Committee: Date: Resource Allocation Sub-Committee 18 September 2020 Policy & Resources Committee 24 September 2020 Subject: Public Governance Review Report of: For Decision Town Clerk Summary In September 2019, the Policy and Resources Committee proposed the undertaking of a comprehensive Governance Review of the City Corporation. This proposal, endorsed by the Court of Common Council, recognised that because of the unique and historic nature of the City Corporation it requires good governance to ensure it functions effectively and to the highest possible standards. The Committee was conscious that some potentially contentious issues needed to be addressed and that some radical changes may need to be considered. It was, therefore, agreed that the review should be undertaken independently and Robert Rodgers, The Lord Lisvane, was appointed to conduct the Review, due to his significant expertise and experience. He was encouraged to take a comprehensive and critical “warts and all” look at the totality of the Corporation’s arrangements, without fear or favour, and he has now submitted his findings (attached at Appendix 1). Lord Lisvane’s independent report is detailed and contains more than 90 specific recommendations, together with wider commentary and analysis. These recommendations are far reaching and wide ranging; it is now for Members to consider how far they are appropriate and which should be taken forward. The recommendations are not all contingent upon each other and thus do not represent a “single package”: Members will have the option to consider which recommendations (and to what extent) are implemented, and timescales for this. It will be important to go through the Review in a structured and methodical way in the coming period, with Members afforded sufficient time to read and consider the content and implications. This paper, therefore, seeks Members’ consideration as to a proposed approach for deliberating and reviewing these proposals, rather than on the specific content of the Governance Review (which will be debated in the coming period). It will also be of the utmost importance to ensure that the process moving forward provides adequately for all Members of the Court to continue to have the opportunity to input and comment on the Review. It should be noted that the Governance Review was also asked to take into consideration, various other reviews into aspects of the Corporation’s activities (such as education, support for the financial and professional services sector, and its internal structures). Recommendations It is recommended that:- • Lord Lisvane’s Governance Review report be received; • consideration be given to the next phase of the process, including wider Member consultation, as set out at paragraphs 8-18 of this report, with the Resource Allocation Sub-Committee being asked to go through the report in detail; and, • formal thanks be placed on record to Lord Lisvane for his efforts in conducting the Review. Main Report Background 1. At its meeting on 14 March 2019, the Policy and Resources Committee agreed to a fundamental review (FR) of the allocation of the City of London Corporation’s resources being undertaken. The purpose of the review was to ascertain how resources are currently being allocated against our Corporate Plan priorities and to ensure that:- • spending was being undertaken in accordance with agreed priorities; • the City Corporation’s financial plans were sustainable in the medium term; • action was being taken to mitigate any risks which might be associated with Government’s desire for public bodies to focus on need and its plans to change current funding mechanisms to reflect this; and • the City Corporation remains fit for purpose in the wake of, amongst other things, Government’s forthcoming spending review, fair funding review, reforms to business rate retention and a police formula funding review. 2. The nature of the organisation’s funding and service provision is diverse and good governance is essential to ensure that it is functioning effectively and remains fit for purpose. Supporting its governance structures incurs a significant part of the Corporation’s expenditure. Furthermore, any changes proposed through the Fundamental Review were likely to have implications for governance. Therefore, a number of Members suggested that a review of governance arrangements should be undertaken in parallel with the FR. 3. There was also a range of wider activity underway which played into the same piece, looking at how the City Corporation might improve the efficiency, diversity, and outcomes of its work across various areas. Its support for the competitiveness agenda, of increasing importance in the current context to support the UK’s financial and professional services industries, was also an area where focus could be sharpened and where changes to governance might improve the efficacy of the organisation’s activities. 4. This view was supported by the Policy and Resources Committee, as well as its Resource Allocation Sub-Committee (which had been identified as the “reference sub-committee” for considering the Governance Review matters in the first instance). It was noted that it had been almost nine years since the last comprehensive review of the City Corporation’s governance arrangements was undertaken and, since that time, the number of bodies forming part of the decision making structure had increased to approximately 130 committees, sub- committees and working parties, excluding some of the bi-lateral committee meetings. 5. In reaching their conclusion, Members were of the view that radical changes would need to be considered and that hard choices might need to be made. The difficulties associated with undertaking the review internally were acknowledged and it was, therefore, agreed that any review should be undertaken independently. 6. The Town Clerk was asked to look at the possibility of engaging a suitable individual and, following this process, your Committee supported the appointment of The Lord Lisvane KCB DL (Robert Rogers), as an independent person to undertake the review. 7. The evolution of the Fundamental Review, together with other discrete areas of Review (such as the Tomlinson Review into the City’s education provision, or the Fraser Review into the City’s work in support of competitiveness and the financial and professional services sector), have presented additional areas of consideration which result in implications for the Corporation’s governance. Their recommendations have, therefore, been incorporated so far as possible within Lord Lisvane’s Review. Proposal / Timetable 8. Having started work on the Review in 2020 (and, notwithstanding the complications added by the COVID-19 outbreak), Lord Lisvane has now submitted his report for Members’ consideration. 9. As the responsible body for the co-ordination of the City Corporation’s governance, as well as the originators of the Governance Review, the report is now presented to the Policy and Resources Committee for consideration as to how it wishes to take it forward. 10. The report is some 147 pages long and contains more than 90 recommendations. It would, therefore, be impractical to seek to consider the report in a single sitting: quite aside from the question of volume, it is inevitable that there will be various options to explore in some cases, or implications to consider when coming to a view as to the implementation of specific proposals. 11. The various recommendations are, in many cases, not contingent upon each other and it will be for Members to determine which (and to what extent) they wish to accept and implement. There may be some recommendations that could be adopted relatively swiftly, whilst others would either require or benefit from a longer-term implementation. 12. Members will also need to consider the proposals with reference to the context of the Review. As noted within the Review itself, the City Corporation is a highly complex non-party political organisation, active or involved across a diverse range of areas, and with a considerable role in London-wide government. It would be unreasonable, therefore, to expect that every nuance or implication of particular relationships or activities has been made available to Lord Lisvane within the time period of the Review to date. The expertise of Members and others in these areas will, therefore, be of importance in considering the implementation of proposals. 13. Members will, therefore, need time to absorb and consider the various items and deliberate in a structured and thorough fashion. 14. It is, therefore, suggested that the Resource Allocation Sub-Committee, having previously been identified as the reference sub-committee for the Governance Review, be asked to go through the report over the course of a series of meetings in the first instance and consider whether to accept specific recommendations, as well as their implementation. That Sub-Committee has frequent meetings scheduled over the coming period as follows, which will allow several opportunities for the content to be considered and scrutinised: • Wednesday 7 October • Thursday 22 October • Thursday 5 November • Friday 20 November • Thursday 10 December 15. The Sub-Committee will make recommendations thereon to the Policy and Resources Committee which, in turn, would consider the various recommendations and submit formal proposals to the Court of Common Council. 16. The Governance Review will affect all aspects of the City Corporation’s governance and all Members as a consequence.