MD2059 London & Partners Review Recommendations

L&P has been in operation since April 2011 when the functions of Visit London, Think London and Study London were consolidated to form a new single organisation. The rationale for the merger was that a single, coherent voice would promote London more effectively and efficiently.

L&P is funded by a combination of sources – most significantly a grant from the Mayor of London (almost half of its annual budget), other public sector funding, fees from their commercial partners, in-kind support from the private sector and income from their commercial activities.

The context within which L&P operates has changed substantially since 2011. This has included the shift towards a 50:50 split (20:80 in 2011) of non-GLA income versus GLA funding; along with new Mayor’s priorities, the result of the EU referendum as well as increasing competition with other cities. L&P has a fundamental role to play to ensure London maintains its competitive position. As such, in August, the Mayor requested an internal review of L&P’s funding, governance and effectiveness to ensure GLA funding results in the best possible promotion of London. This was approved through the Mayoral Decision: MD2028.

The Deputy Mayor for Business established an internal GLA review steering group to identify how L&P can best support the Mayor’s priorities and to enable L&P to focus on its strengths and core mission - which is to promote London as the best city in the world in which to invest, work, study and visit, through amplifying the Mayor’s key messages, priorities and campaigns, to an international audience.

The review steering group considered the following areas:
• Configuration and effectiveness of current arrangements
• London’s wider promotional landscape
• Funding, governance and transparency
• Measuring success

The steering group proposed 14 recommendations, which it believes will best meet the review objectives.

Subject to the review recommendations being signed off, the secretariat will draw up an implementation plan to ensure how L&P can best support the Mayor’s priorities, by focusing on their areas of strength, which is to promote London as the best city in the world in which to invest, work, study and visit.

The implementation of the review recommendations will take into account all of the requirements set out in the Equality Act 2010 including the public sector equality duty.

Links to Mayoral priorities
The proposals are fully in line with the Mayor’s document “A City for all Londoners”, which recognises the importance of promoting London internationally, to maintain London’s global competitiveness, which helps to drive the city’s economy.

Key risks and issues
1. Should this decision not be approved:

o GLA will not be able to implement the recommendations which, as agreed by the review panel, are important to ensure L&P best supports the Mayor’s priorities.

o The promotion of London may not be optimised should the recommendations not be implemented.

There were no costs arising to the GLA from this review.

Implementing the findings of the review could lead to some cost savings. The implications of those cost savings for L&P and the GLA will be looked at if and when they arise.

There is no formal recognition of board observers in L&P’s articles so there is no automatic right for them to attend meetings and receive papers but there is nothing which precludes their appointment. Care is needed to ensure that the observers do not become de facto directors and thereby take on obligations of which they may be unaware, for example, fiduciary duties. Consideration should be given to whether the Mayor’s right to appoint observers is entrenched in L&P’s articles and what formal rights observers should have, for example, receipt of board papers.