match delivery elements outstanding.

D5 DEE HSF Camden Town (Camden) R 0 0 30,000 -567 -567 -567 The project continues to deliver well against outputs. The GLA has commented on G C 0 0 41,000 0 0 0 the evaluation brief which is about to be tendered. Appendix 3

Ref Area Project Name Cap GLA 16-17 net Approved Budgeted GLA gross GLA gross GLA gross Spend at Q1 Spend at Q2 Spend at Q3 Project Performance Update at February 2017 Overall

No / budget carry Forward external annual budget annual budget annual budget project Risks Issues Budget Rev from 15-16 income at Q1 at Q2 at Q3 (if rating Targets different) Timescale

D6 DEE HSF Acton (Ealing) C 0 0 340,000 0 0 0 The project is rated amber due to delays in delivering public realm works, G shopfronts and workspace. Public realm works are scheduled to start on site in March 2017. D7 DEE HSF Abbey Wood (Greenwich) R 0 0 0 0 0 0 The project is now mostly complete but is rated amber due to delays on site and A C 0 0 86,000 -15,562 -15,562 -15,652 sign off of the deed of variation. D8 DEE HSF Wood Green (Haringey) C 0 0 78,000 -22,174 -22,174 -22,174 The project is scheduled to deliver in line with the deed of variation. There has G been good progress made in developing the three Meanwhile Campus buildings into workspace for cultural enterprises. D9 DEE HSF Station Road (Harrow) R 0 0 8,000 0 0 0 This project has moved to green as good progress has been made on the public G C 0 0 131,000 -57,761 -57,761 -57,761 realm improvements. The footway repaving works to the Eastern Parade have been completed and all trees have now been planted on Central and Dominion Parade.

D10 DEE HSF Romford (Havering) C 0 0 0 0 0 All major outputs have now been delivered with the exception of the number of G businesses supported. The last remaining project (the Retailery) opened at the end Page 61 Page of 2016 providing a retail incubator space with an additional co-working area. The co-working facility is operating well, although the retail element is taking a little longer to gain momentum. D11 DEE HSF Finsbury Park (Islington) R 0 0 0 0 0 0 The shopfront improvements have now completed and the formal launch was due G C 0 0 127,000 0 0 0 in February 2017. The scheme has proved popular with other businesses keen to do more shopfronts.

D12 DEE HSF Portobello (Kensington and C 0 0 125,000 0 0 2,300 This project is now rated red due to delivery slippages, anticipated to run into the R Chelsea) 2017/18 financial year. Approval for the final design is not anticipated until the end of March and fabrication and practical implementation of units in May 2017.

D13 DEE HSF Brixton (Lambeth) R 0 0 32,000 33,000 691 691 15,550 The site works are now essentially complete. There are still a few market G C 0 0 144,000 10,315 10,315 85,423 management and trader issues to be resolved and it has been agreed that clothing / fashion stall can be extended to the height of the gazebo stall to allow for maximum display of stock. D14 DEE HSF Forest Hill (Lewisham) R 0 0 5,000 0 0 0 This project is now rated green due to sign off of the grant agreement. Claims can G C 0 0 108,000 0 0 0 now be processed once received. D15 DEE HSF Ladywell (Lewisham) C 0 0 401,000 400,000 0 0 0 This project is rated amber due to delays in signature of the deed of variation. A However, works are now complete with tenants moving into the ground floor workspaces. D16 DEE HSF Manor Park (Newham) C 0 0 1,000 0 0 0 Outputs have been achieved within agreed timescales and on budget with the G project now undergoing closure. D17 DEE HSF Bankside (Southwark) R 0 0 18,000 0 0 0 The project is almost complete with a number of smaller elements pending. The G C 0 0 68,000 -82,471 6,000 0 café forecourt area will be completed by a specialist sub-contractor during February 2017. D18 DEE HSF Old Kent Road (Southwark) R 0 0 23,000 0 0 0 The project is rated amber due to the likelihood that some outputs will not be A C 0 0 461,000 0 0 0 delivered before March 2017. D19 DEE HSF Chrisp Street (Tower R 0 0 0 -305 -305 -305 The project is almost complete with all GLA funds now spent. A closure form is G Hamlets) C 0 0 0 -109 -109 -109 being drafted with the lead at Poplar Harca. D20 DEE HSF Whitechapel (Tower R 0 0 61,000 -2,921 0 0 This is rated amber as the project has struggled to deliver workspace projects. A Hamlets) C 0 0 401,000 -24,720 -3,400 -3,400 D21 DEE HSF Blackhorse Lane (Waltham R 0 0 2,000 0 0 0 The project has received additional funding from Waltham Forest Council to extend G Forest) C 0 0 128,000 0 0 0 the covered yard space of the workshop. Some delays have occurred due the requirement for replacement sub-contractors.

D22 DEE HSF Walthamstow (Waltham R 0 0 44,000 -6,411 -6,411 -6,411 The "Homes Behind the High Street" strand has received support to develop a set A Forest) C 0 0 430,000 -10,920 -10,920 -10,920 of options for the development of the selected site. The Project Team at Waltham Forest will be confirming the approved disposal/development route for the Osbourne Grove which will be to develop an open competition for the site based on social value outputs vs traditional best consideration.

D23 DEE Harrow Road (Westminster) C 0 0 585,000 0 0 0 This project is no longer going ahead. The GLA took the decision to withdraw its NOT BEING allocation of funding and work with the borough to support the development of a PROGRESSED deliverable proposal to a future funding round. Appendix 3

Ref Area Project Name Cap GLA 16-17 net Approved Budgeted GLA gross GLA gross GLA gross Spend at Q1 Spend at Q2 Spend at Q3 Project Performance Update at February 2017 Overall

No / budget carry Forward external annual budget annual budget annual budget project Risks Issues Budget Rev from 15-16 income at Q1 at Q2 at Q3 (if rating Targets different) Timescale

D24 DEE High Street Fund Small Projects R 0 0 100,000 0 0 47,854 A number of projects from the first and second round of the Crowdfunding G Programme submitted their final claims this quarter, so the GLA can now formally C 0 0 295,000 297,000 69,665 69,665 135,319 close them down.

D25 DEE HSF Social Supermarkets C 0 0 0 0 0 0 The project is now rated red due to a shortfall of funding in LB Enfield and LB R Haringey. LB Enfield has now withdrawn from the project due to the shortfall and planning permission issues on the preferred library site. . LONDON REGENERATION FUND .

DEE London Regeneration Fund C 8,213,000 8,213,000 7,117,000 0 0 0 0 As and when projects are in grant agreements, budget will be uploaded to BUDGET individual project lines. Reprofile to 17-18 is reflected in budget. MONITORING ONLY E1 DEE LRF Battersea Arts Centre: C 538,000 538,000 0 0 0 The contractor has now started construction works on the Grand Hall. The internal G Battersea fit out (GLA funded element) information has been issued to the contractor, and they have also issued a draft construction programme including the Lower Hall works (GLA funded) which pushes the completion of this element one month beyond the agreed project completion. E2 DEE LRF LB Barking and Dagenham: C 0 0 Grant agreement still at draft stage. GLA spend will take place Q3 17-18 with the G Barking Town Centre project completed by Q1, 18-19. Once underway, full reporting will begin.

E3 DEE LRF LB Bexley: C 1,962,000 1,962,000 640,000 0 0 109,419 This project now has an amber rating due to delays on some workstreams, and A resourcing issues at the council. Slippage into next financial year is now expected.

E4 DEE LRF Bootstrap Co: Dalston Works C 0 0 Grant still agreement at draft stage. Project being reappraised as some elements A have changed. Once underway, full reporting will begin. E5 DEE LRF LB Brent: South Kilburn C 0 0 Grant still agreement at draft stage. Project being reappraised as some elements A Enterprise Hub have changed, with milestones and spend profile to be finalised. Once underway, full reporting will begin. E6 DEE LRF Cell Project Space: Hackney C 0 0 Cell proposed a new building in a new location, which requires re-appraisal. Once A Wick underway, full reporting will begin. E7 DEE LRF CEME: London Riverside C 0 0 The grant agreement was signed with LBH and a delivery contract has been drawn A up. The majority of the physical works have been completed, with only minor snagging and furniture installation left to complete. Once the space is operational, the majority of other outputs will be delivered (businesses supported, jobs created etc.). E8 DEE LRF Create London: North C 0 0 Grant agreement still at draft stage following match funding which remained to be Page 62 Page A Woolwich secured. Delivery has slipped by a few months. E10 DEE LRF LB Ealing: West Ealing C 0 45,000 0 The consultants have been appointed to design the fit out and work on the G marketing plan for the Enterprise Hub. They have undertaken a manifesto workshop, engaged with the larger community, attended steering group meetings and have established a name. E11 DEE LRF Hotel Elephant: Spare Street C 87,000 87,000 22,621 38,589 38,589 The workspace incubator space is almost fully occupied (96%). Marketing and G networking with other workspace providers in the area is on-going. Fit out works for the remaining two arches are scheduled for completion in February.

E12 DEE LRF LB Enfield: Meridian Water C 0 0 The planning application was submitted in December 2016 and tender information G Workspace is now published on London Tenders Portal.

LRF LB Haringey: Wood Green C 0 Grant agreement at draft stage with a risk of slippage due to procurement. Once A Works underway, full reporting will begin. E13 DEE LRF LB Harrow: Wealdstone C 0 787,000 0 The Trinity Square project is progressing well. RIBA Stage 1 (Appraisal and G Analysis) report was approved by the Project Board in November 2016 and the Stage 2 presentation to the Project Board will take place in February 2017.

E14 DEE LRF LB Havering: Romford C 0 0 Grant agreement still at draft stage with forecast completion expected Q3 18-19, G Market Place and GLA spend achieved by Q4 17-18. E15 DEE LRF LB Hillingdon: Uxbridge C 800,000 800,000 130,000 0 0 0 The architects have now completed the Stage 2 Concept Design, and moved to the G Town Centre 'Developed Design' planning application which is due by end of March 2017. Appendix 3

Ref Area Project Name Cap GLA 16-17 net Approved Budgeted GLA gross GLA gross GLA gross Spend at Q1 Spend at Q2 Spend at Q3 Project Performance Update at February 2017 Overall

No / budget carry Forward external annual budget annual budget annual budget project Risks Issues Budget Rev from 15-16 income at Q1 at Q2 at Q3 (if rating Targets different) Timescale

E16 DEE LRF LB Lambeth: Loughborough C 0 124,000 0 The full application submitted to the local planning authority (LPA) on 23rd G Junction December 2016 for review. Initial advice issued that a noise impact assessment was needed (not raised at pre-app stage). The borough is aiming for consent at the April planning committee. E17 DEE LRF Mainyard Studios Ltd: Bow C 0 0 Project had to be reappraised as substantial elements were proposed to be NOT BEING Packing Works changed. As a result of the review it is no longer going ahead PROGRESSED E18 DEE LRF the Mill Co: Royal Docks C 0 435,000 0 The building work lease terms have been agreed with Quintain and Mill Co. This is A Silvertown currently for signing with GLA Estates (at request of Quintain) and has resulted in a hold-up, with Mill Co deciding to start works at risk. The asbestos removal has begun, with expected completion March / April 2017. With this type of building and the nature of asbestos removal there are obvious risks around the potential for hitting unexpected complications with removal of contamination. So far there have

Page 63 Page been no major issues. E19 DEE LRF Peabody Trust: Abbey Wood C 0 0 Grant agreement still at draft stage and is expected to start spending next year. G

E20 DEE LRF Poplar Harca: Poplar C 0 76,000 0 A review of the scheme took place in December 2016 and integration of feedback G from the expert Design Panel has been satisfactory. Planning permission was due to be submitted in February 2017. The project team is finalising an agreed procurement route while a planning application is prepared and technical design progresses.

E21 DEE LRF LB Richmond: Richmond C 0 0 Grant agreement still at draft stage with completion envisaged Q3 17-18. Currently A RACC workspace 6 months delay but seen as unlikely to slip to following year. E22 DEE LRF South London Gallery: C 0 0 Project is in contract and overall is progressing against agreed milestones. The G Camberwell Old Fire Station Architect has been appointed and planning permission secured. The tender responses were received on the in December 2016 and 3 companies were invited to interview.

LRF LB Southwark: The Livesey, 0 Project previously in reserve, agreed to be taken forward and will start reporting at REPORTING FROM Ledbury the next quarter. NEXT QUARTER E23 DEE LRF LB Sutton: Beddington C 0 174,000 0 The consultant has been appointed and the local authority has been successful in G securing the next stage of European Regional Development Funding (ERDF), proposing the LRF project as match funding. The ERDF will provide c.£800K revenue funding for activities to complement the Workspace project.

E24 DEE LRF LB Waltham Forest: C 0 0 Grant agreement still at draft stage and variations required as one of the three A Blackhorse Lane buildings is being substituted. Once underway, full reporting will begin. . GROWING PLACES FUND (GPF) . DEE GPF General R 0 1,149,000 1,149,000 1,400,000 17,468 0 All revenue for GPF is carry forward. Funding to be allocated to specific projects BUDGET C 40,800,000 5,031,000 45,831,000 33,578,000 9,088,000 0 0 and budget lines below. Reprofile to 17-18 is reflected in budget. MONITORING ONLY DEE GPF Export Programme R 0 0 0 0 This project is now complete COMPLETED

F1 DEE GPF SME Implementation Plan R 0 313,000 313,000 0 0 56,529 67,948 Remaining funds are expected to fund three to four more new BIDs. G Delivery BIDS Finance comment: Revenue budget to be reallocated from GPF general budget of £1.4m F2 DEE GPF Construction Skills CITB R 0 472,000 472,000 0 -9,668 65,417 145,939 This programme is now finished delivery and it did not meet its overall targets. All A outputs/outcomes have been submitted and final claims have been made. Final expenditure on this programme was £1,347.078 (£673,359 of which was from the GLA budget and £673,359 from the CITB budget). Subject to receipt of a closure form, it will be removed from this table. Finance comment: Revenue budget to be reallocated from GPF general budget of £1.4m. Appendix 3

Ref Area Project Name Cap GLA 16-17 net Approved Budgeted GLA gross GLA gross GLA gross Spend at Q1 Spend at Q2 Spend at Q3 Project Performance Update at February 2017 Overall

No / budget carry Forward external annual budget annual budget annual budget project Risks Issues Budget Rev from 15-16 income at Q1 at Q2 at Q3 (if rating Targets different) Timescale

F4 DEE GPF Med City R 0 393,000 393,000 0 100,000 200,000 300,000 The MedCity CEO spoke at Genesis, the flagship UK life sciences conference in A London, and attended by over 300 companies. MedCity also attended a number of other conferences including the BioJapan conference (Asia’s largest life sciences conference), the BioEurope in Germany (Europe’s biggest life sciences conference). The project is currently rated amber because some Business Plan milestones may not be achieved. Finance comment: Revenue budget to be reallocated from GPF general budget of £1.4m F5 DEE GPF London Co-Investment Fund C 0 0 5,837,000 1,382,858 2,849,159 4,533,147 This project is rated amber as investments are still below target potentially because A of the effect of uncertainty in the market following the vote for Brexit. However, jobs and leverage is currently well above target creating 461 jobs (target was 94).

F6 DEE GPF Hackney Wick Station C 0 8,500,000 8,500,000 3,420,000 0 0 0 The project is on track for an Easter 2017 Railway closure. The construction G element of the project should be complete January 2018. Work has commenced on a temporary ticket office. F7 DEE GPF Southall Junction C 0 4,651,000 4,651,000 4,185,000 69,477 2,457,894 2,457,894 The programme has seen continued progress against many of its workstreams, this G Improvement includes good progress being made with the foot & cycle bridge, land assembly and public realm elements of the project. F8 DEE GPF West Anglia Route (STAR) C 0 25,681,000 400,000 26,081,000 12,800,000 900,000 900,000 400,000 Good progress is being made and the project is now rated green. A G communications strategy has been finalised, with the first communications working group convening in Feb 2017. F9 DEE GPF Tempus Energy C 0 0 0 0 0 0 A Mayoral Decision has now been approved to novate the GLA funding agreement A to Tempus Energy in order to diminish the likelihood of the company becoming insolvent - for this reason the project is rated amber. F10 DEE GPF The Cube - Grow on space C 0 500,000 500,000 450,000 0 0 0 The project is now in delivery with the first company now accommodated on site. G Apprentices from the neighbouring college successfully worked on site to help complete works to the building and outside area and Londoneast-uk have been purchasing equipment to fit-out the lab space.

F11 DEE GPF Barking Riverside C 0 0 0 8,318,000 0 0 0 Barking Riverside Limited has instituted significant planning changes affecting A most sections of the project with significant changes to the project design, extents and materials. A full set of final design drawings was issued by the Contractor in November 2016 and these have now been approved with some minor exceptions. The overall project budget remains £11.3m, comprising £10m GLA funding and £1.3m from Barking Riverside Ltd for all spend beyond £10m. The overall project cost currently stands at £10.4m, including all fees and identified costed risk items. Page 64 Page

F12 DEE GPF Meridian Water Angel Road C 0 0 0 0 0 0 Project is progressing towards grant agreement. Improvements to Angel Road TO BEGIN Station will improve pedestrian access to the station and in particular linkages to REPORTING ONCE IN the new Meridian Water development. GRANT F13 DEE GPF 205 Holland Park Avenue C 0 586,000 586,000 0 0 0 Project is progressing towards grant agreement. It will deliver 8,500 sq ft TO BEGIN workspace and incubator for entrepreneurs and investors. REPORTING ONCE IN GRANT F14 DEE GPF CAN early intervention fund C 0 184,000 184,000 166,000 0 0 0 Project is progressing towards grant agreement. It will deliver an Early Intervention TO BEGIN for London Finance Fund REPORTING ONCE IN GRANT F15 DEE GPF LB Bexley Erith regeneration C 0 1,400,000 1,400,000 0 0 0 Good progress is being made against the GPF funding to date. The project is on G track in identifying and starting to implement ways in which the Council can kick- start the next phase in their ambitions for the regeneration of the town and the contribution it can make to accommodating London in quality homes and places.

F16 DEE GPF Games promotion R 0 1,034,000 1,034,000 0 0 280,000 400,000 The Pitch Bootcamp event opened for applications in December 2016. The G Creative Skillset has agreed to part-fund this event with Games London. The GLA also launched the call for applications to the Games Finance Market, part of the bigger festival in April. Finance comment: Revenue budget to be reallocated from GPF general budget of £1.4m . Appendix 3

Ref Area Project Name Cap GLA 16-17 net Approved Budgeted GLA gross GLA gross GLA gross Spend at Q1 Spend at Q2 Spend at Q3 Project Performance Update at February 2017 Overall

No / budget carry Forward external annual budget annual budget annual budget project Risks Issues Budget Rev from 15-16 income at Q1 at Q2 at Q3 (if rating Targets different) Timescale

FURTHER EDUCATION CAPITAL .

DEE Further Education Capital R 1,419,000 1,419,000 350,000 49,445 80,634 85,479 Budgets to be allocated to individual budget lines below. Some has been Investment Fund C 35,000,000 0 35,000,000 17,873,000 0 75,594 75,594 0 transferred to Colindale and to Harrow Health in Q2. In addition, a reprofile to 17- BUDGET 18 is reflected in budget. MONITORING ONLY G1 DEE FE Capital Fashion Retail C 0 0 0 0 0 0 The project is rated amber as some targets have not been met. The construction A Academy (FRA) work is now complete and the college his submitting quarterly reports to evidence outputs. The College was inspected by Ofsted in November 2016 and qualified as 'outstanding'. G2 DEE FE Capital: Westminster C 9,000 9,000 0 0 0 The main works are now complete and the snagging list is currently being worked G Kingsway, Kings Cross through with the contractor before the retention payment is made. Evidence of Construction Centre outcome achievements have been submitted with final commentary due by the end of the financial year. G3 DEE FE Capital: City of Westminster C 2,765,000 2,765,000 2,498,000 0 554,623 1,679,791 The project is now rated amber due to slippage previously caused by the discovery A Page 65 Page College, Maida Vale Campus and removal of asbestos and now due to delays in installing the electricity supply.

G4 DEE FE Capital: West Thames College, C 254,000 254,000 249,000 2,938 230,766 230,766 The main construction is now complete, with snagging works to be carried out in G Feltham Skills Centre the next financial year. The GLA is working with the college to ensure that complete and detailed information is submitted before grant drawdown. The project will submit an interim evaluation in March 2017. G5 DEE FE Capital: Barnet and Southgate C 936,000 936,000 2,360,000 2,125,000 0 1,219,945 1,219,945 The project is on schedule and will be delivered as planned, however there is an A College, Colindale Skills Centre issue with the correct information being submitted by the consultants which will delay the drawdown of funds. G6 DEE FE Capital: South Thames, C 79,000 79,000 6,000 0 0 0 The project is now complete with works coming in under budget. In the new G Construction skills project academic year, 100 students are set to use the training centre. It will be removed from the monitoring table once close down has finished. G7 DEE FE Capital: Richmond College C 9,319,000 9,319,000 2,955,000 1,379 1,379 1,379 The project may not now deliver as planned and is rated amber. There are complex A Phase One, Education and issues involved in completing the sale of land. In the interim the college has Enterprise Campus commenced the procurement of the contractor with tender submissions due end of March 2017. G8 DEE FE Capital: Richmond College C 544,000 544,000 490,000 0 378,355 597,135 This project is closely intertwined with the phase one project detailed above and is A Phase Two, STEM Centre rated amber. However the project will not commence until phase one is complete.

G10 DEE FE Capital: Lambeth College, C 2,360,000 2,360,000 2,000,000 161,421 1,278,938 1,463,038 This project is rated amber as the project continues to have complex risks and A Vauxhall Skills Centre issues which may affect the delivery of the project or the timescale for outputs. The planning application, submitted in the previous quarter, is under review by the Local Authority, however, this has suffered delays. G11 DEE FE Capital: Harrow College C 57,000 57,000 939,000 900,000 19,536 69,169 104,220 The project remains on track both in relation to timing and budget. Construction G (Health) has commenced and the project appears to be well managed with few risks apparent that might seriously affect the timely completion of the project or cost.

G16 DEE FE Capital: Harrow College C 91,000 91,000 0 0 0 Harrow Digital has been withdrawn and will not be taken forward NOT GOING AHEAD (Digital) G12 DEE FE Capital: Bromley College, C 816,000 816,000 700,000 -10,957 12,104 12,104 The project is now rated green and is on track to deliver. The terrace has now been G Hospitality project laid and the training kitchen has been stripped and is being plastered. There is a small delay to programme due to design changes but this does not pose a risk. The college was visited by the Minister for Apprenticeships and Skills in January 2017.

G13 DEE FE Capital: Uxbridge College, C 69,000 69,000 4,000 0 0 0 The project has now completed delivery with only the monitoring of outputs now G STEM project required. The enrolment of students has taken place and the college has started to enrol apprentices. G14 DEE FE Capital: ADA, National College C 0 0 0 0 The project is rated amber due to delays. Recruitment for September 2017 is going A for Digital Skills well. There have been two 6th form open days and 151 applications received with 34 (23%) women. 33 offers have been made and other interviews are being scheduled. G17 DEE FE Capital: East London C 61,000 61,000 86,000 0 0 86,847 The Kingsland Road site is progressing well with phase one of the scheme now A Advanced Technology and largely complete. Amber reflects the overall delay to the programme. Training (ELATT) Appendix 3

Ref Area Project Name Cap GLA 16-17 net Approved Budgeted GLA gross GLA gross GLA gross Spend at Q1 Spend at Q2 Spend at Q3 Project Performance Update at February 2017 Overall

No / budget carry Forward external annual budget annual budget annual budget project Risks Issues Budget Rev from 15-16 income at Q1 at Q2 at Q3 (if rating Targets different) Timescale

G18 DEE FE Capital: Waltham Forest C 0 1,800,000 0 0 140,587 All construction completion projected times are currently on track. There has been G College, Engineering, Science and a slight delay with the first claim; however, this has now been received and is on Technology Centre track for completion in June 2017. G19 DEE FE Capital: Hackney Community C 0 331,000 0 0 253,035 There has been a delay to the first claim due to the Hackney Community College A College, Hackney Open Tech merger with Tower Hamlets College in August 2016. It was a type B merger so Institute Tower Hamlets College are now the lead provider on this project. G20 DEE FE Capital: Havering College, C 0 0 0 0 Will start monitoring as grant agreement is signed. This is still pending TO BEGIN Construction Infrastructure Skills REPORTING ONCE IN and Innovation centre (CISIC) GRANT

G21 DEE FE Capital: Big Creative C 0 0 0 0 Will start monitoring as grant agreement is signed. This is still pending. TO BEGIN Education, Walthamstow REPORTING ONCE IN G22 DEE FE Capital: Ealing Hammersmith C 0 423,000 0 24,408 24,408 This is reported as part of C10 MRF Dine in Southall and West London College: Dine in Southall project SEE C10

. ESF and other PDU projects . H3 DEE Employer-Led Apprenticeship R 0 919,000 919,000 -93,839 95,124 297,555 The programme has engaged a further 165 eligible businesses and delivered an A Creation Programmes (ELACP) additional 353 apprenticeship starts. 204 people were successfully supported to sustain their apprenticeships for at least 13 weeks. The total number of businesses engaged is now 2,991 and the total number of apprenticeship starts is 3,457, with 2,502 of these already sustained for 13 weeks. Although all business engagement and apprenticeship starts for the programme needs to have been achieved, the evidence for some of these outputs can take longer to obtain. A review of evidence is being undertaken.

H4 DEE Horizon 2020 (Sharing Cities) R 0 4,523,950 4,523,950 106,000 995,836 3,709,995 The Programme has completed a review of the partnership's resourcing and budget G profiles to ensure that resources are aligned with activities. The Programme Management Office (PMO) also conducted a review of the deliverables to see if

Page 66 Page any changes are required to the scope, delivery date and/or task assignment lead. The results of these reviews were agreed by the Programme's Board in October 2016 and the changes were approved by the European Commission in December 2016. An amended Grant Agreement has been issued.

. ENVIRONMENT (DEE) . I1 DEE Smart Cities demonstrators (TSB) R 0 355,000 355,000 375,000 12,901 28,023 315,065 The final deliverable has been completed. A dissemination event is scheduled for G C 0 0 228,000 0 0 159,310 March 2017. Finance comment: Drawdown from TSB Reserve to fund Bunhill Smart Energy (revenue)

I2 DEE Drain London R 55,000 111,000 166,000 181,000 -42,938 -33,637 57,829 The project's outputs have been delivered to cost and quality requirements. G Approval has been received for the publication of the London Sustainable Drainage Action Plan. The launch went ahead successfully in December 2016 with a well- attended event. The Project has now approved funding to the LB Barking & Dagenham flood risk support work Finance comment: Drawdown from Drain London Reserve to fund projects (change to budget) Appendix 3

Ref Area Project Name Cap GLA 16-17 net Approved Budgeted GLA gross GLA gross GLA gross Spend at Q1 Spend at Q2 Spend at Q3 Project Performance Update at February 2017 Overall

No / budget carry Forward external annual budget annual budget annual budget project Risks Issues Budget Rev from 15-16 income at Q1 at Q2 at Q3 (if rating Targets different) Timescale

I3 DEE HyFive (Hydrogen for Innovative R 0 185,000 185,000 88,000 56,271 43,058 The HyFIVE project has deployed two public hydrogen stations in and G Vehicles) Rainham. One of the stations is at the National Physical Laboratory and the second is near CEME (Centre of Engineering and Manufacturing Excellence). The stations add to the existing two stations (in Hatton Cross and Hendon). A third station will open publicly on the 22nd February 2017 in Cobham. Toyota have finalised the deployment of 10 vehicles as part of HyFIVE and HONDA have delivered 3 vehicles of their second generation hydrogen vehicle. Hyundai have deployed 5 vehicles due to the position of the steering wheel limiting the numbers of vehicles they can deploy in London. Finance comment: Expenditure reduced as income in advance carried forward from last financial year.

I4 DEE Energy for London DEPDU R 0 1,000,000 1,000,000 0 22,550 85,942 Rated amber whilst a project change request form is submitted to the ERDF A successor managing authority as part of Jan 2017 claim to propose adjusting the RE capacity output to a realistic target. Page 67 Page Finance comment: Budget match funded by ERDF £500k from GLA & £500k from ERDF (claims are in arrears). . HOUSING REVENUE . PROGRAMMES J1 H+L Pan-London Rough Sleeping R 8,450,000 36,000 8,486,000 9,077 1,363,511 4,772,988 The GLA has secured £4.2m of government funding for additional homeless G Services services and projects. These services will include a new Social Impact Bond (SIB) to work with the most entrenched complex needs people sleeping rough, a new 'Safe Connections’ team to ensure safe and sustainable housing solutions for those new to the streets, and an innovative project to try to make better, more efficient use of London’s hostel bed-spaces. The Mayor's No Second Night Out (NSNO) service has recently been recommissioned and contracts are due to be signed and the service commence in April. J2 H+L Housing Mobility (Housing R 0 64,000 175,000 239,000 296,000 -10 15,787 21,380 Rated red as the number of lettings for both schemes is below target due to a R moves and Seaside and country continued low number of properties becoming vacant and demand for some areas homes) and types of properties being relatively low. Similarly, Housing Moves is not currently on track to achieve the target number of lettings for 2016-17, mainly due to some landlords not contributing their full quota of properties. However, the number of applications for Housing Moves and Seaside & Country Homes during the first three quarter of 2016-17 is higher than during the same period in previous years, showing that demand for the schemes remains strong. Finance comment: Approval of £57k for IT procurement for mobility schemes

. ENVIRONMENT . K1 H+L RE:FIT (Public Sector buildings) R 552,000 68,000 700,000 1,320,000 1,420,000 192,956 461,728 789,126 The project is now rated green because the project is back on track to deliver as G planned. During this period, the RE:FIT pipeline continued to grow, with eight organisations signing up for support through the programme. Finance comment: MD1505 - £100k from London Green Fund

K2 H+L RE:NEW (Homes) R 250,000 137,000 925,000 1,312,000 1,262,000 174,111 338,372 545,468 The project is rated amber as agreed targets will not be met, however, to date it A C 100,000 100,000 127,000 -10,146 14,597 14,597 has to date delivered over £78 million of leveraged investment into home energy efficiency and renewable energy retrofit. Around seventy social landlords are currently signed up to the programme. Finance: ADD2036 - Moved 50k to LBCS from Home Retrofitting H+L London Boiler Cashback Scheme R 0 200,000 200,000 162,000 48,298 77,898 118,267 As mid-November the scheme had seen 2,300 boilers installed. The team is C 0 2,100,000 2,100,000 0 500,000 800,000 reviewing the data from the customer survey to develop next steps and consider further interventions in that area. Finance: ADD2036 - Moved 50k to LBCS from Home Retrofitting

. Appendix 3

Ref Area Project Name Cap GLA 16-17 net Approved Budgeted GLA gross GLA gross GLA gross Spend at Q1 Spend at Q2 Spend at Q3 Project Performance Update at February 2017 Overall

No / budget carry Forward external annual budget annual budget annual budget project Risks Issues Budget Rev from 15-16 income at Q1 at Q2 at Q3 (if rating Targets different) Timescale

HOUSING . L1 H+L Affordable Housing Programme C 241,799,000 247,000,000 488,799,000 106,939,000 6,355,679 43,919,670 57,193,875 There have been significant concerns on the deliverability of the Affordable A (MHC) Housing Programme since summer 2015 due to the risks associated with changes introduced by the previous Government. A record settlement has now, however, been agreed for £3.15bn of investment to support 90,000 affordable housing starts by 2021, with discussions due to conclude imminently on a share of the additional £1.4bn announced in the Autumn Statement 2016 for distribution nationally. The rating will be reviewed once a final target is concluded with Government and a profile for delivery will be set out in the summer, following initial bids from investment partners. The low levels of affordable housing planning approvals, in particular the fact only 12.8% of planning approvals in 2014-15 were for affordable housing, is likely to hold back delivery in the early years of this Mayoralty, but overall the position is more positive with strong ambition being shown by partners, with time to increase delivery of starts over the next four years.

H+L Care and Support Programme C 10,200,000 11,997,000 22,197,000 6,000,000 -108,000 963,898 4,212,746 These programmes are not reported on separately, but as part of the affordable Phase 1 and 2 housing programme above. Reprofile to 17-18 is reflected in budget. H+L Homelessness change and C 15,000,000 15,000,000 30,000,000 7,500,000 10,900,000 851,112 10,477,662 10,477,662 platform for life H+L Community Right to build R 0 279,000 279,000 154,726 199,952 263,510 H+L Custom Build payments C 0 0 0 700,000 80,000 80,000 80,000 H+L London Housing Bank C 80,000,000 100,000,000 180,000,000 51,765,000 21,000,000 0 0 0 L2 H+L Housing Zones R 532,000 102,000 634,000 821,000 296,303 411,348 591,506 The programme is rated amber due to the complexity of the programme and the A risks involved. In total 24 Overarching Borough Agreements (OBAs)/MoU's between the GLA and individual boroughs have been signed. This represents 90 per cent of the total number across the first twenty Housing Zones (two are from the next 11) and also represents a commitment to deliver 61,457 homes within the relevant Housing Zones. The remaining two OBAs from round one are expected to C 108,400,000 37,216,000 145,616,000 51,325,000 95,325,000 0 31,103,419 31,666,189 be signed in Quarter 4 of 2016-17. Discussions are underway regarding the signing of the remaining 6 OBA's/MoU's for the second round. It is expected that six will be signed by the end of Q1 2017-18.

Page 68 Page . LAND . M1 H+L Silvertown Quays R 0 136,592 136,592 4,701 55,812 145,114 This project is rated amber because there are number of conditions that still need A to be satisfied before the scheme can start on site. The GLA's development partner intend to start preparing their phase 1 detailed planning application for submission to LB Newham. M2 H+L Royal Albert Docks R 0 50,000 50,000 17,371 20,090 53,084 This project is now rated green as there are only a small number of procedural G C 0 0 0 0 0 conditions which ABP need to satisfy prior to drawing down the first phase headlease. ABP were on target to draw down the first phase land in February 2016.

M3 H+L Crystal Palace maintenance and R 0 172,749 172,749 -3,873 -3,873 -3,873 This project is rated amber pending the resolution of the long term future of the A NSC National Sports Centre. Options are now being considered by the Mayoral team alongside wider issues for Crystal Palace Park. Budget & spend moved to Estates. M4 H+L London Sustainable Industries R 0 716,433 716,433 113,000 72,133 72,133 72,133 The project is now rated amber. One of the largest remaining individual A Park (LSIP) C 0 600,000 600,000 -24,826 56,218 -1,607,371 infrastructure works packages budgeted for this project to bring a Medium Pressure ('MP') gas supply to the Mayor's industrial park for cleantech businesses are prepared to work together to deliver business synergies and help the Mayor achieve a BREEAM Excellent overall rating for the Park and is now ready to be commissioned. Appendix 3

Ref Area Project Name Cap GLA 16-17 net Approved Budgeted GLA gross GLA gross GLA gross Spend at Q1 Spend at Q2 Spend at Q3 Project Performance Update at February 2017 Overall

No / budget carry Forward external annual budget annual budget annual budget project Risks Issues Budget Rev from 15-16 income at Q1 at Q2 at Q3 (if rating Targets different) Timescale

M5 H+L Barking Riverside R 0 90,235 90,235 19,231 19,848 19,848 The project is rated amber as the Transport and Works Act Order and planning A permission for the revised masterplan are not yet secure. Stage 1 is on track to deliver the expected housing completions. Construction of the Special Education School is complete and it began operating in September 2016. A section 73 (reserved matters) planning application to revise the masterplan and include a new overground station was given a recommendation to grant permission by LBBD’s committee and then approved by the in September 2016. The S106 Agreement between BRL, LBBD and TfL is under discussion.

M6 H+L Greenwich Peninsula (incl GRN R 0 323,798 323,798 -23,298 -23,298 -17,994 Knight Dragon have received further planning consent recently for a further plot G land and Greenwich peninsula) C 0 1,865,000 1,865,000 1,402,000 129,216 129,216 0 development and have two further plots going to planning committee in late January and early March 2017. Following discussions with TfL relating to the impact of the proposed Silvertown Tunnel, both AEG and Knight Dragon are close

Page 69 Page to agreeing terms with TfL on how to mitigate the impact of the tunnel construction works. £24k accrual for BLP legal fees which has not been matched fully yet.

M7 H+L Land projects balance of R 0 3,342,626 3,342,626 3,049,143 54,426 609,205 818,531 1,051,348 The project is rated amber due to a risk of delays across the programme. Leases A programme (i.e. all other sites) have been drawn down and work is due to start at Gallions Quarter in May 17. Good progress is being made with Beam Park to enter into contract with the Preferred Developer prior to a planning application submission later in the Spring. Planning submission for Stephenson Street is being targeted for end of March 17; work is progressing with third party land agreements. C 0 400,000 400,000 12,000 24,000 36,000

M8 H+L GLA OPS: Housing and Land IT R 212,000 107,000 319,000 35,380 135,383 157,602 GLA-OPS opened for bidding to open to external partners in January 2017. All G Systems Replacement C 2,500,000 2,500,000 0 231,316 625,663 bidding functionality has now been built and 261 users from external organisations have registered on the system.

. SPORTS (C+I) . N1 C+I Sports Legacy Fund R 63,568 No update received from officer G (ClubWorks - developing capacity) Finance comment: Budget not allocated on the system N2 C+I Major Sports Events R 345,000 51,000 396,000 445,000 4,075 295,575 319,863 The Boards of both the 2017 World ParaAthletics and Athletics Championships G have met monthly since the last update. The GLA continues to play a key role in the governance of the event. The GLA has led on the development of the Para Athletics Schools Ticket Programme. Applications for tickets are currently being accepted. N3 C+I Sports Legacy Fund: Facilities C 696,000 734,000 1,430,000 700,000 45,184 45,184 522,735 No update received from officer G (football foundation) N4 C+I Sports Legacy Fund: R 1,780,000 47,000 1,827,000 2,000,000 283,567 301,000 470,611 The bidding window for the Community Sports Fund for the Gymnastics World Cup G Participation (Sporting future for has now closed and the projects are being assessed. London) . CULTURE . O1 C+I Museum of London R 7,792,000 231,000 8,023,000 2,212,000 4,108,000 5,688,000 Highlights of the autumn programme included a well-attended Punk London G debate (as part of the GLA-led punk London programme), a mini-season of late adult events based on theme of The Night Museum including a sell-out Frost Fair family festival in December which attracted over 2000 families and the return of our Victorian-themed Santa's Grottos which were visited by over 3,000 children.

O2 C+I Busk in London + Gigs R 210,000 98,000 308,000 243,150 243,150 167,376 The project is behind on its income target and so is rated amber, although is A meeting most of its other targets. Delivery is secure until March 2017 but if no external funding is secured, project delivery will have to be scaled back from April 2017 until further income is secured. Appendix 3

Ref Area Project Name Cap GLA 16-17 net Approved Budgeted GLA gross GLA gross GLA gross Spend at Q1 Spend at Q2 Spend at Q3 Project Performance Update at February 2017 Overall

No / budget carry Forward external annual budget annual budget annual budget project Risks Issues Budget Rev from 15-16 income at Q1 at Q2 at Q3 (if rating Targets different) Timescale

O3 C+I British Fashion Council R 649,000 649,000 0 649,000 337,991 The Fashion Awards 2016 raised a total of £300,000 for the BFC Education G Foundation to support young British talent through scholarships; the single largest donation since the BFC Education Foundation was created. In light of increased university fees, and withdrawal of Government education grants, The Fashion Awards aims to create sustainable funding to support British fashion talent & education.

O4 C+I Fourth Plinth R 254,000 254,000 23,653 154,198 168,104 The next Fourth Plinth Shortlist has been announced with good international press G response. The annual Fourth Plinth Schools Awards competition has been launched and entries are already being submitted. The New York High Line announced its own version of the plinth competition emulating our model. This generated a huge amount of international press and the High Line team ensured that the Fourth Plinth was referenced throughout. O5 C+I London Design Festival R 250,000 250,000 125,000 125,000 125,000 The project team are now focusing on reporting, analysis and the debriefing of all G project activity. The Festival had a programme of 563 projects and events including 329 events staged by Partner organisations. Over 100 new organisations took part and over 2000 international business exhibited at the five Design Destinations. Festival audiences were significant, with an estimated direct audience of over 375,000 people, from over 75 countries. Following the review of all 2016 activity, future planning and development will become the main focus.

O6 C+I Film London (and TV and R 1,550,000 1,550,000 430,000 510,000 1,000,000 Sales figures for the 2016 London Screenings have been updated since the sales G animation) companies returned from AFM in November 2016 - this figure now stands at $4,963,400.00. Film London delivered a familiarisation trip over five days at the end of November/beginning of December for New York TV producers. They gained a better understanding of the high-end television tax relief, as well as our world- class production infrastructure and unique locations.

O7 C+I Big Dance R 178,000 178,000 91,910 149,621 173,663 This programme has now been delivered. Subject to received a closure form, it will G be removed from the monitoring table. O8 C+I Culture Strategy, Night time R 121,000 121,000 9,976 18,686 20,931 The Mayor launched a recruitment campaign for his Cultural Leadership Board in G commission December 2016. The aim was to appoint the Chair and members in February 2017.

O9 70 Page C+I The Illuminated River R 0 250,000 250,000 0 18,131 0 The Rothschild Foundation announced that £10m has been committed to the next G phase by themselves and another investor. The Mayor of London announced the winner of the global Lighting Design competition, artist Leo Villarreal and architects Lifschutz Davidson, in December 2016. The Press coverage has been very positive and supportive of the project. . HEALTH AND YOUNG PEOPLE . P1 C+I London Schools Gold Club R 105,000 105,000 325 10,325 10,325 The annual report is on track for release in February 2017. It acknowledges both G London regional success but also areas for improvement in order to be considered a world class city. All keynote speakers and workshop sessions are confirmed for the Annual Education Conference. P2 C+I London Schools Excellence Fund R 330,000 360,000 690,000 -141,732 0 31,318 Monitoring visits to 17 Subject Knowledge Hub projects have been completed (one G Legacy (knowledge hubs + outstanding due to change in Hub staff). teachers innovation fund) P3 C+I London Ambitions R 100,000 100,000 117,000 3,101 5,124 6,768 There continues to be a steady sign up of schools and businesses to the London G Ambitions Portal. The team continues to showcase the Portal and engage with external organisations that can assist in engaging with businesses.

P4 C+I Oracle R 125,000 50,000 175,000 0 150,403 24,895 Project Oracle has a lot in the pipeline for 2017 including 11 research placements G starting and 4 evidence champions events planned over January - March 2017. Appendix 3 Ref Area Project Name Cap GLA 16-17 net Approved Budgeted GLA gross GLA gross GLA gross Spend at Q1 Spend at Q2 Spend at Q3 Project Performance Update at February 2017 Overall

No / budget carry Forward external annual budget annual budget annual budget project Risks Issues Budget Rev from 15-16 income at Q1 at Q2 at Q3 (if rating Targets different) Timescale

P5 C+I London Curriculum R 100,000 0 100,000 23,684 44,236 84,152 The primary programme continues to progress will, with two key stage 2 resources G now finalised and available in print and online. Writing has started on the third key stage 2 resource which is due to be available by the end of March 2017. Work has begun with the GLA Web Team and Technology Group on the development of a new website to be hosted on London.gov.uk. The first iteration of this will be launched at the end of February 2017.

P6 C+I Stepping Stones R 286,000 286,000 0 2,545 96,000 Secondary schools have now been delivering peer mentoring, adult mentoring, and G Stepping Stones Lessons for a full term. Overall the schools have over achieved on their targets of engaged participants to date (this is without taking into account the additional 90+ Peer Mentors who are also reporting benefits from participation). P7 C+I Healthy Schools (London Obesity R 150,000 150,000 45,000 56,000 54,088 Healthy Schools London continues to be successful, reaching over 80% of schools, G Programme) with over 1000 awarded Bronze status, and a further 382 achieving Silver and 83 reaching Gold. Future funding for the HSL programme is yet to be confirmed. Page 71 Page

P8 C+I London Healthy Workplace R 0 0 125,000 0 0 101,653 The current employer registration and accreditation targets for 2016-17 are A Charter challenging and may not be met by March 2017. However targets to reach 250,000 employees by March 2017 has already been met P9 C+I Youth Innovation Fund R 292,000 50,000 292,000 634,000 584,000 0 0 0 Approved through MD1537 but delivery has not yet started. TO BEGIN REPORTING SHORTLY . TEAM LONDON . Q1 C+I Team London including Visitor R 532,000 641,000 705,000 1,878,000 2,045,000 -81,390 192,922 591,787 Delivery across Team London programmes is on track against targets, lifetime KPI G Welcome and Enterprise Advisers of Team London has already been surpassed. Risks and issues are all manageable projects with effective mitigations in place across all Team London programmes. Team London is the volunteer programme delivery partner for the London 2017 Summer of Athletics and is currently in the process of interviewing 10,000 applicants for 4,000 roles Q2 C+I Volunteering as a route to Work: R 375,000 975,000 1,350,000 338,000 25,771 47,212 89,875 During their pre delivery stages these projects are closely interlinked. The '2Work' G 2work project went out to tender in January 2017. Team London are working with the delivery team to finalise the tender documents for the Veterans programme. Q3 C+I Volunteering as a route to Work: R A Veterans Programme . EXTERNAL AFFAIRS . R1 EA Events for London - Annual R 1,285,000 355,000 1,640,000 2,140,000 185,077 1,071,035 1,605,545 Delivery of the programme is progressing well, events staged over the last quarter G Events Programme (incl SOL, PQT include: and triathlon) '- People's Question Time: The Mayor's first public engagement event with the Assembly, People's Question Time was held at The Civic Centre in Brent. Over 600 people attended. '- The Remembrance Service took place at City Hall to mark the annual Remembrance Day, and was held in association with the Royal British Legion City Hall branch. '- To mark Chanukah, the eight-day Jewish festival of lights, a giant Menorah was installed on Trafalgar Square in collaboration with the Jewish Leadership Council, the London Jewish Forum and Chabad Lubavitch UK.

R2 EA New Years Eve R 2,250,000 2,250,000 0 778,787 The project is rated green; nearly 110,000 people from almost 100 different G countries came together to watch the spectacular fireworks display in dedicated viewing areas on the banks of the Thames. 29% of tickets went to Londoners; 47% to the rest of the UK and 24% to international visitors. Another 11.6m also tuned in to watch the event live on TV. The joint working of the MPS, TfL and other agencies and local authorities helped to ensure the safe delivery of this event. Additionally, crime was down 66% across the footprint and the need for medical treatment was also down on previous years, with no major injuries reported. This page is intentionally left blank

Page 72 Annexe B ______Financial performance report for Quarter Three 2016/17

______

A REPORT SUMMARY

1. This is the third full quarterly financial monitoring report for 2016/17 for the MOPAC Group. Taking account of the proposed budget changes and the latest forecasts for savings there is a revenue forecast underspend of £11.8m representing 0.5% of net expenditure. Capital spend is forecast to be £92.2m below budget, representing 32% of the budget.

2. The report:

 Includes proposed revenue movements after the budget was submitted to the GLA including a proposed decreased use of earmarked reserves, and

 Examines the forecast against the financial background in which the budget for the year was set and highlights the risks to delivering the 2016/17 savings to ensure a balanced budget at the year end. For completeness the proposed revenue and capital budget movements are applied in determining the forecast outturn position.

 Capital expenditure for 2016/17 is forecast to be £195m against the current Capital Programme spend of £287m, with a variation of £92m. The forecast underspend has risen by £44m over the last quarter primarily as a result of slippage in projects for Digital Policing (£28m) and PSD (£12m).

B SUPPORTING INFORMATION

Financial performance for 2016/17 - revenue

1. Detailed in Appendix 1 is the Summary Revenue Monitoring Statement for Quarter Three of 2016/17 incorporating the projected outturn for the financial year. A net underspend of £11.8m is forecast for the year against the approved net budget of £2,498m (£3,339m gross budget).

2. For Quarter Three there is an increase in the underspend on police officer pay and police staff pay, which is offset by some short and medium difficulties in achieving planned savings.

Achievement of savings target

3. The MPS has a £126.9m savings target this year. Appendix 2 shows the MPS is confident that £81.4m of the £126.9m savings target for 2016/17 will be delivered in 2916/17. A further £8.8m may not be delivered this year due to timing issues but will be delivered next year. This leaves £36.7m remaining where there is a high risk of non-delivery in this

Page 73 and future years. The two key risk areas include savings in respect of police overtime and Digital Policing.

Other key pressures and inter dependencies

Police officer pay (underspend increased by £2.9m to £38.3m during Quarter Three)

4. The MPS has spent £1,342.9m to date and is currently forecasting an outturn position of £38.3m underspend on police pay against the revised budget of which £32.8m relates to internally funded posts1.

5. The increased underspend for police office pay reflects the latest workforce modelling performed at the end of December 2016 which shows that our projected police officer strength for the remainder of the year will remain significantly below the affordable budgeted level and the end of year target in the workforce plan will not be achieved.

Police staff pay - (underspend increased by £3m to £25.2m during Quarter Three)

6. The MPS has spent £349.4m to date and is currently forecasting an outturn underspend of £25.2m on police staff pay most of which £16.7m is internally funded.

7. Through this financial year the majority of this internally funded underspend has been within TP and relates to delays in appointing Dedicated Detention Officers (DDOs) within Met Detention and Forensic Health Care Nurse recruitment as well as vacancies across the Boroughs for Public Access Officers. The other significant gaps are in Local Delivered Support Services (LDSS) Administrators and Communications Officers. Gaps in police staff pay are being partly managed through their other devolved budgets such as supplies and services (as Forensic Medical Officers who are used to provide cover the nurse vacancies) and police officer overtime (as police officers provide cover in Met Detention).

8. The increased underspend reflects further vacancies within Specialist Operations (SO), Territorial Policing and Specialist Crime & Operations partially offset by a small increase in police staff pay in Digital Policing (DP) and Met HQ due to the realignment of the capital programme and delayed capitalisation of police staff costs.

Agency staff

9. It should be noted that the MPS is currently relying on significant numbers of agency staff often costing more than the average cost of a permanent member of staff. The number of interim posts has increased over the last quarter (485 FTE end of September to 507 at the end of December). This trend is expected to increase to the end of the year. There is expected to be growth in BAU areas such as LDSS and Vetting and in change roles such as the Portfolio Transformation Office, where there is pressure to utilise agency staff. SO will appointing 150 ex-officer agency workers over the next quarter.

10. Going forward numbers assigned to departmental transformation programmes such as in Finance, DP and Commercial are expected to reduce in 2017/18 as staff are either recruited or the changes implemented. There will be a reduction in agency staff numbers

Page 74 in LDSS as permanent staff are recruited but this is not likely to be until March/ April 2017.

11. The People and Training Board are currently reviewing the usage and controls around agency staff, to understand the key drivers and determine how these staff can be reduced in future. A full review of the impact of the IR35 changes announced in the Government’s budget 2016. These changes to the taxable benefits of agency staff, which will apply in the public sector from April 2017. This may have a small impact on the numbers above at the end of the fourth quarter as MPS agency staff consider their options and potentially move to the private sector.

12. A plan needs to be developed clearly identifying numbers working on BAU activities from those agency staff required for the change programme. It is recommended that the MPS establish a Gold Group to demonstrate better control across the organisation over agency staff numbers, develop forward plans to allow the numbers to be tracked, variations explained and enable informed decision making on optimal levels.

Police officer and police staff overtime (overspend increased by £2.2m to £20.9m during Quarter Three)

13. The MPS is forecasting an overspend of £18.6m on police office overtime and £2.3m on police staff overtime as gaps in police officer and staff numbers are managed in devolved budgets. For instance one of the key reasons for the overspend in police officer and staff overtime relates to the under-strengths within DDOs in Met Detention Custody and within Roads Policing mainly due to TFL funded operations such as Op Neon (unlicensed Cab Hire) and additional activity requests from TFL. During the last quarter there were minimal increases in the forecast for police officer overtime. The forecast for police staff overtime however has increased from Quarter Two by £2m which primarily relates to reductions in police staff pay forecasts this quarter in Territorial Policing and cover for vacancies.

14. In controlling police officer overtime the MPS faces particular pressures this year and the overall overtime position is being kept under careful review by the Deputy Commissioner’s Overtime Gold Group and by the Assistant Commissioners’ COGs. The last meeting discussed current overtime spends and questioned what the drivers were for overtime costs in each Business Group.

Digital Policing (overspend increased by £6m to £30.3m during Quarter Three)

15. There are particular pressures for the MPS this year relating to the staged process to implement the DP Target Operating Model. There is a high risk that DP will be unable to meet their planned savings target for this year and DP are currently forecasting an overspend of £30.3m in addition to using £24m worth of reserves.

16. On 18 January a full presentation was prepared for the Management Board Away Day as part of an in-depth review outlining future strategy and budget issues over the next five years. This did not however identify any savings to offset the pressures in 2017/18 to balance the DP revenue budget nor identify any savings for future years. Compensating savings for 2017/18 need to be urgently identified as well as revisiting the financial strategy for future years.

Capital Programme

Page 75

17. Capital expenditure for the year is forecast at £194.8m against an adjusted 2016/17 programme of £287.0m, with a forecast underspend of £92.2m. Actuals to December 2016 are £118.9m.

18. Further detail including analysis of spend against the new Portfolio Structure can be found in Appendix 3.

Movements on the capital programme

19. On 31 January the Capital Programme for 2016/17 and future years was revised to reflect the revised expenditure forecast and re-profiled receipts and submitted to Oversight Board for DMPC approval.

Page 76 Appendix 1

Overall revenue position against the updated 2016/17 budget

Table 1 MOPAC Group Summary Revenue Budget Monitoring Statement for Quarter Three of 2016/17

Year to Year to Year to Annual Forecast Variance Date Date Date Budget £m £m Cost category % Budget Actuals Variance £m £m £m £m 1,365.9 1,342.9 -23.0 Police Officer Pay 1,829.6 1,791.3 -38.3 -2.1%

368.1 349.4 -18.7 Police Staff Pay 490.7 465.5 -25.2 -5.1%

46.5 46.2 -0.2 PCSO Pay 61.1 60.6 -0.4 -0.7%

1,780.4 1,738.5 -41.9 Total Pay 2,381.3 2,317.4 -63.9 -2.7%

54.0 64.3 10.3 Police Officer Overtime 70.5 89.1 18.6 26.4%

15.9 17.6 1.7 Police Staff Overtime 21.2 23.5 2.3 10.8%

0.2 0.1 -0.1 PCSO Overtime 0.3 0.1 -0.2 -66.7%

70.2 82.0 11.8 Total Overtime 92.0 112.7 20.8 22.6%

1,850.6 1,820.5 -30.1 Total Pay & Overtime 2,473.3 2,430.1 -43.2 -1.7%

35.4 35.8 0.5 Employee Related Expenditure 49.0 52.6 3.6 7.3%

131.0 129.6 -1.4 Premises Costs 168.6 168.4 -0.2 -0.1%

42.4 48.4 6.0 Transport Costs 57.1 63.1 6.0 10.5%

339.5 321.2 -18.3 Supplies & Services 483.2 513.5 30.3 6.3%

548.3 535.1 -13.1 Total Running Expenses 757.8 797.5 39.8 5.3%

32.2 35.3 3.1 Capital Financing Costs 43.0 42.9 0.0 0.0%

26.9 24.8 -2.1 Discretionary Pension Costs 35.9 33.5 -2.4 -6.7%

2,458.0 2,415.7 -42.3 Total Gross Expenditure 3,309.9 3,304.1 -5.8 -0.2%

-204.0 -203.3 0.7 Other Income -273.3 -277.2 -3.9 1.4%

-317.2 -317.0 0.2 Specific Grants -434.0 -439.6 -5.5 1.3%

-33.4 -22.1 11.3 Transfers to/(from)Reserves -104.2 -100.8 3.4 -3.3%

1,903.3 1,873.3 -30.0 Total Net Expenditure 2,498.4 2,486.5 -11.8 -0.5% Funding (General Grant & -1,845.4 -1,847.0 -1.6 -2,498.4 -2,498.4 0.0 - Precept) 57.9 26.3 -31.6 Overall MPS & MOPAC Total 0.0 -11.8 -11.8 -

Page 77 Appendix 2

Update on savings delivery

The table below shows the current position on the deliverability of the £126.9m savings proposal for 2016/17. As at 31 December 2016, the MPS is still confident that £81.4m of the £126.9m savings target will be delivered this financial year (against £84.3m forecast in Quarter 2). A further £8.8m will be delivered in 2017/18 and there is a high risk to delivering £36.7m which includes £26.9m of Digital Policing savings built into the original savings target. The MPS continues to undertake planned management actions to address all the identified risks.

Planned Forecast Variation

Saving (£m) Saving (£m) (£m) Savings with structural delivery problems -47.0 -10.3 36.7 Savings with timing delivery problems -24.5 -15.7 8.8 Savings that are forecast to be delivered in full -55.4 -55.4 0.0 Overall Total – MPS -126.9 -81.4 45.5

Page 78 Appendix 3

Capital Programme analysed across new portfolios

In line with the new MPS One Met Model Portfolio Structure, the capital programme managed by individual departments, has been analysed across 13 portfolios (note not all MPS portfolios have capital budgets). Only the portfolios with capital budgets are listed here.

The table below shows the year to date position and the full year forecasts across the portfolios.

Summary position of spend by Portfolio – December 2016

Budget Actuals Forecast Variance MPS Portfolio structure 2016/17 £m £m £m £m

Strengthening our Armed Policing Capability 2.2 0.7 3.8 1.6 Creating a Business Support function of the Future 1.1 0 0.2 -0.9 Enhance Digital Policing for 2020 32.1 19.2 27.2 -4.9 Improving Public Access and first contact 3.9 1 4.6 0.7 Optimising Response 19.3 4.5 10 -9.3 Reinforcing HQ, Improving Information Management 2 0 1.2 -0.8 Smarter Working 46.3 6.2 19.8 -26.5 Transforming Investigation and Prosecution 30.5 10.5 24.4 -6.1 CT Policing Change Portfolio 12.6 4.3 14.8 2.2 DP Adjustment 0 0 -6.4 -6.4 -

150.0 46.4 99.6 50.4 Delivering Maximum Commercial Efficiency - Fleet 23.2 10.1 17.7 -5.5 Transforming the MPS Estate 113.8 62.4 77.5 -36.3 Total Capital Programme 287.0 118.9 194.8 -92.2

Page 79 This page is intentionally left blank

Page 80 Annexe C

CORPORATE PERFORMANCE OCT–DEC 2016 Q3 2016/17

Page 81 CONTENTS INTRODUCTION AND SUMMARY 02 Purpose of the document 02 Summary of progress in Q1 03 Financial Performance Summary 04

LIVE Establish successful and integrated Progress against major LIVE milestones 07 neighbourhoods, where people want Commentary on key LIVE projects 10 07 to live, work and play 1 Key risks and issues 14

WORK Retain, attract and grow a diverse range Progress against major WORK measures 17 of high quality businesses and employers, Commentary on key WORK projects 18 16 and maximise employment opportunities 2 Key risks 20 for local people

VISIT Create a diverse, unique, successful and Progress against major VISIT milestones 20 21 financially sustainable visitor destination Commentary on VISIT activities 22 3 Key risks 25

INSPIRE Establish a 21st century district promoting Progress against major INSPIRE milestones 26 cross-sector innovation, education, culture, Commentary on INSPIRE milestones 29 26 sport, aspiration and participation in 4 Key risks 31 east London

DELIVER Deliver excellent value for money, and Progress against DELIVER milestones 32 champion new models and standards which Commentary on key projects 34 32 advance the wider cause of regeneration, 5 Key risks 37 in line with LLDC’s core values: Ambition, Responsibility, Collaboration, Excellence, Accessibility, and Sustainability

Page 82 London Legacy Development Corporation Corporate Performance October – December 2016

INTRODUCTION AND SUMMARY

PURPOSE OF THE DOCUMENT

This is a quarterly report that provides an update on progress in the work areas and against the milestones in the London Legacy Development Corporation’s (LLDC, the Legacy Corporation) 10 Year Plan (approved March 2016) and sets out information about the Legacy Corporation’s financial performance. The 10 Year Plan can be found on the LLDC’s website: http://queenelizabetholympicpark.co.uk/our-story/the-legacy-corporation/business-plan

The first section provides information about financial performance. Subsequent sections are grouped by the Legacy Corporation’s strategic objectives as set out in the five year strategy: Live, Work, Visit, Inspire and Deliver. Each section includes progress against milestones, commentary on major projects and key risks. Where relevant the sections also include monitoring information about the Legacy Corporation’s performance against targets; the measurement of targets commences as projects start to be delivered. The majority of the milestones and targets were set out in the Deliverables section of the 2016/17 Budget Paper and the appendix setting out the 10 Year Plan which was approved by Board in March 2016 (http://queenelizabetholympicpark.co. uk/our-story/ the-legacy-corporation/our-committees/board-meetings/archived-minutes).

FIVE YEAR STRATEGY: 2015 – 2020

The Legacy Corporation’s Five Year Strategy sets out the Corporation’s five strategic business objectives, each of which has a set of measures of success for 2020. The quarterly Corporate Performance Report provides updates on milestones and measures to be achieved in the current financial year which contribute to the delivery of the measures in the Five Year Strategy.

Page 83 02 London Legacy Development Corporation Corporate Performance October – December 2016

SUMMARY OF PROGRESS IN THE QUARTER OCTOBER TO DECEMBER INTRODUCTION AND SUMMARY

LLDC’s major achievements during this period are Aims for next period set out below. Further details can be found in the body of the report: • Hackney Wick Central planning determination • Reserved Matters Applications (RMA) for East by the Planning Decisions Committee (PDC). Wick and Sweetwater Phase 1 development • East Wick and Sweetwater RMA determination by and Specified Infrastructure Works submitted; PDC. PDC decision on RMA for roads and bridges. vacant possession of 15 short-term let units in • Chobham Manor Phases 3 and 4 RMA Vittoria Wharf secured to enable construction determination by PDC. of bridges required for the development. • Second Block of Chobham Manor Phase 1 • Announcement of three major concerts at the completed and handed over to occupiers. London Stadium in summer 2017 (Depeche • CED: UCL to complete RIBA stage 2 and Mode, Guns N’ Roses and Robbie Williams). commence RIBA stage 3; Stratford Waterfront • Announced that the Make the Future London progress design and plans. festival would return to the Park in May 2017. • Completion of construction work at Silvocea • Good progress made on construction of both was as part of Leaway pedestrian and cycle the primary and secondary school buildings as route programme. part of the Bobby Moore Academy and all • Submission of Bromley-by-Bow and Pudding Mill places available for the Academy will be filled in SPDs to Board. its first year following the application process. • Submission of Active People Active Park bid to • Chobham Manor Phase 2 started on site. Sport England • Completion of Twelvetrees pedestrian and • Decision on award to LLDC of ‘Investing in cycle ramp at Bromley by Bow; commenced Volunteering’ status. construction works at Silvocea Way. • Submission of LLDC’s annual Environmental • The Mobile Garden City highly commended at Sustainability report for 2015/16. the 2016 Landscape Institute awards. • Board and GLA approval for the 2017/18 budget • Delivered Business Information Modelling programme with local schools. • Completed public consultation on Hackney Wick and Fish Island Supplementary Planning Document (SPD), commenced consultation on Pudding Mill and Bromley-by-Bow SPDs. • Hackney Wick Station improvement works on schedule for completion in February 2018. • Six east Londoners on LLDC funded bursary scheme graduated from Loughborough University London. • The Planning team closed 38 enforcement cases in this period. • Launch of the revised LLDC website. • Submission of the draft 2017/18 budget to the GLA.

Page 84 03 London Legacy Development Corporation Corporate Performance October – December 2016

FINANCIAL PERFORMANCE SUMMARY

Month Dec 16 Year to 31 Dec 16 Full Year 2016/17 Actual Budget Variance Actual Budget Variance Forecast Budget Variance £000 £000 £000 £000 £000 £000 £000 £000 £000 Capital Income Development 0 (16,500) 16,500 (4,634) (37,929) 33,295 (19,384) (46,756) 27,372 Cultural and Education District 0 (1,181) 1,181 (458) (10,627) 10,169 (941) (14,881) 13,940 Total Capital Income 0 (17,680) 17,680 (5,092) (48,556) 43,464 (20,325) (61,637) 41,312 Capital Expenditure Development 2,388 3,377 989 15,490 21,067 (5,576) 27,700 39,311 (11,612) Finance and Corporate Services 375 197 (178) (4,131) 1,464 (5,595) (2,954) 2,036 (4,990) Cultural and Education District 3,000 4,286 1,286 16,080 34,034 (17,954) 20,307 48,361 (28,054) Park Operations and Venues – excl Trading 585 1,353 768 6,161 10,468 (4,307) 7,901 11,477 (3,577) Regeneration and Community Partnerships 34 340 306 448 2,370 (1,921) 1,746 3,466 (1,720) Stadium 1,822 26 (1,796) 30,100 7,506 22,594 35,886 7,585 28,301 Contingency 0 0 0 0 0 0 1,000 10,284 (9,284) Total Capital Expenditure 8,204 9,579 1,374 64,149 76,908 (12,759) 91,585 122,521 (30,936) Net Capital Expenditure 8,204 (8,102) 19,054 59,057 28,352 30,706 71,260 60,884 10,376

Revenue Income Communication, Marketing and Strategy 0 0 0 (20) 0 (20) (20) 0 (20) Development 0 0 0 0 (119) 119 (119) (179) 60 Finance and Corporate Services (10) (7) (3) (701) (64) (638) (799) (85) (714) Park Operations and Venues - excl Trading (143) (206) 63 (2,055) (1,850) (205) (2,512) (2,880) 368 Park Operations and Venues - Trading (629) (542) (87) (5,667) (4,958) (709) (7,051) (5,775) (1,276) Planning Policy & Decisions (144) (90) (53) (1,213) (814) (400) (1,518) (1,085) (433) Regeneration and Community Partnerships 0 0 0 (208) (265) 57 (269) (265) (5) Stadium (60) 0 (60) (227) 0 (227) (422) 0 (422) Total Revenue Income (995) (845) (132) (10,101) (8,069) (2,014) (12,710) (10,268) (2,442)

Revenue Expenditure Communication, Marketing and Strategy 185 168 17 1,522 1,678 (155) 2,215 2,220 (5) Development 1 9 (8) 20 91 (71) 100 118 (18) Executive Office 109 185 (76) 1,514 1,633 (120) 2,268 2,142 126 Finance and Corporate Services 504 560 (56) 3,852 4,803 (951) 5,818 6,421 (604) Park Operations and Venues – excl Trading 642 701 (60) 5,994 6,311 (317) 8,304 8,776 (472) Park Operations and Venues – Trading 710 687 22 5,803 6,182 (379) 8,083 8,963 (880) Planning Policy & Decisions 240 196 43 2,156 1,768 388 2,764 2,357 407 Regeneration and Community Partnerships 282 571 (289) 2,311 3,021 (709) 3,710 4,359 (649) Stadium 42 0 42 227 0 227 422 0 422 Contingency 0 0 0 0 0 0 500 700 (200) Total Revenue Expenditure 2,714 3,079 (364) 23,398 25,486 (2,088) 34,183 36,056 (1,873) Net Revenue Expenditure 1,720 2,234 (496) 13,297 17,417 (4,102) 21,472 25,787 (4,315)

Page 85 04 London Legacy Development Corporation Corporate Performance October – December 2016

Month Dec 16 Year to 31 Dec 16 Full Year 2016/17 Actual Budget Variance Actual Budget Variance Forecast Budget Variance £000 £000 £000 £000 £000 £000 £000 £000 £000 Trading Timber Lodge Café 4 2 2 27 14 13 49 36 13 ArcelorMittal Orbit (AMO) 21 13 8 (80) 117 (197) (99) 150 (249) The Podium 13 (12) 25 (62) (110) 48 (123) (115) (8) London Aquatics Centre 134 188 (54) 1,313 1,692 (379) 1,637 2,907 (1,270) Copper Box Arena 70 70 1 631 624 8 817 893 (76) 3 Mills Studio (89) (37) (53) (1,023) (207) (815) (606) (190) (416) Off Park Properties (72) (78) 6 (672) (906) 233 (644) (495) (149) Total Trading Net (Surplus)/Deficit 81 146 (65) 135 1,223 (1,088) 1,032 3,187 (2,156)

Opening Year Forecast Forecast Headroom Headroom balance to date in-year closing operational authorised Borrowings from GLA (£000) 271,567 50,721 71,260 342,827 47,173 57,173

S106 balance 13298 CIL balance 586

Page 86 05 London Legacy Development Corporation Corporate Performance October – December 2016

Capital Overall net capital expenditure is forecast to be INTRODUCTION AND SUMMARY Net capital expenditure for the year to 31 £71.3m at year-end, which is £10.4m (17.0%) December 2016 is £30.7m (108.3%) ahead higher than budget. Note that the slippage in of budget driven by an overspend in Stadium, capital receipts can be absorbed within the partially offset by underspends related to GLA borrowings headroom. Eastwick & Sweetwater infrastructure works (Development), All Park Maintenance and Hostile Revenue Vehicle Mitigation works in Park Operations Revenue income for the year to 31 December and Venues, UCL (Cultural & Education District) 2016 is £10.1m, which is £2.0m (25.0%) ahead and a £5.4m repayment of VAT from HMRC. of budget mainly due to higher trading income, Increasing the overspend is slippage on capital planning fees (from a number of large-scale income (relating to the Cultural & Education developments) and events income, with a District and other Development projects). high volume of events taking place over the summer period. Total capital income is forecast to be significantly lower than budget reflecting slippage in the Revenue income is forecast to be £2.4m (23.3%) timing of Chobham Manor receipts by 31 March ahead of budget by year-end, which includes 2017 (£26.8m) and lower than expected favourable variances for Trading Activities contributions from UCL for the Cultural & (£1.2m), recharges to E20 Stadium LLP within Education District (£13.2m) which is offset by F&CS (£0.7m) and Planning Fees (£0.3m). Within lower costs incurred as set out below. Chobham Park Operations and Venues (excl Trading), Manor slippage also impacts the Fixed Estate a favourable variance of £0.2m for programming Charge receipts in Park Operations and Venues. and events income is offset by adverse variances for rental from Here East and Off-Park Properties, Total capital expenditure is forecast to be as well as lower than anticipated income from underspent by £30.9m (25.3%) at year-end, Estate Charges reflecting delays in Chobham driven by underspends across all directorates Manor occupations. (other than Stadium). The CED under spend (£28.1m) reflects the decision to transfer design Revenue expenditure for the year to 31 responsibility for RIBA phases 2 and 3 to UCL December 2016 is underspent by £2.1m (8.2%) and other timing differences. The Development mainly due to a £0.9m repayment of VAT (PESM) underspend (£11.6m) is caused by the delay to and lower costs on Park Operations and Venues Eastwick & Sweetwater specified infrastructure (including Park utilities and major sports works (caused by delays in design and planning programmes), Regeneration (including Sport issues) and the decision to defer 3 Mills River England Motivate East) and Trading (including Wall works. Included in the Finance and London Aquatics Centre and 3 Mills Studios). Corporate Services forecast is the £5.4m in-year Overall, a net revenue deficit (before financing repayment of VAT from the partially exempt costs) of £21.5m is expected by year-end, special method agreed with HMRC, reflected as funded by GLA grant and reserves, which is reduced capital expenditure. Additional costs on a £4.3m (16.7%) improvement on budget. Stadium include increased working capital for Use of contingency is now expected to be E20 Stadium LLP in its early years of operation, lower than planned and has therefore been the impact of the second supplementary reduced accordingly. agreement with Balfour Beatty on transformation and additional costs of the seating transition this year.

Page 87 06 London Legacy Development Corporation Corporate Performance October – December 2016

LIVE Establish successful and integrated neighbourhoods, where people want to live, work and play

Demand for new housing in London is very high, especially in east London. The growth boroughs have a particular need for high-quality family homes and affordable housing, to keep people living

1LIVE in the area for longer which in turn helps to build sustainable communities. The vision for the Queen Elizabeth Olympic Park programme demands that new neighbourhoods are not islands of prosperity and excellence but properly knitted into the existing and developing communities. It also requires that neighbourhoods are developed in a way that meets high standards of design, sustainability and accessibility, delivers all the social infrastructure required (schools, health, community centres), and includes evidence-based projects to develop — at pace — the things that make communities function effectively. Successful neighbourhoods will be vibrant, engaged and connected, exemplifying the future while also preserving the best of the local heritage. PROGRESS AGAINST MAJOR LIVE MILESTONES

Milestones for completion in 2016/17 Estimated date and comment

Progression of Chobham Manor Development. Phase 1 construction work is now proceeding well: Block 1D is now complete and residents have moved in. Construction of Phase 2 has continued on schedule and the RMAs for Phases 3 and 4 were submitted in September for determination in March 2017.

Road adoptions complete. Marshgate Lane on schedule for adoption by the Local Authority by the end of the financial year. Waterden Road feeder pillars work complete, adoption will follow Parkes St. junction re-positioning works which are scheduled to complete in autumn 2017. Carpenters Road to be adopted following completion of the Stratford Waterfront site in 2021.

Phased opening of Mossbourne Riverside Academy for 2016/17 school year. COMPLETE

The school opened successfully in September 2016.

Page 88 07 London Legacy Development Corporation Corporate Performance October – December 2016

1LIVE

Milestones for completion in 2016/17 Estimated date and comment

3 Mills Studios future use agreed. Discussions with partners ahead of presenting options for a decision.

Commencement of improvement works to infrastructure at Hackney Wick Station. COMPLETE

Construction commenced.

Leaway: completion of Twelvetrees bridge ramp. COMPLETE

Construction of the Twelvetrees bridge ramp completed in December 2016.

Completion of H10 Wallis Road Bridge Project transferred to TfL for delivery, awaiting ramp by TfL. a programme and completion of contractor procurement. The aim is that completion should be by September 2017; the bridge will then be handed back to LLDC.

Page 89 08 London Legacy Development Corporation Corporate Performance October – December 2016

Rick Roberts Way: Work continues with joint landowners complete masterplanning brief. LB Newham and stakeholders to reach agreement on a delivery strategy and programme, including consideration of scheme priorities, in the next financial year following the completion of a capacity study.

Hackney Wick Central: grant of outline Planning submission was made in April 2016, planning permission. determination is expected in March 2017.

3 Mills river wall repairs complete. Planning permission has been granted and enabling works will be completed before the financial year end. Main works are currently on hold pending a decision on the Studios’ future use.

Commencement of improvement works to Planning permission has been granted and the infrastructure at Stratford Station. project is on hold subject to funding.

Seek approval for public consultation on Pudding Mill Lane Supplementary Planning COMPLETE Document (SPD). Approved in October 2016.

Deliver an effective and responsive planning This target has been exceeded with between service. At least 70% of applications 83% and 89% of applications determined in determined in time. time each month.

Number of enforcement cases closed In this quarter PPDT undertook a per month. comprehensive review of enforcement cases, leading to 38 cases being closed. 12 cases remained open at the end of this quarter.

Page 90 09 London Legacy Development Corporation Corporate Performance October – December 2016

COMMENTARY ON KEY LIVE PROJECTS

Chobham Manor: In November 2012 LLDC entered into a development agreement with Chobham Manor LLP (a joint venture between Taylor Wimpey and London & Quadrant). All the units on Phase 1 have been pre-sold and whilst there were some construction related difficulties that delayed progress, construction work is now proceeding well: Block 1D is now complete and residents have moved in. We have been working with the development partners, Taylor Wimpey and L&Q, to ensure that the problems that have arisen on Phase 1 have been fully identified and addressed, and will not recur on future phases. Construction of Phase 2 has continued on schedule and the RMAs for Phases 3 and 4 were submitted in September for determination in March 2017.

1LIVE

Legacy Communities Scheme (LCS): The Legacy Communities Scheme planning application to deliver comprehensive mixed use development on Queen Elizabeth Olympic Park was granted outline planning permission in September 2012. Work is ongoing to ensure that LLDC monitors and discharges its planning obligations relating to the LCS. LLDC has completed the majority of its submissions to the planning authority of pre-commencement, the remaining pre-commencement and pre-occupation conditions are being prepared for submission by February 2017.

Page 91 10 London Legacy Development Corporation Corporate Performance October – December 2016

East Wick and Sweetwater: Places for People and Balfour Beatty have been appointed to bring forward plans to create new neighbourhoods in East Wick and Sweetwater. The plans include building up to 1,500 new homes with up to 30 per cent affordable and 500 private homes to rent on the Park, six years ahead of the original masterplan. Work to develop East Wick and Sweetwater will create a vibrant new community on the west of the Park, linking to existing communities in Hackney Wick and Fish Island. The aim is to complete the development in 2023. The Reserved Matters Application (RMA) for Phase 1 was submitted in September 2016, determination is scheduled for January 2017 (note: this application was approved by the Committee). Construction is due to commence in April or May 2017, well ahead of the contractual requirement.

Design work has begun on the next phase, with a public consultation event undertaken. Applications for reserved matters planning applications for LLDC funded site wide infrastructure (a non-material

amendment for the Fish Island bridges (Monier Road and Stour Road)) have been submitted. 1LIVE The deadline for public consultation expired in early December, with substantial objections (500+ in number) to the bridges received from local residents and interested parties. The Planning team is reviewing the objections received. The applications are before Planning Decisions Committee in February 2017. Construction work for this site is due to start (subject to planning) in summer 2017.

The Bobby Moore Academy, a split-site all-through school consisting of a two-form-entry primary school at Sweetwater and a six form entry secondary school at Stadium Island, will be operated by the David Ross Education Trust. Construction on the primary school commenced in August 2016, and is on schedule ahead of its opening date of September 2017; construction work on the secondary school commenced in November 2016 and is on schedule ahead of its opening date of September 2018. Applications for first intake of students closed and all places available for the school will be filled in its first year.

Leaway: Construction of the Twelvetrees Bridge pedestrian and cycle ramp at Bromley by Bow completed in this period. This closes a major gap in the Leaway, which is the continuous pedestrian and cycle route from Queen Elizabeth Olympic Park to the Royal Docks and . The bridge is already being enjoyed by people but will be opened officially by the Mayors of Newham and Tower Hamlets in the spring. As a result of this and other works led by the Corporation the Leaway now runs off-road, alongside the river and canals, except for a short stretch between Cody Dock and Canning Town, which still uses roads. This final gap will be closed once Poplar Reach Bridge is constructed across the Lea as part of the Mayor of London’s Poplar Housing Zone. As well as enabling many more people to enjoy the river valley, these small infrastructure projects are essential in allowing new homes to be built on a string of derelict post-industrial sites along the valley. Reaching this milestone completes the Corporation’s contribution to the Leaway programme and marks the point at which the Corporation hands leadership of the programme to LB Newham and LB Tower Hamlets. LLDC is completing work on behalf of LB Tower Hamlets to repair and enhance Silvocea Way, a riverside walkway along the west of the river Lea, which is due to complete in the next period. An image of the new Twelvetrees Bridge pedestrian and cycle ramp is shown on the right:

Page 92 11 London Legacy Development Corporation Corporate Performance October – December 2016

The Local Plan was adopted by the Board in July 2015 following a public examination and consultation. A series of supplementary Planning Document (SPDs) have been developed: Public consultation three SPDs completed in this period: Bromley-by-Bow and Pudding Mill SPDs will be submitted to Board for adoption in March 2017; Hackney Wick and Fish Island SPD will be submitted to Board for adoption in April 2017.

A further application was submitted to PPDT in December for an asphalt production plant at the Bow East site, bringing the total of current planning applications for aggregate and concrete production related uses to four, across five plots on the land. The applications have generated objections in substantial number, including objections from the Mayors of LB Newham and LB Tower Hamlets. The separate planning submissions generate a complex assessment process, with the applications having to be assessed on their own merit, in combination and cumulatively. The applications will be reported

to PDC when the assessment is concluded. 1LIVE

Community Infrastructure Levy (CIL) collection and allocation:

The Legacy Corporation is required to prepare a report for any financial year in which it collects CIL. The charging authority must publish the report on its website no later than 31 December following the end of the reported year. Updates will continue to be made quarterly through this report.

The Legacy Corporation started charging its CIL on the 6 April 2015.

In Quarter 3 2016/17 three LLDC CIL payments were received. Date Amount 12/10/2016 £125,963.31 17/11/2016 £128,007.68 14/10/2016 £500,000.00 Total £753,970.99

£1million of LLDC CIL was allocated to the Hackney Wick Station project by the Project Proposals Group in December 2016 (CIL monies are allocated on an annual basis, or upon receipt of contributions greater than £500,000).

The Legacy Corporation has continued to collect Mayoral CIL: during Quarter 3 2016/17 £632,626.23 was collected. This was transferred to Transport for LondonPage (less 93 a 4% administration charge retained by LLDC). 12 London Legacy Development Corporation Corporate Performance October – December 2016

1LIVE

Improvements to Hackney Wick Station have been identified as a key factor in helping to unlock the full economic potential of Hackney Wick. The improvements include new routes to reduce journey- times between the station and Here East and the Park; a new and enlarged station concourse; the installation of lifts to the platforms; and the creation of a new north- south pedestrian route for both passengers and other pedestrians under the railway embankment, Board approval for the improvement works has been confirmed. Following completion of documentation with Network Rail construction commenced in August 2016 and construction is on schedule for completion in February 2018.

In this period piling works have been completed to the retaining structures, and construction of the R subway structure is well underway, with the walls largely completed.

Hackney Wick regeneration: the outline planning application for the regeneration of the central area around the station was submitted for planning approval in April 2016. Following a briefing to the Planning Decisions Committee (PDC) in October 2016, Committee members visited the site. The issues raised by PDC, particularly on the height of some of the buildings proposed are being R discussed in light of a wider review of planning issues, including the development viability and the minimum level of affordable housing the scheme can support. PDC is to receive a briefing in January 2017 on this review and any planned amendments to the masterplan. The planning application is scheduled for determination at PDC in March 2017. R LLDC has also continued to work with the new Mayor of London and his team on priorities for the Legacy Corporation, particularly relating to accelerating housing delivery on its future development sites.

R

Page 94 13 London Legacy Development Corporation Corporate Performance October – December 2016

KEY RISKS AND ISSUES

Summary Impact Mitigation RAG

Risk that increased Financial implications, Early cost reports, construction costs in London reduced scope for tight monitoring, value will impact on the Legacy capital projects. engineering where required. Corporation’s construction Effective procurement and R projects. contracting strategy. Monitor impacts of exit from the EU.

1LIVE

Risk that there are challenges Significant financial Consider alternative deal to the ability of LLDC to return and reputational structures to support the expected receipts from impacts. generation of receipts. Close R housing developments. working with GLA, including on affordable housing.

Risk of potential reputational Significant Discussions with the GLA and impact of future housing reputational partners; market analysis. developments on the Park implications. having a lower affordable R housing percentage than the Mayor of London’s affordable housing aims.

Risk of challenges in Significant financial Close working with the accelerated delivery of future and reputational Mayor of London on housing housing developments at impacts. strategy and planning, R Rick Roberts Way and Pudding and with land owners. Mill Lane.

Risk that Hackney Wick Significant Seek further funding and Station Improvements costs reputational impact review costs, understand will exceed budget. and impact on LLDC risk exposure and Hackney Wick manage accordingly, R regeneration. including possible insurance cover.

Risk that the receipts Reputational impacts. Close working with generated from LLDC the Mayor’s office. development do not fully A re-pay the National Lottery.

Issue relating to Chobham Delays in completion Close working with the Manor construction delays. of homes, financial developer who have brought and reputational in additional resources and A impacts. monitoring. New programme Page 95agreed, on schedule. 14 London Legacy Development Corporation Corporate Performance October – December 2016

KEY RISKS AND ISSUES

Summary Impact Mitigation RAG

Risk that proposed Hackney Programme delays, Ensuring scheme is Wick Neighbourhood Centre financial impacts compliant. Planning scheme will not be supported (receipts), application submitted by the Planning Decisions reputational damage. for determination in Committee (PDC). March 2017. Continued A consultation and

1LIVE engagement with planning and stakeholders.

Risk relating to agreeing Significant reputation Discussions with partners future use for 3 Mills Studios. impacts. ahead of presenting options A for a decision.

Risk about successful Reputational impacts. Progress reporting including implementation of the annual monitoring report. A Local Plan.

Page 96 15 London Legacy Development Corporation Corporate Performance October – December 2016

WORK Retain, attract and grow a diverse range of high quality businesses and employers, and maximise employment opportunities for local people

London has a growing economy: the GLA projects that the number of jobs in London could grow by 750,000 between 2010 and 2031, across a diverse range of sectors. Nearly half (48 per cent) of employment growth in this period is expected to happen outside central London, and businesses are looking east for space to grow. Queen Elizabeth Olympic Park is perfectly positioned to support this trend, with excellent transport links, space for office and workshop accommodation at Here East, and with housing and leisure on the doorstep. The surrounding area includes International Quarter London (IQL) to where organisations including Transport for London (TfL) and the Financial Conduct Authority (FCA) are planning to re-locate, and it is hoped will be joined by major commercial companies); Westfield (Europe’s largest urban shopping centre); Stratford town centre; the developing Neighbourhood Centre of Hackney Wick – which all have existing and potential thriving business communities including a wide range of SMEs; and the Here East Innovation Centre in the Press and Broadcast Centre buildings on the

2WORK Park. Together, these could create a ‘fourth office quarter’ for London, stimulating economic growth that would benefit people across the four boroughs. This has to be done in a way that complements and boosts existing local businesses (including SMEs), and which makes connections between businesses (big and small) that benefit them both. Similarly, over the next five years, LLDC needs to support the development of effective links between the growing higher education presence on the Park and local businesses. The Legacy Corporation will use the higher education presence to support existing businesses and attract and generate new enterprises, an approach that should reach its full potential through The Culture and Education District.

A fundamental plank of LLDC’s strategy is to use its powers as a regeneration agency to ensure that business growth, development and construction generate job opportunities for local people, and that local people are supported to access these jobs and develop the appropriate skills, through apprenticeships and other forms of vocational training.

Page 97 16 London Legacy Development Corporation Corporate Performance October – December 2016

PROGRESS AGAINST MAJOR WORK MEASURES

The most recent figures show that the majority of workforce targets have been met or exceeded:

Targets Performance and commentary

Construction workforce targets: The most recent figures available are to end of • 25% of the workforce have permanent December 2016 residency in Host Boroughs • 27% of construction employees working on • 10% of the workforce were previously the Park are Host Borough residents unemployed • 0% of the workforce were previously • 25% of the workforce are from BAME groups unemployed (see commentary below) • 5% of the workforce are women • 49% of the workforce are from BAME groups • 3% of the workforce are disabled • 5% of the workforce are women • 3% of the workforce are apprentices • 4% of the workforce are disabled • 6% of the workforce are apprentices

2WORK Copper Box Arena and London Aquatics The most recent figures available are as of June Centre workforce targets: 2016 (these figures are reported annually): • 70% of the workforce have permanent • 72% workforce Host Borough residents residency in the Host Boroughs • 41% workforce are from BAME groups • 55% are from BAME groups (see commentary below) • 50% are women • 51% workforce are women • 3 – 5% are disabled • 3% workforce are disabled The 41% figure is as of September 2016 following inclusion of catering staff who

Estates and Facilities workforce targets: As of December 2016 the workforce • 70% of the workforce have permanent performance is shown below: residency in the Host Boroughs • 63% workforce Host Borough residents • 25% are from BAME groups • 65% workforce are BAME • 30% are women (see commentary below) • 5% are disabled • 35% workforce are women • 6% workforce are disabled

Page 98 17 London Legacy Development Corporation Corporate Performance October – December 2016

COMMENTARY ON KEY WORK PROJECTS

Work is continuing to support construction and end-use employers on the Park to maintain and improve on consistent performance in achieving workforce targets to date. This includes supporting recruitment and working with Park employers to create job, skills training and apprenticeship opportunities for local people. With a few small exceptions (as noted below), LLDC has consistently hit its targets for jobs and apprenticeships across the multitude of different development and contracts that have been brought forward or let at the Park. LLDC is now moving into a phase of developing interventions and initiatives with employers that will deliver those opportunities across a broader skills spectrum, so as to pave the way for the higher skilled, technical roles that will be created through the next phase of the Park’s development at the Culture and Education District and at Here East.

The EFM contract with Engie is not hitting the Host Borough employment target: under-performance is due to low workforce churn of retained staff and difficulties encountered in recruitment for a range of facilities management roles.

The introduction of a new biometric site access system at Chobham Manor has resulted in only a partial workforce report being generated. In particular, data for previously unemployed workers was not reported. Chobham Manor expect to have the system fully up and running for the next period so updated figures will be provided in the 2016/17 Quarter 4 report.

2WORK In December Loughborough University London held its first ever London graduation event celebrating the achievements of around 200 masters students who started their masters courses at the Here East campus in September 2015.

Included in this group were six east Londoners who joined Loughborough University through the LLDC-funded ‘Inspiring Success’ programme which provides employability training for under or unemployed local graduates. This bursary scheme provides for up to ten graduates who live and were educated in the neighbouring boroughs to gain 100% financially assisted placements to pursue a Master’s qualification.

At the ceremony a very special honour was presented to LLDC’s Executive Director of Regeneration and Community Partnerships, Paul Brickell, by Lord Coe, the Pro-Chancellor of Loughborough University. Paul was presented with an Honorary Doctorate degree in ‘recognition of his outstanding achievement to the advancement of east London via delivery of the 2012 Olympic Games Legacy Plan’.

ACHIEVEMENTS IN THE LAST PERIOD INCLUDE: LLDC continues to work with partners to help deliver jobs, training and support to businesses, key achievements include:

• Introductory construction courses commenced for 11 local residents with Building Crafts College. • London Stadium 185and Stadium partners hosted a brokerage networking workshop with LB Newham Job Brokerage Workplace promoting variable hour stadium event roles. • The successful delivery of Business Information Modelling autumn school to 2 east London schools, supported by Allies and Morrison, Buro Happold, Balfour Beatty, Arup and Mace.

Page 99 18 London Legacy Development Corporation Corporate Performance October – December 2016

Here East (former Press Centre and Broadcast Centre): Here East was home to a number of large scale events in this period. The Tech London Advocates annual industry event was held on 6 October 2016 and the Promaxbda conference on the 3 November 2016. Each event brought between 500-800 industry specialist to the campus and demonstrated what can be achieved as an events destination. In addition, Here East held its agents and stakeholder launch successfully on 1 October 2016 with a guest appearance from Dynamo. The event was a first time visit for many to the campus and enabled Here East to leave a lasting impression and to capture the imagination of many who would not have previously considered East London as a potential home.

On the 2 October 2016, Here East’s Innovation Centre, Plexal was launched. A large scale fit out has commenced on the ground floor of the Press Centre, with a planned opening end of Q1. To house the emerging need, a temporary pop-up space has already opened, with over 60 individuals from start-up businesses from the technology sector already in occupation whilst their permanent facility is built. A data visualisation company moved in to the Broadcast Centre pre-Christmas, choosing to relocate from Shoreditch to Here East.

2WORK

Post-summer, Canalside has been quiet in the week as would be expected for the time of year before occupation increases. Work continues to be done to market the destination and to make it a vibrant and safe place to visit. Here East are also working with LLDC to support the lighting review, following the recent incidents along the canal.

At the end of December, 51% of the Here East team were from one of the four growth boroughs. This continues to be a key focus as Here East grows.

Future event planning is positive with key collaborative events such as the autonomous vehicles launch that will take place in the Park and Here East.

KEY RISKS

Summary Impact Mitigation RAG

Risk relating to meeting Significant A strong set of targets priority theme targets reputation impacts. agreed through procurement and wider regeneration and contracts; close working G aspirations. with partners.

Page 100 19 London Legacy Development Corporation Corporate Performance October – December 2016

VISIT Create a diverse, unique, successful and financially sustainable visitor destination

Queen Elizabeth Olympic Park opened fully to the public in April 2014 and from the outset offered 'something for everyone’ with new parklands and playgrounds, world-class sporting facilities open for public use, and a varied programme of public sporting, cultural and community events in the venues and open spaces. Nearly four million visitors came in the first full year — well above expectations.

The Queen Elizabeth Olympic Park brand already competes well against other destination hubs, and has a broad profile that is felt to be ‘different’ to existing offers.

LLDC’s objective in the next five years is that visitor numbers should be maintained at least at current levels, and that as the Park develops the numbers of visitors should increase in line with that development. The opening of the Stadium in 2016 will bring over a million spectators per year and raise the profile of the Park through a global TV audience of millions. A growing number of people will view the Park as their local leisure space as the new residential developments and workspaces are occupied, and the spaces and activities in the Park should be a vital component in joining new and existing communities together. Attracting visitors to the Park is important because it ensures the financial sustainability of the venues and the upkeep of the Park, brings people in who will spend in the local economy (contributing to local jobs and wellbeing), and contributes a critical mass of people to metropolitan Stratford. While increasing the national and international appeal of Queen Elizabeth Olympic Park, LLDC’s visitor strategy will also ensure that it is still viewed — and used — positively by

3VISIT the local community, and maintains its reputation as somewhere different and exciting. It will support the GLA’s cultural tourism vision, promoting authentic cultural opportunities outside central London.

PROGRESS AGAINST MAJOR VISIT MILESTONES

Milestones for completion in 2016/17 Estimated date and comment

Permanent re-opening of the Stadium in the summer of 2016 in time for the 2016/17 COMPLETE football season. The Stadium opened for the start of the 2016/17 football season.

Meet estimate of 5.5 million visitors to the 4.4m visitors to the end of December 2016. Park in 2016/17.

Page 101 20 London Legacy Development Corporation Corporate Performance October – December 2016

Milestones for completion in 2016/17 Estimated date and comment

Host major sports events including UCI Track Cycling, London Anniversary Games; COMPLETE World Track Cycling Championships; Men and Women’s Championship Hockey and Update on events is provided below. Sport Relief. Hold the Make the Future event.

Throwing Field for the World Athletics This is being delivered by UK Athletics Championships commenced by UKA. who are reviewing the position of the Throwing Fields in the Park.

Maintain Green Flag status for the Park. COMPLETE

Following a ‘mystery shopper’ visit The Green Flag status was awarded to the Park in July 2016 for a second successive year.

The Slide at the ArcelorMittal Orbit complete and open. COMPLETE

The Slide at the ArcelorMittal Orbit opened on 24 June.

3VISIT Target for 2016/17 Performance to date

London Aquatics Centre throughput 660,599 throughput from of 712,000. April – December 2016.

Copper Box Arena throughput of 440,000. 330,050 throughput from April – December 2016.

ArcelorMittal Orbit throughput of 163,000. 153,982 throughput from April – December 2016.

Page 102 21 London Legacy Development Corporation Corporate Performance October – December 2016

COMMENTARY ON VISIT ACTIVITIES

The Legacy Corporation, on behalf of E20 Stadium LLP (a joint venture between the London Legacy Development Corporation and Newham Council) has completed its work to transform the Stadium in the Park into a year round multi-use venue to deliver a permanent sporting, cultural and community legacy in east London. Procurement tenders for a seating operator for the Stadium have been received for evaluation. Good progress has been made on crowd management issues at West Ham United FC matches at the Stadium. Improvements include: increasing the segregation areas both within the stadium and on egress; improvements to the deployment of stewards; West Ham have addressed many of the issues arising from fans’ seating allocations, over 100 stadium bans have been issued to fans for causing trouble; and improved communication and coordination between the parties involved in managing the crowds at Stadium events.

The Mayor of London has established an investigation into the Stadium and related issues. The review is being led by City Hall, with LLDC involvement, and TfL are running a mini-competition for advisers.

Events held in the Park: This was another strong period for events in the Park, some of the highlights are listed below.

• Bang the Drum at the Copper Box Arena 3 October • Half Term events on the Park (see below) • Hello Lamp Post on the Park 20 October to 30 November • Dizzee Rascal gig at the Copper Box Arena 22 October • Six day London cycling event at the Lee Valley VeloPark 25 – 30 October • Climathon 2016 at the White Building 28 October (see below) • Hallowe’en at the ArcelorMittal Orbit 28 – 29 October • Hallowe’en Fun Run 29 October • England vs Australia Four Nations Rugby League 13 November

• England vs Jamaica netball international at the Copper Box Arena 29 November 3VISIT • NEC Wheelchair Tennis Masters at the Lee Valley Hockey and Tennis Centre 30 November – 4 December • Revolution Champions League at the Lee Valley Velopark 2 – 3 December • London Students Run 4 December • TechCrunch Disrupt Hackathon at the Copper Box Arena 5 – 6 December • 2016 British Rowing Indoor Championships at the Lee Valley Velopark 10 December 2016 • Tea Dance at the Copper Box Arena 13 December 2016

Half term on the Park: as well as the broader Park offer during half term, with visitors enjoying the cafes, Parklands and scenery there was also a variety of activation from venue operators. This included longer opening hours on The Slide at the ArcelorMittal Orbit and aqua splash sessions at London Aquatics Centre. GLL also programmed ‘Fit for Sport’ camps at the Copper Box Arena, which included sessions for a variety of sports led by fully qualified instructors and drop in free sessions at Timber Lodge Café, where children could take advantage of a range of inclusive activities, run by Motivate East. The popular cycling sessions were also on offer at Lee Valley VeloPark. All venues reported high / sold out visitor numbers following the Park marketing October half term campaign.

Page 103 22 London Legacy Development Corporation Corporate Performance October – December 2016

Climathon is a global event, hosted by 59 cities around the world aimed at crowdsourcing solutions for local and global climate change issues. The events are aimed at engaging graduates, start-ups and entrepreneurs, giving them the opportunity to devise, or continue to develop, new innovations over the course of 24 hours. LLDC’s sustainability team hosted this year’s London Climathon in the White Building on 28 and 29 October 2016. Six teams pitched their ideas to judges who assessed their plans. The winning idea was Fit Air – a public transport air pollution solution – and LLDC is offering support to help develop this proposal. Other teams have been in contact with partners such as Imperial College for technical development advice. The winning team and another submission received special recommendations should they apply for the Climate KIC’s EU wide incubator programme, to which all 6 teams are able to apply.

The events programme in the next period include: • Daily January Sports Sessions at various venues on the Park • 10km run series on the first Saturday of every month • West Ham United FC and London Lions home matches at the London Stadium and Copper Box Arena respectively. • George Irvin’s Ultimate Funfair on the Park between 4 and 19 February 2017 (apart from 6-8 February) • Legacy Cheer and Dance competition at the Copper Box Arena on 18 and 19 February 2017 • Go Travel show London 2017 at the London Stadium on 25 February • Surrey Storm v Hertfordshire Mavericks netball match at the Copper Box Arena on 11 March 2017 • The British Heart Foundation Queen Elizabeth Olympic Park run on 26 March 2017

Four large scale concerts which will take place in the London Stadium in summer 2017 have been announced: Depeche Mode on 3 June; Guns N’ Roses on 16 and 17 June; and Robbie Williams on 23 June.

It has been agreed that the Make the Future London festival, featuring the Shell Eco-marathon Europe

3VISIT will return to the Park in 2017. This flagship Shell four-day event will again bring together over 200 student teams from 29 countries in a competition to see whose vehicle could travel furthest on the least amount of fuel. It is likely the event will also include the Drivers’ World Championship as well as Exhibition based festival and the integral Schools Programme. In addition to the public event, it is anticipated that the Stadium will host Shell’s key conference aspects of the project. The event will take place from Thursday 25 May to Sunday 28 May 2017 inclusively. It will occupy the same areas as 2016: the South Park Lawn, Stratford Waterfront with the track going the roads in the South of the Park. As this is a key time for housing developments and Stadium operations, there will continue to be extensive consultation with all parties.

Page 104 23 London Legacy Development Corporation Corporate Performance October – December 2016

The ArcelorMittal Orbit (AMO) is a visitor attraction with two spacious viewing platforms at 76 and 80 metres high, visitors can see over 20 miles across London.

The ArcelorMittal Orbit has been enhanced as a visitor attraction, including The Slide at ArcelorMittal Orbit which opened on 24 June 2016 generating positive media coverage and healthy ticket sales: The Slide measures 178m making it the world’s tallest and longest tunnel slide. In the under 40 second trip sliders reach speeds of up to 15 miles per hour. Tickets can be booked in advance and cost £15 (adult) and £10 (child).

Attendance at ArcelorMittal Orbit is 153,982 (79,378 of these also included tickets for The Slide) to the end of December 2016 with total attendance at the attraction in 2016/17 already higher than the total attendance at the attraction during 2015/16.

The London Aquatics Centre (LAC) includes two 50 metre pools, the diving pool, a gym and a dry dive athlete training area for elite athletics use and competition, but is also available for lane and fitness swimming as well as family sessions.

The LAC has made its mark on the national stage, hosting a number of major sporting events including BBC Sport Relief, the FINA Diving World Series, National

3VISIT Paralympic Day, Invictus Games, the British Swimming Championships and London 2016 LEN European Aquatics Championships.

Security: on 16th December 2016 the Hostile Vehicle Mitigation installation contractor Emtrade Civil Engineering Limited (ECEL) verbally advised that they would not be returning to site to close out the remaining works for the installation. This has since been confirmed by way of a winding up order that has been issued and subsequent communication with ECEL. Due to failing to meet deadlines and associated risk LLDC have since terminated the contract with ECEL and have plans in place for completing the works and are working with procurement on future needs. There is a risk that the project could now go over budget.

Page 105 24 London Legacy Development Corporation Corporate Performance October – December 2016

KEY RISKS

Summary Impact Mitigation RAG

Issue relating to delivery of Significant financial E20 Stadium LLP Board E20 Stadium Business Plan. and reputational considering commercial impacts. options. R

Issue relating to London Reputational impacts. Work to manage egress Stadium match day and standing issues with operation. the operator. R

Issue relating to the Reputational impacts. Close working with the investigation into London Mayor’s team on the Stadium findings. investigation; ensure all A findings are implemented.

Risk relating to security on Reputational, Monitoring threat levels the Park and the threat level. operational and across the Park ensuring financial implications. appropriate security resource R and implementation of new initiatives.

Risk relating to trading and Financial impacts, Manage and monitoring activities including venues reduced income or financial targets and

3VISIT (CBA, LAC, AMO), events and increased costs. contracts. Spend to save car park. initiatives, implement A commercial strategy.

Risk relating to the need Reputational, Savings being identified, to identify and implement operational and contractual negotiations savings in Park operational financial implications. ongoing. A contracts.

Risk relating to Park visitor Significant Marketing plan, good numbers and experience. reputational impacts. customer services, animation of the Park through events. Positive figures to date for G visitors to the Park.

Page 106 25 London Legacy Development Corporation Corporate Performance October – December 2016

INSPIRE Establish a 21st century district promoting cross-sector innovation, education, culture, sport, aspiration and participation in east London

The initial legacy priority was to establish a viable future for the Park as somewhere to live; work and visit, and the key ingredients of this success were laid down early on. This created space to review the plans and seek to secure an even greater benefit for the surrounding community. The ambitious vision for The Culture and Education District was developed during late 2013 and 2014, and secured government funding in December 2014. The plans have attracted prestigious institutions and businesses to the site to foster collaboration and innovation, generating a projected 3,000 jobs in the Park and an extra £2.8 billion of economic value from the area. The Culture and Education District will create new visitor attractions and will seek to attract knowledge-based industries to the Stratford site, linking to Tech City, Here East and beyond. Building on and working closely with the existing thriving arts and culture offer in Stratford and Hackney Wick, it will showcase London at its cultural and academic best.

Over the next five years, University College London will establish a campus with academic facilities, student and staff accommodation. On Stratford Waterfront, University of the Arts London, the Victoria and Albert Museum and Sadler’s Wells are key partners in the development of a culture and education complex, with discussions also underway with the Smithsonian Institution. PROGRESS AGAINST MAJOR INSPIRE MILESTONES

Milestones for completion in 2016/17 Estimated date and comment

Progression of masterplans and submission UCL: approval for RIBA stage 2 and of outline planning application for the Culture commencement of RIBA stage 3 is and Education District. scheduled for March 2017. The end of RIBA stage 3 for Stratford Waterfront design and commencement of RIBA Stage 4 has extended to January 2017 to allow further

4INSPIRE design coordination.

Manage the interface and build the strategic The development of Strategic plans for CED is partnerships for Culture and Education District, ongoing; partners are working together and setting processes to ensure strategic objectives with others in east London to deliver projects are achieved. and programmes aimed at achieving the CED’s Strategic Objectives (including GDI Hub, see below).

Page 107 26 London Legacy Development Corporation Corporate Performance October – December 2016

Milestones for completion in 2016/17 Estimated date and comment

Progression of Stratford Waterfront residential Procurement approach discussed at LLDC’s development strategy. Investment Committee in November 2016.

Secure Active People Active Park extension Working towards bid submission to Sport until 2017. England in January 2017.

Targets Performance and commentary

Meet Active People Active Park target of This target has already been met with 43,420 39,103 attendees February 2016 – January attendees from February to August 2016. 2017.

Meet sport and healthy living target of This target has already been met with 40,719 15,000 attendees. attendees in the first 6 months.

Meet 2 year Motivate East targets (Feb 2016 From the start of Phase 2 of the programme in – Feb 2018) of a throughput of 33,998 February 2016 to August 2016 the project has attendees in inclusive sport. recorded a throughput of 9,777 and so is ahead of target.

Ensure community plans are in place and Chobham Manor: Move-in event delayed untll are being delivered within Chobham Manor, September 2017. Planning is underway for the East Wick and Sweetwater neighbourhoods delivery of 5 projects Arts Strategy projects and the London Stadium. including a launch event scheduled for 25 February 2016. Ensure mechanisms are in place amongst the East Wick and Sweetwater: Community Cultural and Education District partner Engagement Strategy to include the design institutions to engage local communities. of a new community facility: Review of the Community Engagement

4INSPIRE Strategy undertaken and an action plan for 2017 was developed. Business modelling for Library/Community space moving to completion, next steps to be agreed Stadium Delivery of Engagement plan- Children’s University Graduation held. Culture and Education District Partners: Focus on the development of the education programme.

Page 108 27 London Legacy Development Corporation Corporate Performance October – December 2016

Milestones for completion in 2016/17 Estimated date and comment

Deliver schools engagement programme Continued engagement with schools via Go! through the Go! Schools network and Schools network. encourage usage by partners. Education workshops held in November with Number of schools participating in learning CED partners and FFL to scope a collaborative opportunities to enhance curriculum delivered education offer for local schools. in collaboration with CED partners.

Deliver three successful community interim - First term of the Gainsborough School drama use sites on and around the Park (Hub 67, club at Hub67. Mobile Garden City, Warton Road). - Ongoing activity at Carpenters Cage. Manage the relocation of Mobile Garden City - Mobile Garden activity at Chobham Manor from Chobham Manor to East Wick with completes in advance of move to East Wick. minimal impact to users. Ongoing with the relocation of Mobile Garden City. Planning application submitted for new East Wick site. Communications strategy being implemented with existing users and raising awareness of move.

Deliver 2 community events on the Park (Big Lunch and Harvest Stomp). COMPLETE

Following the success of Big Lunch in Quarter one, the Harvest Stomp was held in this period with 3000 people in attendance. Initial planning underway for next year community events.

Deliver successful Park Champions Park Champions celebration event held: we programme, including obtaining have 860 registered volunteers who have Investing in Volunteers status. registered 12,869 volunteer hours from April to December 2016. Investing in Volunteers status: self-assessment completed.

4INSPIRE

Page 109 28 London Legacy Development Corporation Corporate Performance October – December 2016

COMMENTARY ON INSPIRE MILESTONES

Work has continued on the delivery of a world-class Culture and Education District on the Park. The masterplan for the UCL East site has been fixed and UCL have appointed Stanton Williams as detailed designer for the Marshgate site and Lifschutz Davidson Sandilands on the Pool Street facilities. The mid-stage RIBA stage 2 design for UCL was issued in September and is being reviewed: approval for RIBA stage 2 and commencement of RIBA stage 3 is scheduled for March 2017. Procurement activities have continued and a review of strategies was undertaken by UCL’s Executive Board in November 2016.

The end of RIBA stage 3 for Stratford Waterfront (SWF) design and commencement of RIBA Stage 4 has extended to January 2017 to allow further design coordination. The Procurement Strategy for SWF was agreed at LLDC’s November Investment Committee meeting.

The LLDC and Culture and Education District partners continue to collaborate to achieve the programme’s strategic objectives. Partners were part of five Task & Finish Groups that met and proposed several key areas of working as a partnership moving forward, including formulating plans to grant shared access to libraries and archives, foster academic collaboration, generate collaborative cultural programming and develop shared workspace for small businesses locally.

The outcomes of these groups will inform next quarter’s CED Strategic Objectives Delivery Plan, which will set forth plans to further work streams focused on education, routes into employment and enterprise, and leading research and innovation. Flagship CED projects such as the Global Disability Innovation Hub (see below) and the London EAST curriculum are progressing with key local stakeholders and projects like Creative & Cultural Opportunities Week have already connected local young people to jobs in the creative industries.

Foundation for FutureLondon (FFL) was created to work with the Mayor of London to ensure that all Londoners can benefit from the opportunities created by the unique collaboration of world class institutions that form the Culture and Education District on Queen Elizabeth Olympic Park.

During October FFL’s development team continued to progress with the fundraising campaign plan working closely with colleagues from all partners on identifying potential supporters to produce an initial prospect forecast which will continue to be developed over the course of the campaign.

The joint case for support was agreed and an initial draft of the shared prospectus was worked on

4INSPIRE by all partners with an early version being shared with the GLA.

Page 110 29 London Legacy Development Corporation Corporate Performance October – December 2016

Community Engagement and Participation LLDC has continued its programme of community engagement in particular to support the Culture and Education District programme and the neighbourhoods being created on the Park in Chobham Manor, East Wick and Sweetwater.

The Mobile Garden City project on the Park was highly commended in the 2016 Landscape Institute awards. The Garden is a community space with expert-led gardening workshops, food growing and horticulture training. It is leased by LLDC to Groundwork London and LLDC provides grant funding to Groundwork London for the project who also receive in kind support to the project from Our Parklife with Public Works (Groundwork London forms part of Our Parklife). The Garden demonstrates sustainability through re-use of materials, technologies such as solar power, and the use of an anaerobic digester. At present the Garden is situated by Chobham Manor, LLDC is working with partners to move the Garden to its next destination in East Wick with minimal impact to users.

Global Disability Innovation Hub: Good progress has been made on the development of the Global Disability Innovation Hub with Culture and Education District Partners. Plans for 2017 include recruitment of PhD students; design of a joint MSc course agreed for a 2018 start; launch of the partnership’s first small research call; and recruitment of a Board of disabled people to join the founding institutions in leading our activities. The new Board will then start to plan the future of the Hub, aiming to deliver a Summit in summer 2017 and moving the Hub to its temporary home in UCL Here East.

Other key achievements include:

• Completion of Park Champions West Ham volunteering pilot which has led to the creation of new roles at West Ham. • Chobham Manor arts strategy delivery finalised with 5 local partners on board to deliver a local programme. • Production of East Wick and Sweetwater Community Engagement Strategy action plan for 2017. • Legacy Youth Voice recruitment undertaken and end of year awards event held. • Tea dance held on 13 December at the Copper Box Arena attended by 241 people.

4INSPIRE

Page 111 30 London Legacy Development Corporation Corporate Performance October – December 2016

KEY RISKS

Summary Impact Mitigation RAG

Risk that The Culture and Reputational damage, Effective design Education District will be delays and cost management and delayed or costs will be overruns. coordination. Cost control. more than anticipated. Close work with partners, R GLA and Government. Coordination with PPDT.

Risk to Culture and Education Significant financial Close working with District funding. implications and Foundation for Future programme delays. London. Development of Full Business Case for the project. R Ensure best deal for residential funding.

Risk relating to construction Impacts on the Deliver a clear and development reputation of the communication plan which communications. Corporation. manages expectations and explains the reasons for the construction work and G communicates future developments.

4INSPIRE

Page 112 31 London Legacy Development Corporation Corporate Performance October – December 2016

DELIVER Deliver excellent value for money, and champion new models and standards which advance the wider cause of regeneration, in line with LLDC’s core values: Ambition, Responsibility, Collaboration, Excellence, Accessibility and Sustainability

Work in this area includes functions to support the delivery of the Legacy Corporation’s objectives through services including finance, human resources, IT and Information management, programme management, legal and procurement. This section also covers the Communication, Marketing and Strategy directorate which is responsible for the external reputation of the Legacy Corporation and Queen Elizabeth Olympic Park, and defines the way we manage all of our external activity and relationships. In addition, it is responsible for shaping the long-term organisational goals and ambitions, through its strategy work. PROGRESS AGAINST DELIVER MILESTONES

Milestones Performance and commentary

Health and safety Over the past year we have fully achieved Construction undertaken without a fatal meeting this milestone, with no reportable accident on site; to prevent any life-changing accidents representing a rate of 0.0. injury or occupational ill-health for any he Stadium conversion achieved a period of individual; and to minimise reportable 2.5m hours worked without a reportable accidents to a rate below 0.17 per 100,000 accident. hours worked.

Unqualified annual accounts for 2015/16. COMPLETE

Annual accounts approved with an unqualified opinion.

Submission of LLDC’s annual Environmental Target for this is now for the report to be Sustainability Report. complete in January 2017.

IT Service Delivery re-procurement. Investigating procurement and shared services options.

5DELIVER

Page 113 32 London Legacy Development Corporation Corporate Performance October – December 2016

Milestones Performance and commentary

Report on deliverables in 5 Year Strategy. These are reported annually and will form part of this report covering the final quarter of 2016/17.

Delivery of Smart/Sustainable Park initiative. Planning for a Smart Sustainable District showcase on the Park in April is underway. Key stakeholders have been approached for sponsorship and stall opportunities.

5DELIVER

Page 114 33 London Legacy Development Corporation Corporate Performance October – December 2016

COMMENTARY ON KEY PROJECTS

Sustainability: 2014/15 performance against the LLDC’s sustainability ambitions is documented in the LLDC’s annual Environmental Sustainability Report 2014/15 Your Park, Our Planet. This was approved at the 27 October 2015 Board meeting and has since been published and can be found on our website: http://queenelizabetholympicpark.co.uk/our-story/transforming-east-london/ sustainability. 2015/16 report is due to go to Board in the next period.

Ten Year Plan and Budget Submission: Work has continued on the statutory GLA process for 2017/18 budget submission: the draft budget was submitted to the GLA in November 2017 following approval by the Board. The draft will be considered by the London Assembly initially in January 2017, with a further review of the final draft in February 2017. The final budget for the Corporation will come to LLDC’s Board for approval in March 2017.

Health and Safety:

Park Operations: This period has seen seven major events in the Stadium; together with planned 5k and 10k runs and local Active people, Active Park events. Medical incidents have remained at minimal levels with ten occurring across the quarter on park and public realm and a further 11 instances of ambulances being called to venues. Spectator safety remains a key focal point for park operations management; this is in relation to stadium football matches and the ingress/egress route security, safety and spectator flows.

There were a number of attempts to scale the ArcelorMittal Orbit from urban explorers, and with one exception all were detected and deterred. This rapid, effective response appeared to have reduced attempts in December.

5DELIVER Following four robberies in the later part of December which included one person injured with a knife, security has worked closely with the police and as a result three people have been detained by police.

Page 115 34 London Legacy Development Corporation Corporate Performance October – December 2016

Construction: there continue to be some minor issues raised with the developer during inspection primarily on site housekeeping and materials storage.

Mossbourne Riverside Academy: main construction works have been completed. McLaren embraced LLDC standards at an early stage and the project has been delivered with no notable incidents. Early intervention by LLDC construction and H&S teams ensured that lessons learnt were applied.

Twelvetrees pedestrian and cycle ramp: the project completed at the end of the year subject to minor snagging works. Regular site visits were undertaken and where issues were raised the contractor, Buckingham Group, sought to remedy immediately. The Project involved significant public interface, working above and adjacent to water and other risks but no significant issues arose. Hostile Vehicle Mitigation/Park Wide Resurfacing: work has been completed to a good standard with no incidents. The majority of these works were carried out in public areas and the team ensured that public safety was a priority throughout.

Stadium: activities undertaken following handover of the Stadium to the Operator included completion of the Large Screen and testing of the air skate system for the retractable seating which were completed without incident.

Public Safety: with the increased visitor number associated with West Ham United FC’s home games, it has been important that all LLDC contractors take necessary steps to ensure that their sites do not attract attention during match days. It is noteworthy that during this year, when considering all the events that have been hosted both within the Stadium and throughout the QEOP, there has not been one report of public concern or interface relating to any of the construction projects undertaken.

Community: the Park Wide SHELT continues to meet. Membership has been widened to include other stakeholders as projects begin to come on stream, e.g. Sweetwater. The last SHELT meeting held included new projects and it was encouraging to note the willingness to support SHELT. The construction annual Christmas appeal raised £6,000 and support for Community Links continues.

Staff Health, Safety and Well-Being: slips and trips remain a routine risk in our offices, one incident led to a lost half day, and staff vigilance is encouraged. Routine checks such as of the emergency lighting to the offices and maintenance of the Evac Chair were carried out. The LLDC H&S Forum met in November, a regular opportunity to air and review any issues. A defibrillator has been purchased and staff training arranged for January. Other training has included first aid, the use of the Evac Chair, Fire Marshals and manual handling. A test of emergency arrangements, including assisting a colleague, was successfully tested in fire evacuation. That unplanned evacuation revealed some issues with the landlord’s arrangements which are being followed up together with some lift issues.

5DELIVER

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Communications:

LLDC 5 Year Strategy was refreshed in order to reflect the priorities of the new Mayor of London, as well as progress in a range of areas since it was published last year. The revised Strategy as approved by the Board in October and the new version is now on the website: http://www.queenelizabetholympicpark.co.uk/our-story/the-legacy-corporation/business-plan

The Legacy Corporation attended a series of meetings with GLA Scrutiny Committees during this period. The first was a visit to the Park by members of the London Assembly’s Regeneration Committee on 10 November 2016 to assist with its investigation into culture-led regeneration. The committee members were given a tour of the Park including the proposed cultural and education district and held a question and answer session with representatives from LLDC, Studio Wayne McGregor and UCL.

The Assembly Police and Crime Committee invited LLDC, LB Newham, LS185, West Ham United and the Metropolitan Police to give evidence to its meeting on 1 December 2016 to discuss security issues at the London Stadium and Queen Elizabeth Olympic Park. Committee members have also been on a tour of the Stadium and will attend a Premier League football match to observe the venue in event mode.

The Legacy Corporation also attended the meeting of the Budget Monitoring Sub-Committee on 9 December 2016 to answer questions about the organisation’s Quarter 2 2016/17 performance. Questions ranged from the long-term viability of Park venues to the cost of transforming the London Stadium.

Park-wide, we encouraged visitors over October half term and winter through stand-alone marketing campaigns. These included promoting the Hello Lamp Post Smart Cities project in October, and a specific campaign targeting Christmas voucher sales – Perfect Park Presents – which lead to an increase in ArcelorMittal Orbit voucher sales alone from 300 in 2015 to 3,000 in 2016. We began a regular programme of producing bespoke adverts to promote the Park on the London Stadium screens, and supported the Meetings, Incentives, Conferences and Events (MICE) market through a revised hospitality brochure and attendance at the World Travel Market.

The ArcelorMittal Orbit remained a major focus during this time, with the completion of all venue dressing, and creative campaigns such as measuring the Loudest Scream on The Slide at half term, and a Santa Bootcamp at Christmas. Employing a range of marketing techniques, with a focus on digital channels, lead to the venue being sold out at half term and almost sold out over the Christmas holidays.

The redesign and relaunch of the Queen Elizabeth Olympic Park website was also a major piece of work in this time. The revised version works much better on a range of devices – including mobile and tablet – and has new back-end capabilities which will enable us to better target information to website visitors.

5DELIVER

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KEY RISKS

Summary Impact Mitigation RAG

Risk on corporation tax Significant financial Tax advice being received, liabilities for the Legacy implications. reflected in long term plan, Corporation. discussions continue with R HMRC.

Risk on VAT for the Legacy Significant financial Continue discussions with Corporation for current and implications. HMRC and awaiting rulings. R future activities.

Risk relating to the delivery of Financial and/ or Effective costs management revenue budget savings year delivery impacts. and cost risk reporting. on year. Reputational impacts. implement commercial strategy, tighter focus on R housing development phasing.

Risk relating to failure to Significant financial New finance system has been embed fraud and assurance and reputational implemented, anti-fraud processes. impacts. policy updated, controls, financial and procurement controls, assurance and internal and external audit; A ongoing fraud awareness briefings. Mandatory fraud workshop held for finance practitioners.

Risk of impact of changes Programme impacts. Induction plans and briefings to Board membership on for new Board members. timeliness of decision making. A

Risk relating to the success of Significant financial Local Plan approved and off-Park developments. and reputational being implemented. Work impacts. ongoing on development opportunities including A Hackney Wick, Pudding Mill Lane, Bromley by Bow.

5DELIVER

Risk relating to the potential Programme delays, Continue political impact of policy change on budget impacts. engagement work and the Corporation. briefings. Work through A implications of withdrawal Page 118from the EU. 37 London Legacy Development Corporation Corporate Performance October – December 2016

KEY RISKS

Summary Impact Mitigation RAG

Risk relating to information Potential loss, theft Information security gap security non-compliance. or corruption of data analysis complete, action with reputational and plan being implemented. G financial impacts. Ongoing information security briefings.

5DELIVER

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Page 120 Transport for London quarterly performance report Quarter 3 2016/17

Page 121 Contents

About Transport for London (TfL) 4 Introduction 27 Buses Part of the Greater London Authority We work hard to make journeys easier family of organisations led by Mayor through effective use of technology and 6 Business at a glance 30 Rail of London , we are the data. We provide modern ways to pay integrated transport authority through Oyster and contactless payment responsible for delivering the Mayor’s cards and provide information in a wide 8 Financial summary 35 Roads strategy and commitments on transport. range of formats to help people move around London. As a core element in the Mayor’s overall 10 Financial trends 39 Other operations plan for London, our purpose is to keep Real-time travel information is provided London moving, working and growing, directly by us and through third party and to make life in our city better. We organisations, which use the data we 12 Borrowing and cash 42 Capital investment programme reinvest all of our income to run and make openly and freely available to improve London’s transport services power apps and other services. and to make it safer, more modern and 14 Operational trends 45 Appendices affordable for everyone. We listen to, and act upon, feedback and complaints to constantly improve our Our operational responsibilities include services and work with communities, 18 Customer trends 48 Glossary London Underground, London Buses, representative groups, businesses and Docklands Light Railway (DLR), London many other stakeholders to shape 22 Underground Overground, TfL Rail, London Trams, transport provision in London. London River Services, London Dial-a-

Page 122 Page Ride, Victoria Coach Station, Santander Improving and expanding transport in Cycles and the Emirates Air Line. London is central to driving economic growth, jobs and housing throughout the On the roads, we regulate taxis and the United Kingdom. Where possible, we are private hire trade, run the Congestion using our land to provide thousands of Charging scheme, manage the city’s new, affordable homes. Our own supply 580km red route network, operate all chain creates tens of thousands of jobs of the Capital’s 6,300 traffic signals and and apprenticeships across the country. work to ensure a safe environment for all road users.

We are delivering one of the world’s largest programmes of transport capital investment, which is building the The financial information included in the report is unaudited and does not constitute Elizabeth line, modernising Tube services TfL’s statutory accounts. TfL’s last audited Statement of Accounts for the year ended and stations, transforming the road 31 March 2016 was published on 28 July 2016. network and making it safer, especially for more vulnerable road users, such as Definitions of terms used in the report are included in the glossary. pedestrians and cyclists.

Transport for London quarterly performance report 3 Introduction

This Quarterly Finance Report covers the period to 10 December 2016 and, as in the last report, the trend graphs show both the quarter-by-quarter comparison over the past 15 months and the year-to-date comparative analysis for the past five years. The net cost of operations is £129m (-19 per cent) lower than 2015/16 as reductions in operating costs,

Page 123 Page three per cent (-£138m) lower in the year-to-date, have more than compensated a one per cent (-£29m) reduction in total income. As we enter the final quarter it is reasonable to expect that we will show a significant year-on-year improvement in the net operating result by the end of the year. The cumulative effect of the reduction in the general grant (-£93m) from central government is now greater than the growth in fares income (+£62m) which has slowed in the third quarter. Fewer passenger journeys on the bus network (-4 per cent) have offset increasing numbers on Underground and Rail, leaving total passenger journeys one per cent (-28m) lower than last year. Reducing our operating costs is a primary focus both in the short and medium term and the progress so far this year – operating costs down three per cent (-£138m) – demonstrates some early success. It is particularly encouraging to note the acceleration of the rate of cost reduction in Quarter 3, as operating costs were nearly five per cent (-£70m) lower than in the equivalent period in 2015/16. On the Capital account, new capital investment (£716m) is broadly at the same level as last year. Capital renewals are lower but expenditure last year was inflated by a number of major road schemes and some projects this year have been rescheduled to the last quarter.

Ian Nunn Chief Finance Officer

4 Introduction Transport for London quarterly performance report 5 Business at a glance Keeping London moving, working and growing to make life in our city better

How we report on our business Facts and figures*

Underground

Buses Total number of buses on the 9,200 TfL network 650km 580km Rail TfL-operated Rail and TfL-operated Underground routes highways Roads 900 Other Total number 6,300 of trains on the Total number of traffic TfL network signals that TfL operates

Finances at a glance* Total fares* Total costs* (excluding depreciation) £0.4bn

Page 124 Page Use of (4%) borrowing and cash Other Crossrail £1.5bn Grants reserves income grants Fares £2.6bn (33%) £6.3bn £1.5bn £2.5bn £1.4bn £1.1bn £1.0bn £4.6bn (56%) (59%) (14%)

Sources of funds £1.6bn (15%) £10.6bn 37% £0.8bn spent renewing £0.5bn (8%) and improving the (11%) network through one of the largest capital investment programmes 63% in Europe. spent on running the Total: Total: network every day. £4.6bn £10.6bn

▀ Underground ▀ Rail ▀ Buses ▀ Operating costs ▀ New capital investment ▀ Capital renewals ▀ Crossrail ▀ Net financing *Based on full year 2015/16

6 Business at a glance Transport for London quarterly performance report 7 Financial summary Performance in the year-to-date

Operating account Cash flow summary

TfL Group Q3 YTD Q3 YTD TfL Group Q3 YTD Q3 YTD (£m) 2016/17 2015/16 Variance (£m) 2016/17 2015/16 Variance Fares income 3,303 3,241 2% Net cost of operations (548) (677) -19% Other operating income 489 496 -1% Depreciation and amortisation 744 771 -4%

Page 125 Page Total operating income 3,792 3,737 1% Net capital account (1,483) (1,024) 45% General Grant 310 403 -23% Borrowing 92 589 -84% Business Rates Retention 581 565 3% Working capital movements (131) (355) -63% Other revenue grants 24 31 -23% Decrease in cash balances (1,326) (696) Total income 4,707 4,736 -1% Operating cost (4,262) (4,400) -3% Passenger journeys analysis Net operating surplus 445 336 32% Q3 YTD Q3 YTD Depreciation and amortisation (744) (771) -4% 2016/17 2015/16 Variance Net cost of operations before financing (299) (435) -31% Number of passenger journeys (millions) 2,853 2,881 -1% Net financing costs (249) (242) 3% Average fare income per journey (£) 1.16 1.12 4% Net cost of operations (548) (677) -19% Average total income per journey (£) 1.65 1.64 1% Operating cost per journey (£) (1.49) (1.53) -3% Capital account Total cost per journey before financing (£) (1.75) (1.79) -2% TfL Group Q3 YTD Q3 YTD (£m) 2016/17 2015/16 Variance Capital renewals (538) (636) -15% Fares income is £62m higher than last year, of operations has reduced by 19 per cent New capital investment (716) (743) -4% largely as a result of an extra nine weeks (£129m) compared with the first three of income on the Greater Anglia routes quarters of 2015/16. Crossrail (1,121) (1,055) 6% following the introduction of services Investment in Earls Court development - (442) -100% on 31 May 2015, coupled with an increase Expenditure on Crossrail of £1,121m Total capital expenditure (2,375) (2,876) -17% in fares of one per cent in January 2016. accounts for some 47 per cent of total Financed by: This has been offset by £7m less other capital expenditure. Capital renewals are operating income and the reduction in the £98m lower than last year, a result of a Investment grant 654 640 2% General Grant of £93m. Total income is number of large programmes, including the Third-party contributions 33 50 -34% therefore down year-on-year by £29m. Hammersmith flyover, completing in 2015/16. Property transferred to Earls Court joint venture - 376 -100% Operating costs are three per cent (£138m) Borrowings have been maintained at Property income 4 6 -33% lower than last year as focused efforts lower levels throughout the year to keep Crossrail funding sources 89 696 -87% to reduce costs yield results. Lower bus financing costs down and at the end Other capital grants 112 84 33% contract expenditure and maintenance of Quarter 3 only £92m of permitted costs have more than offset the extra borrowing had been drawn down. It is Total 892 1,852 -52% nine weeks of the cost of running the expected that some £589m of the balance Net capital account (1,483) (1,024) 45% new Rail services. Overall the net cost will be drawn down before year end.

8 Financial summary Transport for London quarterly performance report 9 Financial trends

Total income Total capital expenditure (excluding Earls Court) Quarterly (£m) Five-year trend year-to-date (£m) Quarterly (£m) Five-year trend year-to-date (£m)

1,950 4,868 4,744 4,736 1,102 4,697 4,707 2,403 2,434 2,375 9% 10% 10% 2,222 1,626 1,601 1,629 10% 11% 10% 38% 22% 1,477 31% 28% 31% 30% 34% 27% 21% 19% 859 825 1,846 22% 11% 10% 10% 772 778 11% 19% 21% 20% 33% 29% 69% 68% 70% 23% 17% 31% 31% 26% 28% 26% 23% 70% 58% 62% 21% 69% 72% 70% 56% 27% 24% 23% 23% 22% 52% 41% 43% 43% 47% 48% 51% 43% 46% 47%

Q3 2015/16 Q4 2015/16* Q1 2016/17 Q2 2016/17 Q3 2016/17 Q3 2012/13 Q3 2013/14 Q3 2014/15 Q3 2015/16 Q3 2016/17 Q3 2015/16 Q4 2015/16* Q1 2016/17 Q2 2016/17 Q3 2016/17 Q3 2012/13 Q3 2013/14 Q3 2014/15 Q3 2015/16 Q3 2016/17

▀ Fares income Cumulative total income Captial expenditure of Crossrail has reduced year-on-year in fares income Crossrail ▀ Grants 2%▲ ▀ lower than 2015/16 80% completed Renewals ▀ Other income Despite a two per cent increase in fares income, total income has reduced year- ▀ Crossrail, which is now 80 per cent complete, accounts for nearly half of capital on-year, as the rise has not compensated the reduction in grant income of £84m. ▀ New capital expenditure. Capital renewals and new capital investment are together some nine investment per cent lower than 2015/16 when a number of large one-off programmes completed.

Total costs Operating costs

Page 126 Page Quarterly (£m) Five-year trend year-to-date (£m) Quarterly (£m) Five-year trend year-to-date (£m)

5,413 5,255 1,894 4,400 2,344 4,936 5,136 4,193 4,262 4,886 5% 4,038 4,016 4% 5% 17% 15% 4% 4% 4% 15% 14% 1,848 14% 14% 1,491 1,434 1,408 1,421 15% 14% 15% 1,765 1,752 14% 14% 14% 9% 1,738 81% 9% 6% 6% 7% 9% 4% 5% 82% 81% 16% 14% 34% 81% 5% 5% 82% 82% 34% 15% 14% 33% 35% 35% 35% 15% 14% 9% 10% 9% 14% 14% 9% 81% 81% 33% 34% 35% 35% 81% 81% 40% 45% 45% 44% 42% 42% 42% 42% 41% 41%

Q3 2015/16 Q4 2015/16* Q1 2016/17 Q2 2016/17 Q3 2016/17 Q3 2012/13 Q3 2013/14 Q3 2014/15 Q3 2015/16 Q3 2016/17 Q3 2015/16 Q4 2015/16* Q1 2016/17 Q2 2016/17 Q3 2016/17 Q3 2012/13 Q3 2013/14 Q3 2014/15 Q3 2015/16 Q3 2016/17

▀ Operating costs Reduction in costs ▀ Underground Significant reductions in operating is accelerating in total costs Buses costs ▀ Depreciation 3%▼ ▀ in operating costs £138m▼ Rail ▀ Net financing Total costs are now £158m lower than at this time last year with some £96m of ▀ Operating costs were £70m lower than in the comparable quarter last year and are costs this reduction arising in the last quarter. ▀ Roads and now £138m lower in the year-to-date. This reduction has been achieved despite the other operations additional cost of running additional rail services for an extra nine weeks this year. * Quarter 4 is longer than Quarters 1 to 3 (16 weeks vs 12 weeks)

10 Financial trends Transport for London quarterly performance report 11 Borrowing and cash

Total nominal value of borrowing (£m) Financing costs and income (£m) Cash balances (£m) Cash balances 10,000 5,000 9,147 9,238 Q3 Q3 Cash balances have reduced by some 9,000 8,457 Year-to-date 2016/17 2015/16 Variance 37 per cent in the year-to-date as we 832 1,136 7,897 3,980 have sought to reduce financing costs Financing costs (257) (262) 2% 8,000 7,565 784 4,000 Page 127 Page 8,315 by drawing down borrowings later. 709 8,102 7,673 1,809 7,000 1,138 Interest income 8 19 -58% 3,314 7,188 Total cash balances now stand at 6,000 6,427 1,539 3,000 2,836 £1,988m, of which £861m is ring fenced Borrowing 5,000 1,203 to deliver the Crossrail project. A The additional incremental borrowing 2,222 prudential minimum level of cash – 1,988 4,000 forecast for 2016/17 is £681m, of which around £500m – is held for exceptional 2,000 2,171 819 a net nominal value of £91m has been 861 circumstances and to retain a high credit 3,000 1,775 drawn down at the end of Quarter 3. 1,633 rating with our investors. This level is 2,000 1,403 consistent with an organisation of our The total nominal value of borrowings 1,000 1,127 scale and level of debt. Total available 1,000 outstanding at the end of Quarter 3 is cash balances at the end of Quarter 3, 0 therefore £9,238m, of which £8,102m Q4 2012/13 Q4 2013/14 Q4 2014/15 Q4 2015/16 Q3 2016/17 after taking into account the prudential is long term. Some £304m of borrowing 0 Q3 2015/16 Q4 2015/16 Q1 2016/17 Q2 2016/17 Q3 2016/17 minimum, are £1.5bn. Long-term borrowing has moved from long term to short term ▀ in the year-to-date. Interest income Borrowing maturing within 12 months ▀ TfL cash balances We expect to continue to use our ▀ continued to fall against the prior year, ▀ Crossrail cash balances to fund the capital reflecting lower cash balances. improvements outlined in our Business Plan published in December 2016.

Financing costs as a percentage of total income (%) £1.3bn 40%▼ Decrease in cash in the year-to-date 6.0 The ratio of financing costs to total operating revenue is expected to approach six per cent by year end when incremental borrowing has been fully drawn down. Funding for investment projects 5.5 Credit ratings £1.5bn Moody's Aa2 negative outlook 5.0 cash available for investment projects Standard & Poor's (S&P) AA negative outlook Fitch AA- negative outlook 4.5

Following the UK vote to leave the European Union, all three major rating agencies took action Cycle Victoria 4.0 on the UK Sovereign credit rating. As a result, FY 2012/13 FY 2013/14FY 2014/15FY 2015/16 Q3 2016/17 S&P and Fitch downgraded TfL’s credit rating by Superhighways and Northern station one notch (plus negative outlook) and Moody’s Crossrail Better Junctions line upgrade upgrade amended the outlook to negative. £0.9bn £0.1bn £0.4bn £0.1bn

12 Borrowing and cash Transport for London quarterly performance report 13 Operational trends

Passenger journeys Passenger journeys (millions) Quarter 3 year-to-date 2016/17 Quarterly Five-year trend year-to-date

total number total passenger 1,400 3,500 2,853m of journeys* 1%▼ journeys 1,173 2,881 2,853 2,738 2,770 1,200 5 3,000 2,686 16 17 12 14 110 9 259 996 984 194 274 966 179 188 1,000 4 662 903 5 2,500 London Underground 5 1,656 1,665 1,654 1,589 95 1,640 92 8 95 559 87 545 800 545 2,000 973m 499

600 1,500

Buses 400 1,000 396 953 973 340 858 882 896 338 324 309 1,589m 200 500

0 0 Q3 2015/16 Q4 2015/16* Q1 2016/17 Q2 2016/17 Q3 2016/17 Q3 2012/13 Q3 2013/14 Q3 2014/15 Q3 2015/16 Q3 2016/17

(DLR, London Overground, London Trams, Emirates Air Line, TfL Rail)

Page 128 Page Rail ▀ London Underground ▀ Rail 274m ▀ Buses ▀ Other

Total passenger journeys were one per cent down on last year over the first three quarters. London Underground (LU) passenger journeys exceeded five million for the first time on Friday 9 Other (London River Services, Dial-a-Ride, Santander Cycles) December, contributing towards LU recording its busiest ever week despite Quarter 3 2015/16 being particularly strong. Passenger volumes were 20 million (two per cent) higher over the first three quarters compared with 2015/16. While rail passenger volumes have risen in the year-to-date with 28 per cent growth on Greater 17m Anglia services and nine per cent on London Trams, four per cent on the DLR and two per cent on London Overground, volumes in Quarter 3 were broadly static. * Excluding road journeys and pedestrians In the year-to-date bus passenger journeys are 3.9 per cent down, although this decline in volume has slowed with volume down 2.5 per cent in Quarter 3.

* Quarter 4 is longer than quarters 1 to 3 (16 weeks vs 12 weeks)

14 Operational trends Transport for London quarterly performance report 15 London Underground reliability – lost customer hours (LCH) Roads – journey time reliability Quarterly (millions of hours) Five-year trend YTD (millions of hours) Quarterly (%) Five-year trend year-to-date (%)

8 18 90.0 90 0.1 7 16 16.6 16.0 89.5 6.9 14 0.4 89 6 0.4 14.9 0.9 89.1 89.1

Page 129 Page 89.0 0.1 12 13.4 5 5.2 13.1 88.9 5.1 88 88.3 4.9 10 88.5 4 4.6 87.9 8 88.0 88.3 87.6 3 87 6 87.5 2 4 87.5 87.4 86 1 2 87.0 86.9 0 0 86.5 85 Q3 2015/16 Q4 2015/16* Q1 2016/17 Q2 2016/17 Q3 2016/17 Q3 2012/13 Q3 2013/14 Q3 2014/15 Q3 2015/16 Q3 2016/17 Q3 2015/16 Q4 2015/16 Q1 2016/17 Q2 2016/17 Q3 2016/17 Q3 2012/13 Q3 2013/14 Q3 2014/15 Q3 2015/16 Q3 2016/17

▀ Industrial action lost customer in delays journey time reliability in reliability 6.9m hours in Q3 2016/17 19%▲ year-on-year 87.4% in Q3 2016/17 0.6%▼ year-on-year A large number of damaged train wheels on the Piccadilly line has contributed to a worsening in LCH. Journey time reliability has also improved marginally on 2015/16 although Quarter 3 was negatively The problem occurs when the wheels lock – more prevalent during autumn due to leaf fall. A full impacted by multiple burst water mains, resurfacing works, the start of works at Tower Bridge, as investigation into this disruption is under way. well as an unusually high number of collisions and breakdowns.

Bus reliability – excess wait time Roads – users killed or seriously injured (KSI) Quarterly (minutes) Five-year trend year-to-date (minutes) Quarterly (number of people) Five-year trend YTD (number of people) 1,000 2,000 1.6 1.6 900 413 421 389 409 1,800 1.4 1.4 800 1,600 305 651 692 724 703 1.4 294 1.2 1.3 1.2 700 1,400 1.2 600 1,200 1.0 1.1 1.1 1.0 1.1 1.1 1.1 1,461 1.0 1.0 500 1,000 0.8 0.8 400 520 550 800 500 539 524 1,115 1,074 1,042 1,063 0.6 0.6 300 600 0.4 0.4 200 400 100 200 0.2 0.2 0 0 0.0 0.0 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q2 2012 Q2 2013 Q2 2014 Q2 2015 Q2 2016 Q3 2015/16 Q4 2015/16 Q1 2015/16 Q2 2016/17 Q3 2016/17 Q3 2012/13 Q3 2013/14 Q3 2014/15 Q3 2015/16 Q3 2016/17 ▀ KSI in quarter ▀ Reduction from base Base: 2005-2009 average KSI Target 50 per cent reduction by 2020 The autumn quarter is usually the most difficult for bus reliability, long-term target to KSIs slightly higher than 2015, despite April and May 2016 1.3 minutes although 2016/17 shows a small improvement on 2015/16 as excess reduce KSIs by 2020 recording the lowest level on record in Q3 wait time reduced to 1.3 minutes. Year-to-date performance at 1.1 50%▼ minutes is similarly better than last year. NB: The above data is based on calendar quarters rather than financial quarters, * Quarter 4 is longer than Quarters 1 to 3 (16 weeks vs 12 weeks) ie Q2 is April – June. The quarterly baseline is seasonally adjusted.

16 Operational trends Transport for London quarterly performance report 17 Customer trends

Customer satisfaction score Recorded crime rate based on TfL surveys Number of recorded offences per Increases in recorded crime on London million passenger journeys year-to-date Underground and DLR are primarily 92 driven by rises in reported sexual 85 8.0 offences and other violent crimes. Tube customer 7.8 7.7 90 satisfaction 7.5 at record levels 7.0 7.3 The rise in recorded violent crime on the network over the past few quarters 6.6 is a national phenomenon recently 88 6.0 6.1 reported by the Office of National Statistics, owing to the expansion of the 5.0 86 violence against the person category 5▲ 4.7 to include new harassment offences, in customer 4.0 4.3 and improvements in crime recording 84 satisfaction processes. We are developing a research on buses since Q3 2012/13 profile to better understand the 3.0 causes and are supporting our policing 82 partners who are running enforcement 2.0 operations and media campaigns targeting violent offences. The vast 80 1.0 majority of offences occurring on the network do not involve serious violence. 78

Page 130 Page Q3 2012/13 Q3 2013/14 Q3 2014/15 Q3 2015/16 Q3 2016/17 0 London Buses DLR London Project Guardian was launched in 1▲ Underground Overground July 2013 to reduce unwanted sexual ▀ London Underground ▀ DLR ▀ Buses ▀ London Overground in customer satisfaction on behaviour on public transport in the DLR since Q4 2012/13 ▀ Q3 2016/17 ▀ Q3 2015/16 London which historically has been London Underground overall satisfaction held steady at 85 for under-reported. The initiative aims the eighth consecutive quarter. Four per cent of customers said to encourage more people to report they experienced a delay. Of those customers that did experience Number of recorded crimes sexual offences, reduce the risk of a delay, there was a seven point increase in the satisfaction with becoming a victim, challenge unwanted delay information being communicated. sexual behaviour and target offenders. Customer satisfaction with bus journeys increased one point to 86. 4▲ Q3 Q3 As part of our commitment to tackle Although customers were less satisfied with the time they waited Year-to-date 2016/17 2015/16 Variance to catch the bus, they had a more comfortable journey on the bus, in customer sexual offences, on 25 November we compared to the higher temperatures experienced in Quarter 2. satisfaction London Underground 7,258 6,614 10% organised a day of action in partnership Overall DLR customer satisfaction is unchanged at 88, with only on the London Buses 11,649 11,783 -1% with the British Transport Police, the one per cent of customers feeling they were delayed on their Overground Metropolitan Police Service and City journey; however satisfaction with crowding remains one of the since Q3 2012/13 DLR 387 334 16% of London Police to mark International lowest scores. London Overground 772 819 -6% Day for the Elimination of Violence Overall the London Overground score is 85. Satisfaction with against Women. value for money scored its highest ever level, however customers reported lower satisfaction with the punctuality and frequency of the service. Q3 crime figures are based upon data from April to November

18 Customer trends Transport for London quarterly performance report 19 Customer complaints Website and social media Customer services Website visits (millions) Communications and correspondence Complaints per 100,000 journeys Q3 Q3 year-to-date 2016/17 2015/16 Variance London Underground 1.07 1.02 5% Q3 Q3 Year-to-date 2016/17 2015/16 Variance Page 131 Page London Buses 3.00 3.00 0% 18%▲ Correspondence DLR 1.12 1.16 -3% in website visits since service level 81.6% 77.3% 5.6% 2014/15 (202m in 2016/17 YTD) agreement London Overground 2.50 3.44 -27% Mystery shopper TfL Rail 2.78 3.26 -15% quality assessment 90.5% 86.7% 4.4% scores London Trams 2.13 2.13 0% Calls answered 86.8% 86.4% 0.5% Emirates Air Line 1.59 3.24 -51% Congestion Charge 9.05 8.28 9% 5.1m London Dial-a-Ride 95.31 93.27 2% Correspondence performance improved Total number of followers London River Services 0.45 0.60 -25% on our 24 Twitter feeds by 5.6 per cent compared to the previous year bringing our performance above the Santander Cycles 3.34 3.11 7% 80 per cent target to 81.6 per cent. We Taxis* 5.25 n/a - achieved this by recruiting throughout Private Hire* 4.32 n/a - Quarter 3 to fill vacant positions and ensuring adequate support to our Contactless 0.13 0.20 -35% correspondence teams. Oyster 0.16 0.17 -6% 700,800 Total number of Facebook fans * Journeys not recorded; figures based on survey Ticketing Following the tragic derailment on 9 Overground top the performance Ticketing system availability November 2016, Tram complaints rose league table for London rail operators. steeply in Quarter 3. This was a result of customers seeking reassurance about Following the introduction of a new Q3 Q3 the safety measures we have put in service provider to run the Congestion Year-to-date 2016/17 2015/16 Variance place. The year-on-year figure remains Charge service, the website has been London Underground unchanged, as prior to the incident redesigned and new services launched. – ticketing system 98.6% 98.6% 0.0% complaints had fallen compared to There have been intermittent issues with overall availability last year. the website resulting in some customers London Buses – experiencing difficulties. This has caused bus validation 99.5% 99.3% 0.2% The London Overground year-to-date an increase in call volumes with longer overall availability complaint figure fell 27 per cent when wait times. An independent review of the compared to the same quarter last service is being undertaken; the Contact year. A contributory factor is an Centre is increasing staff numbers and improvement in service performance changes will be made to the telephone over the quarter, which saw London routing system.

20 Customer trends Transport for London quarterly performance report 21 Underground London Underground (LU)

Financial summary The net operating surplus has continued to show 56% significant improvement year-on-year. Higher fares share of TfL’s total income together with lower operating costs is fares income in YTD. reducing the net costs of operations, which is now £140m below last year.

London Underground Q3 YTD Q3 YTD (£m) 2016/17 2015/16 Variance Fares income 1,863 1,807 3% Other operating income 124 112 11% Total operating income 1,987 1,919 4% Direct operating cost (1,494) (1,566) -5% Indirect operating cost (277) (292) -5% Net operating surplus 216 61 254% Depreciation and amortisation (471) (456) 3% Net cost of operations before financing (255) (395) -35% Page 132 Page

Capital renewals (365) (395) -8% New capital investment (390) (412) -5% Total capital expenditure (755) (807) -6%

Fares income has grown by £56m are lower contractual payments as a result compared with last year, a result of of efficiencies on the Jubilee, Northern increased passenger journeys and a and Piccadilly line train maintenance. rise in average fares in January 2016. Fares income last year was adversely Capital expenditure is lower than last year, impacted by industrial action in July as a result of cost reduction and some and August 2015. Growth in the quarter rephasing. Project mix has also changed at £12m is slower than prior quarters. as the Northern line extension project, which has moved into the construction Direct operating costs have fallen by stage, was more than offset by lower £72m. The volume of track renewals work, spend in station construction and the which peaked last year is lower, and there stations modernisation programme.

About 150,000 people use Tottenham Court Road station every day 22 Divisional review | Underground Passenger journey analysis year-to-date Reliability Excess journey time (minutes) Scheduled kilometres operated (%)

6 Q3 YTD Q3 YTD 99 2016/17 2015/16 Variance 5 5.4 98 4.8 97.8 98.0 Number of passenger journeys (millions) 973 953 2% 97 97.5 97.5 Page 133 Page 4 4.4 4.2 4.2 Average fare income per journey (£) 1.91 1.90 0.5% 96 3 96.1 Operating cost per journey (£) (1.82) (1.95) -7% 95 2 Total cost per journey before financing (£) (2.30) (2.43) -5% 94 1 93

0 92 Q3 2015/16 Q4 2015/16 Q1 2016/17 Q2 2016/17 Q3 2016/17 Q3 2015/16 Q4 2015/16 Q1 2016/17 Q2 2016/17 Q3 2016/17

Passenger journeys Underlying normalised passenger Performance on all lines deteriorated in Quarter The same issues affecting LCH and EJT also The busiest day on the Underground was journeys year-on-year change (%) 3. This was affected by flatted wheels on the impacted scheduled kilometres operated in recorded on Friday 9 December when Piccadilly line (see LCH), staff attendance and an Quarter 3. Despite this, the Bakerloo, Victoria, journeys exceeded five million for the increase in customer incidents. and Metropolitan lines improved. first time. Underlying passenger journeys were up 1.3 per cent after adjustments, Q3 which take account of industrial action 2016/17 in July and August 2015. Year-on-year 1.3%▲ Safety Customer growth in Quarter 3 was 0.4 per cent. RIDDOR* reportable customer injuries Customer satisfaction score (CSS)

Fare income per journey (yield) 30 Q3 CSS Fare income per journey has improved Q3 25 Bakerloo line 85 compared with the equivalent period 2015/16 23 24 Central line 84 last year in line with the average fares 4.5%▲ 20 increase in January 2016. 20 Circle line/Hammersmith & City line 85 15 15 District line 86 Operating cost per journey 10 13 Jubilee line 87 Operating cost per journey has fallen Q3 Metropolitan line 90 by seven per cent compared with the 2014/15 5 same period last year. This reflects our % Northern line 85 2.5 ▲ 0 underlying cost reduction. Q3 2015/16 Q4 2015/16 Q1 2016/17 Q2 2016/17 Q3 2016/17 Piccadilly line 84 Victoria line 85 Compares underlying year-to-date passenger * Reporting of Injuries, Diseases and Dangerous journey numbers with those in the previous year. Occurrences Regulations 2013 Overall score 85 Not actuals – adjusted for one-off events (such as strike days), timing of Easter holidays and the number of days in each quarter. Slips, trips and falls on stairs, escalators and The overall score remains at 85 for the eighth on platforms are the main causes of customer consecutive quarter. Customers have shown injury. Safety advice continues to be promoted via an increase in the satisfaction with delay posters and announcements, and employees are information being communicated. stationed at hotspot locations.

24 Divisional review | Underground Transport for London quarterly performance report 25 Buses London Buses

Financial summary Reduced fares income, driven by a four per cent 32% decrease in the number of passenger journeys in the share of TfL's total year-to-date, is partly offset by higher advertising fares income in YTD. income and lower operating costs. This leaves the net operating deficit slightly higher than last year.

Buses Q3 YTD Q3 YTD (£m) 2016/17 2015/16 Variance Fares income 1,046 1,082 -3% Other operating income 34 27 26% Total operating income 1,080 1,109 -3% Direct operating cost (1,434) (1,442) -1% Indirect operating cost (45) (49) -8% Net operating deficit (399) (382) 4% Depreciation and amortisation (29) (23) 26% Net cost of operations before financing (428) (405) 6%

Page 134 Page Capital renewals (13) (10) 30% New capital investment (46) (74) -38% Total capital expenditure (59) (84) -30%

Lower bus fares income is mainly caused Direct operating costs were higher last year by fewer fare-paying passenger journeys owing to bus subsidies given to operators – an underlying decline of around three in relation to the Euro III buses replacement per cent in the year-to-date. This is programme, which has now completed. principally due to continued congestion There have also been contract savings caused by London’s population growth this year as a result of increased vehicle and the construction of major highway ownership due to the further rollout and urban improvement schemes. The of New Routemasters, partly offset by impact of reduced volumes has been annual contract price inflation. partly offset by an average fares increase of 0.8 per cent in January 2016 across all Capital expenditure is also lower as bus ticket types. fewer new buses are being purchased directly in 2016/17.

Around 117 bus routes operate across the Capital around the clock Transport for London quarterly performance report 27 Passenger journey analysis year-to-date Reliability Analysis of year-on-year excess wait Scheduled services operated (%) time (EWT) change by area (%) Q3 YTD Q3 YTD 2016/17 2015/16 Variance Inner Inner Inner Inner Outer Outer Outer Outer 98.0 NW SW SE NE NW SW SE NE Number of passenger journeys (millions) 1,589 1,654 -4% 0.0 97.5 Page 135 Page 97.5 97.6 Average fare income per journey (£) 0.66 0.65 1.5% -3.0 -5.0 97.0 97.1 Operating cost per journey (£) (0.93) (0.90) 3% 96.9 -6.6 96.5 Total cost per journey before financing (£) (0.95) (0.92) 4% -10.0 -11.5 96.0 96.1 -12.7 -15.0 -13.0 -14.3 95.5 -16.9 -20.0 -18.3 95.0 Passenger journeys Underlying normalised passenger Q3 2015/16 Q4 2015/16 Q1 2016/17 Q2 2016/17 Q3 2016/17 Total passenger journeys are four per journeys year-on-year change (%) cent lower than last year although on a Overall year-on-year EWT has improved in both The improvement compared with a year ago was inner and outer London. The improvement achieved despite disruption in the London Bridge area normalised basis the reduction is 3.3 per was most apparent in inner areas, following caused by the simultaneous closure of Tower Bridge cent. Bus reliability is starting to improve, completion of some of the Road Modernisation for repairs and nearby Tooley Street (eastbound). but volumes continue to be lower than Q3 Plan and Cycle Superhighway schemes. Measures are also in place to minimise the impact expected due to a lag in passenger 2016/17 on bus performance of the ongoing partial closure demand responding to this improvement. 3.3%▼ of the A1 Holloway Road due to bridge works.

Fare income per journey (yield) The average yield has improved by 1p Safety Customer between Quarter 3 2015/16 and Quarter Q3 Customer injuries* Customer satisfaction score 3 2016/17, largely as a result of the 2015/16 87 January 2016 fares revision. 3.5%▼ 340 320 326 86 Operating cost per journey 86 86 86 Although bus operating costs have 300 308 85 85 85 fallen year-on-year, the four per cent Q3 293 293 reduction in passenger journeys means 280 84 2014/15 279 that the operating cost per journey 2.0%▲ 260 83 has increased.

240 82 Compares underlying year-to-date passenger Q3 2015/16 Q4 2015/16 Q1 2016/17 Q2 2016/17 Q3 2016/17 Q3 2015/16 Q4 2015/16 Q1 2016/17 Q2 2016/17 Q3 2016/17 journey numbers with those in the previous year. Not actuals – adjusted for one-off events (such *Customers taken to hospital as strike days), timing of Easter holidays and the Customers are less satisfied with the time number of days in each quarter. There was one fatality related to the operation of they waited to catch the bus, but have indicated the bus network and the quarter saw an increase journeys are more comfortable now the in the number of pedestrians injured in collisions higher temperatures experienced in Quarter with buses. Slips, trips and falls – the main cause 2 have dropped. of customer injuries – reduced.

28 Divisional review | Buses Transport for London quarterly performance report 29 Rail DLR, London Overground, London Trams, TfL Rail and Emirates Air Line (EAL)

Financial summary Passenger journeys were higher than last year for all 11% rail operations, other than EAL, largely due to the new share of TfL's total West Anglia services. There was also strong growth fares income in YTD. on the DLR and Trams.

Rail Q3 YTD Q3 YTD (£m) 2016/17 2015/16 Variance Fares income 358 331 8% Other operating income 19 19 0% Total operating income 377 350 8% Direct operating cost (380) (365) 4% Indirect operating cost (22) (24) -8% Net operating deficit (25) (39) -36% Depreciation and amortisation (90) (79) 14% Net cost of operations before financing (115) (118) -3%

Capital renewals (43) (48) -10% Page 136 Page New capital investment (140) (118) 19% Crossrail construction costs (1,121) (1,055) 6% Total capital expenditure (1,304) (1,221) 7%

Fares income is above 2015/16, largely The reduction in capital renewals relates because of the transfer of West Anglia to exceptional expenditure incurred on rail services with effect from 31 May 2015. twin tracking on the Wimbledon branch of the tram network in 2015/16, while the London Overground costs are slightly increase in new capital investment is from lower than last year, with savings in the the Crossrail project moving into the core Overground operations more than build phase on the rolling stock and covering the impact of the full West Anglia depot contract. services, five-car costs, and contract price inflation. In TfL Rail costs are higher due The Crossrail construction project is to the additional nine weeks of costs in now more than 80 per cent complete 2016/17 and one-off costs associated with and remains on schedule in terms of mobilisation activities and the transition both construction and funding. towards full operation of the Elizabeth line. Passenger journeys have risen across the DLR network by four per cent since Quarter 3 last year 30 Divisional review | Rail Passenger journey analysis year-to-date Reliability DLR and London Trams – London Overground and TfL Rail – scheduled services operated (%) public performance measure (PPM) Q3 YTD Q3 YTD moving annual average (MAA) 2016/17 2015/16 Variance London Overground 100 95.0 Page 137 Page Number of passenger journeys (millions) 132.9 130.0 2% 98 94.5 Average fare income per journey (£) 1.20 1.13 6% 96 Operating cost per journey (£) (1.52) (1.57) -4% 94.0 Total cost per journey before financing (£) (1.63) (1.67) -2% 94 93.5 92 DLR 90 93.0 Number of passenger journeys (millions) 86.0 82.7 4% Q3 2015/16 Q4 2015/16 Q1 2016/17 Q2 2016/17 Q3 2016/17 Q3 2015/16 Q4 2015/16 Q1 2016/17 Q2 2016/17 Q3 2016/17 Average fare income per journey (£) 1.35 1.42 -5% ▀ London Trams ▀ DLR ▀ London Overground ▀ TfL Rail Operating cost per journey (£) (1.07) (1.12) -5% The figures relating to London Trams reflect the In the last period of the quarter London Total cost per journey before financing (£) (1.51) (1.56) -3% impact of the tragic derailment near Sandilands Overground was second in the industry, as on 9 November. DLR reliability remains strong. performance continues to improve. TfL Rail The lower Quarter 3 2015/16 score was the result continued to fare well, with the fourth best TfL Rail of industrial action. performance overall nationally. Number of passenger journeys (millions) 33.6 26.2 28% Average fare income per journey (£) 1.79 1.73 3% Safety Customer RIDDOR* reportable customer injuries Customer satisfaction score Operating cost per journey (£) (2.20) (2.27) -3% 20 96 Total cost per journey before financing (£) (3.14) (3.20) -2% 94

London Trams 15 16 92 Number of passenger journeys (millions) 20.4 18.8 9% 90 Average fare income per journey (£) 0.88 0.86 3% 10 88 Operating cost per journey (£) (1.36) (1.46) -7% 86 Total cost per journey before financing (£) (1.43) (1.56) -8% 5 84 4 82 1 1 1 Q3 2015/16 Q4 2015/16 Q1 2016/17 Q2 2016/17 Q3 2016/17 Emirates Air Line 0 Q3 2015/16 Q4 2015/16 Q1 2016/17 Q2 2016/17 Q3 2016/17 Number of passenger journeys (thousands) 1,132.0 1,191.4 -5% ▀ DLR ▀ EAL ▀ London Overground * Reporting of Injuries, Diseases and Dangerous ▀ London Trams ▀ TfL Rail Average fare income per journey (£) 4.16 3.95 5% Occurrences Regulations 2013 Customer satisfaction remains stable across the Operating cost per journey* (£) (2.30) (1.96) 17% The quarter was dominated by the tragic tram network, except for TfL Rail which saw a one point derailment at Sandilands which resulted in seven dip. This is due to satisfaction with cleanliness and Total cost per journey before financing* (£) (2.33) (1.98) 18% fatalities and eight major injuries. The incident availability of seats declining, and satisfaction that is subject to investigation internally and by the TfL Rail trains generally run on time being at the *Costs of Emirates Air Line are shown net of sponsorship income police and the Rail Accident investigation Branch. lowest since the service was introduced.

32 Divisional review | Rail Transport for London quarterly performance report 33 Roads Transport for London Road Network (TLRN)

Financial summary Lower volumes of vehicles entering the Congestion Charge zone has led to a four per cent decrease in operating income year-on-year, but reduced operating costs have more than offset the reduction in income.

Roads Q3 YTD Q3 YTD (£m) 2016/17 2015/16 Variance Fares income - - 0% Other operating income 231 240 -4% Total operating income 231 240 -4% Direct operating cost (413) (455) -9% Indirect operating cost (54) (58) -7% Net operating deficit (236) (273) -14% Depreciation and amortisation (88) (144) -39% Net cost of operations before financing (324) (417) -22%

Capital renewals (89) (158) -44%

Page 138 Page New capital investment (94) (104) -10% Total capital expenditure (183) (262) -30%

Roads operating costs have seen a reduction Healthy Streets, and projects such as the year-on-year as efficiencies are now being Victoria Station upgrade. All development realised, although operating income has work reduces available road capacity. The also seen a small decline. The net cost of need to manage traffic volumes entering operating and maintaining London’s roads central London to enable the closure of is running at £450m per annum. Tower Bridge from 1 October was also a major factor this quarter. Roads operating income has decreased marginally as lower Congestion Charge Capital renewals are lower this year volumes have been partly offset by higher compared with last year largely enforcement income. Overall traffic volume because expenditure on the Highways fell by 3.5 per cent in central London capital renewals programme was following a similar level of decline in the brought forward into 2015/16, and first two quarters. This drop is linked to major strengthening works on the the introduction and completion of cycle Hammersmith flyover were completed superhighways, continued investment in last year. This quarter has seen the highest levels of cycling in central London since 2014 Transport for London quarterly performance report 35 Volume analysis year-to-date Reliability Journey time reliability (JTR) (%) TLRN resolution time-disruption hours per event Q3 YTD Q3 YTD 89.0 2.2 2016/17 2015/16 Variance 88.9 88.5 Congestion Charge volumes (000’s) 12,298 12,775 -4% Page 139 Page 2.0 88.0 88.3 2.0 2.0 Congestion Charge and enforcement income (£m) 175.5 187.6 -6% 1.9 1.9 Average Congestion Charge including enforcement income (£) 14.27 14.68 -3% 87.5 1.8 87.5 87.4 1.8 87.0 Other enforcement income (£m) 55.9 52.7 6% 86.9 1.6 86.5 Traffic volumes – all London (index) 95.5 96.1 -1% 86.0 1.4 Q3 2015/16 Q4 2015/16 Q1 2015/16 Q2 2016/17 Q3 2016/17 Q3 2015/16 Q4 2015/16 Q1 2016/17 Q2 2016/17 Q3 2016/17 Cycling growth in CCZ (%)* 3.3% 1.8% Quarter 3 was characterised by several very disruptive events. A spillage affected the A13 at Canning Town and multiple burst water mains affected the A20 and A406 in addition to multiple collisions and *Cycling data is based on calendar quarters rather than financial quarters ie Q3 is July-September and is the latest available data. It is presented as a percentage change from the previous year breakdowns on the A40. There were also two particularly bad days in the middle of the quarter due to a collision and subsequent resurfacing work on the A4 at Hogarth, plus a burst water main on the A406 at Pinkham Way with Wednesday 9 November affected by heavy rain and the Croydon tram derailment.

Cycling Traffic flow (volume) year-on-year change Safety Customer There is a 3.3 per cent increase in cycling Number of people killed or seriously injured TLRN user satisfaction score compared to 2015. This is the highest level of cycling recorded in central 600 71 London since measurement began in Q3 71 2016/17 500 550 539 524 2014. The first section of the substantially 0.6%▼ 520 500 segregated North-South and East-West 400 70 cycle routes opened in spring 2016, 70 70 while the first Quietway route between 300

Waterloo and Greenwich was launched 200 69 in June 2016. Q3 69 69 2015/16 100 Traffic flow 0.4%▼ 0 68 2016/17 saw a 0.6 per cent fall in the Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2015/16 Q4 2015/16 Q1 2016/17 Q2 2016/17 Q3 2016/17 year-to-date volume of traffic on London’s major roads when compared NB: The above data is based on calendar Overall satisfaction among TLRN users is 70, with 2015/16. London-wide traffic speeds quarters, ie Quarter 2 is April – June and is A2, A20 and A205 users gave record low scores, Q3 the latest available data possibly reflecting the Tower Bridge closure. (07:00 to 19:00) decreased by 0.1 mph 2014/15 to 16.2 mph, a 0.9 per cent drop % Despite a welcome reduction in death and serious 1.9 ▲ injury on London’s roads during April and May compared with 2015/16. 2016, to the lowest level on record, the number of KSIs increased in June 2016 due to an increase in Compares traffic flow volume for the year-to-date the number of car occupants and motorcyclists with the corresponding quarters in the previous year. being seriously injured in collisions.

36 Divisional review | Roads Transport for London quarterly performance report 37 Other operations London Dial-a-Ride, London River Services (LRS), Taxi & Private Hire (TPH), Santander Cycles, Victoria Coach Station (VCS) and others

Financial overview As well as the operations named above, we include the costs of the Crossrail 2 project team and the Commercial Development team, together with certain group items in this category.

Other Q3 YTD Q3 YTD (£m) 2016/17 2015/16 Variance Fares income 36 21 71% Other operating income 81 98 -17% Total operating income 117 119 -2% Direct operating cost (133) (138) -4% Indirect operating cost (10) (11) -9% Net operating deficit (26) (30) -13% Depreciation and amortisation (66) (69) -4% Net cost of operations before financing (92) (99) -7%

Capital renewals (28) (25) 12% Page 140 Page New capital investment (45) (35) 29% Investment in Earl’s Court development - (442) -100% Total capital expenditure (73) (502) -85%

Fares income comprises Oyster write-off with the higher volumes of private hire and deposit income. This is ahead of last drivers and vehicles. These are more than year due to a back-dated credit of £8m offset by reductions elsewhere giving recognised in Quarter 3. Other operating an overall reduction in direct operating income is down £17m largely as a result costs of four per cent. of one-off items in the previous year. New capital expenditure includes ticketing The direct operating costs of other machines for the Elizabeth line. Total operations is slightly improved. There capital expenditure for 2015/16 includes the have been small increases in the cost Group’s investment in equity Loan Notes of the Commercial Development and issued by Earls Court Partnership Limited, Crossrail 2 teams and TPH costs have a joint venture property partnership increased following the recruitment of established to deliver 7,500 new homes at compliance officers and staff to deal the Earls Court site in West London. Passenger journeys on London River Services have risen by four per cent since Quarter 3 last year Transport for London quarterly performance report 39 Volume analysis year-to-date Reliability Dial-a-Ride schedule services operated (%) Cycle hire docking station availability (%)

90 100 Q3 YTD Q3 YTD 2016/17 2015/16 Variance 97.3 96.8 96.6 97.0 Santander Cycles 95 96.0 96.1 89 89.3 Page 141 Page 89.1 93.9 93.6 93.2 Number of hires (millions) 8.1 7.5 8% 88.9 88.6 88.6 90 91.3 Average income per hire (£) 1.16 1.21 -4% 88 Operating cost per hire* (£) (1.56) (1.96) -21% 85 Total cost per hire before financing* (£) (2.38) (3.69) -36%

87 80 Victoria Coach Station Q3 2015/16 Q4 2015/16 Q1 2016/17 Q2 2016/17 Q3 2016/17 Q3 2015/16 Q4 2015/16 Q1 2016/17 Q2 2016/17 Q3 2016/17 Number of coach departures (000s) 168.3 163.5 3% Ongoing driver shortages and limits to the support ▀ Availability to return a bike Average income per departure (£) 42.10 41.87 1% available from contracted-in Community Transport ▀ Availability to hire a bike operators and taxis continue to impact services. Operating cost per departure (£) (33.51) (35.46) -6% Dial-a-Ride has made several improvements to The ability to hire a bike has improved over the Total cost per departure before financing (£) (34.50) (36.45) -5% increase efficiency, such as changing driver rotas last quarter in part due to more availability, the to reduce unproductive time. introduction of incentive based schemes and London River Services additional resource to improve productivity. Number of passenger journeys (millions) 8.4 8.1 4% Average income per journey (£) 0.28 0.21 32% Safety Customer Operating cost per journey (£) (1.07) (1.31) -19% Customer injuries* (Dial-a-Ride, Customer satisfaction Santander Cycles, VCS and LRS) Total cost per journey before financing (£) (1.30) (1.50) -13% 98 12 London Dial-a-Ride 11 10 93 Number of passenger journeys (thousands) 840.4 900.6 -7% 10 8 Total cost per trip before financing (£) (30.69) (28.24) 9% 8 88 6 7 6 Taxi & Private Hire 4 Number of private hire vehicle drivers 116,592 93,530 25% 83 2 Taxi drivers 24,617 25,071 -2% 0 78 Total income (£m) 18.67 18.00 4% Q3 2015/16 Q4 2015/16 Q1 2016/17 Q2 2016/17 Q3 2016/17 Q3 2015/16 Q4 2015/16 Q1 2016/17 Q2 2016/17 Q3 2016/17 Total costs (£m) (16.20) (12.62) 28% * Customers taken to hospital during the quarter ▀ DaR ▀ VCS ▀ LRS ▀ Cycle Hire Customer satisfaction with Dial-a-Ride journeys * Costs of Santander Cycles are shown net of sponsorship income The safety performance improved compared to remains high and there has been a nine per cent last quarter and 2015/16. Seven injuries required decline in the proportion of customers who being taken to hospital. Falls of various types wanted to travel, but could not book a journey. CSS were the main cause of these injuries. is not available for other operations this quarter.

40 Divisional review | Other operations Transport for London quarterly performance report 41 Capital investment programme

New capital investment Q3 YTD Q3 YTD Capital renewals Q3 YTD Q3 YTD (£m) 2016/17 2015/16 Variance (£m) 2016/17 2015/16 Variance

Crossrail 1,121 1,055 6% Upgrade of Circle, District, Hammersmith & City 135 140 -4% and Metropolitan line Station upgrades 147 163 -10% Track renewals 127 140 -10% Rail enhancements 140 118 19% Roads 89 158 -44% Other LU, including signalling and transformation 123 177 -30% LU renewals 71 87 -18% Northern line extension 120 72 66% Lift and escalator renewals 32 27 18% Roads 94 104 -10% Rail infrastructure 29 34 -15% Buses 46 74 -38% Other capital renewals 55 49 12% Other capital investment 46 35 32% Total capital renewals 538 636 -15% Total new capital investment 1,837 1,798 2%

The roll out of 192 trains on the Circle, On the roads, more than 65,000 square Crossrail remains on time and is more • Work started at Bank station to District, Hammersmith & City and metres of carriageway were resurfaced than 80 per cent complete. The central increase capacity and provide a Metropolitan lines was completed; the and almost 10,000 square metres of section construction programme quicker interchange full fleet is now in service. footway was replaced. remains focused on fitting out the tunnels, shafts and portals. Five We continue major construction works The new Piccadilly line signalling control Escalators at Green Park, Euston, West

Page 142 Page Crossrail trains are now built and the on the Northern line extension. The huge system which we developed in-house Ham, Canary Wharf and Chancery class 345 test train was delivered to the reinforced crossover box at the Battersea was successfully brought into service on Lane re-opened for customers. Lift Shenfield line to prepare for services to Power Station site is complete and we 16 October 2016 and is now controlling replacement works continue at Lambeth Liverpool Street from May 2017. continue to assemble the two tunnel the eastern section of the line. North, ahead of the station re-opening in boring machines. Ahead of schedule, early 2017. On major station upgrades: we completed two large five-metre As part of the London Underground diameter sprayed concrete lined tunnels, track renewal programme a record 600 The new West Croydon bus station was • The new northern ticket hall at Victoria which run from the Kennington shafts to metres of new track were installed in a officially opened on 12 October and station opened on Monday 16 January, the Kennington loop and will link to the single weekend, completing our summer replaces the original, which was built leading directly from street level to the existing Northern line. campaign of work on the Northern line in 1985. Victoria line prior to the launch of Night Tube. Work continues on the Cycle • The new glass, north plaza entrance at Superhighway programme, with eight Tottenham Court Road station opened routes comprising more than 60km of to the public before Christmas 2016 new cycling infrastructure now open.

42 Capital investment programme Transport for London quarterly performance report 43 Appendices

1. TfL Group balance sheet

Balance sheet 10 December 31 March (£m) 2016 2016 Variance Intangible assets 144 123 21

Page 143 Page Property, plant and equipment 36,080 34,402 1,678 Investment properties 518 518 - Investment in associate entities 410 473 (63) Long term derivatives 13 7 6 Long term debtors 21 692 (671) Long-term assets 37,186 36,215 971 Stocks 76 71 5 Short term debtors 1,854 1,262 592 Short term derivatives 31 5 26 Cash and short term investments 1,988 3,314 (1,326) Current assets 3,949 4,652 (703) Short term creditors (2,131) (2,188) 57 Short term derivatives (5) (21) 16 Short term borrowings (1,136) (832) (304) Short term lease liabilities (53) (94) 41 Short term provisions (136) (221) 85 Current liabilities (3,461) (3,356) (105) Long term creditors (60) (80) 20 Long term borrowings (8,069) (8,281) 212 Long term lease liabilities (542) (565) 23 Long term derivatives (67) (95) 28 Other provisions (56) (46) (10) Pension provision (3,205) (3,208) 3 Long term liabilities (11,999) (12,275) 276 Total net assets 25,675 25,236 439 Capital and reserves Usable reserves 2,141 3,233 (1,092) Unusable reserves 23,534 22,003 1,531 Total capital employed 25,675 25,236 439

Over 100 bus routes go into or operate in Zone 1

Belfry/Shutterstock.com Transport for London quarterly performance report 45 2. Headcount Non Permanent Labour (NPL) qualified candidates. These candidates Full Time Equivalents (FTEs) including Non-Permanent Labour (NPL) Temporary workers are used for often prefer to work on an agency basis. time-limited projects and where the competitive market for the right We have instigated tighter headcount 31 March 2016 YTD Net End of Q3 Actual (leavers)/joiners Actual skills means that we have no other controls across the group and sign-off options to secure the people we need is now required at managing director Underground 21,613 (1,274) 20,340 to deliver services and investment. In level before NPL can be hired or their Rail 378 81 459 some specialist areas, there is an acute contracts extended. At the end of Quarter 3, we employed 2,256 NPL. This Buses 566 (16) 550 shortage of people with the necessary engineering skills which means that is a reduction of 836 since December Roads 2,416 (142) 2,274 there is a relatively small pool of suitably 2015, equating to a weekly saving of £1.6m. Other operations 877 41 918 Professional services* 4,381 (267) 4,114 Reduction since December 2015 Crossrail 983 (101) 882 Number Weekly Number Weekly Total 31,213 (1,677) 29,537 Date of NPL Cost (£) of NPL saving (£) 15 December 2015 3,092 5,249,002 26 June 2,785 4,670,372 (307) 578,631 23 July 2,585 4,338,660 (507) 910,342 At the end of Quarter 3, headcount was The increase in other operations includes 17 September 2,430 4,022,128 (662) 1,226,874 29,537 FTEs, 1,677 less than at the end of the recruitment of 37 Taxi & Private Hire the last financial year. compliance officers to reduce illegal 10 December 2,256 3,628,689 (836) 1,620,313

Page 144 Page activity and improve safety. London Underground has reduced The above table shows the saving made from actions taken to reduce NPL costs. The headcount by 1,274 since 31 March 2016, Professional services* headcount weekly cost assumes seven hours a day and five days a week worked. largely reflecting leavers under the includes 132 new joiners from the annual Stations Modernisation Programme and intake of graduates, apprentices and Year tighter headcount controls. in Industry students; this is offset by NPL by length of service continued reductions across the business. Rail headcount includes the transfer of 57 Total employees from the Transport Planning Length of service number department within London Underground. 0-6 months 319 Buses headcount excludes individuals * Professional Services comprises functions 6-12 months 397 employed by third party bus operating within TfL including Legal, Finance, Human 1-2 years 694 companies eg bus drivers. Resources, Ticketing, Procurement and Customers, Communications & Technology where services are 2-3 years 337 provided on a shared basis across all TfL divisions. 3-5 years 299 5+ years 210 2,256

There are a large number of non-permanent contractors who have been working at TfL for more than two years. Additional tighter controls have been introduced, targeted at reducing the large number of longer-term NPL.

46 Appendices Transport for London quarterly performance report 47 Glossary

Measure Unit Description Measure Unit Description

Call response rate % The percentage of customer calls that are not London Buses - bus validation % The percentage availability of readers (for answered. The target is to keep this below 15 overall availability validation 'touching in') on London Buses. per cent.

Page 145 Page London Buses: Minutes Excess wait time (EWT) represents the amount of Capital renewals Capital renewals are required to keep our capital excess wait time (EWT) time that a passenger has had to wait in excess of assets – stations, track, buses, roads, trains – in a the time that they should expect to wait if buses good state of repair. We need to maintain a level ran as scheduled. of capital renewals for business as usual. Our capital renewals programme replaces current EWT is the key measure of reliability of high- frequency bus services as experienced by assets with newer, more reliable ones, providing passengers and is also used to calculate operator a better service to the customer and reducing performance bonuses or penalties. maintenance costs.

London Overground and TfL Rail: % The public performance measure (PPM) shows Correspondence service % The percentage of correspondence we close within public performance measure (PPM) the percentage of trains which arrive at their level agreement agreed response rates from the date it is received destination on time. from the customer. The PPM combines figures for punctuality and Agreed response rates differ between functions – reliability into a single performance measure. three working days for fast resolution teams, five It is the rail industry standard measurement of working days for the refunds team and 10 working performance. days for the investigations teams. The target is 80 PPM measures the performance of individual per cent. trains advertised as passenger services against their planned timetable as agreed between the Cumulative reduction % The percentage reduction in the number of operator and Network Rail at 22:00 the night in the number of people people killed or seriously injured (KSI) KPI relates before. PPM is therefore the percentage of killed or seriously injured to personal injury road traffic collisions occurring trains ‘on time’ compared with the total number (KSI) London-wide on the public highway, and reported to the police, of trains planned. in accordance with the Stats 19 national reporting system. The KPI measures the percentage change In London and the South East, a train is defined as in KSI casualties on London’s roads compared on time if it arrives at the destination within five with the baseline average number of KSI minutes (four minutes, 59 seconds or less) of the casualties between 2005 and 2009. planned arrival time. Where a train fails to run its entire planned route, Customer satisfaction Score One of our most important performance (not calling at all timetabled stations), it will count measures is customer satisfaction; this helps as a PPM failure. us understand what the people who use our services really think. An independent research company interviews around 10,000 customers every year, as they complete their trip. They are asked to make an ‘overall evaluation’ of their journey experience, by giving a score out of 10. We take the average of everybody’s scores and multiply it by 10, to give a final result out of 100.

48 Glossary Transport for London quarterly performance report 49 Measure Unit Description Measure Unit Description

London Underground Major injuries The number of serious injuries to customers, London Underground: Perceived Journey time is a way of measuring London and London Rail RIDDOR employees and contractors using or working on excess journey time (EJT) minutes Underground’s service performance. We break reportable customer injuries London Underground and London Rail. down journeys into stages and give each one: A major injury is one classified as ‘major’ • A scheduled length of time, so we can say how under schedule 1 of RIDDOR (Reporting of long a given journey should take if everything Injuries, Diseases and Dangerous Occurrences goes as planned Regulations). Injuries arising from criminal acts, alleged suicide attempts, and medical conditions • A value of time (VOT) based on how customers are excluded. feel about that bit of the journey, for example going up an escalator has a VOT of 1.5, whereas walking up stairs has a VOT of four, because it London Underground: Hours The total extra journey time, measured in hours, makes the perceived journey time longer lost customer hours (LCH) experienced by Underground customers as a result of all service disruptions with durations of two These are the stages of a journey: minutes or more. A delay at a busy location or during peak hours results in more ‘lost customer • Time from station entrance to platform hours’ because more customers are affected. • Ticket queuing and purchase time For example, an incident at Oxford Circus during • Platform wait time a Monday to Friday peak results in a much higher • On-train time number of lost customer hours than an incident of • Platform to platform interchange the same length in Zone 6 on a Sunday morning. • Time from platform to station exit As we review incidents, we may need to change In each period, actual journey times are measured LCH figures retrospectively. and then compared with the schedule. The difference between the two is the measure Page 146 Page of lateness – referred to as excess journey time (EJT). EJT is therefore a measure of how efficiently LU is providing its scheduled or 'stated' service: the more reliable the service the lower the EJT. The calculation includes the impact of planned closures.

London Underground – % The percentage availability of revenue collection ticketing system equipment on London Underground stations, overall availability London Overground stations (where gated) and TfL operated Visitor Centres.

Mystery Shopper quality % The percentage quality score our agents receive assessment scores for their customer service. This combines scores from correspondence and telephony. The target is 85 per cent.

50 Glossary Transport for London quarterly performance report 51 Measure Unit Description Measure Unit Description

New capital investment £ New capital investment provides an entirely new Transport for London Hours The KPI measures the numbers of hours of service, or provides a significant enhancement of Road Network (TLRN): serious and severe disruption on the Transport existing services. This investment helps grow the serious and severe disruption for London Road Network (TLRN) as a result of planned and unplanned interventions.

Page 147 Page business, providing more volume and capacity.

Passenger journeys Number A single journey by an individual (adult or child) on a particular mode of transport run by TfL.

Recorded crime rate Per million The number of recorded (or notifiable) crimes passenger per million passenger journeys on the journeys appropriate network.

Scheduled services operated % The number of services that TfL actually operated, compared with the scheduled plan – comparing peak and off-peak times. Peak times are 07.00 – 10.00 and 16.00 – 19.00 Monday – Friday. This helps us check whether the service we operate at the busiest times of day is as good as during quieter periods.

TLRN: journey time % The key measure for monitoring traffic flow is reliability (morning peak) journey time reliability (JTR). It is defined as the percentage of journeys completed within an allowable excess of five minutes for a standard 30-minute journey during the morning peak.

TLRN user satisfaction score Score A score out of 100 of how satisfied customers are with their journey on the TLRN in the past month. Each customer rates their journey on a scale of 0-10, which is then multiplied by 10 to give a score out of 100. This includes journeys by car, walking between transport modes, cycling, bus, powered two- wheeler (P2W), and taxi and private hire vehicles.

TLRN CSS is conducted online, it is estimated if it were conducted face-to-face (like other TfL CSSs) the score would be higher by between five and 10 points.

From 2010 to Q4 2015 scores had been artificially inflated, as a follow-up question was used inappropriately. From Q1 2016 we removed this question.

52 Glossary Transport for London quarterly performance report 53 © Transport for London Windsor House 42 – 50 Victoria Street London SW1H 0LT February 2017 tfl.gov.uk PUB16_044

Page 148 Annexe E

Report title Financial Position as at the end of December 2016 (Quarter 3)

Meeting Date Resources Committee 17 March 2017

Report by Document Number Director of Finance and Contractual Services FEP 2709

Public

Summary This report presents the financial position as at the end of December 2016 (Quarter 3). It provides information on financial performance against revenue and capital budgets.

Recommendations That the Committee: 1. Agrees that the Head of Procurement and Technical and Service Support accepts the proposed price of £243k each for the further batch of 73 replacement pumping appliances that will be purchased by Babcock within the Vehicles and Equipment contract services. The additional cost for the second batch of appliances of £420k will be contained within the existing fleet capital budget;

2. Notes the outcome on the compensation payment relating to property PFI of £381k; and

3. Notes that £373k of outstanding AFA charges have been written off, with the cost charged to the bad debt provision, which had previously been set aside for this purpose.

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Introduction / Background

1. This report considers the financial position as at the end of December 2016 (Quarter 3), including a forecast of outturn at the financial year end. The financial position is reported regularly to Resources Committee and the Greater London Authority (GLA).

2. All departments review their actual income and expenditure on a regular basis, and provide an updated forecast of outturn and explanation of variances, against all their budgets, to the Finance Department on a monthly basis. These returns then form the basis of monthly reporting to the Corporate Management Board and from there on to the Resources Committee on a quarterly basis.

Summary financial position

3. The 2016/17 budget was agreed by the Authority at its meeting on 17 March 2016 (FEP2574). The Authority’s net revenue budget is £402,370k, with £7,132k funding from the earmarked reserves, £12,810k funding from specific grants and total savings of £11,518k.

4. The forecast outturn for 2016/17, based on actual income and expenditure to 31 December 2016 (Quarter 3), is an underspend of £7,862k. This includes additional underspends of £1,171k since last reported to the Resources Committee in the Quarter 2 Financial Position report (FEP2661).

5. This forecast underspend of £7,862k is largely due to variances previously reported, although with some updated values. This includes forecast underspends on operational staff salaries (£2,638k) and firefighter trainees (£793k), firefighter injury and ill-health pensions due to no pension increases this year and a reduction in the forecast number of ill health retirements (£1,303k), additional income received under the Metropolitan Fire Brigade (MFB) Act due to an increase in the sums insured which determines MFB contributions (£1,105k), FRS staff budgets due to vacancies (£512k), property PFI contract due to delays in construction which led to the later commencement of the unitary charge and abatements (£571k), additional income from the Authority’s insurer for Lakanal claims (£255k)and costs awarded from the successful prosecution (£300k) and rent due to the outcome of the rent review for Union Street being lower than forecast (£303k). The underspends are offset by forecast overspends due to approved additional expenditure on the Community Safety Investment Fund (£1,200k), and also additional expenditure on replacement office chairs (£155k), replacement carpet (£155k), the cost of moves and installations (£101k) and adjustments to the Union Street desk layout (£69k).

6. The forecast underspend of £7,862k is an increase of £1,171k from the position last reported to members in November. This movement is mainly due to additional underspends on operational staff (£1,061k) and FRS staff (£106k), the vehicle and equipment contract (£424k), energy budgets (£380k), clothing (£208k), on the property PFI contract (£185k) and for costs awarded as part of the Lakanal prosecution (£300k). These are offset by the overspends mentioned above on the Community Safety Investment Fund of £1,200k, office chairs of £155k and replacement carpets of £155k.

7. The forecasts and movements are discussed in more detail from paragraph 14 of this report.

Capital

8. The budget for the 2016/17 capital programme is £35,915k, which was reported at the July 2016 Resources Committee (FEP2622). The programme includes the PFI Property schemes totalling £5,528k, which are externally delivered and reported separately resulting in the net capital programme, being £30,387k.

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9. The current spend forecast is £24,060k, which is £6,327k less than the budget. The forecast outturn position on the capital programme is considered in more detail from paragraph 38 of this report.

Vehicle Replacement Programme 10. The stage payment requirement for the first batch of pumping appliances has now been finalised with Babcock, as the first appliance has been accepted. FEP2465 approved the purchase first batch of 53 appliances at a cost not exceeding £235k per appliance. The actual final unit price for these 53 appliances was £232.4k, resulting in a saving of £138k for the first batch of the new pumping appliances.

11. The January 2017 Vehicles and Equipment Update report (FEP2568) commented that the prices for the further batch of 73 replacement pumping appliances may be affected by Pound - Euro currency fluctuations. Negotiations with suppliers have established a fixed price for the second batch of appliances at £242.6k each, to be delivered over the period January 2018 to June 2019. This is an overall increase of 4.3% above the final first batch unit price and includes a 19.22% increase on the price of the Magirus team cab due to currency fluctuations and a 3.13% inflationary increase on the appliance manufacturer’s costs during the period since the first batch order was placed. Members are asked to approve that the Head of Procurement and Technical and Service Support accepts the proposed price of £242.6k each for the further batch of 73 replacement pumping appliances that will be purchased by Babcock within the Vehicles and Equipment contract services.

12. The current estimated programme is to replace 188 fire appliances by March 2021, at an estimated cost of £44.2m. Based on the revised prices above, the projected cost would be £45.1m, resulting in a pressure of £0.9m. As the total number of required replacement appliances is yet to be finalised, the final total cost will be reported to Committee at a later date. The additional cost for the second batch of appliances of £420k (taking into account the savings achieved in the first batch) will be contained within the existing fleet capital budget.

Tables and Appendices to this report

13. A summary of the financial position for the revenue budget is provided in Table 1. The latest position on reserves is set out in Table 2. Appendix 1 contains additional detail on the financial position and sets out the actuals and forecasts against all budgets based on actuals to the end of December 2016. Appendix 2 reports on the progress against the capital programme for 2016/17. Appendix 3 provides an analysis of outstanding debt relating to charges for Shut in Lift. Appendix 4 meets the requirement to disclose budget virements within the quarter under financial regulation 9. Appendix 5 discusses the risks to the revenue and capital financial position in 2016/17 that have not been quantified in this report.

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Table 1. Summary Financial Position as at 31 December 2016 Previous Movement Forecast Forecast Current Current Current Revised Forecast between Outturn Outturn Budget Spend Variance Budget Outturn variance Variance Variance figures (Q2) £000s £000s £000s £000s £000s £000s £000s £000s Operational staff 177,071 174,328 (2,743) 236,666 233,235 (3,431) (2,369) (1,061) Other staff 43,642 44,245 603 56,305 55,849 (456) (379) (77) Employee related 22,828 22,550 (278) 23,873 23,152 (721) 30 (751) Pensions 16,509 15,246 (1,264) 21,601 20,298 (1,303) (1,263) (40) Premises 32,329 31,507 (823) 36,380 35,408 (972) (602) (370) Transport 15,513 16,636 1,123 19,400 18,621 (779) (237) (542) Supplies and services 23,104 23,575 471 27,347 27,219 (128) (205) 77 Third party payments 1,371 1,319 (51) 2,905 4,146 1,241 (11) 1,252 Capital financing costs 2,009 1,940 (69) 9,759 9,759 0 0 0 Central contingency against 0 0 0 119 90 (29) (0) (29) inflation Total revenue expenditure 334,376 331,345 (3,031) 434,354 427,776 (6,578) (5,036) (1,542)

Other income (30,003) (30,786) (783) (31,985) (33,969) (1,984) (1,620) (364) Net revenue expenditure 304,373 300,559 (3,814) 402,370 393,807 (8,562) (6,656) (1,906)

Payment into reserves 0 0 0 1,000 1,000 0 0 0 Use of earmarked reserves 0 0 0 (8,132) (7,244) 887 0 887 Financing Requirement 304,373 300,559 (3,814) 395,238 387,563 (7,675) (6,656) (1,019)

Financed by: Specific grants (9,996) (10,641) (645) (12,810) (12,997) (187) (35) (152) GLA funding (286,821) (286,800) 21 (382,428) (382,428) 0 0 0

Net Financial Position 7,556 3,118 (4,438) 0 (7,862) (7,862) (6,691) (1,171)

Reasons for the Revenue Position

Staff

14. The budget for operational staff is forecast to underspend by £2,638k. As previously reported to the Resources Committee in November 2016 (FEP2661), the underspend reflects the fact that the number of applicants and successful candidates from recent recruitment rounds is lower than anticipated. As a consequence, it is forecast that this will lead to an average of 55 vacancies in 2016/17. The forecast underspend has increased by £981k since last reported (0.4% of the operational staff budget) due to higher than expected leaver numbers in the third quarter and it is forecast that there will be 124 vacancies at the end of March 2017. The 2017/18 Budget report also on today’s agenda includes a saving of £2.3m to account for the forecast number of vacancies in 2017/18.

15. As previously reported, the reduction in the number of trainees being recruited from 216 to 120 has led to a revised forecast underspend of £793k on Firefighter trainee budget.

16. As previously reported, there is a forecast underspend of £512k on FRS staff budgets due to vacancies. This has increased by £106k since the end of September 2016 due to delays in recruitment to a number of vacant posts. As at the end of December 2016, there were 66 vacancies and 72 agency

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staff. The 2017/18 budget includes savings of £313k on the FRS vacancy margin and £453k on the pay contingency to account for the financial impact from FRS turnover.

17. Control staff budgets are forecast to overspend by £57k, due to overtime to cover vacant posts. The forecast overspend has increased slightly by £30k since last reported.

Employee Related

18. There is a newly forecast overspend on severance budgets of £84k following the redundancy of two staff in 2016/17. This is offset by a forecast underspend of £128k (an increase of £48k due to a reduction in the number of medical appeals) on medical and welfare services due to spend on asbestos medicals being lower than expected,

19. The forecast expenditure on compensation budgets has been revised down by £740k, following a reduction in the estimated costs of a number of cases including a reduction of £400k on an employment related matter, £200k on a Mesothelioma claim and £100k on a personal injury matter. In recent years, this budget has overspent and to reduce the risk of overspends impacting on the budget for future years, £687k has been transferred to the compensation earmarked reserve.

Firefighter Injury Pensions

20. As previously reported in November (FEP2661), there is a forecast underspend of £1,303k, a slight increase of £40k in relation to the costs of the Firefighter Pension Scheme, on ill health and injury pensions due to the indexation increase being zero percent this year and a reduction in the number of ill health retirements, with numbers being revised down from 10 to 7 this year. The 2017/18 budget report also on today’s agenda includes savings of £865k on ill health pensions and £247k on injury pensions.

Premises

21. Premises costs are forecast to underspend by £972k, an increase of £370k since last reported in March. The increase is mainly due to additional underspends of £380k on energy budgets and £185k on the PFI project offset by an overspend on fixtures and fittings of £156k.

22. The additional underspend of £380k on energy budgets is due to lower consumption and a reduction in the contract price from October 2016. There is also a reduction in the forecast spend on building maintenance of £100k based on the latest cost plan for the property services integrator. This is, in part due to certain original integrator contracts being terminated as the contractor could not provide the required level of service and the replacement temporary contract being completed at an advantageous price.

23. The forecast underspend on the PFI project includes an underspend of £571k due to reduced payments to the contractor and £74k from a reduction in consultancy spend, offset by a forecast overspend of £50k on building maintenance. The forecast underspend of £571k on the contract is made up of lower unitary charges due to delays in construction and KPIs not met. The forecast also includes the net impact of the provisional settlement in January 2017 of the compensation event for £381k, which will be met from the liabilities raised in previous years. All PFI fire stations are now operational and the full unitary charges are now in payment.

24. As previously reported in November, there is a forecast underspend on rent of £303k following the outcome of the rent review for Union Street.

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25. These underspends are offset by new forecast overspends on fixtures and fittings of £156k, to replace the carpet at Union Street as it reaches the end of its useful life, £46k to fund the cost of the closure and storage of LFB museum items and £80k to fund the cost of movements and ad-hoc works including those relating to the Workplace Improvement project. This is in addition to the previously forecast overspend of £79k on security budgets due to the delay in the sale of sites at Clerkenwell, Mitcham and Southwark, as well as LFB continuing to retain responsibility for security at 8 Albert Embankment.

Transport

26. Transport budgets are forecast to underspend by £779k, which has increased by £542k since last reported due to the inclusion of an underspend on the vehicle and equipment contract (£433k) and a reduction in the forecast overspend on insurance claims (£100k). As reported in the Vehicle and Equipment Contract Update (FEP2687), there was a temporary reversal in the trend of improving performance against contract KPIs that led to an increase in the amount of abatements being applied to the vehicle and equipment contract earlier in the year. The reduction in spend on insurance claims is due to the release of surplus funds available from the insurance claims fund. The 2017/18 budget also on today’s agenda incorporates a one-off saving of £600k from the release of the surplus balance on the insurance claims fund. The forecast for transport budgets also includes previously reported underspends on vehicle passthrough charges due to lower cost of repairs and maintenance, following positive action on accidents (£163k) and on lease car charges due to reductions in the number of staff eligible for the schemes (£171k).

Supplies and Services

27. There is a forecast underspend of £128k on supplies and services budgets. This has decreased by £77k since last reported. The movement includes a new forecast overspend of £306k on equipment, furniture and materials which includes additional expenditure on replacement office chairs, as they reach the end of their useful life, and the desk layout at Union Street. There is also a previously forecast overspend of £143k on advertising budgets due to the cost of fitting fire safety posters to the new appliances. These overspends are offset by a forecast underspend of £458k on clothing and laundry budgets, which has increased by £208k since last reported due to an additional underspend on the PPE contract following a review of the baseline staff numbers. There is also a forecast underspend of £133k on professional services due to lower than budgeted inflation for the Emergency Fire Crew Capability, Scientific Services and Control and Mobilising contracts.

Third Party Payments

28. There is a new forecast overspend of £1,241k on third party payments, mainly due to the approval of additional expenditure on the Community Safety Investment Fund (CSIF) (£1,200k) to cover all bids that meet the criteria. The 2016/17 budget report (FEP2574) included a proposal to create a £1,000k Community Safety Investment Fund reserve. Bids were then received for £2,200k, with Authority subsequently agreeing (FEP2685) additional expenditure of £1,200k to be funded from the Authority wide underspend in 2016/17. Total expenditure of £2,000k is now forecast for the 2016/17 financial year, with the remaining £200k remaining in the CSIF reserve to use for future opportunities that may be identified during the project evaluation phase in 2017/18. There are also forecast overspends on mutual assistance budgets following a review of the number of cross border incidents that have been attended to date (£152k). The increase is due to the Authority’s role in sending the fastest response to an incident which, following the introduction of geographic mobilising as part of the Vision mobilising system, has increased the incidence of the system identifying that some cross border fire stations will be quicker than LFB resources at responding to some areas of London.

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Income

29. Income budgets are forecast to recover £1,984k more than budget, an increase of £364k since last reported. The majority of the forecast outturn variance on income is due to the previously reported additional income of £1,046k from insurance companies through charges under the Metropolitan Fire Brigade (MFB) Act 1865. Other variances include, short-term/one-off rental income of £282k from the London Ambulance Service for the use of the Southwark Training Centre site, while discussions with the purchaser of the site continue, a payment of £277k from the Authority’s insurer relating to costs of the Lakanal Prosecution for costs incurred above the self insured (excess) limit and also the Authority has been awarded costs of £300k in relation to the Lakanal case as a result of the recent successful prosecution, additional income of £215k as a contribution to overheads from LFB Enterprises for LFEPA staff doing work for the company, £111k refund of service charges following the surrender of the lease of Knightsbridge Fire Station, £103k for additional rental income at Union Street and £95k additional income for access rights at Whitechapel Fire Station.

30. These are offset by forecasts that Automatic Fire Alarms (AFA) (£400k) and Shut in Lift (SiL) (£85k) income will recover less than budgeted as the number of incidents in these areas continues to fall (and as intended by the introduction of these charging policies). Details of the sums outstanding for AFA and SiL charges are provided in Appendix 3. This reports asks the Resources Committee to note that £373k of outstanding AFA charges have been written off, with the cost charged to the bad debt provision, which had previously been set aside for this purpose. Appendix 3 provides more detail on AFA charging and that write off.

31. Specific grants from central government are now forecast to recover £187k more than the budgeted. This is because the final grant received for Firelink communications was revised after the budget had been set.

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Position on Reserves

32. The latest position on reserves is set out in Table 2 below. This reflects the previously agreed movements detailed below and the forecast underspend of £7,862k being returned to the general reserve. The balance on the general reserve is forecast to be £19,441k at the end of 2016/17, £5,359k above the stated minimum general reserve position, which is set at 3.5% of the net revenue budget.

Table 2. LFEPA Reserves for the 2016/17 Financial Year Opening Underspend/ Use of Payment Anticipated £000s Balance at Approved (Overspend) Reserves in into Balance at 01/04/16 Movements in 2016/17 2016/17 Reserves 31/03/17 Community Safety 0 1,000 (800) 200 Investment Fund Compensation 1,000 687 1,687 Emergency Services Mobile Communication 356 356 Programme Firefighters' Pension 1,172 1,172 Fleet Replacement 3,000 (3,000) 0 Hazardous Material 341 (183) 159 Protection Hydrants 264 264 ICT Development 0 400 400 Reserve LGPS Past Pension 2,500 (2,500) 0 Costs London Resilience 1,402 (121) 1,281 LSP6 Implementation 5,000 5,000 New Governance 0 100 100 Arrangements Pension Early Release 400 400 Costs Property PFI 1,912 1,912 Recruitment/ Outreach 0 600 600 Retro-fit LFB vehicles 60 60 Review of Property 1,100 (1,015) 85 Services Sustainability 235 235 Training Reserve 220 (220) 0 Ultra Low Emission 0 670 670 Zone Vehicle Chargepoints 0 421 421 Vehicle & Equipment 105 (93) 12 Contract Youth Engagement 0 211 211 General 13,981 (2,302) 7,862 (100) 19,441 Total 33,048 1,000 7,862 (7,932) 687 34,666

33. As previously reported, approved movements include £1,000k for the Community Safety Investment Fund, approved as part of the 2016/17 budget (FEP2574) with a balance of £200k remaining to use for

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future opportunities that may be identified during the project evaluation phase in 2017/18, a payment of £400k into a new IT Development reserve that will fund work to improve the Authority’s existing IT systems, included in the Financial Position as at the end of June 2016 (FEP2643) and the creation of a new reserve for Youth Engagement from the income (contribution to overheads) that is forecast to be received from LFB Enterprises Ltd in 2016/17 (£211k) (FEP2661). The January Budget Report (FEP2685) also included the creation of new reserves for vehicle modifications to achieve Ultra Low Emission Zone compliance (£670k), the proposed establishment of the firefighter recruitment and outreach team and development of new recruitment advertising campaign materials (£600k), and a fund to cover the cost of installing additional Electric Vehicle Chargepoints across the brigade following the introduction of electric vehicles into the LFB fleet (£421k).

34. This report includes a payment of £687k into the compensation reserve due to the reduction in forecast compensation expenditure in 2016/17 and a payment of £100k into a new Governance reserve to cover any additional costs incurred as part of the abolition of LFEPA. Work is also now being undertaken to review the balance on the Property PFI reserve as all PFI stations are now operational, and the project is being closed – it is expected that this review will be concluded as part of the year end process.

35. Other drawings from earmarked reserves, agreed as part of 2015/16 financial outturn (FEP2623), include £3,000k as a revenue contribution to capital to purchase fleet vehicles that will result in estimated savings in capital financing costs of £270k per annum, £2,500k to fund a further payment into the Local Government Pension Scheme (LGPS) fund to reduce deficit payments by an estimated £285k, £1,015k for the property services review and £220k from the training reserve to fund additional Firefighter Development courses as part of the training contract. Previously agreed drawings from earmarked reserves include £183k from the hazmat reserve to fund new gas tight suits, £121k for London Resilience developments, and £93k for the vehicle and equipment programme.

Debtors

36. An analysis of debtors relating to Automatic Fire Alarms and Shut in Lift charges is provided in Appendix 3. This includes a graph showing the value of outstanding debt, with movement over the last 12 months. Overdue amounts total £183k for Shut in Lift charges. The appendix includes an update on the current outstanding debtors as well as explaining that £373k of outstanding AFA charges have been written off.

Risks

37. There are a range of risks and opportunities to the financial position which are as yet unquantified in the forecasts in this report, and these are attached as Appendix 5. Since last reported, risks relating to the MTFA project and the co-responding trial have been removed as they are not now expected to have any impact on the 2016/17 budget. Work is on-going to determine the impact on future years. The risks on Property PFI have now been quantified in this report and removed from the list.

Capital

38. The budget for the 2016/17 capital programme is £35,915k, as reported at the July 2016 Resources Committee (FEP2622). The programme includes the final PFI Property scheme (Dockhead) totalling £5,528k, which is externally delivered and reported separately, resulting in the net capital programme, being £30,387k.

39. The current forecast capital spend for 2016/17 is £24,060k, which is £6,327k less than the capital budget. The last reported forecast was £29,312 (Quarter 2 report FEP2661) and the overall reduction in spend of £5,252k relates to the following items:

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Additional budget requirement £52k Appliance Bay Door Replacement £52k

Budget savings (£3,601k) Appliance Bay Floor Replacement (£120k) Electrical works at Poplar Station (£70k) Bromley FS Heating Replacement (£93k) Asset Management Plan (£3,227k) Minor Improvements - Hainault (£36k) Development costs – Property (£55k)

Budget re-phasing from 2017/18 £625k Fleet Appliances £505k 22mm Hose Reels £120k

Budget re-phasing to 2017/18 £882k Bromley FS Heating Replacement (£169k) Forest Hill FS Rewiring Project (£214k) Building Energy Programme (£154k) Minor Improvements Projects (£216k) New Fleet Projects (£588k) ICT – Mobile Data Terminals (£400k) ICT- CAMS Project (£488k) ICT – Other Projects (£775k) Overprogramming £3,886k

Budget re-phasing to later years (£3,210k) New Training Centre (£310k) Plumstead Redevelopment (£2,500k) Security at fire stations (£200k) ICT Projects (£200k)

40. During the replacement of the appliance bay doors at Poplar fire station, additional asbestos has been identified in the panels above the doors which requires safe removal. This has increased the cost of the project by £52k, to £243k.

41. There is a budget of £120k in the current financial year for the replacement of the appliance bay floors at Croydon and Ilford fire stations. Feasibility and core samples tests have now been carried out at both fire stations, and these have concluded that the floors are in relatively good condition, other than for some localised defects to the surface coating which can be repaired at relatively low cost, and from revenue budgets. In view of this, the budget for the current year will not be required and this therefore reflects a saving.

42. There are £70k savings on electrical works at Poplar Fire Station to reflect returned tenders, which have seen lower pricing than pre-tender estimates.

43. The tenders for the heating works at Bromley fire station have been at lower price than expected, resulting in a revised project cost of £417k, and allowing a saving of £108k from the £525k approved budget (FEP2649). The cost of rewiring works are however now projected to be £104k against the original budget of £90k. The net saving of £93k has been applied to the 2017/18 forecast spend. In addition to these works, a further rewiring project was planned to be undertaken before the heating

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works commenced. The rewire project started later than planned which has resulted in a delay to the commencement of the heating works as the rewiring works must be fully completed before the heating project can commence. This has resulted in the completion date for the heating works slipping into 2017/18 and accordingly, £169k has been re-phased into next year.

44. The Asset Management Plan budget of £3,227k was earmarked for two new developments, one for Bromley fire station and the other for Poplar fire station as reported in FEP2649. It was planned to relocate the existing fire stations to new purpose built properties. As highlighted previously, the Authority has to compete with other sectors, in particular residential development and in the case of the new site at Bromley, the Council has advised that the Authority is not the preferred bidder. Discussions on the redevelopment of the Poplar site are protracted due to the complexities associated with the developer’s other land assemblies and planning issues. Therefore the budget of £3,227k will not be spent and has therefore been included as a saving in the current year.

45. A saving of £36k has been achieved following completion of the contract works on the replacement of the roof at Hainault fire station.

46. There has been a saving of £55k on the capital budget for project development costs, as these costs have either now been charged directly to approved projects or charged to revenue for projects not pursued.

47. The first new pumping appliance is now ‘on the run’ at Leytonstone fire station, and this has allowed finalisation of the timing of the stage payments for the roll out of the remaining fleet. This sees £690k brought forward from 2017/18 to fund these payments, partly offset by slippage in the operational equipment replacement programme of £185k into 2017/18.

48. A draft specification for the Forest Hill rewire project has now been received from the Authority’s external consultant but our internal technical quality system has identified issues which need resolving, prior to tendering the works, so the predicted start date on site will now be too late to achieve full spend in 2016/17 and only 25% is now expected. Accordingly, £214k has been carried forward to 2017/18 financial year.

49. Property officers have been engaged in a series of meetings with the appointed contractor on the Building Energy Efficiency Programme (BEEP) to discuss outstanding issues related to continued poor contractor performance which has impacted on the various works packages within the overall building energy efficiency programme. Discussions have sought to agree on a solution to bring the project back on track, however works totalling £154k have been re-phased into 2017/18, which is the third year of the project. These solutions will include replacement/upgrade to LED lighting at Merton LOC . The lighting to this building is bespoke and is not an off the shelf component. A final survey report is awaited with regard to cost, lead-time and payback.

50. The minor improvements at Homerton and Battersea fire station have seen delays against the original plan. The accommodation improvement works at Homerton have been re-phased into 2017/18 due to the completion of preparatory work on the station roof and yard gate. At Battersea the lead time for the specialist design and manufacture motorised gates has resulted in the works being re-phased into 2017/18.

51. The projects to install CCTV recording systems and enhanced security systems on the new fleet appliances, totalling £588k for 2016/17, has been deferred to 2017/18, as the projects will now be completed following the roll out of all the new appliances. The 22mm Hose Reels project will now spend £500k in this financial year, this is an additional spend of £120k and will be funded by bringing forward £120k from the 2017/18 programme.

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52. The roll out of the replacement MDTs to the main fleet has been re-scheduled to start no earlier than April 2017 as Airwave accreditation for the device and the software, as well as penetration testing by an accredited body, is now not expected to be completed in the current year, therefore £400k has been re-phased to 2017/18

53. Capita are producing a detailed plan for approval by the Brigade setting out delivery of future releases of software and ongoing improvements to the VISION mobilising system (CAMS) product. The implementation of these releases and improvements will be fully managed under the contract. However, it is prudent to hold a contingency to cover potential costs, due to the need to ensure VISION is stable and performing as contracted. There has been some delay in implementing remaining deliverables from the CAMS contract e.g. BOSS mobile, MAIT/DEIT. In addition some changes identified to improve turn out performance, which have come to light post go live and are as a result of new mobilising equipment, need to be implemented e.g. Station End Equipment. As a consequence it is likely that the spend of £488k will now occur in the 2017/18 financial year.

54. In addition to the specific ICT projects mentioned above, there has also been a number of other ICT projects that have seen delays against their original plan. These delays are due to a number of reasons but include availability of specialist consultants, enabling system upgrades, completing the procurement process, and supplier availability, and whilst these are not anticipated on individual projects, it is expected that these challenges will arise across the plan overall. It is for this reason that over-programming is included in the overall programme, and therefore helps offset the financial impact of these individual delays.

55. The overprogramming allowance (£3,886k) has been removed from the programme and carried forward to 2017/18 in line with the budget slippages.

56. £500k of the budget of £11,100k for the New Training Centre has been allocated to the current financial year, however costs on the architect and project fees for the year are now only expected to total £190k therefore £310k is being carried forward to later years.

57. A report on the Options for Plumstead Fire Station (FEP2527) reported the opportunity to relocate the existing Plumstead Fire Station to a new purpose built fire station, at a site which was considered a very good location operationally. However following lengthy negotiations with the owner a number of problems in progressing the acquisition of the site have been identified. The budget of £2.5m will therefore be carried over to later years. It should be noted that if a suitable alternative site cannot be found, refurbishment of the original fire station will be progressed.

58. Work on the security at stations is being re-phased into later years as threat risk assessment surveys still need to be carried out across the Authority's estate in order to determine the scope of works that are required. Hence the budget for this project has been re-phased with £200k into 2017/18 and £2,405k into 2018/19.

59. The ICT Data Warehouse Project has been delayed, in part due to the availability of a suitably qualified consultant to support this highly complex project. The scoping process will now start at the end of January, with the development work commencing next financial year. Therefore the budget of £200k has been carried forward with £100k allocated to 2017/18 and £100k to 2018/19

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60. The table below shows a summary of the movements since the November 2016 budget report and the impact on the capital budget in future years.

Budget Year 2016-17 2017-18 2018-19 2019-20 Notes Qtr. 2 Nov 16 34,840 53,843 44,391 28,069 Resources Com (FEP2661) Less PFI Finance Lease (5,528) Sub total 29,312 53,843 44,391 28,069 Appliance Bay Doors - 52 Additional budget requirement Poplar FS Appliance Bay Floors (120) Budget savings Projects Building Energy Efficiency (154) 154 Re-phase budget to 2017/18 Programme (BEEP) Bromley FS Heating (169) 169 Re-phase budget to 2017/18 Replacement Bromley FS Heating (93) Budget savings Replacement Forest Hill Rewiring Project (214) 214 Re-phase budget to 2017/18 Asset Management Plan (3,227) 0 Budget savings Plumstead Redevelopment (2,500) (850) 3,203 147 Re-phased to later years ICT – CAMS Project (488) 488 Re-phase budget to 2017/18 ICT – Laptops (80) 80 Re-phase budget to 2017/18 ICT – New legacy pcs (25) 25 Re-phase budget to 2017/18 Fleet Appliances 505 (400) Budget re-phasing from 2017/18 Electrical works at Poplar (70) Budget savings FS New Fleet Projects (588) 588 Re-phase budget to 2017/18 22mm Hose reels 120 (120) Budget re-phasing from 2017/18 Minor Improvements (162) 162 Re-phase budget to 2017/18 Minor Improvements (330) Budget re-allocation to rewiring projects Various fire stations re- 330 Budget re-allocation from minor wiring works ICT- Upgrade of operation (100) 100 Re-phase budget to 2017/18 system - ICT – MDT replacements (400) 400 Re-phase budget to 2017/18 ICT – New audio visual (130) 130 Re-phase budget to 2017/18 equip ICT – Virtual desktop (250) 250 Re-phase budget to 2017/18 technology ICT - New farynor system (50) 50 Re-phase budget to 2017/18 New Training Centre (310) (216) 467 59 Budget re-phasing to later years ICT- Data Warehouse (200) 100 100 Budget re-phasing to later years Project

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Budget Year 2016-17 2017-18 2018-19 2019-20 Notes ICT - Home Fire Safety (70) 70 Re-phase to 2017/18 Database ICT - Income System (70) 70 Re-phase to 2017/18 Enhancements Hainault FS - Replace roof (36) Budget savings Battersea Fire Station - (54) 54 Re-phase to 2017/18 motorised gates Development costs - (55) Budget savings Property Security at fire stations (200) (2,205) 2,405 Budget re-phasing to later years Overprogramming re- 3,886 (3,886) Re-phase to 2017/18 phased Capital Programme Qtr. 24,060 49,270 50,566 28,275 3 2016 PFI Projects 5,528 0 0 0 Capital Programme Qtr. 29,588 49,270 50,566 28,275 3 2016

61. Full details of all the movements since the 2016/17 capital programme was agreed in July 2016 are shown in Appendix 2 together with the PFI property and contingency budgets.

Head of Legal and Democratic Services comments 62. The Head of Legal and Democratic Services has reviewed this report and has no comments.

Director of Finance and Contractual Services comments 63. This report is presented by the Director of Finance and Contractual Services and there are no further comments.

Sustainable Development Implications 64. There are no direct sustainable development implications.

Staff Side Consultations Undertaken 65. No staff-side consultations have been undertaken on this report.

Equalities Implications 66. This report has no equality implications.

List of Appendices to this report: 1. Financial Position, 2016/17 Forecast Outturn 2. Capital Programme 2016/17 3. Analysis of Shut in Lift and AFA Outstanding Debtors 4. Financial Regulation 9: Budget Virements 5. Risks to the Revenue and Capital Financial Position

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LOCAL GOVERNMENT (ACCESS TO INFORMATION) ACT 1985 List of background documents 1. FEP2574 2016/17 Budget 2. FEP2623 Review of Financial Outturn for 2015/16 3. FEP2643 Financial Position as at the end of June 2016 (Quarter 1)

Proper officer Director of Finance and Contractual Services

Contact officer Adrian Bloomfield Telephone 020 8555 1200 x31351 Email [email protected]

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Financial Position, 2016/17 Forecast Outturn Appendix 1

Current Current Current Variance Original Revised Forecast Forecast Outturn Previous Movement Budget Spend Budget Budget Outturn Variance Forecast between Outturn variance Variance figures (Q2) £ £ £ % £ £ £ £ % £ £ Operational Firefighters 176,155,327 173,988,910 (2,166,417) (1.2%) 233,772,267 235,235,689 232,597,499 (2,638,190) (1.1%) (1,656,937) (981,253) Firefighter Trainees 915,275 338,753 (576,522) (63.0%) 1,431,346 1,429,869 637,357 (792,512) (55.4%) (712,416) (80,096) Total Operational Staff 177,070,602 174,327,663 (2,742,939) (1.5%) 235,203,613 236,665,558 233,234,856 (3,430,702) (1.4%) (2,369,353) (1,061,349)

FRS Staff 39,592,816 40,116,466 523,650 1.3% 47,711,381 50,895,096 50,382,774 (512,322) (1.0%) (406,016) (106,306) Control Staff 4,048,990 4,128,429 79,439 2.0% 5,403,931 5,409,602 5,466,403 56,801 1.1% 27,014 29,787 Total Other Staff 43,641,806 44,244,895 603,089 1.4% 53,115,312 56,304,698 55,849,177 (455,521) (0.8%) (379,001) (76,520)

Other Pensions Page 164 Page 742,500 662,227 (80,273) (10.8%) 990,000 990,000 990,000 0 0.0% 0 0 Payment Training 0 20,562 20,562 0.0% 0 0 84,895 84,895 0.0% 0 84,895 Training 20,019,187 20,036,431 17,244 0.1% 19,959,191 20,254,192 20,267,221 13,029 0.1% 27,811 (14,782) Recruitment 125,090 97,806 (27,284) (21.8%) 163,100 162,100 142,219 (19,881) (12.3%) 12,761 (32,642) Employee Related 160,000 179,524 19,524 12.2% 160,000 160,000 176,970 16,970 10.6% 16,970 0 Insurance Compensation 416,860 192,102 (224,758) (53.9%) 555,813 555,813 (131,477) (687,290) (123.7%) 53,286 (740,576) Medical & Welfare 1,486,918 1,483,744 (3,173) (0.2%) 1,996,076 1,996,076 1,867,688 (128,388) (6.4%) (80,365) (48,023) Expense Capitalised Staff (122,700) (122,708) (8) 0.0% (245,400) (245,400) (245,400) 0 0.0% 0 0 Charges Total Employee Related 22,827,856 22,549,688 (278,167) (1.2%) 23,578,780 23,872,781 23,152,116 (720,665) (3.0%) 30,463 (751,128)

Firefighter Pension 16,509,380 15,245,766 (1,263,614) (7.7%) 21,600,880 21,600,880 20,297,597 (1,303,283) (6.0%) (1,263,283) (40,000) Scheme

Building Maintenance 5,819,639 5,810,252 (9,387) (0.2%) 6,630,163 6,276,929 6,247,525 (29,404) (0.5%) 64,601 (94,005) Grounds Maintenance 79,467 70,249 (9,218) (11.6%) 115,382 136,264 136,264 0 0.0% 0 0 Security 533,252 612,941 79,689 14.9% 533,252 533,252 612,252 79,000 14.8% 79,000 0 Energy Costs 1,307,791 1,165,453 (142,338) (10.9%) 2,262,205 2,122,205 1,742,205 (380,000) (17.9%) 0 (380,000)

Financial Position, 2016/17 Forecast Outturn Appendix 1

Current Current Current Variance Original Revised Forecast Forecast Outturn Previous Movement Budget Spend Budget Budget Outturn Variance Forecast between Outturn variance Variance figures (Q2) £ £ £ % £ £ £ £ % £ £ Rents 7,674,687 7,621,894 (52,793) (0.7%) 8,031,252 8,100,125 7,796,637 (303,488) (3.7%) (307,727) 4,239 Property PFI Contract 5,583,202 5,100,162 (483,040) (8.7%) 5,583,202 5,583,202 5,012,012 (571,191) (10.2%) (386,000) (185,191) Property Rates 6,430,231 6,697,538 267,307 4.2% 7,994,368 7,994,368 7,994,368 0 0.0% 0 0 Water Services 172,797 192,240 19,443 11.3% 250,515 250,515 285,515 35,000 14.0% 0 35,000 Fixtures & Fittings 158,443 149,597 (8,846) (5.6%) 322,861 183,416 339,140 155,724 84.9% 592 155,132 Cleaning and Domestic 1,396,549 1,015,074 (381,475) (27.3%) 1,983,753 2,047,794 2,017,794 (30,000) (1.5%) 0 (30,000) Supplies Premises Insurance 355,067 301,888 (53,179) (15.0%) 432,000 334,046 322,000 (12,046) (3.6%) 0 (12,046) Other Property Services 2,818,143 2,769,436 (48,707) (1.7%) 1,296,726 2,818,340 2,902,709 84,369 3.0% (52,371) 136,740

Total 165 Page Premises 32,329,268 31,506,724 (822,545) (2.5%) 35,435,678 36,380,455 35,408,420 (972,036) (2.7%) (601,905) (370,131)

Running Costs 2,051,771 2,350,525 298,755 14.6% 2,370,796 2,350,397 2,319,411 (30,986) (1.3%) 68,735 (99,721) Vehicle and Equipment 10,845,634 11,915,050 1,069,417 9.9% 10,865,634 10,845,634 10,412,894 (432,740) (4.0%) 0 (432,740) Contract Passthroughs 576,494 374,233 (202,262) (35.1%) 661,264 663,452 500,174 (163,278) (24.6%) (122,385) (40,893) Contract Hire & 1,107,174 1,045,835 (61,338) (5.5%) 1,292,900 1,296,900 1,125,053 (171,847) (13.3%) (184,945) 13,098 Operating Leases Travel 931,875 950,171 18,296 2.0% 1,110,688 1,243,698 1,263,398 19,701 1.6% 1,891 17,810 Payment to fund 0 0 0 0.0% 0 3,000,000 3,000,000 0 0.0% 0 0 Vehicle Costs Total Transport 15,512,947 16,635,814 1,122,867 7.2% 16,301,282 19,400,080 18,620,930 (779,150) (4.0%) (236,704) (542,446)

Hydrants 560,900 568,548 7,648 1.4% 501,700 600,900 600,875 (25) (0.0%) (25) 0 Operational Equipment 1,467,130 1,606,066 138,935 9.5% 1,602,640 1,908,173 1,922,399 14,227 0.7% (5,781) 20,008 Smoke Alarms 525,000 610,088 85,088 16.2% 700,000 700,000 700,124 124 0.0% 0 124 Equipment. Furniture & 510,893 639,911 129,018 25.3% 572,301 710,612 1,016,978 306,366 43.1% 27,005 279,361 Materials Lost & NFWT 112,026 45,683 (66,343) (59.2%) 112,026 112,079 97,922 (14,157) (12.6%) (14,104) (53) Operational Equipment

Financial Position, 2016/17 Forecast Outturn Appendix 1

Current Current Current Variance Original Revised Forecast Forecast Outturn Previous Movement Budget Spend Budget Budget Outturn Variance Forecast between Outturn variance Variance figures (Q2) £ £ £ % £ £ £ £ % £ £ Catering Equipment 102,652 74,130 (28,522) (27.8%) 120,254 120,204 111,849 (8,355) (7.0%) (8,389) 34 Clothing & Laundry 3,323,492 3,228,247 (95,245) (2.9%) 3,555,777 3,508,516 3,050,733 (457,783) (13.0%) (249,660) (208,123) General Office 324,209 271,933 (52,276) (16.1%) 403,682 412,543 381,301 (31,242) (7.6%) (8,840) (22,402) Expenses Professional Services 7,594,601 8,507,095 912,495 12.0% 9,132,447 8,474,158 8,341,188 (132,970) (1.6%) (79,897) (53,073) Postal Services 55,487 53,654 (1,833) (3.3%) 67,855 61,255 61,708 453 0.7% (1) 454 Telecommunications & 2,674,535 867,749 (1,806,786) (67.6%) 3,568,314 3,567,294 3,568,221 927 0.0% 3,186 (2,259) Radio Computing 4,829,172 5,965,565 1,136,393 23.5% 5,674,839 5,911,162 5,932,401 21,239 0.4% 9,971 11,268

Staff 166 Page Reimbursements 448,044 426,111 (21,932) (4.9%) 597,808 581,682 584,565 2,883 0.5% (10,346) 13,229 Grants and 184,716 161,847 (22,869) (12.4%) 195,111 196,394 202,430 6,036 3.1% (6) 6,042 Subscriptions Other Insurance 225,000 228,657 3,657 1.6% 225,000 225,000 228,660 3,660 1.6% 3,660 0 Advertising 119,117 260,029 140,912 118.3% 24,750 194,559 337,718 143,159 73.6% 120,806 22,353 Other 46,857 59,891 13,034 27.8% 152,765 62,476 79,470 16,994 27.2% 7,376 9,618 Total Supplies and 23,103,831 23,575,205 471,373 2.0% 27,207,268 27,347,007 27,218,543 (128,463) (0.5%) (205,045) 76,582 Services

Other Agencies 278,723 474,537 195,815 70.3% 312,700 1,408,795 2,408,795 1,000,000 71.0% 0 1,000,000 Other Local Authorities 1,045,656 804,532 (241,124) (23.1%) 1,847,076 1,407,604 1,648,783 241,179 17.1% (11,016) 252,195 Audit & Bank Charges 46,250 40,114 (6,136) (13.3%) 88,600 88,600 87,990 (610) (0.7%) 0 (610) Total Third Party 1,370,629 1,319,183 (51,445) (3.8%) 2,248,376 2,904,999 4,145,568 1,240,569 42.7% (11,016) 1,251,585 Payments

Debt Repayment 0 0 0 0.0% 5,882,000 5,882,000 5,882,000 0 0.0% 0 0 External Interest 2,009,209 1,939,948 (69,261) (3.4%) 3,877,000 3,877,000 3,877,000 0 0.0% 0 0 Total Capital Financing 2,009,209 1,939,948 (69,261) (3.4%) 9,759,000 9,759,000 9,759,000 0 0.0% 0 0 Costs

Financial Position, 2016/17 Forecast Outturn Appendix 1

Current Current Current Variance Original Revised Forecast Forecast Outturn Previous Movement Budget Spend Budget Budget Outturn Variance Forecast between Outturn variance Variance figures (Q2) £ £ £ % £ £ £ £ % £ £ Central Contingency 0 0 0 0.0% 3,072,731 119,035 90,000 (29,034) (24%) (0) (29,034)

Total revenue 334,375,528 331,344,886 (3,030,641) (0.9%) 427,522,920 434,354,491 427,776,206 (6,578,285) (1.5%) (5,035,844) (1,542,441) expenditure

MFB Act Income (23,525,000) (24,663,277) (1,138,277) 4.8% (23,525,000) (23,525,000) (24,630,277) (1,105,277) 4.7% (1,045,654) (59,623) Customer & Client (6,226,938) (5,845,787) 381,151 (6.1%) (8,119,215) (7,939,338) (8,818,192) (878,854) 11.1% (574,456) (304,398) Receipts Interest (250,888) (273,010) (22,122) 8.8% (520,488) (520,488) (520,488) 0 0.0% 0 0

Bad 167 Page Debts 0 (4,101) (4,101) 0.0% 0 0 0 0 0.0% 0 0 Total Other Income (30,002,826) (30,786,175) (783,349) 2.6% (32,164,703) (31,984,826) (33,968,957) (1,984,131) 6.2% (1,620,110) (364,021)

Net revenue 304,372,702 300,558,712 (3,813,990) (1.3%) 395,358,217 402,369,666 393,807,249 (8,562,416) (2.1%) (6,655,954) (1,906,462) expenditure

Contributions to Earmarked

Reserves Community Safety 0 0 0 0.0% 0 1,000,000 1,000,000 0 0.0% 0 0 Investment Fund

Contributions from Earmarked

Reserves Community Safety 0 0 0 0.0% 0 (1,000,000) (800,000) 200,000 (20.0%) 0 200,000 Investment Fund Compensation 0 0 0 0.0% 0 0 687,290 687,290 0.0% 0 687,290 Fleet Replacement 0 0 0 0.0% 0 (3,000,000) (3,000,000) 0 0.0% 0 0 programme Hazardous Material 0 0 0 0.0% 0 (182,780) (182,780) 0 0.0% 0 0 Protection

Financial Position, 2016/17 Forecast Outturn Appendix 1

Current Current Current Variance Original Revised Forecast Forecast Outturn Previous Movement Budget Spend Budget Budget Outturn Variance Forecast between Outturn variance Variance figures (Q2) £ £ £ % £ £ £ £ % £ £ LGPS Past Pension 0 0 0 0.0% 0 (2,500,000) (2,500,000) 0 0.0% 0 0 Costs London Resilience 0 0 0 0.0% (154,000) (121,260) (121,260) 0 0.0% 0 0 Review of Property 0 0 0 0.0% (100,000) (1,014,858) (1,014,858) 0 0.0% 0 0 Services Training Reserve 0 0 0 0.0% 0 (220,000) (220,000) 0 0.0% 0 0 Vehicle & Equipment 0 0 0 0.0% 0 (92,669) (92,669) 0 0.0% 0 Contract

Financing 168 Page 304,372,702 300,558,712 (3,813,990) (1.3%) 395,104,217 395,238,098 387,562,972 (7,675,126) (1.9%) (6,655,954) (1,019,172) Requirement

Financed by: Specific grants (9,995,863) (10,640,904) (645,042) 6.5% (12,676,281) (12,810,162) (12,997,489) (187,326) 1.5% (35,074) (152,252) GLA funding (286,820,952) (286,799,795) 21,157 (0.0%) (382,427,936) (382,427,936) (382,427,936) 0 0.0% 0 0

Net Financial Position 7,555,887 3,118,013 (4,437,874) (58.7%) 0 0 (7,862,453) (7,862,453) 0.0% (6,691,028) (1,171,425)

2016/17 Capital Programme Appendix 2

2016/17 Current Qtr. 2 2016 Budget forecast Reported Project July 2016 Qtr. 3 Position CAPITAL PROGRAMME Approval Resources 2016 Variance FEP2661 Variance Notes £’000s £’000s £’000s £’000s £’000s ICT PROJECTS Upgrade Operating System Approved 100 0 (100) 100 (100) To 2017/18 £100k to 2017/18 & £100k to ICTS – Data Warehouse Approved 200 0 (200) 200 (200) 2018/19. Control & Mobilisation System (CAMS) Approved 1,425 37 (1,388) 525 (488) To 2017/18 Mobile Data Terminals Replacement Approved 580 180 (400) 580 (400) To 2017/18 New WAN & ISP (FEP2313) Approved 767 767 0 767 0

Page 169 Page Home Fire Safety Database 130 60 (70) 130 (70) To 2017/18 Replacement of laptops (FEP2462) Approved 200 120 (80) 200 (80) To 2017/18 Additional SAN storage Approved 85 85 0 85 0 ICT – Accident (event) reporting solution 70 70 0 70 0 Income System Enhancements 70 0 (70) 70 (70) To 2017/18 New audio visual equip for Union St Approved 130 0 (130) 130 (130) To 2017/18 ICT – Blade Farm/ Hyper-converged Server Approved 300 300 0 300 0 ICT – Virtual Desktop Technology 250 0 (250) 250 (250) To 2017/18 New Computer Terminals Approved 0 50 50 75 (25) To 2017/18 New telephone system equipment Approved 141 157 16 157 0 TOTAL ICT PROJECTS 4,448 1,826 (2,622) 3,639 (1,813)

ESTATE PROJECTS Fire Station Refurbishment -Middlesex Fire Approved 200 200 0 200 0 Stations Fees only Alteration works to Union St HQ Approved 124 124 0 124 0 Plumstead Fire Station Redevelopment Approved 2,500 0 (2,500) 2,500 (2,500) C/fwd to later years

2016/17 Capital Programme Appendix 2

2016/17 Current Qtr. 2 2016 Budget forecast Reported Project July 2016 Qtr. 3 Position CAPITAL PROGRAMME Approval Resources 2016 Variance FEP2661 Variance Notes £’000s £’000s £’000s £’000s £’000s Approved Refurbishment of Acton FS now Edmonton FS 200 60 (140) 60 0 Fees only Works at Bromley Fire Station FEP2649 890 573 (317) 835 (262) £169k to 2017/18 & £93k savings PFI Projects – Installation of ICT hardware at new Approved 67 67 0 67 0 stations Heating at various stations Under DA 746 794 48 794 0 All Projects Window replacement at various stations 427 471 44 471 0 Approved

469 £330k Trf from minor works less

Page 170 Page Rewiring of property at various fire stations Under DA 508 39 462 46 £214k to 2017/18 and £70k savings Energy Conservation/ Invest to Save Projects Approved 31 31 0 31 0 Building Energy Efficiency Programme 2 (BEEP2) Approved 906 746 (160) 900 (154) Budget trf to 2017/18 £330k Trf to rewire projects & Minor Improvement Programme Under DA 3,020 2,267 (753) 2,850 (583) £162k to 2017/18 Corporate Property Project Under DA 50 50 0 50 0 Appliance Bay Doors (Phase 3) Approved 340 538 198 486 52 Additional budget requirement

Appliance Bay Floors Under DA 120 0 (120) 120 (120) Budget saving Brigade wide Survey for Asbestos & Removal Under DA 50 50 0 50 0 Fire Safety Works at Fire Stations Under DA 440 440 0 440 0 LFB Museum (feasibility & design fees) FEP2467 100 50 (50) 50 0 Development costs Under DA 250 195 (55) 250 (55) Budget saving TOTAL ESTATE PROJECTS 10,930 7,164 (3,766) 10,740 (3,576)

OTHER PROJECTS Replacement of Fleet and Operational Equipment Various 12,678 13,183 505 12,677 506 b/fwd from 2017/18

2016/17 Capital Programme Appendix 2

2016/17 Current Qtr. 2 2016 Budget forecast Reported Project July 2016 Qtr. 3 Position CAPITAL PROGRAMME Approval Resources 2016 Variance FEP2661 Variance Notes £’000s £’000s £’000s £’000s £’000s Establishing a London Co-ordination Centre at HQ Approved 315 315 0 315 0 Data transfer system for Joint Emergency Services Approved 267 267 0 267 0 Interoperability Programme New AED/Oxygen system Approved 190 190 0 190 0 Fire Initial Response Equipment (F.I.R.E.) system Approved 185 185 0 185 0 TOTAL OTHER PROJECTS 13,635 14,140 505 13,634 506

NEW PROPOSED PROJECTS CCTV on Pumping Appliances Approved 118 0 (118) 118 (118) C/fwd to 2017/18

Page 171 Page Asset Management Plan – Estate Investment TBA 3,227 0 (3,227) 3,227 (3,227) Budget saving Approved Farynor Replacement 100 50 (50) 100 (50) C/fwd to 2017/18 Fees Only Approved Improve Security at all Fire Stations, Offices & HQ 200 0 (200) 200 (200) C/fwd to 2017/18 Fees Only Overarching Management Information Solution Approved 190 190 0 190 0 Business Management System (PMF) TBA 75 0 (75) 0 0 New Training Centre Approved 500 190 (310) 500 (310) C/fwd to later years 22mm Water Hose and Reel for Appliances Approved 380 500 120 380 120 b/fwd from 2017/18 Vehicle Security Approved 470 0 (470) 470 (470) C/fwd to 2017/18 TOTAL NEW PROJECTS 5,260 930 (4,330) 5,185 (4,255)

Over programming (3,886) 0 3,886 (3,886) 3,886 C/fwd to 2017/18 CAPITAL EXPENDITURE TOTAL 30,387 24,060 (6,327) 29,312 (5,252)

Long-term Liabilities 5,528 5,528 0 5,528 0 TOTAL CAPITAL PROGRAMME 35,915 29,588 (6,327) 34,840 (5,252)

Analysis of Shut in Lift and AFA Outstanding Debtors Appendix 3

At the end of December 2016, income outstanding for over 30 days totals £183k for shut in lift charges. All Automatic Fire Alarm (AFA) charges have now been written off. The graph below shows the movement in the amount outstanding for shut in lift and AFA income over the last 12 months.

£800k

£600k

£400k

£200k

£0k Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 LIFT invoices AFA invoices

Shut in lifts

The table below shows the five organisations with the largest value of outstanding invoices for Shut in Lift charges.

Amount No of Average Age Outstanding Outstanding of Debt (£) Invoices (days) Shut in Lift Royal Borough of Greenwich 10,412 28 311 London Borough of Hackney 10,104 26 83 London Borough of Croydon 6,259 16 126 Sanctuary Housing 5,736 16 511 Swan Housing Association 5,684 16 468 Total 38,196 102 280 (21% of all outstanding Lift income)

Since the end of September significant payments have been received from the following organisations:

- Metropolitan Housing – £18,307 - London Borough of Lambeth - £14,071 - London Borough of Tower Hamlets - £6,259 - London Borough of Hackney - £4,694 - Swan Housing - £1,564

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Analysis of Shut in Lift and AFA Outstanding Debtors Appendix 3

The total value of outstanding lift invoices has continued on a downward trend, as demonstrated by the graph above, with the overall balance reduced from £262k at the end of December 2015 to £183k at the end of December 2016.

Automatic Fire Alarms

There have been significant reductions in false alarm calls to the Brigade generated by Automatic Fire Alarm systems (AFAs) in recent years. There were 45,000 in 2009/10 (30,000 of which were in non- domestic premises) and this had reduced to 36,000 by 2015/16 (of which 21,000 were from non- domestic premises). However, further reductions are now becoming harder to achieve as demonstrated through recent fire statistics that show less than a one percent reduction in AFAs was achieved in non-domestic premises in England last year compared to a high of 10 percent in 2011.

The current cost recovery strategy was introduced in January 2014 following amendments to the Fire and Rescue Services Act 2004 that were intended to give Fire and Rescue Services the power to charge for attendance at AFAs in certain defined circumstances.

Since the cost recovery strategy was introduced, difficulties have been experienced due to a number of challenges against invoices by building occupiers (primarily Hospital Trusts). The legislation which allows Fire and Rescue Services to charge for AFAs sets out narrowly defined criteria for when a charge can be raised, which includes whether the AFA was caused by a ‘Misinstallation or Malfunction of the warning equipment’. In accordance with that criteria, a charge can only be made when: i. the report is of fire at premises that are not domestic premises, ii. the report is false, iii. the report is made as a direct or indirect result of warning equipment having malfunctioned or been misinstalled, and iv. there is a persistent problem with false reports of fire at the premises that are made as a direct or indirect result of warning equipment under common control having malfunctioned or been misinstalled.

The limitations of these definitions were recognised by Brigade officers when the legislation was being drafted, as the potential for Brigade Officers to accurately identify these causes was very limited. The Brigade made representations to Government at that time to have the wording adjusted but this was not considered to be necessary. Although the Authority’s strategy for AFA charging has been in alignment with the intent of the Government legislation, the legal advice is that the Authority has not recorded sufficient information about the cause of each AFA it has invoiced for, to enable the non payment of the charge to be pursued through the courts and based on the revised chargeability criteria, fewer than three percent of AFAs are likely to meet the criteria for charging in future.

Officers have therefore now written off all outstanding AFA charges. The total value of the outstanding debt written off is £373k excluding VAT, and the cost has been charged to the bad debt provision which had previously been increased by £400k due to the AFA charging position. The budget report also on today’s agenda includes a permanent reduction of £535k to reflect the expected position on AFA income going forward.

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Financial Regulation 9: Budget Virements Appendix 4

Financial Regulation 9: “(f) With the agreement of the Director of Finance and Contractual Services, a head of department may transfer up to £50,000 from a budget head within that department’s approved budget to a budget head within another department’s approved budget, but if those budget heads are in different Directorates the agreement of the appropriate Directors is also required.

(g) With the agreement of the Director of Finance and Contractual Services, the Commissioner, the Deputy Commissioner, the Directors and the Head of Legal and Democratic Services may transfer up to £125,000 from a budget head within that department’s approved budget to a budget head within another department’s approved budget.

(h) The Director of Finance and Contractual Services shall report all transfers under (f) and (g) to the relevant committee as part of the quarterly monitoring reports.“

Department Department Amount Description (Directorate) (Directorate) from to

Finance (Finance Operation £9,950 Virement to cover the one off cost for a pilot of and Contractual Review Team an Operational Audit Tool. Services) (Safety and Assurance)

Technical and Procurement £60,000 One off virement to cover the cost of Service Support (Finance and procurement system enhancements. (Finance and Contractual Contractual Services) Services)

Technical and Operation £80,000 One off virement to cover the cost of Incident Service Support Review Team Command Support Wallets and development of (Finance and (Safety and Incident Monitoring Database as part of the Contractual Assurance) Operational Improvement Strategy. Services)

.

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Risks to the Revenue and Capital Financial Position Appendix 5

Recruitment

1. The forecast underspend on firefighter trainees may increase as trainee intake depends on successful recruitment.

Severance Costs

2. This report includes forecast spend for severance costs relating to changes in the establishment in year and any costs associated with budget proposals for 2017/18. Any further changes to the establishment through the 2017/18 budget process could require additional severance costs this financial year.

Mutual Assistance

3. As reported in the Review of Outturn 2015/16, Mutual Assistance budgets overspent by £110k due to a higher number of incidents being attended inside London by neighbouring brigades, largely related to flooding incidents. A forecast overspend has now been included in the report based on the current numbers of incidents attended. This will continue to be reviewed.

LFEPA governance

4. There are a number of changes in the governance arrangements including the new Mayor, and the new Chair and Members, as well as the abolition of the Authority in 2017, together with the outcome of the referendum on EU membership. This report includes a recommendation to create an earmarked reserve of £100k to help meet these costs and work is on-going to estimate the actual financial impact resulting from these changes.

Firefighters’ Pension

5. Pensions continue to be an area of significant uncertainty with leaver and joiner numbers fluctuating, with rulings to be made/clarified on pensions protection, etc., and with LPFA moving into the Local Pensions Partnership as examples.

Property Rates

6. The rates demand for Southwark Fire Station, two new PFI Stations and the former Mitcham Fire Station are currently being assessed. The forecast spend on property rates in this report assumes this will be within the budget.

ICT Systems Development

7. The forecast outturn for 2016/17 includes expenditure on improvements to the Procurement system and development of the LFB website. There is a risk that these developments will not be completed by the end of the financial year. If this is the case, any remaining funds from the budgets set aside for these projects will be transferred to the ICT Development reserve to be spent in 2017/18.

POTENTIAL RISKS/CHANGES TO THE CAPITAL PROGRAMME

8. The capital budget is an evolving entity which is subject to change throughout the year. Initial project specification is key as it is important to keep variations to projects to a minimum, as change, once a project has been agreed and commenced will invariably result in additional costs. However even the best managed projects can be subject to re-phasing or deferral due to a

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Risks to the Revenue and Capital Financial Position Appendix 5

number of unforeseen issues, such as contractor capacity/failure, bad weather and revised operational need. This can also impact on funding requirements that in turn have a debt charge (cost of borrowing) revenue impact.

9. All capital projects will require third party collaboration to varying degrees over the project life. The following major projects that make up 64% of the programme depend heavily on external parties actions and therefore can be subject to variation with the potential for delays in project delivery and revised cash flow requirements. Specific risks:

Vehicle Replacement Programme

10. The revised forecast cash expenditure in 2016/17, 2017/18 and 2018/19 is based on the current assessment of the stage payment requirements for the pump replacement programme, which represents 48% of the forecast Vehicles and Equipment expenditure in that period and the delivery timings for the balance of the fleet replacement programme. The stage payment requirement for the first batch of pumping appliances has now been finalised with Babcock as the first appliance has been accepted.

11. The January 2017 Vehicles and Equipment Update report (FEP2568) commented that the prices for the further batch of 73 replacement pumping appliances may be affected by Pound - Euro currency fluctuations. The price comparison is based on the final unit price of £232.4k for the first batch of new pumping appliances. (Of note, this final first batch price is a saving of £2.6k less than the approved £235k and includes £3.4k of extras beyond the tender specification.)

12. Negotiations with suppliers have established a fixed price for the second batch of appliances at £242.6k each, to be delivered over the period January 2018 to June 2019. This is an overall increase of 4.3% above the final first batch unit price and includes a 19.22% increase on the price of the Magirus team cab due to currency fluctuations and a 3.13% inflationary increase on the appliance manufacturer’s costs during the period since the first batch order was placed.

13. Key risks for the Vehicle Replacement Programme as a whole relate to the contractor sourcing appropriate vehicle build options within a timeframe that meets fleet replacement requirements and which may in turn impact the Authority’s cash flow.

Control and Mobilising Solution (CAMS)

14. The Brigade successfully cutover to the Replacement Mobilising Solution (VISION4 mobilising system & DS3000 ICCS) as planned on 17 November 2015. The legacy systems were decommissioned in January 2016 and there are a number of other work streams within the project that are still to be delivered. Update releases have been scheduled through 2016 and 2017 for this outstanding functionality. The status of this project is Green as reported in FEP2677.

Asset Management Plan

15. There are an increasing range of demands upon the Authority’s building and facility stock. The current AMP has identified several fire stations as requiring significant modernisation and /or replacement to extend their life and to enable the station to meet the needs of a 21st century fire service. Suitable new sites are being identified for purchase to replace these stations where investment to improve their condition or functionality is uneconomic. New potential development opportunities have been identified for Bromley and Poplar fire stations (FEP2649). As highlighted previously, the Authority has to compete with other sectors, in particular residential development and in case of the new site at Bromley, the Council has advised that the

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Risks to the Revenue and Capital Financial Position Appendix 5

Authority is not the preferred bidder. Discussions on the redevelopment of the Poplar site are protracted due to the complexities associated with the developer’s other land assemblies and planning issues. Therefore the budget of £3.2m in the current year will not be spent.

Plumstead Redevelopment

16. A report on the Options for Plumstead Fire Station (FEP2527) reported the opportunity to relocate the existing Plumstead Fire Station to a new purpose built fire station, at a site which was considered a very good location operationally. However following lengthy negotiations with the owner a number of problems in progressing the acquisition of the site have been identified. The budget of £2.5m will therefore be carried over to later years. It should be noted that if a suitable alternative site cannot be found, refurbishment of the original fire station will be progressed.

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Page 178 Annexe F

OPDC’s 2016-17 Quarter 3 Budget and Performance Monitoring

Quarter 3 Expenditure against Budget Forecast (Appendix A)

1.1 The 2016/17 Q3 expenditure and year end forecast variance is provided at Appendix A and projects a net underspend of £2.96m against a full year budget of £11.4m. This is made up of the following:

 Forecast underspend of £3.25m in the Strategy and Programmes directorate is due to a combination of factors including the temporary suspension of programmed activity pending the outcome of the Mayor’s review of the Corporation’s strategic direction, a reduction in the scope of activity further to the Mayoral review and a delay in procurement of the master planning team.

 Corporate Operations forecast net overspend of £0.05m predominantly due to additional expenditure on staffing offset by underspends relating to Finance and Investment Committee (no meetings held) and delays in Communications projects per the Mayoral review and absence of a Chair.

 The Planning directorate is currently forecasting a net overspend of £0.24m due to additional pieces of work being required since initial budgetary requirements for policy and Community Infrastructure Levy work were approximated 2 years ago. This is offset by income, which is forecast to overachieve by £0.26m.

Programme Dashboard (Appendix B)

1.2 OPDC continues to develop its programme and project management framework. Central to these arrangements is the programme dashboard and associated processes. The dashboard is updated monthly, informed by a review of each project making up the programme. It then informs discussions and the identification of actions at a monthly internal programme board. Note the dashboard is still being developed and programme spend will be added at a future date.

Corporate Performance Dashboard (Appendix C)

1.3 Alongside the programme dashboard, OPDC has in place a corporate performance dashboard. This is reviewed monthly by the senior management team and focuses on key indicators of corporate health. Over time it will developed to include additional indicators.

Report originator: Doug Wilson, Chief Finance Officer Telephone: 020 7983 4038 Email: [email protected]

Page 179 This page is intentionally left blank

Page 180 Appendix A

2016/17 Q3 Expenditure and Year End Forecast

Year End Year End Expenditure Forecast Budget Forecast / Income Expenditure Variance at Q3 2016/17 2016/17 2016/17 2016/17 £000 £000 £000 £000

Strategy and Programmes Strategy and Programmes 7,163 2,207 3,913 -3,250 7,163 2,207 3,913 -3,250

Planning Planning 1,920 1,695 2,427 507 Revenue from Pre-planning Applications -200 -268 -398 -198 Revenue from Planning Applications -200 -9 -265 -65 1,520 1,418 1,764 244

Corporate Operations Corporate Operations 2,717 1,445 2,767 50 2,717 1,445 2,767 50

Total Expenditure 11,400 5,069 8,444 -2,956

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Page 182 Programme Dashboard

Reporting Period: January 2017

Project Status Assessment Milestones

Previous Current Previous Current Project Comment Milestone Target Forecast Comments STATUS STATUS STATUS STATUS

1 OPDC's Local Plan See Risks. Local Plan/Housing Strategy approved for public consultation by OPDC Board. 22-Mar-17 10-May-17

2 Community Infrastructure Levy (CIL) See Risks. Draft Charging Schedule approved for public consultation by OPDC Board. 27-Mar-17 10-May-17 Viability complexity may delay this timetable.

3 New London Overground Stations at Old Oak Common Land and Hythe Road See Risks. Business Case work reviewed by OPDC. 09-Dec-16 30-Apr-17

4 Land Assembly and Transfer On Hold. Pending re-negotiation of MOU. See Risks.

Refinement/alignment of funding & financial strategy to infrastructure programme and housing 5 Funding and Finance for the development of Old Oak Development of strategy limited at this stage until funding and timing requirements are more clearly defined. See Risks. 17-Nov-16 28-Feb-18 Date adjusted to align with broader programme. strategy completed.

Consultants procured for full Socio-economic Regeneration strategy, costed implementation plan & 6 Regeneration Park Royal See Milestones. 16-Dec-16 16-Feb-17 Waiting on completion of budget analysis and GLA shared service offer to continue work on phase 2 initiatives. business case

7 Old Oak Masterplan Old Oak Masterplanning team appointed. 14-Mar-17 04-Apr-17

Options Reports for Energy, Gas, Electricity, Potable Water, Surface Water and Foul presented to 8 Infrastructure - Utilities and Transport 10-Feb-17 10-Feb-17 OPDC. Page 183 Page

9 Infrastructure - Social See Risks. Social (Health and Education) - Strategic options board paper produced. 31-Mar-17 31-Mar-17

Deloitte have confirmed that, from receipt of information from DfT, a minimum of 3 weeks is needed for 10 New HS2 Old Oak Station Development See Milestones. Initial findings from Commercial Evaluation presented. 28-Feb-17 28-Feb-17 completion of the commercial evaluation work. Note that this excludes the additional work needed to support options for commercial delivery of the scheme.

11 New Crossrail Depot Development See Risks. HS2 Ltd feasibility study on interface between station and Crossrail depot completed. 31-Mar-17 31-Mar-17

12 North Acton Station Improvements See Issues and Risks.

13 Improvements to Willesden Junction station, the Southern Gateway Gyratory and the A40

14 HS2 Assurances and Undertakings See Issues. OPDC formal sign off of Petition Item reports and letter. 01-Feb-17 31-Mar-17

15 Place Brand & Identity First 'Place Brand and Identity' work programme commenced. 01-May-17 01-Jun-17

16 Housing Strategy See Risks. Local Plan/Housing Strategy approved for public consultation by OPDC Board. 22-Mar-17 10-May-17

Warning Caution On track Closed Warning Caution On track Closed

Key Issues Other Items for Escalation

Description Comment Description STATUS Action Required Raised

DM (Cargiant planning application): Uncertainty around the proposed Cargiant and infrastructure requirements, in particular detailed design (AIP) for 1 OPDC to work more closely with Cargiant development team to identify and resolve challenges in a timely manner. the viaduct and associated funding for GRIP4/5 and delivery is causing delays.

HS2 Assurances and Undertakings: HS2 require OPDC and TfL to have powers and funding in place before HS2 will commit to delivery of the 3 links OPDC to raise the delivery strategy requirements with TfL and HS2. Three options are being explored: Keep dates the same, 2 in the A&U. OPDC and TfL are not on track to meet deadline (December 2017). change the dates, or de-scope some more complex elements.

North Acton Station Improvements: TfL are no longer progressing step-free access in current business plan resulting in a 3 year delay in 3 OPDC to continue to liaise with LBE and TfL. implementing this.

4

5

Red: Impacting cost, quality, time Green: Cost, quality, time not yet impacted Amber: Will turn red if not actioned by next period Warning Caution On track Closed Blue: Action taken

Key Risks Consolidated Programme Spend Profile

Description Risk Response Plan

1 Land: There is a risk that if we do not become a landowner then our comprehensive regeneration aspirations could be compromised. Risk Response Plan to be confirmed once the findings of the Mayoral Review are clearly understood.

Infrastructure - Social: Risk of under/over-prescribing no. of schools required as based on assumptions and a changing trajectory. As a result, OPDC To agree trajectory scenario and assumptions to allow consistency across infrastructure delivery, run alternative scenarios 2 will be unable to effectively phase school builds leading to insufficient/too many places. and review outcomes, and run bespoke calculations to identify more accurate year-by-year figures.

Funding and Finance: Risks include being unable to secure sufficient/necessary funding, unable to establish viable business case, development of 3 Consider alternative funding sources and de-scope development. sites, incorrect infrastructure cost estimates and unable to retain future business rates.

Crossrail Depot: There is a risk that due to lack of clear plan for development of the Crossrail depot site, that this could impact land value and viability Work with TfL in line with outcome of Mayoral Review to deliver a more robust and reliable strategy for developing the depot 4 of OSD above HS2 station. site.

Planning (Housing Strategy/Local Plan): Timings for finalising Housing Strategy and Local Plan are tight. Programme may be delayed if serious issue Officers have developed a detailed day by day programme for the production of and sharing of Local Plan chapters to 5 arise following multiple meetings with Deputy Mayors, GLA, Landowners and stakeholders during Feb/Mar. ensures that deadlines are met.

CIL: The complexity of the ongoing viability work may impact on the delivery of the programme, causing a delay of approximately 2 months (this has not 6 OPDC to work closely with viability consultants, Cargiant and GLA to progress. yet been confirmed).

North Acton Planning Applications: Planning applications in North Acton are delegated to LB Ealing, who are keen to progress determination of these 7 OPDC to ensure appropriate planning policies in Local Plan and to engage with applicants via GLA pre-application meetings. with limited OPDC involvement. This could result in reputational risk for OPDC.

London Overground Stations: TfL are now progressing business case and modelling to identify a package of rail interventions at Old Oak. This may 8 OPDC to work with TfL to assess wider benefits of the stations and align with OPDC masterplan. conclude that certain stations/interventions are not required.

9 Skills: Revisions to OPDC's budget may impact the ability to deliver a comprehensive skills and employment package. Work with GLA and partners to prepare a skills and jobs strategy.

10

OPDC Project Status Report Printed on 14/02/2017$$ This page is intentionally left blank

Page 184 OPDC Corporate Performance Dashboard

Corporate Performance Dashboard Feb-17

1. Q3 Revenue summary by directorate (£000) 3. % of SME payments made within 10 working days (Target: 90%) 6. Number of post per category Expenditure/ Net Year End Current Directorate Budget Q3 Forecast Period 10 Period 11 Trend YTD Category Dec-16 Jan-17 Feb-17 Income Forecast Performance S&P 7,163 2,207 3,913 -3,250 80% 90% G h 88.4% Agency 4 3 3 Planning 1,520 1,418 1,764 244 FTC 11 11 12 CO 2,717 1,445 2,767 50 4. Risks Permanent 18 18 18 Total 11,400 5,070 8,444 -2,956 Land: There is a risk that if we do not become a landowner then our comprehensive Secondment/Shared Service 9 10 9 regeneration aspirations could be compromised. Total 42 42 42 2. Planning pipeline analysis - Homes (Target: 25,500) Infrastructure - Social: Risk of under/over-prescribing no. of schools required as based on assumptions and a changing trajectory. As a result, OPDC will be unable to effectively phase school builds leading to insufficient/too many places. Number of Posts per Category Status Nov-16 Dec-16 Jan-16 Funding and Finance: Risks include being unable to secure sufficient/necessary funding, 20 Pre-Application 9,470 10,049 10,049 unable to establish viable business case, development of sites, incorrect infrastructure cost 18 estimates and unable to retain future business rates. 16 Application 573 573 566 14 Crossrail Depot: There is a risk that due to lack of clear plan for development of the Crossrail Resolution to Approve 2,141 2,141 2,141 depot site, that this could impact land value and viability of OSD above HS2 station. 12 Determined 764 764 764 10 Planning (Housing Strategy/Local Plan): Timings for finalising Housing Strategy and Local 8 Appealed 0 0 0 Plan are tight. Programme may be delayed if serious issue arise following multiple meetings with

Page 185 Page 6 Deputy Mayors, GLA, Landowners and stakeholders during Feb/Mar. Delivered 0 0 0 4 Total 12,948 13,527 13,520 CIL: The complexity of the ongoing viability work may impact on the delivery of the programme, 2 causing a delay of approximately 2 months (this has not yet been confirmed). 0

North Acton Planning Applications: Planning applications in North Acton are delegated to LB Planning pipeline analysis - Homes (Target: 25,500) Ealing, who are keen to progress determination of these with limited OPDC involvement. This could result in reputational risk for OPDC.

12,000 100 Agency FTC Permanent Secondment/Shared Service

90 London Overground Stations: TfL are now progressing business case and modelling to 10,000 80 identify a package of rail interventions at Old Oak. This may conclude that certain 8,000 70 60 stations/interventions are not required. 6,000 50 7. WriteOn enquiries received 40 Skills: Revisions to OPDC's budget may impact the ability to deliver a comprehensive skills and 4,000 30 employment package. 20 Sep-16 Oct-16 Nov-16 Dec-16 YTD Number of homes of Number 2,000 10 0 0 6 12 8 9 102

Homes% a as of target (cumulative) 5. Average working days per employee lost to sickness absence 8. Enquiries responded to within 20 working days (Target: 90%) Current Current Target YTD 2016/17 Annualised Trend Nov-16 Dec-16 Trend YTD Performance Performance Number of homes Homes as a % of target (cumulative) N/A 1.88 2.26 N/A N/A 85.7% 77.8% R i 92.3%

Comments: Key • Revenue summary provided by Finance Performance • 13,520 housing units in planning. This represents 53% of the overall target of 25,500 homes • SME payments in target for P11 . However, performance remains out of target for year to date In Target G • Risks as per Programme Dashboard Out of Target R • Average working days per employee lost to sickness absence 1.88. The outturn when annualised is 2.26 and is comparable with the GLA's 2.8 in 2015/16. Trend • Total number of posts unchanged • WriteOn enquiries responded to within 20 working days is out of target for December 2016. However, performance remains in target for year to date. Improving h No Change n

Getting Worse i This page is intentionally left blank

Page 186 Agenda Item 6

Subject: The Old Oak and Park Royal Development Corporation

Report to: Budget Monitoring Sub Committee

Report of: Executive Director of Secretariat Date: 23 March 2017

This report will be considered in public

1. Summary

1.1 This report provides information on the committee’s consideration of the Old Oak and Park Royal Development Corporation (OPDC).

2. Recommendation

2.1 That the committee notes the report, puts questions to the invited guests on the OPDC’s financial performance and future plans and notes the subsequent discussion.

3. Background

3.1 The OPDC goes into 2017-18 with a reduced level of funding from the Mayor compared to 2016-17. The level of reduction, which is 40 per cent less than its 206-17 outturn is disputed by the Mayor’s team. Over the past year the OPDC has been without a chair and it is expected to shortly be publishing its “masterplan” for the area. It is also applying to the Mayor for £2 million to start work on a self-funding proposal.

3.2 The OPDC were before the Budget and Performance Committee as part of the budget scrutiny process in January 2017. This meeting provides members with the opportunity to question the OPDC further about its financial performance and its future plans for the site.

4. Issues for Consideration

4.1 The following guests have been invited to attend the meeting:  Victoria Hills, Chief Executive, OPDC; and  Doug Wilson, Chief Finance Officer, OPDC

5. Legal Implications

City Hall, The Queen’s Walk, London SE1 2AA Enquiries: 020 7983 4100 minicom: 020 7983 4458 www.london.gov.uk Page 187

5.1 The committee has the power to do what is recommended in this report.

6. Financial Implications

6.1 There are no direct financial implications of this report.

List of appendices to this report: None

Local Government (Access to Information) Act 1985 List of Background Papers: None

Contact Officer: Will King, Budget and Performance Adviser Telephone: 020 7983 5770 Email: [email protected]

Page 188 Agenda Item 7

Subject: Mayor’s Decision Lists: 1 December 2016 to 6 February 2017

Report to: Budget Monitoring Sub-Committee

Report of: Executive Director of Secretariat Date: 23 March 2017

This report will be considered in public

1. Summary

1.1 The report sets out the Mayor’s Decision Lists published since the last meeting of Sub-Committee, and asks, following any discussion, that the Sub-Committee decide if there are any issues with the lists that should be referred to the Budget and Performance Committee for detailed consideration.

2. Recommendation

2.1 That the Sub-Committee discusses any issues arising from the Mayor’s Decision Lists for the period 1 December 2016 to 6 February 2017 (previously made available as background papers to the relevant Mayor’s Reports to the Assembly), and decides whether to refer any issues to the Budget and Performance Committee for detailed consideration.

3. Background

3.1 The Mayor’s Decision Lists record both the decisions taken by the Mayor and the Directors of the Authority, through the Authority’s formal approval processes. These lists, which relate to a specified period, are made available as background papers to each Mayor’s Report to the London Assembly.

3.2 The Sub-Committee’s Term of Reference state that the Sub-Committee is: To consider the quarterly monitoring reports provided by the GLA and its functional bodies as referred to it by the Budget and Performance Committee, and any other reports falling within the terms of reference of the Budget and Performance Committee which that Committee considers appropriate, and to report back its findings to the Budget and Performance Committee as necessary.

3.3 At its meeting on 28 June 2016, the Budget and Performance Committee agreed to refer the Mayor’s Decision Lists to the Sub-Committee for consideration as a matter of course for the remainder of the Assembly year.

City Hall, The Queen’s Walk, London SE1 2AA Enquiries: 020 7983 4100 minicom: 020 7983 4458 www.london.gov.uk

Page 189

4. Issues for Consideration

4.1 The Mayor’s Decision Lists, as previously published on London Assembly (Mayor’s Question Time) agendas are attached as follows:  Mayor’s Decision List for 1 December 2016 to 4 January 2017, attached at Appendix 1; and  Mayor’s Decision List for 5 January 2017 to 6 February 2017, attached at Appendix 2;

5. Legal Implications

5.1 There are no direct legal implications arising from the report.

6. Financial Implications

6.1 There are no direct financial implications arising from the report.

List of appendices to this report:

Appendix 1 – Mayor’s Decision List for 1 December 2016 to 4 January 2017 Appendix 2 – Mayor’s Decision List for 5 January 2017 to 6 February 2017

Local Government (Access to Information) Act 1985 List of Background Papers: None

Contact Officer: Shumus Mattar , Committee Assistant Telephone: 020 7983 4011 E-mail: [email protected]

Page 190 Appendix 1

Mayor’s Report to the Assembly

Background Document – List of decisions between 1 December 2016 and 4 January 2017

The Part 1 of Mayoral Decisions (from 6 April 2009), Executive Director Decisions (from 1 November 2010), Assistant Director Decisions (from 18 April 2013) and the non-confidential facts and advice supporting those decisions, are published on the GLA website here within one working day of approval, unless deferred. * = previously deferred publication.

s30/34 = approved under Section 30 or 34 (general and subsidiary powers) of the GLA Act 1999 (as amended)

Ref Decision Date Approved by/ Financial Implications Signed Mayoral Advisor MD2060 Blackwall Reach loan 03/01/17 Sadiq Khan/ This is a loan facility of James Murray £50,000,000 to Swan NH, with

Page 191 Page s30 Approved: appropriate security arrangements.

1. The indicative allocation of a further £27.01m Financial The loan facility is for a period of Transaction funding being made available for the purposes of 10 years at an interest rate referred accelerating the delivery of housing within the Poplar Riverside to in the confidential Part 2 Housing Zone in addition to the indicative allocation of £22.99m section. Financial Transaction funding in respect of the Poplar Riverside Housing Zone under MD1545, noting that such funding shall only Properties provided on these sites be contractually committed subject to the satisfactory outcome of provide 50% affordable dwellings legal and financial due diligence. by habitable rooms.

2. The delegation of authority to the Executive Director of Housing and Land in consultation with the Deputy Mayor for The lending across this scheme will Housing & Residential Development to determine (by means of a be £33,852 per dwelling therefore record in writing) that such due diligence has been satisfactorily making this project good value for undertaken and that it is appropriate for GLA Land and Property money. Limited (GLAP) to contractually commit Housing Zone loan funding of £50m to Swan New Homes Ltd in respect of the Including this £50,000,000 Blackwall Reach Regeneration Project intervention described in commitment will take the housing the report below. zones financial transaction spend to £159,354,294, from a budget of

Appendix 1

Part 2 of this report is confidential under the FOI Act £200,000,000. Therefore there will be a remaining budget of £40,645,706.

MD2059 London & Partners Review Recommendations 06/12/16 Sadiq Khan/ There were no costs arising to the Rajesh Agrawal GLA from this review. s30 Approved: Implementing the findings of the 1. The final London & Partners review recommendations, as set review could lead to some cost out in Appendix A to the decision form, so that officers begin the savings. The implications of those implementation process. cost savings for L&P and the GLA will be looked at if and when they arise.

MD2055 London Growth Hub 06/12/16 Sadiq Khan/ Ben As detailed within the main body of Page 192 Page Johnson and this report, the grant from BEIS has s30 Approved: Rajesh Agrawal to be spent in-year and there will be no further funding beyond the 1. The receipt of grant funding from the Department for Business, 2017-18 financial-year. Environment & Industrial Strategy and the associated expenditure totalling £1,040,000 (£520,000 in 2016/17 and £520,000 in To ensure there is some funds in 2017/18) to further develop the London Growth Hub, as outlined place to maintain the London in the confidential Part 2 section of the decision form, noting that Growth Hub beyond 2017-18, the this additional funding will replace c£180,000 of expenditure from unspent £179,233 allocated to the the London Local Enterprise Partnership’s (LEP’s) Growing Places project from the Growing Places Fund (GPF) on this project. Fund by DD1351 will be ring- fenced to support Growth Hub and 2. A proposal that the GPF funding be reserved for use to maintain ensure continuity of service. In the the London Growth Hub in future years in order to avoid a meantime, efforts will be made by significant drop-off in funding at the end of 2017/18 (which project officers to find a self- could lead to the closure of the service). sufficient model through revenue generation (e.g. sponsorship or 3. That detailed proposals for the proposed face-to-face business charging structures). support services in 2017/18 be agreed by the London LEP.

Part 2 of this report is confidential under the FOI Act

Appendix 1

MD2051 Establishing the Skills for Londoners taskforce 06/12/16 Sadiq Khan/ This MD is seeking approval for the Jules Pipe establishment of a 'Skills for s30 Approved: Londoners' taskforce, with January 2017 being the proposed date for 1. Establishment of a Skills for Londoners taskforce, comprising a the commencement of activities. small steering group supported by a large stakeholder advisory Other than officers’ time, there are group on which the steering group can draw for advice and no direct costs to the GLA for guidance to assist in realising the Mayor’s manifesto commitment establishing the taskforce at this to lead a new skills agenda for London and to make sure stage. businesses and Londoners get the skills they need to succeed. The programme budget to cover 2. Commencement of activity (in January 2017) to identify future activities is being sought members for appointment to the steering group and stakeholder through the formal budget setting

Page 193 Page advisory group, including an open application process. process.

MD2042* Hounslow Town Centre Housing Zone 27/10/16 Sadiq Khan/ £18.5m was allocated to Hounslow James Murray Housing Zone as part of MD1457, s30 Approved: which included £3.5m towards the delivery of 200 units (of which 80 1. The indicative allocation of a further £2.7125 million being units, equivalent to 40%, would be made available for the purposes of unlocking or accelerating the affordable units) on the Hounslow delivery of housing within the Hounslow Town Centre Housing Town School site. Zone in addition to the indicative allocation of £18.5 million of funding made available in respect of the Hounslow Town Centre With permission for a greater Housing Zone under MD1457, noting that such funding shall only number of homes (284 in total) and be contractually committed subject to the satisfactory outcome of the additional grant proposed by legal and financial due diligence. the MD (£2.7125m), the total number of affordable homes will 2. That this takes the overall indicative funding allocation for the rise to 142, which represents 50% Hounslow Town Centre Housing Zone to £21.2125 million. of the total.

3. Delegation of authority to the Executive Director of Housing The grant rate for the additional and Land and the Executive Director of Resources, in consultation units beyond the original 80 equals £43,750 per units (£2.7125m for an

Appendix 1

with the Deputy Mayor for Housing & Residential Development, to additional 62units), which is determine that legal and financial due diligence has been considered reasonable. satisfactorily undertaken and that it is appropriate for the Greater London Authority to contractually commit Housing Zone grant funding of up to £6.2125 million (which includes the additional £2.7125 million indicatively allocated under this Mayoral Decision) to the intervention known as the Hounslow Town School site within the Hounslow Town Centre Housing Zone.

4. Delegation of authority to the Executive Director of Housing and Land to approve any amendments required to the Overarching Borough Agreement between the London Borough of Hounslow and the Greater London Authority dated 6 November 2015 he considers necessary or expedient as a consequence of this Mayoral Decision. Page 194 Page MD2035* Siemens Crystal Acquisition 05/10/16 Sadiq Khan/ Financial comments are contained James Murray in the confidential Part 2 section. s30 Approved:

1. The acquisition of the London Borough of Newham’s interest in the Siemens Crystal.

2. The acquisition of a number of small parcels of land adjacent to the Crystal from London Borough of Newham.

3. The purchase of the long leasehold interest in the Crystal from Siemens PLC.

4. The project budget for the acquisition costs.

5. The transfer of plot E from GLA Land and Property to London Borough of Newham.

Part 2 of this report is confidential under the FOI Act

Appendix 1

MD1627* Waltham Forest Housing Zone site acquisitions 17/03/16 / The paper is seeking approval for Richard Blakeway the acquisition of a site (Webbs s30 Approved: site) located within the Waltham Forest Housing zone. The 1. The acquisition of the Webbs Industrial Site within the Waltham acquisition will be funded from Forest Housing Zone for redevelopment via the London resources within GLAP Development Panel for mixed use residential led scheme.

Part 2 of this report is confidential under the FOI Act

MD1573* National College for Digital Skills 23/11/15 Boris Johnson/ If the recommendation to allocate Munira Mirza £7.165 million of FE capital grant Approved: funding is approved this would commit £20.6 million of grant 1. Receipt and use of £13.4m from the Department of Business, funding in total for the national

Page 195 Page Innovation and Skills as a contribution to the GLA’s costs of college which would be funded as funding the National College for Digital Skills project. follows: £7.165 million from the unallocated element of FE capital 2. Capital expenditure of up to £20.565m (comprising £7.165m grant received in 2015-16 and GLA FE Capital funding and £13.4m to be made available to the £13.405 million from an anticipated GLA by BIS) as a contribution to the costs of the National College additional grant to be paid by BIS. for Digital Skills project. It is estimated that £1.75 million of expenditure would be required in Part 2 of this report is confidential under the FOI Act 2015-16, including £0.5 million for the Tottenham Hale freehold, £0.6 million to progress the Tottenham Hale new build and £0.65 million towards the cost of refurbishing Berol House. The estimated spend in future years is as follows: £8.9 million in 2016-17; £6.9 million in 2017-18; and £3.0 million in 2018- 19. This commitment would be conditional on confirmation of the additional £13.405 million BIS grant.

Appendix 1

Although the College has made a case for funding (including this reduced scenario) based on market demand there are financial risks funding a start-up new institution. However, it has carried out sensitivity analysis which shows that it would have sufficient cash to finance operations even if student numbers were only 70 per cent of the number anticipated, although this needs to be considered in light of the risk highlighted by the independent assessment of market Page 196 Page demand. The College has also been successful in raising sufficient funds from both BIS and business to this stage of its development, but its projections do rely on an on-going annual revenue fundraising requirement of c£0.5 million. As a new institution it has also not been able to build up any funding reserves so would need to manage the project within the grant funding available and would only be able to finance any capital overspend risks that materialise from the project contingency.

The recommendation to progress the reduced scheme, pending confirmation of the post-CSR 2016-17 FE Capital grant funding, excludes funding for a Whitechapel

Appendix 1

campus amongst other things. However, the College’s own appraisal indicated that in purely monetary terms the addition of the Whitechapel campus build could not demonstrate value for money and its inclusion would rely solely on non-monetary considerations. This issue would need to be considered in more detail should sufficient 2016-17 grant funding be confirmed to progress the full scheme.

MD1558* Beam Park, Dagenham – Removal of RDF Waste Material 03/11/15 Boris Johnson/ GLAP provided £3,000,000 for the

Page 197 Page Richard Blakeway cost of removing the estimated s30 Approved: 27,000 tonnes of waste from the Hunt’s Waste site in the 2013/14 1. Expenditure of up to £3m for the appointment of external accounts. specialists to remove an estimated 27,000 tonnes of Refuse Derived Fuel material from Beam Park, Dagenham. The final amount to be paid to the contractor will depend upon the 2. Delegation of authority for potential additional expenditure of final determined weight of the up to £0.5m to the Executive Director, Housing & Land, in the material to be moved. Any cost event that the volume/nature of the material increases the over the £3,000,000 provided will contract price beyond the current estimate. be subject to further approval and will be contained within the existing Housing and Land budget.

DD2076 Royal Albert Dock – Second Deed of Variation 23/12/16 David Lunts This paper is seeking approval for changes to the Development Approved: Agreement.

1. The proposed changes to the Development Agreement with ABP London Investment Ltd for the regeneration of Royal Albert Dock and enter into a Deed of Variation to document the changes.

Appendix 1

Part 2 of this report is confidential under the FOI Act

DD2070 Housing Zone Due Diligence sign off: LB Waltham Forest 13/12/16 David Lunts/ This is a proposal to spend Housing Zone, Blackhorse Lane Martin Clarke £800,000 on station improvements s30 at Blackhorse Road station to speed Approved: up the delivery of 310 dwellings with an average input of £2,581 per 1. That the outcome of due diligence, detailed in the decision form unit this is good value for money. and confidential Part 2 section, demonstrates it is appropriate for the GLA to contractually commit up to £800,000 grant funding to The spend of £800,000 non- the London Borough of Waltham Forest to fund the Blackhorse recoverable grant increases Road station works intervention within the Blackhorse Road and Housing Zones grant expenditure Northern Olympic Park Housing Zone. to £102,925,000, therefore leaving £297,075,000 within the Page 198 Page 2. That the deduction of £800,000 from the overall budget for £400,000,000 budget. Housing Zones, results in that budget being as follows: £297,075,000 being available for further grant funding. Expenditure of £44,895,000 was agreed in MD1545 and this 3. The re-profiled start on site and completion dates for the £800,000 forms part of that delivery of housing outputs, as well as adjustments to the funding expenditure. allocation and funding drawdown timetables, as detailed in the decision form, for the Blackhorse Road and Northern Olympic Park Housing Zone.

Part 2 of this report is confidential under the FOI Act

DD2069 Commissioning fund -Capel Manor in Crystal Palace Park 15/12/16 Fiona Fletcher- The total gross cost of the Smith proposed feasibility study is s30 Approved: £15,850 with the net cost to the GLA being £10,850. The balance of 1. The receipt of funding of £5,000 from Capel Manor College; £5,000 will be funded via a and expenditure of up to £15,850 on feasibility study services contribution from the Capel Manor required for the development of the Capel Manor campus at College. The GLA contribution of Crystal Palace Park. £10,850 will be funded from the High Street ‘Commissioning Fund’

Appendix 1

as approved by MD1469 & MD1561 respectively.

DD2065 Rainham and Beam Park Housing Zone, LB Havering – Beam 08/12/16 David Lunts/ The recoverable grant is simply a Park Station Martin Clarke non-interest bearing loan, to be s30 repaid with instalments of Approved: £2,200,000 at March 2023 and March 2027, with the remainder to 1. That the outcome of due diligence, detailed in the decision be paid by March 2030. form, demonstrates that it is appropriate for the GLA to contractually commit up to £9,600,000 of grant funding (with As part of the Borough Intervention £8,800,000 to be recovered) to the London Borough of Havering Agreement the London Borough of to fund the interventions specified in the decision form within the Havering has a contractual Rainham and Beam Park Housing Zone. obligation to pay back the £8,800,000 to the GLA.

Page 199 Page 2. The re-profiled number, completion and start on site dates for the delivery of the housing outputs and the re-profiled funding This project was estimated to interventions and repayment timescales as detailed in this report. deliver 1,242 dwellings in MD1545, but is now delivering 1,475 3. The deduction of £9,600,000 for these interventions from the dwellings, this amounts to £6,508 grant budget for Housing Zones. per dwelling, which is very good value for money. 4. That this decision, further to MD1545 which was inherited by this administration, approves the two interventions specified below There is a risk of cost over-run on which will deliver 33% affordable housing, but that the GLA will the station works but this is the risk seek to negotiate with the London Borough of Havering and the for the London Borough of affordable housing providers on these sites with the aim to match Havering, and the GLA’s the Mayor’s long term strategic target of 50% affordable housing. contribution is capped at £9,600,000 (£8,800,000 being Part 2 of this report is confidential under the FOI Act recoverable grant).

DD2049* Disposal of the Greenwich Coaling Jetty 28/09/16 David Lunts/ Financial comments are contained Martin Clarke in the confidential Part 2 section. s30 Approved:

1. The disposal of the Greenwich Coaling Jetty to Knight Dragon

Appendix 1

as a chattel (with the benefit of a licence granted by the freeholder, the Port of London Authority).

Part 2 of this report is confidential under the FOI Act

DD2042* Periodic Polling Programme 13/09/16 Jeff Jacobs A DAR for £10,000 was completed in August 2016 to commission ad s30 Approved: hoc surveys up to the start of the new contract. 1. Expenditure of up to £130,000 for the period Nov 2016 – Oct 2017 and competitive procurement of periodic online polling The contract will be awarded via a services to support effective and impactful policy making and the competitive tender process and will development of strategies and programmes at City Hall. last 12 months from November 2016 to October 2017.Therefore the costs will be incurred over 2 Page 200 Page financial years in 2016-17 (£54k) and 2017-18 (£76k).

The costs will be funded from the Consultation Programme budget GG.0220.006.001 held within the Intelligence Unit.

DD2020* Pocket Homes further variations 05/07/16 David Lunts The financial security in respect of cost overruns, which was to be s30 Approved: provided by means of a site by site contingency and a ring-fenced 1. Entry into a Deed of Consent between the GLA and Pocket contingency sum in the banking Living (2013) LLP, as described in the Director Decision form, in facility, remains. This approach respect of the Mapleton Crescent site and notes that any offers acceptable mitigation of this agreements which are required to be entered into further to the financial risk. Details of this appear Deed of Consent will be the subject of a separate Director in Part 2. Decision.

2. Entry into an Intercreditor Deed to replace the existing intercreditor deed between Pocket Living (2013) LLP, Lloyds Bank

Appendix 1

Plc and the GLA dated 13 June 2014 in respect of those matters set out in this Director Decision form.

Part 2 of this report is confidential under the FOI Act

DD2019* London Office Policy Review 2016 01/07/16 Fiona Fletcher- The estimated total cost of this Smith work is up to £85,000. The costs Approved: will be met from the 2016-17 Programme Budget 1. Expenditure of up to a total of £85,000 to lead, procure and and will be complete in 2016-17. commission specialist technical services to undertake the London Office Policy Review 2016.

DD2018* London Industrial Land Demand Study 01/07/16 Fiona Fletcher- The estimated total cost of this Smith work is up to £60,000. The costs

Page 201 Page Approved: will be met from the 2016-17 London Plan Programme Budget 1. Expenditure of up to a total of £60,000 to lead, procure and and will be complete in 2016-17. commission specialist technical services to undertake the London Industrial land Demand Study.

DD1446* London Consumer Expenditure & Retail Floorspace Needs 10/02/16 Fiona Fletcher- The cost of this work will be up to Study Smith £80,000 and will be met from the s30 2015-16 London Plan Programme Approved: Budget. Half the payment for this study will be made in 2015-16 1. Expenditure of up to a total of £80,000 to procure specialist therefore it is likely that there will technical services by competitive tender to undertake the London be a need to request a carry Consumer Expenditure and Comparison Goods Retail Floorspace forward £40,000 of the London Need Study. Plan budget.

ADD2063 First Steps Property Portal Contract Extension 22/12/16 Jamie Ratcliff This is an internet based service that provides property details to Approved: prospective shared ownership purchasers and tenants. The fact

Appendix 1

1. The use of the contract variation powers within the First Steps that it is provided at no cost to the Property Portal Contract to extend the service to 30 June 2018 on GLA makes it good value. There existing terms and at no cost to the GLA. seems to be no financial reason to not extend the contract.

The decision to extend this contract is on the same basis as MD1134 at nil-cost to the GLA.

ADD2061 Female Entrenched Rough Sleeper Project 15/12/16 Jamie Ratcliff This decision seeks approval to expend £21,000 to grant fund Approved: Central and North West London NHS Foundation Trust (CNWL) to 1. Expenditure of £21,000 of grant funding to the Central and run the Female Entrenched Rough North West London NHS Foundation Trust towards the cost of the Sleeper Project (FERSP). Funds are Page 202 Page Female Entrenched Rough Sleeper Project, which will run from 1 available from Mayor’s Rough February 2017 to 31 March 2018. Sleeping services, which have been allocated with total funding of £8.49m for the 2016/17 financial year. Expenditure will be incurred in 2016/17 financial year.

ADD2058 New design hardware equipment procurement 30/12/16 Emma Strain The estimated cost of up to £15,000 for this proposal will be Approved: contained within the External Relations Budget for 2016-17. 1. The procurement of new design hardware equipment for the Creative team up to the value of £15,000.

ADD2056 Trust for London Citizenship and Integration Initiative 20/12/16 Amanda Coyle There are no direct financial implications for the GLA and the Approved: agreed in-kind support is limited to desk space. It should be noted, 1. That the GLA agrees an MOU with Trust for London and sits on that future costs that may arise the Advisory Panel of the Trust for London Citizenship and from work undertaken by the core Integration board. GLA must be contained within

Appendix 1

available budget provision in the 2. That the GLA receives a minimum of two and up to five C&I Directorate and be subject to secondments enabled by the Citizenship and Integration Initiative approval via the Authority’s at no additional financial cost to the GLA. decision-making process.

ADD2055 Executive Search for the Chair of the LLDC and the Chair of 13/12/16 Juliette Carter The expenditure of up to £30,000 the OPDC will be funded by the Corporate s30 Contingency budget. Approved:

1. Expenditure of up to £30,000 on the services of Green Park executive search agency required for the identification of persons for potential appointment to the roles of chair of the: London Legacy Development Corporation; and Old Oak and Park Royal Development Corporation.

Page 203 Page 2. The related exemption from the requirement of the GLA’s Contracts and Funding Code to procure such services via competitive tender or by calling off services from an accessible framework.

ADD2053 639 Tottenham High Road Repair works to flat roof 07/12/16 Debbie Jackson The estimated cost of the proposed repairs to the roof of 639 High Approved: Street building is £15,500, which will be funded from the LEF 1. Expenditure of up to £15,500 to fund repair works to the revenue budget for 2016-17. It ground floor flat roof to the rear of 639 Tottenham High Road. should be noted that after inspection, should a full replacement of the roof be required, this will be subject to further approval via the Authority’s decision-making process.

ADD2051 Public Health Consultancy 13/12/16 Amanda Coyle The funding will be provided in full by Public Health England. Approved:

Appendix 1

1. The receipt and expenditure of up to £45,000 to commission a consultant with public health expertise to provide support to the GLA’s health team.

ADD2050 Westferry Printworks: Financial Viability Independent 06/12/16 Colin Wilson The cost is to be funded from Assessment and Review Mechanism Planning’s 2016-17 Call-In Budget. s30 However, the GLA will be Approved: reimbursed in full by Northern & Shell Investments No.2 Limited 1. Expenditure of up to a total of £24,960 on (additional) under the terms of a Project consultancy costs for viability review work and consultants’ Planning Performance Agreement. attendance at Section 106 meetings, the cost of which is to be fully recovered from the applicant.

Page 204 Page 2. A related exemption from the requirement of the GLA’s Contracts and Funding Code to procure such services competitively, instead varying the GLA’s contract with Gerald Eve without competition, to carry out the Financial Viability Independent Assessment and Review Mechanism.

ADD2036* London Boiler Cashback Scheme administration 18/10/16 Jamie Ratcliff This decision seeks approval to award the contract to the Energy Approved: Savings Trust for the administration of the London Boiler Cashback 1. The award of a contract, with a value of up to £49,819, to the Scheme for a maximum of seven Energy Savings Trust for the administration of the London Boiler months, at a monthly cost of Cashback Scheme (as detailed in section 1 of the decision form), £7,117 (a maximum of £49,819). and a related exemption from the requirements of the GLA’s The initial contract has been Contracts and Funding Code to seek competitive tenders for such approved by MD1606 for the total services. Existing revenue funding from within the Housing and amount of £148,000 to the end of Land Directorate’s RE:NEW budget will be used for this purpose. July 2016.

Proposed expenditure is available to be used from RE:NEW budget within Housing and Land

Appendix 1

directorate and will be utilised in 2016/17 financial year.

ADD2033* Various Sites in the London Borough of Waltham Forest 29/09/16 Jamie Ratcliff This decision seeks approval to expend up-to £35,000 to appoint s30 Approved: property advisors to undertake a Red Book valuation of various sites 1. Expenditure of up to £35,000 to undertake valuation work for in the Waltham Forest Housing the potential acquisition of a series of sites within the Waltham Zone. Forest Housing Zone. This expenditure is available from Part 2 of this report is confidential under the FOI Act the Housing & Land Housing Zones Revenue Budget and will be expended in 2016/17 financial year.

Page 205 Page ADD2007* Air Quality Consultation-Survey and Analysis of Results 23/06/16 Patrick Feehily Approval is being sought for expenditure of up to £45,000 in Approved: support of the (Stage 1 Air Quality measures) online survey and 1. The expenditure of up to £45,000 in support of the (Stage 1 Air analysis of results. This is to be Quality measures) online survey and analysis of results. funded from Executive Director, Development, Enterprise and Environment (DE&E) 2016-17 Minor Programme budget and the work and report will be all delivered in 2016-17.

ADD2004* Freight Trade Forecasts 13/07/16 Stewart Murray The cost will be met from the Planning 2016-17 London Plan s30 Approved: Programme budget. All the delivery and spend will take place within 1. Expenditure of up to a total of £35,000 to procure by 2016-17. competitive tender long term trade forecasts for London’s Blue Ribbon Network, together with associated wharf capacity requirements and distribution.

Appendix 1

ADD2001* Review of the London Plan network of Sites of 03/06/16 Stewart Murray Approval is sought for expenditure Metropolitan Importance for Nature Conservation of up to £50,000 to procure consultants to undertake a review Approved: of Sites of Metropolitan Importance for Nature Conservation. The cost 1. Expenditure of up to a total of £50,000 to procure specialist will be met from Planning’s London environmental services by competitive tender to undertake the Plan 2016-17 Programme Budget. review of Sites of Metropolitan Importance for Nature Conservation.

Page 206 Page

Appendix 2

Mayor’s Report to the Assembly

Background Document – List of decisions between 5 January 2017 and 6 February 2017

The Part 1 of Mayoral Decisions (from 6 April 2009), Executive Director Decisions (from 1 November 2010), Assistant Director Decisions (from 18 April 2013) and the non-confidential facts and advice supporting those decisions, are published on the GLA website here within one working day of approval, unless deferred. * = previously deferred publication.

s30/34 = approved under Section 30 or 34 (general and subsidiary powers) of the GLA Act 1999 (as amended)

Ref Decision Date Approved by/ Financial Implications Signed Mayoral Advisor MD2070 Museum of London relocation 23/01/17 Sadiq Khan/ Details of the proposed funding Justine Simons package and protections for the Page 207 Page s30 Approved: GLA are set out in paragraphs 4.8 to 4.13 of the decision form. The 1. A GLA contribution of up to £70 million towards the funding GLA will provide annual revenue package for the construction and fit out of the Stanton Williams, grant funding to the Corporation to Asif Khan design for a New Museum Building at West Smithfield, cover the financing costs of any and that the GLA’s share of the funding package should not borrowing the Corporation exceed the contribution payable by the City of London undertakes for the GLA’s share of Corporation. its contribution to the capital funding package. An outline of 2. The GLA funding for the project to be a long term annual estimated project cashflows shows revenue contribution payable to the City of London Corporation to that approximately £21 million is meet the financing costs of borrowing or direct project costs, the required up to the end of RIBA terms of which will be set out in a legal agreement. Stage 3 by June 2018 with the main construction cost not 3. A delegation to the Executive Director of Resources to conclude occurring until 2019. The and sign the legal agreement with the City of London Corporation. Corporation has indicated that it may not need to borrow 4. A delegation to the Executive Director of Resources to conclude immediately, therefore in this case and sign the Heads of Terms for the project between the Museum the GLA’s revenue grant could of London, the City of London Corporation and the GLA. cover project costs directly.

- 1 - Appendix 2

However, by way of illustration the Part 2 of this report is confidential under the FOI Act estimated financing costs of borrowing £70 million over 25 years would be approximately £4 million per annum based on current market projections of interest rates. It is currently intended that this would be funded from the extra council tax revenue that will be generated from the increase in the tax base expected in 2017-18. The GLA would also have an option to make a contribution from its planned capital programme reserve depending on the level of other Page 208 Page commitments and priorities for this reserve: a contribution from this reserve would reduce future annual contributions and/or the financing period

To provide certainty of funding to the Corporation the financing arrangement will be set out in a legal agreement between the GLA and the Corporation. To date the GLA has provided £430,000 towards the project cost, but no further funding would be provided until this is concluded and the Corporation has formally confirmed its contribution.

The GLA contribution to the capital cost will be capped and on-going assurance on project costs will - 2 - Appendix 2

come from GLA representation on the project Board and through regular project monitoring information. MD2069 Crossrail Business Rates Supplement – Approval of Policies 02/02/17 Sadiq Khan/ The income raised through the for 2017-18 David Bellamy Crossrail BRS in the 2017-18 financial year net of billing Approved: authority administrative expenses and rating reliefs is estimated at 1. The Crossrail BRS will apply for the full 2017-18 financial year this stage to be £275.8 million across the entire GLA area. before appeals - £51.3 million higher than the forecast for 2016- 2. The Crossrail BRS multiplier (or tax rate) shall be set at 2p per 17 – and £254.8 million after an pound of rateable value. allowance for appeals which is £35.8 million higher than in 2016-

Page 209 Page 3. The rateable value threshold above which the Crossrail BRS shall 17. As outlined above, £115.0 apply be increased from £55,000 to £70,000. This is in line with million of this million is expected to the requirement set out in the final Crossrail BRS prospectus that be used to finance the GLA’s the threshold should rise at each revaluation in line with the estimated interest costs on debt it average percentage change in rateable values. is forecast to hold by the end of March 2017 and £80 million 4. Any reliefs for the Crossrail BRS will continue to apply on the applied to repay part of its £3.3 same basis at the same percentage rate as for National Non billion of Crossrail debt. Any Domestic Rates (NNDR) having regard to the local policies in place unallocated sums will be retained to in the 33 London billing authorities and those set by central finance future debt repayment. government. Section 45 ratepayers (that is, those owning or The actual sums collectable in entitled to occupy empty properties) will not be exempt from the 2017-18 taking into account reliefs Crossrail BRS as a class. The same automatic empty property reliefs and losses on collection will be will apply, however, at the same percentage rate to the Crossrail forecast by London billing BRS as for NNDR. The GLA will not exercise its powers under authorities before the end of March section 16 of the BRS Act to apply an offset for eligible ratepayers 2017. liable to pay a levy towards a Business Improvement District. It is estimated that the BRS for 5. The Mayor authorises the Executive Director, Resources to issue Crossrail will run for a period of at a notification of the above policies to the 33 London billing least 24 years until the GLA’s authorities as required by section 18 of the BRS Act and the borrowing is repaid – with a current - 3 - Appendix 2

explanatory note for non-domestic ratepayers for 2017-18 as set target end date of 2033-34. Over out in Appendix A. The Crossrail BRS is projected to raise £275.8 its lifetime it is estimated that million in 2017-18 from ratepayers but after provisions for losses between £5.5 billion to £6.0 billion due to successful rating appeals this falls to £254.8 million. The may need to be collected via the GLA will apply an estimated £115 million of BRS income in 2017- BRS to meet the expected 18 on interest payments and is scheduled to repay £80 million of repayment profile and financing its £3.3 billion of Crossrail related debt. costs – the former figure being on the presumption that the GLA’s Crossrail debt is repaid in 2033-34 and the latter if the repayment date is up to five years later.

MD2068 London Development Panel 24/01/17 Sadiq Khan/ Financial comments are contained James Murray in the confidential Part 2 section. s30 Approved: Page 210 Page 1. The Procurement of a new London Development Panel on the basis set out in the decision form.

2. The proposed expenditure required to do so.

3. The proposed extension of the current LDP.

Part 2 of this report is confidential under the FOI Act

MD2067 GLA Pay Award 16/01/17 Sadiq Khan/ The additional costs (salary plus David Bellamy on-costs) required to apply a 1% The Mayor: pay award to all staff, with an additional 1% for grades 1 to 5 and 1. Confirms that the pay award made to GLA staff (1% for senior an additional 0.5% for grades 6 to staff) should also be made to the Statutory Officers (noting that it 8 will cost approximately £0.56m is a joint decision with the Assembly). per annum and will be funded from the Authority’s Contingency 2. Agrees to implement the pay award made to GLA staff (1% for Budget. The additional cost of senior staff) effective from 1 April 2016 to his staff appointed £0.56m per annum includes under s67(1) (a) and (b) of the GLA Act 1999 as amended. provision for a 1% pay award to the - 4 - Appendix 2

GLA’s statutory officers and to 3. Agrees that, for the current Mayoral term, mayoral appointees those GLA staff appointed by the who are on the same grade as GLA staff should receive the same Mayor and also for the Mayor and pay award. Mayoral appointees who are on spot salaries at the Assembly Members. same level as Executive Directors (not Statutory Officers) should receive the same pay award.

4. Notes that, in accordance with the Senior Salaries Review Body recommendation (agreed in 2009), the local government pay settlement of 1% is to be applied to the pay of the Assembly Members and the Mayor.

MD2066 Bond Street Public Realm Improvement Growing Places 23/01/17 Sadiq Khan/ The £2m of capital funding can be Fund Loan Jules Pipe funded from unallocated Growing s30 Places Fund (GPF) budget project.

Page 211 Page Approved: It is expected that £350,000 will be drawn down in 2016-17, £1.4m in 1. That the Mayor approves GLA expenditure of up to £2,000,000 2017-18 and £250,000 in 2018-19. (capital) from the Growing Places Fund to Westminster City The overall estimated cost of this Council as a contribution to its costs of delivering improvements to project is £9.85m and the Bond Street public realm. additional funding has been sourced directly by Westminster City Council. The balance of £7.85m will be sourced by Westminster City Council.

MD2062 Revolving Investment in Cities (RICE) European Project 23/01/17 Sadiq Khan/ The total award for this programme Rajesh Agrawal is €2.3m for which the GLA’s share s30 Approved: is €244,976 (to be funded by the EU Commission) over 12-months. 1. The GLA’s receipt of €244,976 EU Revolving Investment in In addition, the GLA is required to Cities (RICE) funding from the City of The Hague (acting as lead provide match funding totalling partner). €12,894 which will be in the form of staff time and contained within 2. GLA expenditure on the RICE project of up to €257,870 the existing Delivery & Intelligence (€244,976 - EU RICE funding and up to €12,894 - existing GLA Unit’s Staffing budgets. This will - 5 - Appendix 2

staff budgets). bring the total estimated gross cost of the project to €257,870. 3. Delegation of authority to the Executive Director for Development, Enterprise and Environment to take all steps necessary for the GLA to deliver its contribution to the RICE project, including revisions to proposed budget allocations, as appropriate, within the overall amount approved.

MD2033* TEAM GB AND PARALYMPICS GB HOMECOMING 03/10/16 Sadiq Khan/ Total expenditure of the event is CELEBRATION Leah Kreitzman estimated to be up to £500,000. s30 Approved: The Prime Minister announced the events on 19 August 2016 and 1. Expenditure of up to £500,000 to stage a national homecoming these are taking place 17-18 celebration on Trafalgar Square for Team GB and Paralympics GB, October 2016. Government have Page 212 Page to be funded from the GLA’s contingency budget; and not yet confirmed the scale of their financial contribution for this 2. Receipt of external funding as a contribution to the national event. Given the deadline homecoming celebration from the following organisations and and the need to procure, the entry into agreements as appropriate with the same in respect of London section of the event must respective roles and responsibilities for the event, including be fully underwritten by the GLA in commercial model and financial commitments: Department of advance of this confirmation. Culture, Media and Sport; UK Sport; National Lottery (Camelot); and British Olympic Association and British Paralympic Association. The GLA’s contribution will be funded from the GLA contingency budget. The final budget will be dependent agreed scope and scale of production.

MD1656* Stadium conversion contract – full and final settlement 30/04/16 Boris Johnson/ The Mayor has previously approved Sir Edward Lister a settlement with Balfour Beatty for Approved: additional costs of £35.66m for stadium transformation works 1. Gives consent to the LLDC to enter into a full and final (MD1419). That decision increased settlement with Balfour Beatty in respect of its contract for the value of the Balfour Beatty Stadium transformation works, and to make a payment to E20 contract to £189.66m. This decision - 6 - Appendix 2

Stadium LLP of a claims settlement sum of £12.25 million, the seeks approval for additional costs effect of which, when added to the price of scope changes, will be of £12.25m, which, when added to to increase the total value of all works under Balfour Beatty’s the price of budgeted scope contract, for both transformation and other works instructed by changes, will increase the value of E20 LLP (for example for operational purposes), to £223.13m this contract (for both transformation and other works 2. Notes that the LLDC will meet a large proportion of the instructed by E20 LLP, for example additional costs of the agreement with Balfour Beatty from project for operational purposes) as a full and corporate contingencies and will look to meet the balance and final settlement to £223.13m. from corporate savings or additional receipts generated from its LLDC has identified sources of developments on Queen Elizabeth Olympic Park. funding from its 2016-17 budget. Additional comments are included Part 2 of this report is confidential under the FOI Act in part 2 of this decision

DD2085 LSIP Medium Pressure gas supply contract 27/01/17 David Lunts The paper is seeking approval for

Page 213 Page GLAP to enter into a contract with s30 Approved: Matrix Networks Limited for civil works to connect plot 5 LSIP to 1. The letting of a civil works contract by GLA Land and Property National Grid’s local Medium Limited (the ‘Employer’) to Matrix Networks Limited (the Pressure gas network. ‘Contractor’) to connect Plot 5 LSIP to National Grid’s local Medium Pressure gas network in Choats Road, Dagenham Dock, The works are estimated to cost London RM9 at a cost of £54,006 (including contingency). £54,006 (including contingency), and a budget is in place to cover 2. An exemption from the GLA Contracts and Funding Code to the cost. allow the direct appointment of Matrix Networks Limited.

Part 2 of this report is confidential under the FOI Act

DD2083 Project to reduce the Level of Council tax Arrears in the 17/01/17 Martin Clarke The estimated total cost of the London Borough of Enfield arrears reduction project would be approximately £800 per month or Approved: £9,500 per annum with payments made quarterly in arrears. The GLA 1. Payment of up to £9,500 towards a project by the London would contribute up to £2,500 per Borough of Enfield to reduce its level of council tax arrears of quarter or up to £9,500 over the - 7 - Appendix 2

which £2,500 is estimated payable in respect of the 2016-17 project lifetime in proportion to its financial year and £7,000 in 2017-18. The costs would be charged share of the council tax for 2016- to the Mayor’s Business Rates Reserve initially – and recoverable 17. The GLA has agreed a target through expected future collection fund surpluses declared by the with Enfield to reduce arrears by at borough in respect of council tax each year. The project will set a least £180,000 by 31st March 2018 target to reduce the borough’s council tax arrears by £180,000 by (£40,000 of which would notionally 31st March 2018 of which an estimated £40,000 would accrue to accrue to the GLA through the the GLA – more than 4 times the cost of the GLA’s contribution. sharing of future collection fund surpluses).

DD2082 Access Europe Funding 2016/17 17/01/17 Fiona Fletcher- Director’s approval is being sought Smith to for expenditure of up to £30,000 Approved: to contribute to the Access Europe Network to facilitate London 1. £30,000 of grant funding to Access Europe Network (AEN) to organisations to explore and attain Page 214 Page help Greater London organisations to explore and win European European grant funding. The grant funding opportunities, taking the lifetime GLA funding to expenditure will be funded from £130,000. the London Enterprise Panel Strategic Plans and EU Funds Investment Strategies’ budget for 2016-17.

DD2081 Novation of London Green Fund from European Investment 24/01/17 Martin Clarke Approval is sought for the novation Bank to GLA of the LGF funding agreement, s30 associated responsibilities and Approved: documents from the EIB to the GLA. Once the agreements are in 1. The novation of the London Green Fund Funding Agreement place, the funds held by the EIB will and associated responsibilities and documents from the European be transferred to the GLA and Investment Bank to GLA. available balances will be pooled and invested alongside GLA cash to maximise interest earned. Interest earned will be ring-fenced to the LGF.

The transferred responsibilities will - 8 - Appendix 2

be undertaken by existing staff within the GLA's EPMU and Finance teams at no extra cost, saving costs to the LGF of EIB management fees which to date have averaged circa £580k per annum.

Legal fees for the contract novation are currently estimated at £30k. These are one-off costs and will be borne by the LGF.

Sub-fund managers' fees and costs are funded by investment returns

Page 215 Page and there will be an annual charge to the LGF until 2021/22. The fees comprise a fixed element and a variable component linked to agreed performance criteria. Sub- fund manager fees have first call on the returns earned and to date have averaged £1.4m per annum.

DD2077 Energy for Londoners Not for Profit Energy 17/01/17 Fiona Fletcher- MD1640 previously approved Smith expenditure for the consultancy to s30 Approved: the Business Energy Challenge. Approval is now being sought for 1. Expenditure of up to £60,000 in 2016-17 to undertake a full expenditure of up to £60,000 to options appraisal of the following options (1,2 & 3) for an Energy procure a consultant to undertake For Londoners not for profit supply company considering the appraisals on three energy supply criteria set out in the body of the decision form: companies. The cost will be funded from the Environment team’s a) White Label Plus London Energy Plan 2016-17 b) Full Supply Licence – Mutual Budget. c) Full Supply Licence – Consortium company - 9 - Appendix 2

DD2074 Royal Docks Opportunity Area Planning Framework (OAPF) 11/01/17 Fiona Fletcher- ADD259 and DD1419 approved – Employment Land Review Smith expenditure of up to £27,000 and s30 £35,000 respectively on Approved: consultancy services and printing costs. DD1506 approved 1. Additional expenditure of £17,000, being 50% of the cost of expenditure of up to £45,000 the employment land review work (Newham Council to fund the which was to be split between the other 50% and to lead on the procurement based on the agreed Kingston and the Royal Docks brief). OAPFs. However, no expenditure has been incurred on the Royal Docks OAPF project to date. Approximately £37,000 has been spent on the Kingston OAPF and it Page 216 Page is likely that the remainder of that budget of £8,000 will be spent on the Royals Docks OAPF.

Approval is now being sought for the additional expenditure of £17,000. This will bring the total expenditure on the Royal Docks OAPF to date to £57,000 which includes a £20,000 contribution from the National Grid. The costs will be funded from Planning’s 2016-17 Pre-Application Reserves.

DD2058 Council tax arrears project in the London borough of 17/01/17 Martin Clarke The estimated total cost of the Newham arrears reduction project would be £360,000 per annum rising to Approved: £364,000 in 2017-18 allowing for 1 per cent inflation on payroll costs. 1. Payment of up to £79,200 as a contribution in 2016-17 towards The GLA would to contribute up to £79,200 in proportion to its share - 10 - Appendix 2

a project by the London Borough of Newham to reduce its level of of the council tax for 2016-17 on council tax arrears and subject to the Council demonstrating the basis of a pro rata total project adequate performance on the project up to a further £80,000 in cost of £360,000 and up to 2017-18. The costs would be charged to the GLA’s business rates £80,000 in 2017-18 on the basis of reserve initially – and recoverable through expected future council a pro rata total project cost of tax collection fund surpluses. £364,000. The GLA has agreed a target with Newham to reduce arrears by £2.2 million through this project by 31 March 2018 (£440,000 of which would notionally accrue to the GLA through the sharing of future collection fund surpluses).

DD2057 Project to Reduce the Level of Council tax Arrears in the 17/01/17 Martin Clarke The estimated total cost of the

Page 217 Page London Borough of Islington During 2017 arrears reduction project would be approximately £263,000 per annum Approved: with payments made quarterly in arrears. The GLA would contribute 1. Payment of up to £61,000 towards a project to reduce the level up to £61,000 over the project of council tax arrears in Islington, to be added to funding of lifetime in proportion to its share of £205,000 from the borough council across the 2016-17 and the the council tax for 2016-17. The 2017-18 financial years. The costs would be charged to the GLA’s GLA has agreed a target with Business Rates Reserve initially – and recoverable through Islington to reduce arrears by at expected future collection fund surpluses declared by the borough least £1.1 million by the end of in respect of council tax. The project will set a target to reduce the 2017 (£225,000 of which would borough’s council tax arrears by a further £1.1m by the end of notionally accrue to the GLA 2017-18 of which an estimated £225,000 would accrue to the through the sharing of future GLA. collection fund surpluses).

DD2052 The Connection Gardening and Horticulture Project 02/02/17 Fiona Fletcher- The expenditure will be funded Smith from the Director, Development S30 Approved: and Environment (DE&E) 2016-17 Minor Programme Budget. 1. GLA expenditure of up to £15,000 to contribute to the setup and initial running costs of The Connection’s gardening and - 11 - Appendix 2

horticulture project.

DD2031* Hackney Wick station improvements 27/06/16 Martin Clarke NR / VFL have confirmed the Fixed Price Contract Sum (inclusive of NR The Executive Director, exercising authority delegated from the Fee Fund and Industry Risk Fund Mayor, consents to: contributions and risk contingency). The contract sum has 1. The LLDC entering into an Implementation Agreement with been subject to due diligence by Network Rail Infrastructure for the construction works to upgrade MACE on behalf of LLDC. LLDC has Hackney Wick Station (a regulated commitment under paragraphs determined that an additional Risk 4.7 and 4.9 of the Governance Direction); Contingency allowance should be added to this contract sum to cater 2. The disposal of LLDC’s land to Network Rail at less than best for risk items which have been consideration reasonably obtainable, in the event that operational excluded from the contract. A requirements prevent Network Rail from fulfilling their part of the further allowance is also required to Page 218 Page land swap arrangements, (for the purposes of section 209(1) of cover the LLDC’s direct costs. the Act). LLDC has identified all funding for 3. An amended repayment profile of Growing Places Funding, now the revised project cost from the running 2017/18 to 2023/24. following sources: Growing Fund Places (GPF) loan, Section 106 Part 2 of this report is confidential under the FOI Act payments, OPTEMS, London Thames Gateway Development Corporation Pooled Funds and contributions from the London Borough of Hackney and the London Borough of Tower Hamlets. A breakdown of project costs and funding is included in part 2.

LLDC will be required to repay the GPF funding in accordance with a repayment schedule and manage any cost pressures from the identified contingency, but the GLA is exposed to the risk of any - 12 - Appendix 2

shortfalls as LLDC’s principal funder and lender of last resort. If disposal of the land is required at an undervalue, this would be justified given the development potential of adjoining retained land.

DD2006* Isle of Dogs and South Poplar Opportunity Area Planning 31/05/16 Fiona Fletcher- This is to be funded as follows: Framework Smith  £55,000 from Planning Unit Approved: 2016-17 Pre-Application Reserve; 1. Expenditure of up to £120,000 to procure and commission a consultant to prepare a Development Infrastructure Funding Study  £15,000 from 2016-17 for the Isle of Dogs and South Poplar Opportunity Area Planning Planning Decisions budget; and Page 219 Page Framework (OAPF) in 2016/17.  £50,000 income (contribution 2. The receipt of £50,000 from One Housing towards the from One Housing in 2016/17). procurement of a consultant for this study. To note, to date £50,000 has been approved to be spent on a consultant to provide technical support for the Development Capacity Study, and produce specialist graphics and desktop publishing for the draft Isle of Dogs Opportunity Area Planning Framework document (approved under ADD339 and DD2001). This was funded from 2015-16 OAPF budget and 2016-17 Planning Pre- application reserves. Also, as mentioned in paragraph 1.3 of the decision form, £50,000 has been received in 2015-16 from Canary

- 13 - Appendix 2

Wharf Group to contribute to fund the cost of this work.

ADD2077 Fuel Poverty in London: Research and Policy Report 01/02/17 Patrick Feehily Approval is being sought for expenditure of up to £49,000 to Approved: commission a specialist consultant to research and produce a report on 1. The expenditure of up to £49,000 on a consultant to develop a fuel poverty in London. The cost comprehensive understanding of the state of fuel poverty in will be funded from the London, current fuel poverty alleviation programmes, and options Environment Programme Budget available for additional support at a pan-London scale. 2016-17.

ADD2074 Green Space Factor Consultancy Contract 30/01/17 Andrew Collinge This is to be funded as follows: Page 220 Page Approved: a) £10,000 from the Greening the Built Environment 2016-17 1. The expenditure of up to £25,000 to undertake research on the Programme Budget; and suitability of a Green Space Factor Policy for inclusion in the review of the London Plan. b) £15,000 from the London Plan 2016-17 Programme Budget. 2. A tender process to secure an appropriate consultancy to undertake this work

ADD2073 Air Quality Positive 01/02/17 Patrick Feehily The Assistant Director’s approval is being sought for expenditure of up s30 Approved: to £25,000 to commission consultants to undertake the 1. Expenditure of £25,000 on evidence gathering and analysis evidence gathering and analysis services from Air Quality Consultants Limited required to develop work for the Air Quality Positive the GLA’s Air Quality Positive policy in the London Plan and Policy. The cost will be funded Environment Strategy. from the Environment Air Quality 2016-17 Programme Budget. 2. A related exemption from the requirement of the GLA’s

- 14 - Appendix 2

Contracts and Funding Code to procure such services competitively, instead appointing Air Quality Consultants without competition.

ADD2070 JavaScript Developer Contract 30/01/17 Andrew Collinge Approval is being sought for expenditure of up to £17,550 for Approved: consultancy support. This support will be utilised by 31 March 2017. 1. Expenditure of up to £17,550 to procure and commission The cost will be contained within consultants through a competitive process to support the GLA to the existing Ordnance Survey create bespoke maps to inform the development and budget for 2016/17. All costs will substantiation of public policy. be allocated to WBS GG.0220.003.003.

Page 221 Page ADD2069 Digital content 16/01/17 Emma Strain The £20,000 cost of this initiative will be funded from the 2016-17 Approved: Marketing budget held within the External Relations Unit. 1. Expenditure of up to £20,000 on services required to deliver effective digital marketing campaigns for the Greater London Authority.

ADD2068 West End Partnership communications and marketing 17/01/17 Debbie Jackson The £25,000 cost of this proposal delivery group will be funded from the Development, Enterprise & Approved: Environment ‘Minor Programmes’ budget for 2016-17. 1. The grant funding of £25,000 from the ‘DEE Minor Programmes’ Budget to support the delivery of the West End Partnership communications and marketing strategy for 2016/17.

ADD2067 Health Team Programme Budget 2016/17 - additional 24/01/17 Amanda Coyle The estimated cost of this initiative is £48,700 and will be funded from Approved: the C&I ‘Minor Programmes’

- 15 - Appendix 2

budget for 2016-17. £22,000 will 1. Sustainability and Transformation plan analysis - £45,000 be redirected from the previously approved ‘Alcohol harm reduction’ 2. Policy development events - £3,700 project that has not been utilised (ADD2046), with the balance of £26,700 being drawn-down directly from the remaining balance of the Minor Programme budget.

ADD2066 Removal of Wembley Portacabins 16/01/17 Simon Powell The full cost allocation will be split between two budgets within H&L Approved: as follows:

1. A budget of £15K to remove and dispose of the portacabins at  £10k available from Wembley Wembley. Budget; Page 222 Page  £5k available to be utilised from Haringey Heartlands Budget. ADD2065 Para Taekwondo in 2017 16/01/17 Amanda Coyle The total cost of £20,000 will be funded from the Major Sports Approved: Events Fund held within the Health & Communities Unit. 1. Expenditure of up to £20,000 in grant funding towards the cost of staging the 2017 Para Taekwondo World Championships.

ADD2064 Urban partnership agenda: EU legislative framework for air 10/01/17 Patrick Feehily ADD2049 approved expenditure of quality up to £15,000 for consultants to produce a report on the European Approved: Legislative Framework for Air Quality. Approval is now being 1. A further £11,000 to the agreed £15,000 (making a total of sought for the additional £26,000) to tender and appoint a consultancy company to expenditure of £11,000; this will undertake three activities in relation to air quality: bring the total expenditure on consultancy to £26,000. The cost a) scoping exercise focusing on all pollutants and sources; of this work will be funded from Environment’s European Funded

- 16 - Appendix 2

b) making a detailed analysis for the most important pollutants Project 2016-17 Budget. and sources making recommendations on changes;

c) identifying why cities still exceed EU legal limits even in the cases where the EU has notionally legislated to provide tools, funding or to take action to improve air quality. ADD2062 Research on overseas buyers in London new build property 10/01/17 Jamie Ratcliff £18,000 of this expenditure is purchases available from Housing & Land Management and Support Approved: Consultancy Budget, with a further £10,000 from the Planning Unit 1. Expenditure of up to £28,000 for the procurement and London Plan Budget. appointment of consultants to support the GLA’s work to understand the scale of overseas buyers in new build property purchases and empty homes.

Page 223 Page 2. An exemption from the requirements of the GLA’s Contracts and Funding Code to seek three or more written quotations for goods or services between £10,000 and £150,000. ADD2060 Assessment - London’s Health Inequalities Strategy 17/01/17 Amanda Coyle The estimated cost of £15,000 for the Consultant’s fees will be funded Approved: from The Governance Team’s Statutory Strategies budget for 1. Expenditure of up to £15,000 for the procurement of 2016/17. consultants to develop and deliver the integrated Impact Assessment of the Mayor of London’s Health Inequalities Strategy.

ADD2059 English for Speakers of Other Languages 10/01/17 Amanda Coyle Approval is being sought for the receipt and expenditure of a one- Approved: off Home Office grant of £30,000 for the commissioning of regional 1. Receipt and expenditure of a one-off £30k grant from the ESOL co-ordination resource to Home Office to commission regional English for Speakers of Other support in the Languages (ESOL) co-ordination resource to support London provision of learning opportunities. boroughs in providing appropriate ESOL opportunities to resettled Syrian refugees. The grant must be fully spent by - 17 - Appendix 2

31/03/2017 as per T&C. The Diversity & Social Policy team within the C&I Directorate will be responsible for managing this project and ensuring the grant agreement requirements are met.

ADD2057 The London Data Exchange 10/01/17 Andrew Collinge The funding for this project will be made available from the Minor Approved: Programmes budget, within the C&I Directorate. Additional funding for 1. Expenditure of £30,000 to procure and commission consultants build-out costs is to be contained through a competitive process to support the initial research and within the available provision in the scoping activity services required for the development of a London Minor Programme budget. Data Exchange. Page 224 Page ADD2022* Tottenham Social Impact Evaluation 13/09/16 Debbie Jackson The total estimated cost of this consultancy project is £50,000 and Approved: will be funded from the Mayor’s Regeneration Fund revenue budget 1. Expenditure of up to £50,000 revenue funding from the for 2016-17. Mayor’s Regeneration Fund Programme Support budget to undertake a study assessing the social impact of a range of Greater London Authority supported interventions in the Tottenham area.

- 18 - Agenda Item 8

Subject: Payments over £250

Report to: Budget Monitoring Sub-Committee

Report of: Executive Director of Resources Date: 23 March 2017

This report will be considered in public

1. Summary

1.1 This report provides information on payments over £250 during the period 16 October 2016 to 07 Jan 2017 (inclusive) for the Greater London Authority and its subsidiary, GLA Land & Property Ltd.

2. Recommendation

2.1 That the Sub-Committee notes the report.

3. Background

3.1 The Local Government Transparency Code sets out key principles for local authorities in creating greater transparency through the publication of public data. One of the requirements under the Code is the requirement to publish details of each individual item of expenditure that exceeds £500. The Greater London Authority has lowered this threshold and publishes all expenditure data that exceeds £250.

4. Issues for Consideration

4.1 Appendix 1 shows the total by supplier, analysed by expense code, of all the payments over £250 (excluding VAT), that have been made during the above-mentioned period. Payments are listed by supplier and a short description is provided for all payments. For the second quarter of the year, these totalled £104 million.

4.2 If Members require further details on any of these suppliers or payments, they should notify the contact officer in advance of the meeting if possible. The individual transactions reflected in these totals are published each period on the GLA website at: https://www.london.gov.uk/about- us/greater-london-authority-gla/spending-money-wisely/our-spending

5. Legal Implications

5.1 There are no legal implications arising directly out of this report. The payments themselves have not been legally reviewed for the purposes of this report

City Hall, The Queen’s Walk, London SE1 2AA Enquiries: 020 7983 4100 minicom: 020 7983 4458 www.london.gov.uk Page 225

6. Financial Implications

6.1 This report is entirely concerned with financial matters and relates to expenditure from existing approved budgets.

List of appendices to this report:

Appendix 1 – Transactions over £250 by Supplier - Report for the period 16 October 2016 to 07 Jan 2017 (inclusive)

Local Government (Access to Information) Act 1985 List of Background Papers: None

Contact Officer: Ashraf Ali Telephone: 020-7983-5642 E-mail: [email protected]

Page 226 Appendix 1 Transactions over £ 250.00 Reporting Period : Quarter 3 Start Date: 16th October, 2016 End Date: 07th January, 2017 Financial Year : 2016/17 Appendix 1

Total Spend > £250 (All)

Row Labels Expenditure Account Code Description Sum of Grand Total 2CL COMMUNICATIONS LIMITED Furniture & Equipment 255.00 2CL COMMUNICATIONS LIMITED Total 255.00 2CV RESEARCH Other Professional Fees 13,600.00 2CV RESEARCH Total 13,600.00 400 COMMUNICATIONS LIMITED Production Artwork And Design For Marketing 960.00 400 COMMUNICATIONS LIMITED Total 960.00 A2 DOMINION LONDON LTD HSG Grants to Registered Providers 2,164,694.00 A2 DOMINION LONDON LTD Total 2,164,694.00 ABM GROUP UK LTD Furniture & Equipment 7,538.38 Health & Safety Pest Control 13,105.74 Office Cleaning 135,311.33 Property Management Fees 4,199.30 ABM GROUP UK LTD Total 160,154.75 ACCESS SPORT Grants to External Organisations 24,000.00 ACCESS SPORT Total 24,000.00 ADT FIRE & SECURITY PLC Property Management Fees 360.00 ADT FIRE & SECURITY PLC Total 360.00 AECOM INFRASTRUCTURE & ENVIRONMENT Management & Support Consultancy 11,579.74 AECOM INFRASTRUCTURE & ENVIRONMENT Total 11,579.74 AECOM LTD Consultancy-Project Management 8,000.00 Management & Support Consultancy 44,996.00 AECOM LTD Total 52,996.00 AFFINITY HEALTH AT WORK LTD Consultancy-Project Management 4,681.88 AFFINITY HEALTH AT WORK LTD Total 4,681.88 AGL COMMUNICATIONS OR AGL Staff Training 2,500.00 AGL COMMUNICATIONS OR AGL Total 2,500.00 AHREND LIMITED Furniture & Equipment 37,974.64 AHREND LIMITED Total 37,974.64 AJ GALLAGHER General Insurance 120,774.32 AJ GALLAGHER Total 120,774.32 ALL CLEAN GROUP Office Cleaning 50,364.96 ALL CLEAN GROUP Total 50,364.96 AMAS LTD Commercial Property Rent 1,737,051.10 AMAS LTD Total 1,737,051.10 Amazon Web Services, Inc Software Maintenance 3,061.88 Amazon Web Services, Inc Total 3,061.88 AMICUSHORIZON LIMITED HSG Grants to Registered Providers 120,000.00 AMICUSHORIZON LIMITED Total 120,000.00 AMRUT UK LIMITED Publications & Periodicals 350.00 AMRUT UK LIMITED Total 350.00 AMY LAMÉ LTD Other Professional Fees 2,916.66 AMY LAMÉ LTD Total 2,916.66 ANDY BARROW Photography & Video 1,250.00 ANDY BARROW Total 1,250.00 AOC Create Ltd Conferences & Seminars 755.00 AOC Create Ltd Total 755.00 AOS SECURITY LTD Security Services (Guards) 138,832.73 AOS SECURITY LTD Total 138,832.73 ARC SEVEN COMMUNICATIONS PR Cost Product Cost & PR Fees 2,000.00 ARC SEVEN COMMUNICATIONS Total 2,000.00 ARCHITECTURE 00 LTD Planning & Development Consultancy 1,750.00 ARCHITECTURE 00 LTD Total 1,750.00 ARCUS GLOBAL LIMITED Manage IT Services 4,094.91 ARCUS GLOBAL LIMITED Total 4,094.91 ASHDEN Event Management Fee 250.00 ASHDEN Total 250.00 ASHFORDS LLP Legal Fees 6,968.00 ASHFORDS LLP Total 6,968.00 ATKINS LTD Other Professional Fees 6,232.50 Planning & Development Consultancy 22,989.20 ATKINS LTD Total 29,221.70 ATTENDA LIMITED Manage IT Services 33,494.82 ATTENDA LIMITED Total 33,494.82 AXION RECYCLING Management & Support Consultancy 6,000.00 AXION RECYCLING Total 6,000.00 A-Z EVENTS LLP External Events Roads Shows And Face To Face 19,950.00 Other Professional Fees 25,337.00 A-Z EVENTS LLP Total 45,287.00 BADGEMASTER LIMITED Furniture & Equipment 452.95 BADGEMASTER LIMITED Total 452.95 BAXTERSTOREY LTD Staff Training 650.00 BAXTERSTOREY LTD Total Page 227 650.00 BEN BROOMFIELD PHOTOGRAPHY Photography & Video 750.00 Transactions over £ 250.00 Reporting Period : Quarter 3 Start Date: 16th October, 2016 End Date: 07th January, 2017 Financial Year : 2016/17 Appendix 1

Total Spend > £250 (All)

Row Labels Expenditure Account Code Description Sum of Grand Total BEN BROOMFIELD PHOTOGRAPHY Photography And Video Design And Production 1,650.00 BEN BROOMFIELD PHOTOGRAPHY Total 2,400.00 BENENDEN HEALTHCARE SOCIETY LTD Staff Welfare Benefits 1,088.75 BENENDEN HEALTHCARE SOCIETY LTD Total 1,088.75 BERWIN LEIGHTON PAISNER Legal Fees 16,264.00 BERWIN LEIGHTON PAISNER Total 16,264.00 BIRKBECK COLLEGE Staff Training 4,090.00 BIRKBECK COLLEGE Total 4,090.00 BITBUZZ UK Grants to External Organisations 3,000.00 BITBUZZ UK Total 3,000.00 BLISS EVENTS MANAGEMENT LIMITED External Events Roads Shows And Face To Face 64,513.87 BLISS EVENTS MANAGEMENT LIMITED Total 64,513.87 BLONSTEIN & ASSOCIATES Consultancy-Project Management 5,361.33 BLONSTEIN & ASSOCIATES Total 5,361.33 BLOOMBERG LP Publications & Periodicals 8,393.11 BLOOMBERG LP Total 8,393.11 BLOSSOMS HEALTHCARE LLP Staff Medical Insurance & Treatment 7,840.00 BLOSSOMS HEALTHCARE LLP Total 7,840.00 BOP CONSULTING Consultancy-Project Management 2,000.00 Grants to External Organisations 20,000.00 BOP CONSULTING Total 22,000.00 BOW TIE Computer Software 2,100.00 Manage IT Services 2,400.00 Office Cleaning 12,037.00 Other Professional Fees 300.00 Photography & Video 80,517.24 Photography And Video Design And Production 288.00 Radio TV Press Poster Cinema Airtime And Space 4,126.00 BOW TIE Total 101,768.24 BRAND FOUNDRY DESIGN Production Artwork And Design For Marketing 2,500.00 BRAND FOUNDRY DESIGN Total 2,500.00 BRAWL External Events Roads Shows And Face To Face 8,750.00 BRAWL Total 8,750.00 Brigitte R Puhl Translation Sign Language 2,000.00 Brigitte R Puhl Total 2,000.00 BRITISH BASKETBALL FEDERATION Grants to External Organisations 45,000.00 BRITISH BASKETBALL FEDERATION Total 45,000.00 BRITISH FASHION COUNCIL Grants to External Organisations 130,527.87 BRITISH FASHION COUNCIL Total 130,527.87 BRITISH FILM INSTITUTE Grants to External Organisations 10,839.00 BRITISH FILM INSTITUTE Total 10,839.00 BRITISH GAS BUSINESS Electricity 2,562.68 BRITISH GAS BUSINESS Total 2,562.68 BRITISH RED CROSS SOCIETY Staff Training 1,316.00 BRITISH RED CROSS SOCIETY Total 1,316.00 BROMLEY COLLEGE OF FURTHER & HI Grants to External Organisations 12,096.00 BROMLEY COLLEGE OF FURTHER & HI Total 12,096.00 BROWSER LONDON LTD Other Professional Fees 8,217.04 BROWSER LONDON LTD Total 8,217.04 BT CONFERENCING Telephone Line Rent, Calls & Equipment 8,753.07 BT CONFERENCING Total 8,753.07 BT GLOBAL SERVICES Telephone Line Rent, Calls & Equipment 7,255.69 BT GLOBAL SERVICES Total 7,255.69 BT PLC Grants to External Organisations 9,000.00 BT PLC Total 9,000.00 BT SERVICE AGILITY Telephone Line Rent, Calls & Equipment 2,593.07 BT SERVICE AGILITY Total 2,593.07 BUCKHILL LTD Data Hosting Email Design And Transmission Inc SMS 822.56 BUCKHILL LTD Total 822.56 BUILDING CENTRE External Meeting Room Hire & Expenses 876.75 BUILDING CENTRE Total 876.75 BURGES SALMON LLP Legal Fees 43,334.50 BURGES SALMON LLP Total 43,334.50 BURNING GLASS TECHNOLOGIES, INC. Grants to External Organisations 11,500.00 BURNING GLASS TECHNOLOGIES, INC. Total 11,500.00 BURO HAPPOLD Management & Support Consultancy 27,180.00 BURO HAPPOLD Total 27,180.00 BUSINESS IN THE COMMUNITY Publications & Periodicals 5,600.00 BUSINESS IN THE COMMUNITY Total 5,600.00 CAG Consultancy Evaluation Assessment 19,750.00 CAG Total 19,750.00 CAMWAY FACILITIES MAINTENANCE LTD Grounds Maintenance 17,000.00 CAMWAY FACILITIES MAINTENANCE LTD Total Page 228 17,000.00 CAPITA LEARNING & DEVELOPMENT Staff Training 8,577.50 Transactions over £ 250.00 Reporting Period : Quarter 3 Start Date: 16th October, 2016 End Date: 07th January, 2017 Financial Year : 2016/17 Appendix 1

Total Spend > £250 (All)

Row Labels Expenditure Account Code Description Sum of Grand Total CAPITA LEARNING & DEVELOPMENT Total 8,577.50 CAPITA PROPERTY & INFRASTRUCTURE LT Management & Support Consultancy 3,644.48 CAPITA PROPERTY & INFRASTRUCTURE LT Total 3,644.48 CAPITA RESOURCING LTD Agency Staff 900.00 CAPITA RESOURCING LTD Total 900.00 CAPITA SYMONDS LTD Consultancy-Project Management 3,000.00 Management & Support Consultancy 177,285.22 CAPITA SYMONDS LTD Total 180,285.22 CATALYST COMMUNITIES H.A. LTD HSG Grants to Registered Providers 4,396.00 CATALYST COMMUNITIES H.A. LTD Total 4,396.00 CBRE LTD Management & Support Consultancy 13,007.50 CBRE LTD Total 13,007.50 CBRE MANAGED SERVICES LIMITED Building Maintenance & Repairs 267,887.70 Electricity 3,268.38 External Building Maintenance 7,285.57 Office Cleaning 3,100.85 Security Services (Guards) 8,911.17 CBRE MANAGED SERVICES LIMITED Total 290,453.67 CDW LTD Computer Hardware 269.75 CDW LTD Total 269.75 CEBR LTD (CENTRE FOR ECON & B) Staff Training 5,200.00 CEBR LTD (CENTRE FOR ECON & B) Total 5,200.00 C-ELECT ASSOCIATES LTD Building Maintenance & Repairs 8,091.46 C-ELECT ASSOCIATES LTD Total 8,091.46 CHANNEL TELECOM LTD Grants to External Organisations 9,012.00 CHANNEL TELECOM LTD Total 9,012.00 CHARLOTTE VENTHAM Legal Fees 2,220.00 CHARLOTTE VENTHAM Total 2,220.00 Chelsea Rixson Consultancy-Project Management 500.00 Chelsea Rixson Total 500.00 CIPFA Miscellaneous Costs 16,005.19 CIPFA Total 16,005.19 CIRCLE ANGLIA LIMITED HSG Grants to Registered Providers 11,000.00 CIRCLE ANGLIA LIMITED Total 11,000.00 CITY OF LONDON Seconded Staff - Non Group 7,500.00 CITY OF LONDON Total 7,500.00 CITY OF WESTMINSTER COLLEGE Grants to External Organisations 1,125,167.49 CITY OF WESTMINSTER COLLEGE Total 1,125,167.49 CIVIL SERVICE COLLEGE LIMITED Staff Training 1,750.00 CIVIL SERVICE COLLEGE LIMITED Total 1,750.00 CLIFFORD DEVLIN LIMITED Property Management Fees 13,030.88 CLIFFORD DEVLIN LIMITED Total 13,030.88 CODE ENIGMA LIMITED Data Hosting Email Design And Transmission Inc SMS 2,310.00 CODE ENIGMA LIMITED Total 2,310.00 COLLIE COMPUTING LIMITED Staff Training 2,600.00 COLLIE COMPUTING LIMITED Total 2,600.00 COMPASS SERVICES UK & IRELAND LTD Meals Refreshments & Subsistence 2,795.00 COMPASS SERVICES UK & IRELAND LTD Total 2,795.00 COMPUTACENTER Computer Hardware 42,250.80 Software Maintenance 56,009.40 COMPUTACENTER Total 98,260.20 CONSTRUCTION IND TRG BRD (CITB) Grants to External Organisations 80,988.22 CONSTRUCTION IND TRG BRD (CITB) Total 80,988.22 COOLE BEVIS LLP Legal Fees 750.00 COOLE BEVIS LLP Total 750.00 CORONA ENERGY RETAIL 4 LTD Gas 2,778.52 CORONA ENERGY RETAIL 4 LTD Total 2,778.52 CORPORATE DOCUMENT SERVICES LTD Agency Fees Paid To Marketing Agencies 2,932.65 Consultancy-Project Management 147.00 External Events Roads Shows And Face To Face 443.10 Non Permanent Signage And Way Finding 661.50 Photography & Video 1,484.70 Printing 2,076.90 Production Artwork And Design For Marketing 24,027.36 Stationery 522.90 Storage And Distribution Of Publicity Materials 2,709.00 CORPORATE DOCUMENT SERVICES LTD Total 35,005.11 Cravenhill Publishing Ltd Marketing Exhibitions & Events 576.00 Cravenhill Publishing Ltd Total 576.00 Create AV (UK) Ltd Miscellaneous Costs 453.60 Create AV (UK) Ltd Total 453.60 CREATIVE PIONEERS LONDON Grants to External Organisations 24,150.00 CREATIVE PIONEERS LONDON Total Page 229 24,150.00 CROSS RIVER PARTNERSHIP Management & Support Consultancy 2,500.00 Transactions over £ 250.00 Reporting Period : Quarter 3 Start Date: 16th October, 2016 End Date: 07th January, 2017 Financial Year : 2016/17 Appendix 1

Total Spend > £250 (All)

Row Labels Expenditure Account Code Description Sum of Grand Total CROSS RIVER PARTNERSHIP Total 2,500.00 CROWN WORLDWIDE LTD Document Archive & Storage 18,006.54 CROWN WORLDWIDE LTD Total 18,006.54 CTI DIGITAL Manage IT Services 13,000.00 CTI DIGITAL Total 13,000.00 CT-LIVE LTD Equipment Hire & Rental 22,036.00 CT-LIVE LTD Total 22,036.00 CYNERGIN Property Management Fees 3,300.00 CYNERGIN Total 3,300.00 DANFOSS A/S Grants to External Organisations 10,178.76 DANFOSS A/S Total 10,178.76 DATA PROTECT UK Manage IT Services 1,030.00 DATA PROTECT UK Total 1,030.00 DCG-SMS Computer Hardware 9,000.00 DCG-SMS Total 9,000.00 DELOITTE LLP Consultancy-Project Management 43,186.43 DELOITTE LLP Total 43,186.43 DENTONS UKMEA LLP Legal Fees 26,516.52 DENTONS UKMEA LLP Total 26,516.52 DESIGNED BY GOOD PEOPLE Planning & Development Consultancy 550.00 DESIGNED BY GOOD PEOPLE Total 550.00 DMH ASSOCIATES Consultancy-Commissioned Report 5,250.00 DMH ASSOCIATES Total 5,250.00 DODS PARLIAMENTARY COMMS LTD Publications & Periodicals 7,350.00 DODS PARLIAMENTARY COMMS LTD Total 7,350.00 DO-IT TRUST IT Consultancy 3,102.00 DO-IT TRUST Total 3,102.00 DOVETAIL FOKS Business Fares 1,821.77 DOVETAIL FOKS Total 1,821.77 DRON & WRIGHT PROP CONS Commercial Property Rent 159,375.00 DRON & WRIGHT PROP CONS Total 159,375.00 DTZ DEBENHAM TIE LEUNG LTD Consultancy Evaluation Assessment 9,820.00 Management & Support Consultancy 14,713.50 DTZ DEBENHAM TIE LEUNG LTD Total 24,533.50 Duncan Lewis (Solicitors) Ltd Legal Fees 420.00 Duncan Lewis (Solicitors) Ltd Total 420.00 EAST LONDON ADVANCED TECH TRAINING Grants to External Organisations 86,847.73 EAST LONDON ADVANCED TECH TRAINING Total 86,847.73 E-CAREERS LIMITED Staff Training 670.00 E-CAREERS LIMITED Total 670.00 ECOMOTIVE Consultancy-Project Management 8,507.00 ECOMOTIVE Total 8,507.00 EDB Printing 495.00 EDB Total 495.00 EDF ENERGY Electricity 89,644.26 EDF ENERGY Total 89,644.26 EDUCATION POLICY INSTITUTE Consultancy-Commissioned Report 10,000.00 EDUCATION POLICY INSTITUTE Total 10,000.00 EDUCATION WITH ATTITUDE Consultancy-Project Management 875.00 EDUCATION WITH ATTITUDE Total 875.00 MUSEUM CIC Grants to External Organisations 5,829.30 EEL PIE ISLAND MUSEUM CIC Total 5,829.30 EFFRA EARLY YEARS CENTRE Grants to External Organisations 1,994.41 EFFRA EARLY YEARS CENTRE Total 1,994.41 ELEANOR BENTALL PHOTOGRAPHER Photography & Video 1,110.00 Photography And Video Design And Production 355.00 ELEANOR BENTALL PHOTOGRAPHER Total 1,465.00 ELITE TELECOM Telephone Line Rent, Calls & Equipment 2,110.74 ELITE TELECOM Total 2,110.74 ENERGY SAVING TRUST LTD Consultancy-Project Management 50,551.00 Grants to External Organisations 300,000.00 ENERGY SAVING TRUST LTD Total 350,551.00 ENGLAND BOXING LTD Grants to External Organisations 10,000.00 ENGLAND BOXING LTD Total 10,000.00 ENTERPRISE PLANTS LTD Horticultural Expenses 1,864.48 ENTERPRISE PLANTS LTD Total 1,864.48 Entrepreneur First CIC Staff Training 545.83 Entrepreneur First CIC Total 545.83 ENVIRONMENT AGENCY Seconded Staff - Non Group 35,000.00 ENVIRONMENT AGENCY Total 35,000.00 E-ON TRADING AS Electricity 363.32 E-ON TRADING AS Total 363.32 EQUALITY WORKS LIMITED Staff TrainingPage 230 7,700.00 EQUALITY WORKS LIMITED Total 7,700.00 Transactions over £ 250.00 Reporting Period : Quarter 3 Start Date: 16th October, 2016 End Date: 07th January, 2017 Financial Year : 2016/17 Appendix 1

Total Spend > £250 (All)

Row Labels Expenditure Account Code Description Sum of Grand Total ERNST & YOUNG LLP #N/A 27,375.00 ERNST & YOUNG LLP Total 27,375.00 ESRI (UK) LIMITED Conferences & Seminars 1,340.00 Consultancy-Project Management 4,500.00 Staff Training 670.00 ESRI (UK) LIMITED Total 6,510.00 ESSENTRA SECURITY Furniture & Equipment 679.50 ESSENTRA SECURITY Total 679.50 EVE TRAKWAY Furniture & Equipment 328.80 EVE TRAKWAY Total 328.80 EVERSHEDS Legal Fees 22,187.80 EVERSHEDS Total 22,187.80 EXCEL GROUP SERVICES LTD Business Fares 544.04 EXCEL GROUP SERVICES LTD Total 544.04 EXPENSE PAID TO THIRD PARTIES Business Fares 1,654.86 EXPENSE PAID TO THIRD PARTIES Total 1,654.86 Expenses paid to third parties Business Fares 316.00 Miscellaneous Finance Expenses 3,740.00 Expenses paid to third parties Total 4,056.00 EXTRIUM Grants to External Organisations 7,000.00 EXTRIUM Total 7,000.00 FAITHCHILD Miscellaneous Costs 1,050.00 FAITHCHILD Total 1,050.00 FAMILY AND CHILDCARE TRUST Research & Study Fees 6,000.00 FAMILY AND CHILDCARE TRUST Total 6,000.00 FATHER NATURE LTD Grants to External Organisations 7,500.00 FATHER NATURE LTD Total 7,500.00 FIGHT FOR CHANGE Grants to External Organisations 28,000.00 FIGHT FOR CHANGE Total 28,000.00 FILM LONDON LTD Grants to External Organisations 610,000.00 FILM LONDON LTD Total 610,000.00 FIRA INTERNACIONAL DE BARCELONA Conferences & Seminars 23,648.81 Equipment Hire & Rental 388.04 Event Management Fee 347.31 FIRA INTERNACIONAL DE BARCELONA Total 24,384.16 First Step Trust Caterers Service Charges 712.00 First Step Trust Total 712.00 FLEET FINGERS TYPING Transcription 2,020.00 FLEET FINGERS TYPING Total 2,020.00 FONTWORKS UK LIMITED Computer Software 270.00 FONTWORKS UK LIMITED Total 270.00 FOOTBALL FOUNDATION Grants to External Organisations 231,501.00 FOOTBALL FOUNDATION Total 231,501.00 FOOTBALL LEAGUE TRUST Grants to External Organisations 20,000.00 FOOTBALL LEAGUE TRUST Total 20,000.00 FORSTER COMMUNICATIONS Marketing Strategy And Consultancy 4,230.00 FORSTER COMMUNICATIONS Total 4,230.00 FOUND IN MUSIC LIMITED Consultancy-Project Management 60,000.00 External Events Roads Shows And Face To Face 5,053.66 FOUND IN MUSIC LIMITED Total 65,053.66 FOURTH DIMENSION AUDIO VISUAL LTD Equipment Hire & Rental 5,803.00 FOURTH DIMENSION AUDIO VISUAL LTD Total 5,803.00 FRESHMINDS LTD Data Hosting Email Design And Transmission Inc SMS 4,000.00 Data Purchase 3,587.50 FRESHMINDS LTD Total 7,587.50 FREUDS Agency Fees Paid To Marketing Agencies 75,000.00 Photography And Video Design And Production 5,000.00 PR Cost Product Cost & PR Fees 5,000.00 FREUDS Total 85,000.00 FUNKY FLOORS LTD Event Management Fee 775.00 FUNKY FLOORS LTD Total 775.00 FUTURE OF LONDON 2011 LIMITED Management & Support Consultancy 15,000.00 Staff Training 1,200.00 FUTURE OF LONDON 2011 LIMITED Total 16,200.00 FUTUREGOV.LTD Planning & Development Consultancy 15,920.00 FUTUREGOV.LTD Total 15,920.00 GATEWAY TO SUSTAINABILITY LTD Management & Support Consultancy 4,210.40 GATEWAY TO SUSTAINABILITY LTD Total 4,210.40 GAUTIER DEBLONDE Photography & Video 13,000.00 GAUTIER DEBLONDE Total 13,000.00 GB TAEKWONDO Grants to External Organisations 23,000.00 GB TAEKWONDO Total 23,000.00 GETTY IMAGES (UK) LIMITED External EventsPage Roads 231 Shows And Face To Face 2,141.15 GETTY IMAGES (UK) LIMITED Total 2,141.15 Transactions over £ 250.00 Reporting Period : Quarter 3 Start Date: 16th October, 2016 End Date: 07th January, 2017 Financial Year : 2016/17 Appendix 1

Total Spend > £250 (All)

Row Labels Expenditure Account Code Description Sum of Grand Total GL HEARN LTD Valuation Fees 20,000.00 GL HEARN LTD Total 20,000.00 GLADESMORE COMMUNITY SCHOOL Grants to External Organisations 96,000.00 GLADESMORE COMMUNITY SCHOOL Total 96,000.00 GNEWT Grants to External Organisations 164,949.50 GNEWT Total 164,949.50 GORT SCOTT Consultancy-Project Management 2,415.00 GORT SCOTT Total 2,415.00 GOVNET COMMUNICATIONS Conferences & Seminars 308.00 GOVNET COMMUNICATIONS Total 308.00 GOWLING WLG (UK) LLP Legal Fees 25,819.50 Non Recyclable Waste Disposal/Refuse Collection 14,317.00 GOWLING WLG (UK) LLP Total 40,136.50 GPS MARINE CONTRACTORS LTD Building Maintenance & Repairs 8,244.00 External Building Maintenance 15,960.00 GPS MARINE CONTRACTORS LTD Total 24,204.00 GREATER LONDON HIRE LTD Business Fares 1,054.14 GREATER LONDON HIRE LTD Total 1,054.14 GREATER LONDON VOLUNTEERING Business Fares 323.51 Grants to External Organisations 12,225.00 GREATER LONDON VOLUNTEERING Total 12,548.51 GREEN PARK INTERIM & EXECUTIVE LTD Recruitment Advertising 28,000.00 GREEN PARK INTERIM & EXECUTIVE LTD Total 28,000.00 GREENWICH & DOCKLANDS FESTIVALS Grants to External Organisations 10,000.00 GREENWICH & DOCKLANDS FESTIVALS Total 10,000.00 GREENWICH LEISURE LTD External Building Maintenance 10,563.00 Property Management Fees 143,047.75 GREENWICH LEISURE LTD Total 153,610.75 GROUNDSWELL Grants to External Organisations 25,000.00 GROUNDSWELL Total 25,000.00 GROUNDWORK LONDON Grants to External Organisations 35,917.05 GROUNDWORK LONDON Total 35,917.05 GV MEDIA GROUP LTD Radio TV Press Poster Cinema Airtime And Space 1,500.00 GV MEDIA GROUP LTD Total 1,500.00 GVA GRIMLEY LTD Consultancy-Commissioned Report 3,500.00 Consultancy-Project Management 18,901.00 Grounds Maintenance 461.10 Property Management Fees 63,140.01 GVA GRIMLEY LTD Total 86,002.11 H&V BUILDING SERVICES LTD Building Maintenance & Repairs 3,631.00 H&V BUILDING SERVICES LTD Total 3,631.00 Hackney Community College Grants to External Organisations 253,034.59 Hackney Community College Total 253,034.59 HAMMERSMITH & WEST LONDON COLLEGE Grants to External Organisations 24,408.88 HAMMERSMITH & WEST LONDON COLLEGE Total 24,408.88 HARINGEY COUNCIL #N/A 25,065.50 HARINGEY COUNCIL Total 25,065.50 HARRIS FEDERATION Grants to External Organisations 24,900.00 HARRIS FEDERATION Total 24,900.00 HARROW COLLEGE Grants to External Organisations 35,049.57 HARROW COLLEGE Total 35,049.57 HAYS SPECIALIST RECRUITMENT LTD Agency Staff 510,295.02 Consultants (Contractors) 523.80 IT Consultancy 7,833.00 Other Professional Fees 9,334.70 Recruitment Agency Fees 35,696.83 HAYS SPECIALIST RECRUITMENT LTD Total 563,683.35 HERBERT SMITH FREEHILLS LLP Legal Fees 135,342.20 Purchase of Land & Buildings 1,697,095.00 HERBERT SMITH FREEHILLS LLP Total 1,832,437.20 HEXAGON HOUSING ASSOCIATION LIMITED HSG Grants to Registered Providers 339,696.00 HEXAGON HOUSING ASSOCIATION LIMITED Total 339,696.00 HM TREASURY Miscellaneous Costs 324,652.74 HM TREASURY Total 324,652.74 HOLLY LANG LTD Production Artwork And Design For Marketing 3,588.00 HOLLY LANG LTD Total 3,588.00 HOMES & COMMUNITIES AGENCY Consultancy Evaluation Assessment 34,193.12 HOMES & COMMUNITIES AGENCY Total 34,193.12 HOUSE OF LORDS Seconded Staff - Non Group 22,202.76 HOUSE OF LORDS Total 22,202.76 HOWARD PRIMARY SCHOOL Grants to External Organisations 2,745.00 HOWARD PRIMARY SCHOOL Total 2,745.00 Huma Bhabha Other ProfessionalPage Fees 232 6,000.00 Huma Bhabha Total 6,000.00 Transactions over £ 250.00 Reporting Period : Quarter 3 Start Date: 16th October, 2016 End Date: 07th January, 2017 Financial Year : 2016/17 Appendix 1

Total Spend > £250 (All)

Row Labels Expenditure Account Code Description Sum of Grand Total HUNTERS CONTRACTS Non Recyclable Waste Disposal/Refuse Collection 440.00 HUNTERS CONTRACTS Total 440.00 HUNTRESS SEARCH LTD Agency Staff 829.17 HUNTRESS SEARCH LTD Total 829.17 HYDE HOUSING ASSOCIATION LIMITED HSG Grants to Registered Providers 1,891,606.00 HYDE HOUSING ASSOCIATION LIMITED Total 1,891,606.00 HYPEROPTIC LTD Grants to External Organisations 18,000.00 HYPEROPTIC LTD Total 18,000.00 ICM RESEARCH LIMITED Research For Marketing Campaigns And Activities 3,900.00 ICM RESEARCH LIMITED Total 3,900.00 IDOX Data Purchase 39,132.50 IDOX Total 39,132.50 IFG ENTERPRISES LTD Staff Training 1,285.00 IFG ENTERPRISES LTD Total 1,285.00 IMAGINATORS Non Permanent Signage And Way Finding 10,116.00 Printing 3,860.00 IMAGINATORS Total 13,976.00 INDEPENDENT GLASS CO. LTD. Production Artwork And Design For Marketing 650.00 INDEPENDENT GLASS CO. LTD. Total 650.00 INDEPENDENT LIVING ALTERNATIVES Staff Welfare Benefits 560.00 INDEPENDENT LIVING ALTERNATIVES Total 560.00 INNOVISION External Events Roads Shows And Face To Face 379,860.15 INNOVISION Total 379,860.15 INQUILAB HOUSING ASSOCIATION LIMITE HSG Grants to Registered Providers 16,000.00 INQUILAB HOUSING ASSOCIATION LIMITE Total 16,000.00 INSIGHT DIRECT UK LIMITED Computer Hardware 74,741.93 Consultancy Evaluation Assessment 5,328.31 IT Consultancy 31,250.00 Software Maintenance 31,599.78 INSIGHT DIRECT UK LIMITED Total 142,920.02 INSPIRED EXCHANGE LTD Other Professional Fees 2,200.00 INSPIRED EXCHANGE LTD Total 2,200.00 ISLINGTON AND SHOREDITCH HA LTD HSG Grants to Registered Providers - ISLINGTON AND SHOREDITCH HA LTD Total - ISLINGTON COUNCIL HSG Grants to Local Authorities 52,500.00 ISLINGTON COUNCIL Total 52,500.00 JACK MORTON WORLDWIDE External Events Roads Shows And Face To Face 973,484.00 JACK MORTON WORLDWIDE Total 973,484.00 JACKFRANCIS MEDIA LTD Photography And Video Design And Production 7,300.20 JACKFRANCIS MEDIA LTD Total 7,300.20 James JM Massiah Other Professional Fees 250.00 James JM Massiah Total 250.00 JAMES O JENKINS Photography & Video 2,800.00 Photography And Video Design And Production 13,180.00 JAMES O JENKINS Total 15,980.00 Jan Burkhardt Other Professional Fees 455.80 Jan Burkhardt Total 455.80 JEANETTE HURRELL Photography & Video 452.58 JEANETTE HURRELL Total 452.58 JEWISH LEADERSHIP COUNCIL External Events Roads Shows And Face To Face 20,000.00 JEWISH LEADERSHIP COUNCIL Total 20,000.00 KEYTREE LTD Consultancy-Project Management 394,346.96 KEYTREE LTD Total 394,346.96 KINGS COLLEGE LONDON Management & Support Consultancy 400.00 KINGS COLLEGE LONDON Total 400.00 Kings Place Music Foundation External Meeting Room Hire & Expenses 690.00 Kings Place Music Foundation Total 690.00 KINGSLEY HALL CHURCH & COMMUNITY Grants to External Organisations 12,613.76 KINGSLEY HALL CHURCH & COMMUNITY Total 12,613.76 KINNEAR LANDSCAPE ARCHITECTS Planning & Development Consultancy 2,250.00 KINNEAR LANDSCAPE ARCHITECTS Total 2,250.00 KOIS MIAH Photography & Video 400.00 Photography And Video Design And Production 1,000.00 KOIS MIAH Total 1,400.00 LAMBERT SMITH HAMPTON Consultancy Evaluation Assessment 12,500.00 Consultancy-Project Management 8,270.00 LAMBERT SMITH HAMPTON Total 20,770.00 LAMBETH COLLEGE Grants to External Organisations 390,982.28 LAMBETH COLLEGE Total 390,982.28 LAND USE CONSULTANTS Consultancy-Commissioned Report 19,570.00 LAND USE CONSULTANTS Total 19,570.00 LAURENCE TAYLOR Consultancy-Project Management 3,400.00 LAURENCE TAYLOR Total Page 233 3,400.00 LB BEXLEY Grants to External Organisations 109,419.32 Transactions over £ 250.00 Reporting Period : Quarter 3 Start Date: 16th October, 2016 End Date: 07th January, 2017 Financial Year : 2016/17 Appendix 1

Total Spend > £250 (All)

Row Labels Expenditure Account Code Description Sum of Grand Total LB BEXLEY Total 109,419.32 LB HOUNSLOW HSG Grants to Local Authorities 1,100,000.00 LB HOUNSLOW Total 1,100,000.00 LB TOWER HAMLETS Grants to External Organisations 21,900.00 Seconded Staff - Non Group 16,247.00 LB TOWER HAMLETS Total 38,147.00 Learning and Work Institute Conferences & Seminars 280.00 Learning and Work Institute Total 280.00 LEVEL 3 COMMUNICATIONS UK LTD Telephone Line Rent, Calls & Equipment 2,774.36 LEVEL 3 COMMUNICATIONS UK LTD Total 2,774.36 LHA-ASRA GROUP LIMITED HSG Grants to Registered Providers 465,467.00 LHA-ASRA GROUP LIMITED Total 465,467.00 LIVING WAGE FOUNDATION Other Professional Fees 400.00 LIVING WAGE FOUNDATION Total 400.00 LIZA MONKS External Events Roads Shows And Face To Face 608.00 LIZA MONKS Total 608.00 LLDC Functional Bodies Grant Payments 3,472,000.00 LLDC Total 3,472,000.00 LOCAL AUTHORITY PENSION FUND (LPFA) Management & Support Consultancy 4,850.00 LOCAL AUTHORITY PENSION FUND (LPFA) Total 4,850.00 LOCAL DATA COMPANY Data Purchase 13,891.00 LOCAL DATA COMPANY Total 13,891.00 LOCAL PARTNERSHIPS Consultancy-Project Management 59,825.00 LOCAL PARTNERSHIPS Total 59,825.00 LONDON & PARTNERS External Events Roads Shows And Face To Face 24,807.87 Grants to External Organisations 2,956,000.00 Marketing Strategy And Consultancy 1,750.00 Miscellaneous Costs 2,815,000.00 Printing 750.00 LONDON & PARTNERS Total 5,798,307.87 LONDON & PARTNERS VENTURES LTD External Meeting Room Hire & Expenses 475.00 LONDON & PARTNERS VENTURES LTD Total 475.00 LONDON 2017 Grants to External Organisations 891,500.00 LONDON 2017 Total 891,500.00 LONDON AND QUADRANT HOUSING TRUST HSG Grants to Registered Providers 1,702,000.00 LONDON AND QUADRANT HOUSING TRUST Total 1,702,000.00 LONDON BOROUGH OF BARKING Grants to External Organisations 19,000.00 LONDON BOROUGH OF BARKING Total 19,000.00 LONDON BOROUGH OF BARNET Grants to External Organisations 34,189.00 LONDON BOROUGH OF BARNET Total 34,189.00 LONDON BOROUGH OF EALING Grants to External Organisations 20,000.00 HSG Grants to Local Authorities 162,500.00 LONDON BOROUGH OF EALING Total 182,500.00 LONDON BOROUGH OF ENFIELD Grants to External Organisations 39,021.00 LONDON BOROUGH OF ENFIELD Total 39,021.00 LONDON BOROUGH OF HARROW #N/A 40,000.00 LONDON BOROUGH OF HARROW Total 40,000.00 LONDON BOROUGH OF HAVERING HSG Grants to Local Authorities 110,000.00 LONDON BOROUGH OF HAVERING Total 110,000.00 LONDON BOROUGH OF ISLINGTON Grants to External Organisations 8,050.00 #N/A 18,531.54 LONDON BOROUGH OF ISLINGTON Total 26,581.54 LONDON BOROUGH OF MERTON Grants to External Organisations 836,509.00 LONDON BOROUGH OF MERTON Total 836,509.00 LONDON BOROUGH OF NEWHAM #N/A 79,698.45 LONDON BOROUGH OF NEWHAM Total 79,698.45 LONDON BOROUGH OF REDBRIDGE Seconded Staff - Non Group 14,217.00 LONDON BOROUGH OF REDBRIDGE Total 14,217.00 LONDON BOROUGH OF WALTHAM FOREST HSG Grants to Local Authorities 162,046.00 LONDON BOROUGH OF WALTHAM FOREST Total 162,046.00 LONDON CALLING ARTS LTD Production Artwork And Design For Marketing 4,490.00 LONDON CALLING ARTS LTD Total 4,490.00 LONDON CHINATOWN CHINESE ASSOC External Events Roads Shows And Face To Face 17,500.00 LONDON CHINATOWN CHINESE ASSOC Total 17,500.00 Grants to External Organisations 519,997.88 LONDON COUNCILS Total 519,997.88 LONDON FESTIVAL OF ARCHITECTURE LTD Grants to External Organisations 20,000.00 LONDON FESTIVAL OF ARCHITECTURE LTD Total 20,000.00 LONDON FIRE & EMERG. PLANNING AUTH. Payroll Services Fees 14,300.00 LONDON FIRE & EMERG. PLANNING AUTH. Total 14,300.00 LONDON LEGACY DEVELOPMENT CORPORATI Commercial Property Rent 8,977.86 LONDON LEGACY DEVELOPMENT CORPORATI Total 8,977.86 LONDON METROPOLITAN UNIVERSITY ConsultancyPage Evaluation 234 Assessment 25,110.00 LONDON METROPOLITAN UNIVERSITY Total 25,110.00 Transactions over £ 250.00 Reporting Period : Quarter 3 Start Date: 16th October, 2016 End Date: 07th January, 2017 Financial Year : 2016/17 Appendix 1

Total Spend > £250 (All)

Row Labels Expenditure Account Code Description Sum of Grand Total LONDON PRINT Publications & Periodicals 360.00 LONDON PRINT Total 360.00 LONDON SPORT LTD Grants to External Organisations 63,568.05 Seconded Staff - Non Group 14,341.74 LONDON SPORT LTD Total 77,909.79 LONDON TIGERS Grants to External Organisations 20,000.00 LONDON TIGERS Total 20,000.00 LONDON TRANSPORT MUSEUM External Meeting Room Hire & Expenses 382.50 LONDON TRANSPORT MUSEUM Total 382.50 LONDON TRAVELWATCH Functional Bodies Grant Payments 215,000.00 LONDON TRAVELWATCH Total 215,000.00 LONDON WILDLIFE TRUST Grants to External Organisations 3,465.39 LONDON WILDLIFE TRUST Total 3,465.39 LUISA SIEIRO DESIGN Consultancy-Project Management 420.00 Production Artwork And Design For Marketing 4,210.00 LUISA SIEIRO DESIGN Total 4,630.00 LUX NOVA PARTNERS LIMITED Legal Fees 22,190.00 LUX NOVA PARTNERS LIMITED Total 22,190.00 M&R COMMUNICATIONS LTD Data Hosting Email Design And Transmission Inc SMS 1,599.00 M&R COMMUNICATIONS LTD Total 1,599.00 MACE LTD Consultancy-Commissioned Report 6,800.00 MACE LTD Total 6,800.00 MAJESTIC WINE Caterers Service Charges 1,334.23 MAJESTIC WINE Total 1,334.23 MANAGED COMMUNICATIONS LIMITED Grants to External Organisations 2,920.00 MANAGED COMMUNICATIONS LIMITED Total 2,920.00 MANTARAY ABSEIL LTD Health & Safety Systems & Assurance 2,495.00 MANTARAY ABSEIL LTD Total 2,495.00 MARKET RESEARCH SOCIETY Other Professional Fees 963.75 MARKET RESEARCH SOCIETY Total 963.75 MARTIN ARNOLD ASSOCIATES LLP Building Maintenance & Repairs 6,000.00 MARTIN ARNOLD ASSOCIATES LLP Total 6,000.00 MARTINSPEED LTD Other Professional Fees 445.05 MARTINSPEED LTD Total 445.05 MARYLEBONE CRICKET CLUB Equipment Hire & Rental 7,871.10 Seconded Staff - Non Group 24,390.78 MARYLEBONE CRICKET CLUB Total 32,261.88 MAYTREE NURSERY SCHOOL Grants to External Organisations 2,283.47 MAYTREE NURSERY SCHOOL Total 2,283.47 MEDCITY LTD Grants to External Organisations 100,000.00 MEDCITY LTD Total 100,000.00 MEDIAEDGE:CIA UK LTD T/A MEC:ACTIVE Agency Fees Paid To Marketing Agencies 20,149.47 Radio TV Press Poster Cinema Airtime And Space 19,999.79 Research For Marketing Campaigns And Activities 4,576.51 Social Media And Digital Advertising Space 17,940.49 MEDIAEDGE:CIA UK LTD T/A MEC:ACTIVE Total 62,666.26 MENTAL HEALTH FOUNDATION Research & Study Fees 9,775.00 MENTAL HEALTH FOUNDATION Total 9,775.00 METIS Management & Support Consultancy 2,500.00 METIS Total 2,500.00 MICHAEL PAGE UK LTD Agency Staff 15,000.00 MICHAEL PAGE UK LTD Total 15,000.00 MIDLAND HR Software Maintenance 19,222.80 MIDLAND HR Total 19,222.80 MIDLANDHR Computer Software 5,425.75 MIDLANDHR Total 5,425.75 MILES WILLIS PHOTOGRAPHY Grants to External Organisations 500.00 MILES WILLIS PHOTOGRAPHY Total 500.00 MIND Staff Training 2,426.80 MIND Total 2,426.80 MOPAC Internal Audit Fees 89,000.00 MOPAC Total 89,000.00 MORE LONDON Property Service Charges 79,076.75 MORE LONDON Total 79,076.75 MOUNT PLEASANT ASSOCIATION Grants to External Organisations 39,350.60 MOUNT PLEASANT ASSOCIATION Total 39,350.60 Moyses Stevens Flowers Ltd Other Professional Fees 724.99 Moyses Stevens Flowers Ltd Total 724.99 Mr P Roberts Other Professional Fees 350.00 Mr P Roberts Total 350.00 Mr Robert Gordon McHarg Other Professional Fees 295.00 Mr Robert Gordon McHarg Total 295.00 Ms H G Phillipson Other ProfessionalPage Fees 235 6,000.00 Ms H G Phillipson Total 6,000.00 Transactions over £ 250.00 Reporting Period : Quarter 3 Start Date: 16th October, 2016 End Date: 07th January, 2017 Financial Year : 2016/17 Appendix 1

Total Spend > £250 (All)

Row Labels Expenditure Account Code Description Sum of Grand Total Ms I E C Mortimer Consultancy Evaluation Assessment 600.00 Ms I E C Mortimer Total 600.00 MULLZIMMER TANK CIC Grants to External Organisations 1,940.73 MULLZIMMER TANK CIC Total 1,940.73 MUSEUM OF LONDON Grants to External Organisations 1,580,000.00 MUSEUM OF LONDON Total 1,580,000.00 MUSIC VENUE TRUST External Meeting Room Hire & Expenses 5,200.00 MUSIC VENUE TRUST Total 5,200.00 Natalka Design Ltd Marketing Design & Artwork 1,755.60 Natalka Design Ltd Total 1,755.60 NATURAL ENVIRON RESEARCH COUNCIL Management & Support Consultancy 1,870.00 NATURAL ENVIRON RESEARCH COUNCIL Total 1,870.00 NEOPOST LTD Postage 728.47 NEOPOST LTD Total 728.47 NEW VALLEY PRIMARY SCHOOL Grants to External Organisations 2,274.82 NEW VALLEY PRIMARY SCHOOL Total 2,274.82 NHS ENGLAND Seconded Staff - Non Group 16,704.00 NHS ENGLAND Total 16,704.00 NIMANS NETWORK SERVICES Grants to External Organisations 3,000.00 NIMANS NETWORK SERVICES Total 3,000.00 NINE TELECOM LTD Grants to External Organisations 1,500.00 NINE TELECOM LTD Total 1,500.00 NOMIS CONNECTIONS LIMITED Grants to External Organisations 6,000.00 NOMIS CONNECTIONS LIMITED Total 6,000.00 NORTH LONDON PARTNERSHIP LTD Grants to External Organisations 61,407.66 NORTH LONDON PARTNERSHIP LTD Total 61,407.66 NOTTING HILL HOUSING TRUST HSG Grants to Registered Providers 13,500.00 NOTTING HILL HOUSING TRUST Total 13,500.00 NOVACROFT DIRECT LTD Other Professional Fees 1,200.00 NOVACROFT DIRECT LTD Total 1,200.00 O2 UK LIMITED Mobile Phone Line Rent, Calls & Equipment 7,913.97 O2 UK LIMITED Total 7,913.97 OCLC (UK) LTD Data Purchase 530.00 OCLC (UK) LTD Total 530.00 OCS CATERING Caterers Service Charges 22,001.26 OCS CATERING Total 22,001.26 OCTAVIA HOUSING AND CARE HSG Grants to Registered Providers 16,000.00 OCTAVIA HOUSING AND CARE Total 16,000.00 OFFICE DEPOT UK LTD Stationery 5,690.32 OFFICE DEPOT UK LTD Total 5,690.32 OFFICE FOR NATIONAL STATISTICS Data Purchase 2,200.00 Other Professional Fees 70,000.00 OFFICE FOR NATIONAL STATISTICS Total 72,200.00 ONE HOUSING GROUP LIMITED HSG Grants to Registered Providers 3,058,700.00 ONE HOUSING GROUP LIMITED Total 3,058,700.00 OPEN CITY ARCHITECTURE External Events Roads Shows And Face To Face 3,500.00 OPEN CITY ARCHITECTURE Total 3,500.00 OPEN UNIVERSITY Staff Training 1,261.00 OPEN UNIVERSITY Total 1,261.00 OPP LIMITED Staff Training 2,050.00 OPP LIMITED Total 2,050.00 OPTIMITY LTD Grants to External Organisations 63,000.00 OPTIMITY LTD Total 63,000.00 ORDNANCE SURVEY Data Purchase 1,500.00 ORDNANCE SURVEY Total 1,500.00 OVE ARUP & PARTNERS LTD Consultancy-Project Management 1,100.00 Management & Support Consultancy 57,075.50 Other Professional Fees 4,845.00 Planning & Development Consultancy 61,256.25 OVE ARUP & PARTNERS LTD Total 124,276.75 OXFORD ECONOMICS Data Purchase 6,100.00 Grants to External Organisations 2,500.00 OXFORD ECONOMICS Total 8,600.00 PACIFIC 7 LTD Office Cleaning 872.00 PACIFIC 7 LTD Total 872.00 PADDINGTON CHURCHES HA LTD HSG Grants to Registered Providers 570,000.00 PADDINGTON CHURCHES HA LTD Total 570,000.00 PANATHLON FOUNDATION LIMITED Grants to External Organisations 11,950.00 PANATHLON FOUNDATION LIMITED Total 11,950.00 PATRICK LACEY LTD T/A ABAKE Planning & Development Consultancy 600.00 PATRICK LACEY LTD T/A ABAKE Total 600.00 PAUL ROBERTS Photography & Video 350.00 PAUL ROBERTS Total Page 236 350.00 PEABODY TRUST HSG Grants to Registered Providers 978,353.00 Transactions over £ 250.00 Reporting Period : Quarter 3 Start Date: 16th October, 2016 End Date: 07th January, 2017 Financial Year : 2016/17 Appendix 1

Total Spend > £250 (All)

Row Labels Expenditure Account Code Description Sum of Grand Total PEABODY TRUST Total 978,353.00 PECKHAM COAL LINE Grants to External Organisations 10,000.00 PECKHAM COAL LINE Total 10,000.00 PENGUINS Office Cleaning 975.00 PENGUINS Total 975.00 PERFORMING RIGHTS SOCIETY LTD Monitoring Of PR And Social Media 404.68 PERFORMING RIGHTS SOCIETY LTD Total 404.68 PINNACLE HOUSING LTD Mobile Phone Line Rent, Calls & Equipment 1,125.00 PINNACLE HOUSING LTD Total 1,125.00 PINSENT MASONS Legal Fees 11,836.21 PINSENT MASONS Total 11,836.21 PIPEDREAM DESIGN Publications & Periodicals 4,144.00 PIPEDREAM DESIGN Total 4,144.00 PIPERS PROJECTS LTD Conferences & Seminars 2,550.00 Other Professional Fees 2,420.00 PIPERS PROJECTS LTD Total 4,970.00 PITNEY BOWES LTD Postage 11,552.00 PITNEY BOWES LTD Total 11,552.00 PIVOTAL SOLUTIONS LTD Management & Support Consultancy 13,500.00 PIVOTAL SOLUTIONS LTD Total 13,500.00 PLAIN ENGLISH CAMPAIGN LTD Staff Training 1,000.00 PLAIN ENGLISH CAMPAIGN LTD Total 1,000.00 POD FOOD Caterers Service Charges 1,470.62 POD FOOD Total 1,470.62 POPULUS Publications & Periodicals 5,000.00 POPULUS Total 5,000.00 PORT OF LONDON AUTHORITY Health & Safety Systems & Assurance 1,280.00 Land/Ground Rents 17,356.60 Property Management Fees 400.00 PORT OF LONDON AUTHORITY Total 19,036.60 PRECISE MEDIA MONITORING LTD Monitoring Of PR And Social Media 43,687.33 PRECISE MEDIA MONITORING LTD Total 43,687.33 PREDERI LIMITED Consultancy-Project Management 9,950.00 Grants to External Organisations 14,000.00 PREDERI LIMITED Total 23,950.00 PREMIER PARTNER Staff Training 4,050.00 PREMIER PARTNER Total 4,050.00 PRICEWATERHOUSECOOPERS LLP Caterers Service Charges 3,637.25 Consultancy Evaluation Assessment 5,000.00 PRICEWATERHOUSECOOPERS LLP Total 8,637.25 PROBRAND LTD Data Purchase 36,817.00 IT Consultancy 2,317.50 Manage IT Services 59,400.00 PROBRAND LTD Total 98,534.50 PROFILE SECURITY SERVICES LTD Security Services (Guards) 12,293.13 PROFILE SECURITY SERVICES LTD Total 12,293.13 PROJECT ORACLE Grants to External Organisations 42,000.00 PROJECT ORACLE Total 42,000.00 Promodo Ltd Consultancy-Commissioned Report 4,800.00 Promodo Ltd Total 4,800.00 PROUDFOOT LIMITED Photography And Video Design And Production 500.00 PROUDFOOT LIMITED Total 500.00 PRYSM MEDIA GROUP LTD. External Events Roads Shows And Face To Face 3,915.00 PRYSM MEDIA GROUP LTD. Total 3,915.00 PURE Monitoring Of PR And Social Media 4,520.75 PURE Total 4,520.75 PUREPRINT Production Artwork And Design For Marketing 300.00 PUREPRINT Total 300.00 QUAY OFFICE FURNISHERS LTD Stationery 662.40 QUAY OFFICE FURNISHERS LTD Total 662.40 QUAYSTONE FACILITIES MANAGEMENT Grounds Maintenance 16,264.37 QUAYSTONE FACILITIES MANAGEMENT Total 16,264.37 QUBIC GROUP PLC Grants to External Organisations 3,000.00 QUBIC GROUP PLC Total 3,000.00 RACKSPACE LTD Photography & Video 665.97 RACKSPACE LTD Total 665.97 RADIO TAXIS GROUP LTD Business Fares 2,852.00 RADIO TAXIS GROUP LTD Total 2,852.00 RAMIDUS Consultancy-Commissioned Report 40,725.00 RAMIDUS Total 40,725.00 RE (REGIONAL ENTERPRISE LIMITED) Seconded Staff - Non Group 21,444.00 RE (REGIONAL ENTERPRISE LIMITED) Total 21,444.00 RED GECKO LTD Storage AndPage Distribution 237 Of Publicity Materials 300.00 RED GECKO LTD Total 300.00 Transactions over £ 250.00 Reporting Period : Quarter 3 Start Date: 16th October, 2016 End Date: 07th January, 2017 Financial Year : 2016/17 Appendix 1

Total Spend > £250 (All)

Row Labels Expenditure Account Code Description Sum of Grand Total RED ROOM EVENTS LTD External Events Roads Shows And Face To Face 23,649.37 RED ROOM EVENTS LTD Total 23,649.37 REDCENTRIC SOLUTIONS LTD Manage IT Services 9,839.08 REDCENTRIC SOLUTIONS LTD Total 9,839.08 REED AND MACKAY TRAVEL Business Fares 3,797.60 REED AND MACKAY TRAVEL Total 3,797.60 REED IN PARTNERSHIP LIMITED Grants to External Organisations 55,462.17 REED IN PARTNERSHIP LIMITED Total 55,462.17 REGENERIS CONSULTING LIMITED Consultancy Evaluation Assessment 27,260.67 Planning & Development Consultancy 1,450.00 REGENERIS CONSULTING LIMITED Total 28,710.67 REWARD GATEWAY (UK) LTD Childcare Vouchers 49,381.43 REWARD GATEWAY (UK) LTD Total 49,381.43 RICHARD WALD Legal Fees 12,000.00 RICHARD WALD Total 12,000.00 RICHMOND UPON THAMES COLLEGE Grants to External Organisations 218,780.69 RICHMOND UPON THAMES COLLEGE Total 218,780.69 ROCKET SCIENCE UK LTD Management & Support Consultancy 14,000.00 ROCKET SCIENCE UK LTD Total 14,000.00 RODMA Property Management Fees 105,457.18 RODMA Total 105,457.18 ROI TEAM Research & Study Fees 25,500.00 ROI TEAM Total 25,500.00 ROMFORD CONTEMPORARY ARTS PROG Grants to External Organisations 6,830.00 ROMFORD CONTEMPORARY ARTS PROG Total 6,830.00 ROSE GROGAN Legal Fees 3,450.00 ROSE GROGAN Total 3,450.00 ROUNDHOUSE TRUST Grants to External Organisations 14,495.00 ROUNDHOUSE TRUST Total 14,495.00 ROWDOWN PRIMARY SCHOOL Grants to External Organisations 1,028.61 ROWDOWN PRIMARY SCHOOL Total 1,028.61 ROYAL BOROUGH OF GREENWICH Grants to External Organisations 7,494.75 ROYAL BOROUGH OF GREENWICH Total 7,494.75 ROYAL MAIL Postage 271.41 ROYAL MAIL Total 271.41 RUSS LTD Grants to External Organisations 14,659.00 RUSS LTD Total 14,659.00 SANCTUARY HOUSING ASSOCIATION HSG Grants to Registered Providers 445,924.00 SANCTUARY HOUSING ASSOCIATION Total 445,924.00 SAVILLS (UK) LTD Consultancy-Project Management 24,000.00 SAVILLS (UK) LTD Total 24,000.00 SCANPLUS PRINT GROUP Promotions Incentives Merchandise Give-Aways 4,950.00 SCANPLUS PRINT GROUP Total 4,950.00 SCARLETT MCCGWIRE Staff Training 600.00 SCARLETT MCCGWIRE Total 600.00 SECUREDATA EUROPE LIMITED Software Maintenance 8,798.81 SECUREDATA EUROPE LIMITED Total 8,798.81 SENATOR INTERNATIONAL LTD Building Maintenance & Repairs 25,875.00 SENATOR INTERNATIONAL LTD Total 25,875.00 SENECA ENVIRONMENTAL SOLUTIONS LTD Non Recyclable Waste Disposal/Refuse Collection 569,934.20 SENECA ENVIRONMENTAL SOLUTIONS LTD Total 569,934.20 SERVOCA SECURE SOLUTIONS Security Services (Guards) 51,096.56 SERVOCA SECURE SOLUTIONS Total 51,096.56 SHORTHAND PTY LTD Miscellaneous Costs 700.00 SHORTHAND PTY LTD Total 700.00 SIRIUS CORPORATION LTD Manage IT Services 18,750.00 SIRIUS CORPORATION LTD Total 18,750.00 SITE-EYE TIME-LAPSE FILMS Photography & Video 1,200.00 SITE-EYE TIME-LAPSE FILMS Total 1,200.00 SIT-STAND.COM Furniture & Equipment 759.87 SIT-STAND.COM Total 759.87 SMARTINFO LTD Grants to External Organisations 454,527.50 SMARTINFO LTD Total 454,527.50 Snact Ltd Grants to External Organisations 2,068.40 Snact Ltd Total 2,068.40 SOLID MEDIA BUSINESS LTD Publications & Periodicals 1,300.00 SOLID MEDIA BUSINESS LTD Total 1,300.00 SOLOMAN EXECUTIVE LTD Grants to External Organisations 33,571.26 Other Professional Fees 5,250.00 SOLOMAN EXECUTIVE LTD Total 38,821.26 SOUND DIPLOMACY Consultancy-Project Management 24,000.00 SOUND DIPLOMACY Total 24,000.00 SOUTH THAMES COLLEGE Grants to PageExternal Organisations 238 49,195.94 SOUTH THAMES COLLEGE Total 49,195.94 Transactions over £ 250.00 Reporting Period : Quarter 3 Start Date: 16th October, 2016 End Date: 07th January, 2017 Financial Year : 2016/17 Appendix 1

Total Spend > £250 (All)

Row Labels Expenditure Account Code Description Sum of Grand Total SOUTHERN HOUSING GROUP LIMITED HSG Grants to Registered Providers 216,000.00 SOUTHERN HOUSING GROUP LIMITED Total 216,000.00 SOUTHWARK CATHEDRAL ENTERPRISES LTD External Meeting Room Hire & Expenses 2,653.00 SOUTHWARK CATHEDRAL ENTERPRISES LTD Total 2,653.00 SPACEHIVE Planning & Development Consultancy 10,000.00 SPACEHIVE Total 10,000.00 SPECIAL OLYMPICS GB Grants to External Organisations 5,000.00 SPECIAL OLYMPICS GB Total 5,000.00 SPECTRECOM FILMS LTD Photography And Video Design And Production 10,000.00 SPECTRECOM FILMS LTD Total 10,000.00 SPICE INNOVATIONS LTD Staff Training 1,706.00 SPICE INNOVATIONS LTD Total 1,706.00 SPITFIRE NETWORK SERVICES LTD Grants to External Organisations 6,000.00 SPITFIRE NETWORK SERVICES LTD Total 6,000.00 ST MICHAEL'S CENTRE Grants to External Organisations 11,593.00 ST MICHAEL'S CENTRE Total 11,593.00 ST MUNGOS Hsg-Rough Sleeping 1,341,113.86 ST MUNGOS Total 1,341,113.86 ST WILLIAM HOMES LLP Legal Fees 17,005.54 ST WILLIAM HOMES LLP Total 17,005.54 STEPHEN FRIEDMAN GALLERY Grants to External Organisations 30,000.00 STEPHEN FRIEDMAN GALLERY Total 30,000.00 STEPHEN TROMANS Legal Fees 63,046.61 STEPHEN TROMANS Total 63,046.61 STUDIO 3 ARTS LIMITED Grants to External Organisations 10,000.00 STUDIO 3 ARTS LIMITED Total 10,000.00 SUDBOURNE PRIMARY SCHOOL Grants to External Organisations 2,600.00 SUDBOURNE PRIMARY SCHOOL Total 2,600.00 SUPPLIES TEAM LTD Computer Hardware 395.48 SUPPLIES TEAM LTD Total 395.48 SUSTAIN Grants to External Organisations 18,359.12 SUSTAIN Total 18,359.12 SWAN HOUSING ASSOCIATION LIMITED HSG Grants to Registered Providers 5,028.00 SWAN HOUSING ASSOCIATION LIMITED Total 5,028.00 SWEETT (UK) LTD Other Professional Fees 17,350.00 SWEETT (UK) LTD Total 17,350.00 Sylvan Baker Consultancy Evaluation Assessment 300.00 Sylvan Baker Total 300.00 SYNERGYPLUS Grants to External Organisations 3,000.00 SYNERGYPLUS Total 3,000.00 TATTERSALL TRAINING Staff Training 9,250.50 TATTERSALL TRAINING Total 9,250.50 TELEFONICA UK LIMITED Grants to External Organisations 2,210.33 TELEFONICA UK LIMITED Total 2,210.33 TELFORD HOMES PLC HSG Grants to Non-Registered Providers 408,500.00 TELFORD HOMES PLC Total 408,500.00 TEMPLE GROUP LTD Consultancy-Commissioned Report 1,700.00 Consultancy-Project Management 8,994.76 TEMPLE GROUP LTD Total 10,694.76 TEST PARTNERS LTD IT Consultancy 12,740.00 Manage IT Services 7,495.00 TEST PARTNERS LTD Total 20,235.00 TFL GROUP PROPERTY Land/Ground Rents 1,378,916.00 Manage IT Services 32,895.27 TFL GROUP PROPERTY Total 1,411,811.27 THAMES REACH Hsg-Rough Sleeping 450,014.42 THAMES REACH Total 450,014.42 THAMES WATER UTILITIES LTD Water 20,526.31 THAMES WATER UTILITIES LTD Total 20,526.31 THE CARPENTRY CLUB Grants to External Organisations 7,130.96 THE CARPENTRY CLUB Total 7,130.96 THE CHANGE COLLECTIVE Staff Training 500.00 THE CHANGE COLLECTIVE Total 500.00 The Choir with No Name Miscellaneous Costs 400.00 The Choir with No Name Total 400.00 The Cinema Museum External Meeting Room Hire & Expenses 725.00 The Cinema Museum Total 725.00 THE ENVIRONMENT P/SHIP (TEP) LTD External Building Maintenance 2,125.00 Grounds Maintenance 327.00 Health & Safety Systems & Assurance 1,689.00 Landscape Maintenance 839.40 Property Management Fees 2,474.75 THE ENVIRONMENT P/SHIP (TEP) LTD Total Page 239 7,455.15 THE EVENT PROFESSIONALS Other Professional Fees 8,062.50 Transactions over £ 250.00 Reporting Period : Quarter 3 Start Date: 16th October, 2016 End Date: 07th January, 2017 Financial Year : 2016/17 Appendix 1

Total Spend > £250 (All)

Row Labels Expenditure Account Code Description Sum of Grand Total THE EVENT PROFESSIONALS Total 8,062.50 THE FINANCIAL TIMES LTD Publications & Periodicals 10,450.00 THE FINANCIAL TIMES LTD Total 10,450.00 THE INFORMATION LAB Publications & Periodicals 1,540.00 THE INFORMATION LAB Total 1,540.00 The Labour Party Equipment Hire & Rental 550.00 The Labour Party Total 550.00 THE LONDON ORCHARD PROJECT Grants to External Organisations 2,000.00 THE LONDON ORCHARD PROJECT Total 2,000.00 THE LONDON PATHWAY Grants to External Organisations 6,881.00 THE LONDON PATHWAY Total 6,881.00 THE MEANS Planning & Development Consultancy 624.00 THE MEANS Total 624.00 THE OWLS ORGANISATION LIMITED Photography And Video Design And Production 10,000.00 THE OWLS ORGANISATION LIMITED Total 10,000.00 The Pandemonium Drummers Staff Entertainment 420.00 The Pandemonium Drummers Total 420.00 THE PRESS ASSOCIATION LTD PR Cost Product Cost & PR Fees 2,397.21 THE PRESS ASSOCIATION LTD Total 2,397.21 The Restart Project Grants to External Organisations 2,105.10 The Restart Project Total 2,105.10 THE SHAKESPEARE Grants to External Organisations 25,000.00 THE SHAKESPEARE Total 25,000.00 THE SMART CARD STORE LTD Stationery 1,180.90 THE SMART CARD STORE LTD Total 1,180.90 THE STATIONERY OFFICE Printing 2,654.60 THE STATIONERY OFFICE Total 2,654.60 The Trampery Foundation Ltd Refreshments/Meals at Meetings 399.00 The Trampery Foundation Ltd Total 399.00 THE UNLOVED LIMITED Printing For Marketing Materials 7,907.00 THE UNLOVED LIMITED Total 7,907.00 THE WHITE PAPER CONFERENCE CO Staff Training 507.00 THE WHITE PAPER CONFERENCE CO Total 507.00 THEM DESIGN LIMITED IT Consultancy 10,000.00 Printing 400.00 THEM DESIGN LIMITED Total 10,400.00 THIRTEEN DESIGN LTD Printing 1,936.00 Production Artwork And Design For Marketing 4,500.00 THIRTEEN DESIGN LTD Total 6,436.00 THREE DRAGONS Consultancy Evaluation Assessment 43,479.75 THREE DRAGONS Total 43,479.75 TLT SECURITY SOLUTIONS LTD Staff Training 1,900.00 TLT SECURITY SOLUTIONS LTD Total 1,900.00 TMP (UK) LTD Recruitment Advertising 53,633.20 TMP (UK) LTD Total 53,633.20 TNS UK LTD Agency Fees Paid To Marketing Agencies 6,595.00 Customer Research And Counts 20,751.00 Data Purchase 3,860.00 Management & Support Consultancy 1,665.00 Research For Marketing Campaigns And Activities 12,000.00 TNS UK LTD Total 44,871.00 TOM SIMPSON PHOTOGRAPHY Grants to External Organisations 700.00 TOM SIMPSON PHOTOGRAPHY Total 700.00 TRAMPOLINE SYSTEMS LTD Other Professional Fees 11,000.00 TRAMPOLINE SYSTEMS LTD Total 11,000.00 TRANSPORT AND TRAVEL RESEARCH LTD Management & Support Consultancy 2,040.28 TRANSPORT AND TRAVEL RESEARCH LTD Total 2,040.28 TRANSPORT FOR LONDON Functional Bodies Grant Payments 49,083,347.00 Grants to External Organisations 4,016,058.22 ODA Precept Payment 385,855.00 Seconded Staff - Non Group 27,587.95 Shared Services Fees 455,929.18 Staff Medical Insurance & Treatment 12,000.00 TRANSPORT FOR LONDON Total 53,980,777.35 TRANSPORT TRADING LTD Legal Fees 28,000.00 Shared Services Fees 27,389.50 TRANSPORT TRADING LTD Total 55,389.50 Trevor Bragg Other Professional Fees 2,800.00 Trevor Bragg Total 2,800.00 TROWERS & HAMLINS LLP Legal Fees 109,714.28 TROWERS & HAMLINS LLP Total 109,714.28 TRUSTMARQUE SOLUTIONS Manage IT Services 9,521.26 TRUSTMARQUE SOLUTIONS Total Page 240 9,521.26 TUBE LINES LTD Non Recyclable Waste Disposal/Refuse Collection 10,314.06 Transactions over £ 250.00 Reporting Period : Quarter 3 Start Date: 16th October, 2016 End Date: 07th January, 2017 Financial Year : 2016/17 Appendix 1

Total Spend > £250 (All)

Row Labels Expenditure Account Code Description Sum of Grand Total TUBE LINES LTD Total 10,314.06 TURNER & TOWNSEND PROJECT MAGAG Consultancy-Project Management 256,784.85 TURNER & TOWNSEND PROJECT MAGAG Total 256,784.85 TV NEWS LONDON LIMITED Staff Training 850.00 TV NEWS LONDON LIMITED Total 850.00 UNIVERSITY OF CAMBRIDGE Grants to External Organisations 114,905.43 UNIVERSITY OF CAMBRIDGE Total 114,905.43 University of Warwick Research & Study Fees 2,000.00 University of Warwick Total 2,000.00 UNIVERSITY OF WESTMINSTER Grants to External Organisations 12,474.00 UNIVERSITY OF WESTMINSTER Total 12,474.00 Unpackaged Innovation Ltd Grants to External Organisations 2,275.00 Unpackaged Innovation Ltd Total 2,275.00 URBAN BEINGS LIMITED Production Artwork And Design For Marketing 2,238.75 URBAN BEINGS LIMITED Total 2,238.75 URBAN ESTATES MANAGEMENT LTD Property Service Charges 550.00 URBAN ESTATES MANAGEMENT LTD Total 550.00 URBANCANDA Consultancy-Project Management 1,900.00 URBANCANDA Total 1,900.00 VAIL WIILIAMS LLP Valuation Fees 2,000.00 VAIL WIILIAMS LLP Total 2,000.00 VAIONI GROUP LTD Grants to External Organisations 8,964.00 VAIONI GROUP LTD Total 8,964.00 VALIANTYS LTD Manage IT Services 3,500.00 VALIANTYS LTD Total 3,500.00 VENUS BUSINESS COMMUNICATIONS Grants to External Organisations 2,700.00 VENUS BUSINESS COMMUNICATIONS Total 2,700.00 VEOLIA ES (UK) PLC Property Management Fees 102,222.08 VEOLIA ES (UK) PLC Total 102,222.08 VIRGIN MEDIA LTD Grants to External Organisations 8,877.00 VIRGIN MEDIA LTD Total 8,877.00 VITAL ENERGI UTILITES LTD Property Management Fees 24,963.75 VITAL ENERGI UTILITES LTD Total 24,963.75 WALLACESPACE LTD External Meeting Room Hire & Expenses 1,078.00 WALLACESPACE LTD Total 1,078.00 WALTHAM FOREST COLLEGE Grants to External Organisations 140,587.14 WALTHAM FOREST COLLEGE Total 140,587.14 WANDLE VALLEY REGIONAL PARK TRUST Grants to External Organisations 5,000.00 WANDLE VALLEY REGIONAL PARK TRUST Total 5,000.00 WANDSWORTH COUNCIL Grants to External Organisations 20,000.00 WANDSWORTH COUNCIL Total 20,000.00 WATERFRONT CONFERENCE COMPANY Conferences & Seminars 857.30 WATERFRONT CONFERENCE COMPANY Total 857.30 WEST THAMES COLLEGE Staff Training 831.00 WEST THAMES COLLEGE Total 831.00 WESTMINSTER CITY COUNCIL Grants to External Organisations 123,568.29 WESTMINSTER CITY COUNCIL Total 123,568.29 WESTMINSTER KINGSWAY COLLEGE External Meeting Room Hire & Expenses 2,190.00 WESTMINSTER KINGSWAY COLLEGE Total 2,190.00 WHATEVER DESIGN LTD Production Artwork And Design For Marketing 360.00 WHATEVER DESIGN LTD Total 360.00 Whole Kids Foundation Grants to External Organisations 772.92 Whole Kids Foundation Total 772.92 WORDWAVE INTERNATIONAL LTD T/A DTI Transcription 13,495.50 WORDWAVE INTERNATIONAL LTD T/A DTI Total 13,495.50 WYG MANAGEMENT SERVICES Health & Safety Pest Control 9,375.00 WYG MANAGEMENT SERVICES Total 9,375.00 XEROX (UK) LTD Computer Hardware 12,044.83 XEROX (UK) LTD Total 12,044.83 YELLOW SHIELD LTD Landscape Maintenance 875.50 YELLOW SHIELD LTD Total 875.50 Grand Total 103,634,994.33

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