Policy and Resources Committee

POLICY AND RESOURCES COMMITTEE

6 September 2012

Minutes of the meeting of the POLICY AND RESOURCES COMMITTEE held at Guildhall, London EC2 on THURSDAY 6 SEPTEMBER 2012 at 1.45a.m.

Present

Members: Mark Boleat, Chairman Deputy Catherine McGuinness Deputy Ken Ayers, Chief Commoner Deputy Joyce Nash Deputy John Barker Henry Pollard Deputy John Bennett Stephen Quilter Deputy Michael Cassidy John Scott Ray Catt Deputy Dr Giles Shilson Roger Chadwick Sir Michael Snyder Simon Duckworth John Tomlinson Dr Martin Dudley Deputy Michael Welbank Bob Duffield Alderman Fiona Woolf Martin Farr Alderman Sir Robert Finch Alderman Roger Gifford George Gillon Deputy Edward Lord Jeremy Mayhew

Officers: Chris Duffield - Town Clerk Chris Bilsland - Chamberlain Michael Cogher - Comptroller and City Solicitor Philip Everett - Director of the Built Environment Peter Bennett - City Surveyor William Chapman - Private Secretary to the Lord Mayor David Pearson - Director of Culture, Heritage and Libraries Peter Rees - City Planning Officer Caroline Al-Beyerty Chamberlain’s- Office Paul Beckett - Director of Planning Policy Fiona Hoban - Remembrancer’s Office Simon Murrells - Assistant Town Clerk Liz Skelcher - Assistant Director of Economic Development Tony Halmos - Director of Public Relations Jeremy Fern - Economic Development Office John Ingamells - Economic Development Office Jenny Field - Assistant Grants Officer Tim Wilson - City Bridge Trust Neil Davies - Town Clerk’s Office Angela Roach - Town Clerk’s Office Retirement of the Town Clerk, Chris Duffield

The Chairman advised Members that this would be the Town Clerk’s last meeting of the Policy Committee before he retired after nine years of service. He commended Chris Duffield on his work, particularly his ability to tackle major issues and the sensitivities attached to them such as Crossrail, the City Corporation’s ward boundary review, the review of corporate governance and the Occupy protest camp. He stated that the Town Clerk had worked with three very different Chairmen and had built a good relationship with each one, offering wise counselling when needed. He concluded by thanking him on behalf of the Committee for all his hard work, his dedication and loyalty and wished him a very enjoyable retirement. The Committee endorsed his sentiments.

1. APOLOGIES

Apologies were received from Deputy Doug Barrow, Stuart Fraser, Marianne Fredericks, Alderman Sir David Howard, Hugh Morris and James Tumbridge.

2. DECLARATIONS BY MEMBERS OF PERSONAL OR PREJUDICIAL INTERESTS IN RESPECT OF ITEMS TO BE CONSIDERED AT THIS MEETING

The Comptroller and City Solicitor referred to the declaration of interests in items concerning grants to outside bodies on which the City Corporation appoints a representative such as the St Lawrence Jewry proposal at Item No. 35. He advised that some confusion had arisen over whether interests were personal or prejudicial and explained that under previous rules a representative appointed by the authority to an outside body did not have an interest to declare in respect of items concerning that body. However, that rule had been abolished. Representatives now have a personal interest to declare in relation to business relating to that outside body and that interest becomes prejudicial where it concerns funding issues such as grants.

The Chairman declared an interest in Item 17 as a member of the Centre for London Board and in Item 19 by virtue of receiving hospitality from the Centre for European Reform.

Alderman Sir Robert Finch and John Scott declared a personal interest in Item No. 16 by virtue of serving on the Boards of the London Symphony Orchestra and the Museum of London Arts Trust respectively.

Roger Chadwick declared a personal and prejudicial interest in item 35 as Treasurer to St Lawrence Jewry.

Edward Lord declared a personal interest in matters affecting London Councils as Chairman of Capital Ambition and its Lead Member for Improvement.

3. MINUTES

The public minutes and summary of the meeting held on 5 July 2012 were approved.

4. PROJECTS SUB-COMMITTEE MINUTES

The public minutes and summary of the Sub-Committee meeting held on 17July 2012 were considered and noted.

5. RESOURCE ALLOCATION SUB-COMMITTEE MINUTES

The public minutes and summary of the Sub-Committee meeting held on 26th July 2012 were considered and noted.

6. CORPORATE ASSET SUB-COMMITTEE MINUTES

The public minutes and summary of the Sub-Committee meeting held on 19th June 2012 were considered and noted.

7. 2012 SUB-COMMITTEE MINUTES

The public minutes of the Sub-Committee meeting held on 13th July 2012 were considered and noted.

8. MEMBERS PRIVILEGES SUB-COMMITTEE MINUTES

The public minutes and summary of the Sub-Committee meeting held on 27th June 2012 were considered and noted.

9. FINANCIAL LOSS SCHEME

The Committee considered a report of the Town Clerk reviewing the Members’ Financial Loss Scheme.

A Member stated that whilst he was not supportive of the payment of allowances he did feel that there was a case for increasing the income limit of the current Financial Loss Scheme to, say, £50,000 to assist those on lower incomes. Several Members supported his sentiments.

A number of Members were of the view that the current Financial Loss Scheme did not work as it did not address the issues of working at weekends, travel costs or those on lower incomes therefore the payment of an annual allowance was a better option.

After further discussion the Chairman asked for an informal show of hands which resulted in 18 Members being in favour of an increase to the income threshold for the Scheme and 5 Members in favour of the introduction of an annual payment. Members also supported the income threshold being increased to £50,000.

RESOLVED - That the Members’ Financial Loss Scheme be retained but that the income threshold be increased to £50,000.

10. POLICY AND RESOURCES COMMITTEE GOVERNANCE

The Committee considered a report of the Town Clerk concerning proposed revisions to the Committee’s current governance arrangements following the changes implemented in 2011 as a result of a comprehensive review of the City Corporation’s corporate governance arrangements.

It was noted that the suggested changes had been considered at an informal meeting of the Resource Allocation Sub-Committee and that proposals agreed this day would be submitted to the Post-Implementation Governance Review Working Party.

The Committee proceeded to consider the proposals in turn:-

Corporate Asset Sub-Committee (CASC)

A Member stated that whilst he was content for the Committee’s operational property management responsibilities to be transferred to the Finance Committee the allocation of financial resources between property and non- property investments should remain with the Resource Allocation Sub- Committee.

Energy and Sustainability Sub-Committee

Members supported the wider aspects of the Committee’s responsibilities for this area of work being transferred to the Planning and Transportation Committee with the more practical energy and conservation initiatives for the Guildhall Complex and other operational properties being transferred to the Finance Committee to come under CASC.

Economic Development and Public Relations

Members discussed the proposal for oversight of these areas to be undertaken by the Resource Allocation Sub-Committee rather than creating a new Sub- Committee. It was suggested that, as Resource Allocation Sub already had a very wide remit, it would be more appropriate for the City Corporation’s Economic Development activities to be incorporated into the work of the existing Public Relations Sub-Committee. The Committee supported this suggestion including widening the membership of the new sub-committee to reflect the change.

Hospitality and Members Privileges

Members noted the proposal to create a new non-ward committee to oversee hospitality and Members’ privileges activities. Concern was expressed about the possible loss of strategic direction if the two activities were to move to another committee. It was therefore suggested that both areas should be combined and be overseen by a sub-committee, Board or such other body of the Policy Committee. It should be chaired by the Chief Commoner and he or she should have the ability to speak and respond to questions at the Court. It was noted that the arrangement would be similar to that in place for the Chairmen of the Financial and Property Investment Boards and that it would also facilitate some Members to serve bearing in mind the rule on the number of Grand Committees on which Members could serve.

Position of the Deputy Chairman

The Chairman highlighted the reasons for considering alternative arrangements for the Deputy Chairman of the Committee, particularly to address the long lead-in time to becoming Chairman, the need to include more Members in the work of the Committee and to assist with the increasing high volume of work undertaken by the Chairman. He explained that appointing more than one Deputy Chairman would help with this and that it would not have implications for other committees. A Member suggested that rather than appointing three Deputy Chairmen on an annual basis as proposed, consideration should be given to appointing one Deputy Chairman as now, but with the addition of two Vice Chairmen. This would add clarity and be less complicated than the current proposal. Several Members supported this suggestion.

RESOLVED – That the following be approved and be submitted to the Post- Implementation Review of Governance Working Party for consideration:- i) the operational property management responsibilities currently undertaken by the Corporate Asset Sub-Committee be transferred to the Finance Committee, subject to the Policy Committee retaining the ability to decide how the Guildhall Complex should be utilised; ii) the wider aspects of the Committee’s energy and sustainability responsibilities undertaken by the Energy & Sustainability Sub-Committee be transferred to the Planning and Transportation Committee (with the Planning Committee continuing to maintain a separate sub-committee for energy and sustainability) and the more practical energy and conservation management initiatives for the Guildhall Complex and the City’s other operational properties being transferred to the Finance Committee (with the Finance Committee continuing to maintain a separate sub-committee for this activity);

iii) the work of the Hospitality Working Party and the Members Privileges Sub- Committee be merged into a new Sub-Committee or Board chaired by the Chief Commoner, which is answerable to the Grand Committee but on the basis that it is able to submit reports directly to the Court and its Chairman is able to speak and respond to questions at the Court;

iv) the Committee should continue to exercise its overarching role and responsibility for coordinating and approving strategy and policy in respect of the areas referred to above;

v) in view of the synergy of the Committee’s work in the areas of both public relations and economic development and in order to provide a greater focus to them a Public Relations and Economic Development Sub- Committee be created to report to the Grand Committee where necessary;

vi) with effect from 2013, electing a Deputy Chairmen in accordance with Standing Orders and the Committee would elect two Vice Chairmen to support the work of the Committee and enable more Members to play an active part in promoting the City Corporation’s work, especially externally and to address concerns over the current arrangements; and

vii) the “lead-in” time for the “Chairman in waiting” should be reduced to one year with the process for this being operated by a protocol.

11. REVENUE OUTTURN – 2011/12

The Committee considered a joint report of the Town Clerk, the Chamberlain, the Remembrancer, the City Surveyor and Private Secretary to the Lord Mayor setting out the revenue outturn for the services overseen by the Committee in 2011/12.

RESOLVED - That the revenue outturn report for 2011/12 and the budgets carried forward to 2012/13 be noted.

12. BUDGET ESTIMATES FOR 2013/14 AND 2014/15

The Committee considered a report of the Chamberlain setting out the proposed approach to be taken towards financial planning for 2013/14 which would affect the budget estimates for that year.

RESOLVED – that:-

1. Inflation allowances to be limited to 1% and 2% for 2013/14 and 2014/15. This will result in a net overall saving of £2.8m p.a;

2. Chief Officers and Committees be requested to make 2% efficiency reductions across the period of 2013/15, which would result in a net saving overall of £3.6m p.a;

3. The Chamberlain be instructed to agree individually with Chief Officers how the efficiency reductions were to be achieved, although there was an expectation that proposals should be fairly distributed over staffing and non- staffing budgets. The proposals agreed with Chief Officers would be set out in committee estimates reports for 2013/14;

4. The control on the transfer of non-staffing budgets to staffing budgets would continue in order to minimise the creation of new long term commitments; and

5. Repairs and maintenance budgets should generally continue to be protected.

13. RELATION OF PLANNING RULES FOR CHANGE OF USE

The Committee considered a report of the Director of the Built Environment setting out the proposed response to Government consultation on proposed national reforms to the planning system.

Members noted the Planning and Transportation Committee’s support for the response.

RESOLVED – that:-

1. the key points and suggested refinements set out in italics in paragraphs 22- 23 of the reform form the basis of the City Corporation’s submission to the Secretary of State in response to the consultation papers: and

2. the Town Clerk be authorised to make further changes to the response arising from on-going discussions, in consultation with the Chairmen of this Committee and the Planning & Transportation Committee.

14. CITY OF LONDON SOCIAL INVESTMENT FUND GOVERNANCE AND OPERATING ARRANGEMENTS

The Committee considered a report of the Chief Grants Officer of the City Bridge Trust concerning the governance and operating arrangements for the newly created social investment fund.

RESOLVED: That subject to the approval of the Investment Committee and the Court of Common Council:-

1. approval be given to the aims and objectives, outline investment strategy and governance arrangements (including altering the Terms of Reference of the Investment Committee) as set out in the report for the future management of the City of London Corporation’s Social Investment Fund activities;

2. the Post-Implementation Review Working Party be advised of the proposed governance arrangements in order to inform its work; and

3. the Town Clerk be authorised to make any necessary adjustments to Standing Orders to reflect the arrangements recommended in this report.

15. GET YOUNG PEOPLE WORKING – THE YOUTH OFFER

The Committee considered a report of the Chief Grants Officer of the City Bridge Trust concerning a proposed new initiative “Get Young People Working – The Youth Offer” to help tackle the growing problem of young people not in employment, education or training (NEETs).

It was noted that the initiative involved London local authorities being invited to apply for a grant of up to £100,000 to support existing training or schemes for NEETs.

The Chairman referred to the importance of the initiative which he felt demonstrated that the City Corporation was using its resources where it was need.

The Town Clerk advised that, prior to seeking the approval of the Court, the initiative would also need to be considered by London Council’s Leaders Committee to ensure that there was pan-London support.

A Member, who was also the Chairman of the Community and Children’s Services Committee, referred to the approval of the detailed specification for the initiative and stated that, given the nature of the work, the Chairman and Deputy Chairman of the Community and Children’s Services Committee should also be included.

RESOLVED - That subject to the concurrence of the Finance Committee, The City Bridge Trust Committee and the Court of Common Council:-

1. a budget of £3.28m be approved from income in Bridge House Estates for “Get Young People Working – The Youth Offer”, a London-wide initiative tackling youth unemployment on the basis set out in the report;

2. of the £3.28m, £3.2m be allocated to supplement the grant-making capability of the City Bridge Trust for expenditure in the current and future financial years, with the balance of £80,000 being utilised for additional administrative costs and to supplement the City Bridge Trust’s local risk budget for expenditure in the current and future financial years; and

3. the Town Clerk be authorised to approve the detailed specification and criteria for the initiative, in consultation with the Chairmen and Deputy Chairmen of the Policy & Resources, Community and Children’s Services, and City Bridge Trust Committees.

16. CULTURAL STRATEGY

The Committee considered a report of the Director of Culture, Heritage & Libraries submitting a revised version of the City Corporation’s Cultural Strategy.

During discussion a Member commended officers on the content of the revised strategy, the Director confirmed that the Board of Governors of the Guildhall School would be consulted on the revised strategy and Members were informed of the remit and merits of the Members’ Cultural Strategy Group.

RESOLVED – That subject to the approval of the Board of Governors of the Guildhall School and the Court of Common Council the revised Strategy for 2012 -17 be approved.

17. CENTRE FOR LONDON – CORE FUNDING

The Committee considered a report of the Director of Public Relations concerning the provision of core funding for the Centre for London, a politically independent think tank.

RESOLVED - That approval be given to the provision of sponsorship the Centre for London at a cost of £20,000 to be met from the Policy Initiatives Fund 2012/13 categorised under the research section of the Fund and charged to City’s Cash.

18. NEW CITY NETWORK

The Committee considered a report of the Director of Public Relations concerning the provision of core funding for New City Network, a newly established independent think tank.

RESOLVED - That approval be given to the provision of sponsorship for new think tank, New City Network, at a cost of £20,000 to be met from the Policy Initiatives Fund 2012/13 categorised under the research section of the Fund and charged to City’s Cash.

19. CENTRE FOR EUROPEAN REFORM (CER) CONFERENCE

The Committee considered a report of the Director of Public Relations proposing the provision of sponsorship for major CER conference “Europe’s Future in an Age of Austerity”.

RESOLVED - That approval be given to the provision of sponsorship for a major CER conference “Europe’s Future in an Age of Austerity” at a cost of £15,000 to be met from the Policy Initiatives Fund 2012/13 categorised under the events section of the Fund and charged to City’s Cash.

20. BUSINESS TRAINEESHIP PROGRAMME

The Committee considered a report of the Director of Economic Development concerning the work and future funding of the City of London’s Business Traineeship Scheme (CBT).

RESOLVED – that:-

1. the continued achievement of the CBT programme and the reputational benefits afforded to City Corporation through its support for the programme opit, particularly during the current climate of high youth unemployment; and

2. the appointment of the Brokerage Citylink to deliver the CBT scheme for the academic years 2012/13 – 2014/15 be approved, at a cost of £269,604 to be met from the Economic Development Office’s local risk budget.

21. SUBMISSION TO THE PARLIAMENTARY COMMISSION ON BANKING STANDARDS

The Committee considered a report of the Director of Economic Development providing it with details of the City Corporation’s submission to the Parliamentary Commission on Banking Standards.

It was noted that the content of the submission had been approved under the urgency procedures, the details of which had been circulated as part of the non-public agenda at Item No.39.

A Member stated that in his view the submission was a public matter and that officers should seek to ensure that it was available as such. He also reminded the Committee that there was no proof that LIBOR rates had been manipulated and it was therefore important to avoid references to manipulation or attempted manipulation. The Chairman supported his sentiments.

RESOLVED - That the report be received and its content noted.

22. ECONOMIC DEVELOPMENT OFFICE ACTIVITIES REPORT

The Committee considered a report of the Director of Economic Development, updating it on economic development activities between June and August 2012.

A Member referred to the work of the Irish society and thanked Economic Development officers for their help and support by developing and implementing the Digital Derry initiative.

RESOLVED - That the report be received and its content noted.

23. POLICY INITIATIVES FUND

The Committee considered a statement of the Chamberlain on the use of the Policy Initiatives Fund for 2012/13.

RESOLVED – That the content of the statement be noted and, in particular, that future requests for supporting initiatives in 2012/13 would be met from the Committee’s contingency.

24. DECISIONS TAKEN UNDER DELEGATED AUTHORITY OR URGENCY POWERS

The Committee received a report of the Town Clerk advising of the action taken by the Town Clerk in consultation with the Chairman and Deputy Chairman since the last meeting of the Committee, in accordance with Standing Order Nos. 41(a) and 41(b).

RESOLVED - that it be noted that approval was given to the following:-

1. the free use of the City Wifi Network during the Olympic and Paralympic period;

2. the City Corporation investing a sum of US$500,000 (approximately £322,000) as part of an Oxfam/City of London Corporation initiative with the purpose of establishing a new funding mechanism for financing small and medium sized businesses in low income countries. The cost of the investment was to be met from the recently established Social Investment Fund (£20m);

3. the City Corporation continuing with the current flexible procurement arrangements for purchasing gas and electricity supplies through the Kent County Council (KCC) – LASER Energy Buying Group; and

4. the content of the City Corporation’s submission to the Parliamentary Commission on Banking Standards.

25. QUESTIONS ON MATTERS RELATING TO THE WORK OF THE COMMITTEE

Free use of City Wifi Network

A Member referred to free use of the City Wifi Network and asked that consideration be given to free use being available on a permanent basis.

RESOLVED: that officers be requested to report back on the cost, viability and merits of offering free use of the City Wifi network on a permanent basis.

26. ANY OTHER BUSINESS THAT THE CHAIRMAN CONSIDERS URGENT

The following item of urgent business was considered:-

Application for the Use of Guildhall

The Assistant Remembrancer sought approval to an application from Black Swan on behalf of an investment bank for the use of Guildhall for a Dinner on 13 December 2012.

RESOLVED – that approval be given to the application by Black Swan for the use of Guildhall for a Dinner on 13 December 2012.

27. EXCLUSION OF THE PUBLIC

RESOLVED - That under Section 100(A) of the Local Government Act 1972, the public be excluded from the meeting for the following items on the grounds that they involve the likely disclosure of exempt information as defined in Part I of the Schedule 12A of the Local Government Act. In addition, for one item which fell under paragraph 100A (2) of the Act relating to confidential information that would be disclosed in breach of an obligation of confidence.

Item Nos. Paragraph(s) in Schedule Exempt 12A Paragraphs 28-38 3

Part 2 – Non-Public Agenda

28. NON-PUBLIC MINUTES

The non-public minutes of the meeting held on 5 July 2012 were approved.

29. PROJECTS SUB-COMMITTEE MINUTES

The non-public minutes of the Sub-Committee meeting held on 17 July 2012 were considered and noted.

30. INFORMAL MEETING OF THE RESOURCE ALLOCATION SUB- COMMITTEE MINUTES

The non-public minutes of the informal meetings held on 5th and 6th July 2012 were considered and the recommendations contained therein approved. 31. THE RESOURCE ALLOCATION SUB-COMMITTEE MINUTES

The non-public minutes of the meeting held on 26 July 2012 were considered and the recommendations relating to the following were approved:-

 Beech Gardens Waterproofing  Holban Circus Area Enhancement Scheme  Barbican Cinemas Project  Guildhall Fire Alarm Project  Barbican Centre Capital Cap 2013/14 to 2017/18  Barbican Centre Exhibition Halls

32. CORPORATE ASSETS SUB-COMMITTEE MINUTES

The non-public minutes of the Sub-Committee meeting held on 19 June 2012 were considered and noted.

33. MEMBERS PRIVILEGES SUB-COMMITTEE MINUTES

The non-public minutes of the Sub-Committee meeting held on 27 June 2012 were considered and noted.

34. MEMBERS FACILITIES AND ACCOMMODATION WORKING PARTY

The non-public minutes of the Working Party meeting held on 26 July 2012 were considered and noted.

35. ST LAWRENCE JEWRY CHURCH

Roger Chadwick withdrew from the meeting whilst this item was.

The Committee considered and agreed a report of the Town Clerk concerning the funding arrangements for St Lawrence Jewry Church, subject to an amendment relating to work to be undertaken by the Diocese of London.

36. PUBLICATION OF INFORMATION ON CITY’S CASH

The Committee considered and agreed a report of the Director of Public Relations concerning the publication of information on City’s Cash.

37. FROBISHER CRESCENT – PROGRESS REPORT NO. 7

The Committee noted the content of a joint progress report of the Managing Director of the Barbican Centre and the City Surveyor concerning various activities relating to the Frobisher Crescent Development.

38. DECISIONS TAKEN UNDER DELEGATED AUTHORITY OR URGENCY POWERS

39. SUBMISSION TO THE PARLIAMENTARY COMMISSION ON BANKING STANDARDS – APPENDIX

The Committee noted the non-public appendix to Item No. 21.

40. QUESTIONS ON MATTERS RELATING TO THE WORK OF THE COMMITTEE

There were no questions on matters relating to the work of the Committee whilst the public were excluded.

41. ANY OTHER BUSINESS THAT THE CHAIRMAN CONSIDERS URGENT AND WHICH THE COMMITTEE AGREE SHOULD BE CONSIDERED WHILST THE PUBLIC ARE EXCLUDED.

There were no items of urgent business for consideration whilst the public were excluded.

The meeting closed at 3.15pm

------CHAIRMAN

Contact officer: Angela Roach tel. no.: 020 7332 3685 e-mail: [email protected]