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2021-12-31-accounts

ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

Registered Office: 9 Holyrood Street, London SE1 2EL Telephone: 020 7803 4300 Fax: 020 7803 4301 www.centreforcities.org

A charitable company limited by Guarantee registered in England and Wales Company No. 06215397 - Registered Charity No. 1119841

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CENTRE FOR CITIES

CONTENTS

YEAR ENDED 31 DECEMBER 2021

Pages
Trustees’ Annual Report 1 - 17
Independent Auditors’ Report 18 - 21
Statement of Financial Activities 22
Balance Sheet 23
Statement of Cash Flows 24
Notes to the Accounts 25 - 33

CENTRE FOR CITIES TRUSTEES’ ANNUAL REPORT YEAR ENDED 31 DECEMBER 2021

The Board of Trustees are pleased to present their Trustees’ Annual Report and Accounts for the year ending 31 December 2021. The Trustees’ Annual Report contains a Directors’ Report as required by company law. The report and accounts comply with the requirements of the Companies Act 2006 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with FRS102, effective 1 January 2019.

CHAIR’S REPORT

In a year when the recovery from pandemic has continued to dominate every aspect of our lives, the Centre’s reputation for rigorous, ground-breaking research and policy development which sheds new light on the economic performance of cities and large towns and how it can be improved, has gone from strength to strength.

In January 2021, we launched our flagship annual report on the state of urban Britain, Cities Outlook 2021. The focus was on how the government’s levelling-up agenda had been impacted by the pandemic. It found that the levelling-up challenge had become four times more difficult and that there was a real risk that more prosperous places would be ‘levelleddown’. The research was covered by many national and local media outlets and has influenced government policy on levelling-up.

During the year, we continued our focus on tracking and researching the pandemic’s economic impact across the UK’s largest cities and towns to help their leaders understand the likely effects and to plan their response.

Throughout the year, we updated our publicly accessible data trackers covering cases, local footfall and spend, unemployment and job postings. City leaders and government officials have told us that these have been extremely valuable in helping them understand what was happening in their places and to prepare plans for recovery.

Despite the pandemic throughout 2021, we have continued to work closely with city leaders and government throughout the year, with our experts providing analysis and support and advice on a range of issues

Levelling up has always been a key theme for the Centre, and one that is of even greater importance now given the impact of the pandemic. As the government published its Levelling-up White Paper earlier this year, we have consistently continued to focus on this important issue.

As always, the Centre will seek to inform the policy debate by providing sound, evidencebased advice and working with an ever-growing network of local and national decisionmakers.

Nigel Hugill, Chair, Centre for Cities

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CENTRE FOR CITIES TRUSTEES’ ANNUAL REPORT YEAR ENDED 31 DECEMBER 2021

Objectives and Activities

Centre for Cities is an independent charity. We work closely with urban leaders, Whitehall and businesses to ensure our work is relevant, accessible and of practical use to cities and policymakers.

The purposes of the charity, as set out in the Memorandum of Association, are:

The vision shaping our activities each year is of a UK economy that makes the most of different cities’ potential to increase economic prosperity across the country.

We work to understand how and why economic growth and change take place in cities in the UK and publicise these findings widely in order to help British cities improve their economic performance.

To fulfil its purpose, the Centre undertakes the following activities:

Our research is produced by an in-house team of analysts, with input from external experts and cities. The research is of high quality, drawing on a robust evidence base. It aims to inform public debate, policy and practice and includes the development of clear, evidence-based policy proposals. We do this independently but in consultation with Whitehall departments, political parties, local authorities and business organisations.

We carry out research in association with UK cities and bring together networks of local and national decision-makers from both the public and the private sector to share knowledge. This enables us to inform policy and practice directly and to publicise lessons from this work, which are relevant to other cities.

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CENTRE FOR CITIES TRUSTEES’ ANNUAL REPORT YEAR ENDED 31 DECEMBER 2021

supporting and increasing local economic growth. It works to provide solutions for local and national policymakers through:

Public Benefit

The trustees of a charity must have regard to the Charity Commission’s guidance when exercising any powers or duties to which the guidance is relevant.

The Charity remains committed to the aim of providing public benefit in accordance with the Charities Act 2011.

The Trustees also confirm that, in carrying out its Principal Activities, the Centre provided public benefit during 2021.

The Centre produces high-quality research reports and policy analysis that are independent of government, individual clients or companies. These reports and briefing papers are made available widely and free of charge to individuals, organisations, practitioners and others active in urban economic development. The Centre constantly invests in improving outreach to ensure our work reaches more policymakers, practitioners and members of the public.

To complement our research work, we deliver papers, which focus on practical ways in which UK cities can tackle longstanding challenges such as productivity and unemployment, drawing on the UK and international case studies.

In 2021, we released over 100 briefings, blogs and research reports covering topics including cities’ use of technology to tackle the pandemic, the impact of lockdowns on labour markets and analysis of the furlough scheme, policy priorities for the new metromayors, and making transport work in Britain’s big cities.

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CENTRE FOR CITIES TRUSTEES’ ANNUAL REPORT YEAR ENDED 31 DECEMBER 2021

Breakdown of 2021 activities

JANUARY

Research and Cities Outlook 2021 – Covid and levelling up analysis Covered by the Times, FT, Guardian, Telegraph, the i newspaper, City AM, the Scotsman, Northern Echo, Yorkshire Post, Birmingham Mail and ITV News. Launch of City Monitor Our new data visualisations High Streets Recovery Tracker (updated monthly) Unemployment Tracker (updated monthly) Events Cities Outlook 2021 – launch event (800+ attendees) With:

 Jesse Norman MP, Financial Secretary to the Treasury  Andy Burnham, Mayor of Greater Manchester  Steve Rotheram, Mayor of Liverpool City Region  Judith Blake, Leader of Leeds City Council, chair of Core Cities UK  Abi Brown, Leader of Stoke-on-Trent Council  Sir Peter Soulsby, Mayor of Leicester  Rajesh Agrawal, Deputy Mayor of London for Business Cities Outlook 2021 – understanding cities’ economic performance Introducing our new data visualisations Podcasts The Mayor of London With Prof Tony Travers Media coverage 411 pieces of coverage Media reach 125 million people Blogs 8

FEBRUARY Research and Core Cities – the impact of the first wave of Covid-19 analysis In partnership with Core Cities Budget 2021 – recovering from Covid-19 Our 12-point plan for the Chancellor High Streets Recovery Tracker (updated monthly) Unemployment Tracker (updated monthly) – adding furlough data Events Devolution, data and levelling up sponsored by Policy@Manchester With Prof Arpana Verma, Tom Forth and Rebecca Riley Buses and the future of urban transport sponsored by Abellio With Sir Richard Leese (Manchester City Council), Jonathan Bray (UTG), Pascale Robinson (Better Buses GM), Clive Memmott (GM Chamber of Commerce) and Alan Pilbeam (Abellio) Health inequalities and productivity across the UK sponsored by Policy@Manchester With Dr Luke Munford and Matt Hennessy, GMCA Podcasts Designing and successful industrial strategy With Giles Wilkes How realistic is a 15-minute city? Media coverage 368 pieces of coverage

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CENTRE FOR CITIES TRUSTEES’ ANNUAL REPORT

YEAR ENDED 31 DECEMBER 2021

Media reach 27 millionpeople
Blogs 15
MARCH
Research and Levelling up the UK’s regional economiesby Lord Sainsbury of
analysis Turville
Covered in the Telegraph, BBC Today Programme, BBC News
online
Fast Growth Cities – 2021 and beyondcommissioned by the Fast
Growth Cities
Building Back Better – how to recover from Covid-19sponsored
by HSBC UK
Covered by the Times, Yorkshire Post and the i newspaper
West Yorkshire Metro Mayor – three policy priorities for 2021
Covered by the Yorkshire Post
High Streets Recovery Tracker(updated monthly)
Covered in the Telegraph
Unemployment Tracker(updated monthly)
Events Levelling up the UK’s regional economies – report launch
With:

Lord Sainsbury of Turville

Andy Street, Mayor of the West Midlands

Dan Jarvis, Mayor of the Sheffield City Region
Fast Growth Cities – report launch
What does the Covid-19 roadmap mean for cities and city
regions?Sponsored by Policy@Manchester
Building Back Better – report launchsponsored by HSBC UK
With

Paul Scully MP, Minister for Labour Markets

Ian Stuart, CEO, HSBC UK

Sarah Howard, chair, British Chambers of Commerce

Susan Hinchcliffe, leader of Bradford
Urban productivity, local government and levelling upwith
OECD
Podcasts America’s legacy cities
With Jason Segedy and Kenan Fikri
How to build back better
Media coverage 303pieces of coverage
Media reach 46 millionpeople
Blogs 11
APRIL
Research and Cambridgeshire and Peterborough Metro Mayor – three policy
analysis priorities for 2021
Liverpool City Region Metro Mayor – three policy priorities for
2021
West of England Metro Mayor – three policy priorities for 2021
West Midlands Metro Mayor – three policy priorities for 2021
Greater Manchester Metro Mayor – three policy priorities for
2021
Mayor of London – three policy priorities for 2021
Tees Valley Metro Mayor – three policy priorities for 2021
High Streets Recovery Tracker(updated monthly)

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Unemployment Tracker (updated monthly) Covered by BBC News, the Guardian and the Telegraph Events West Yorkshire mayoral hustings Greater Manchester mayoral hustings West of England mayoral husting Other planned hustings events were cancelled when political campaigning was suspended due to the death of Prince Philip Podcasts Policies, politics and personalities in this year’s mayoral elections With Prof Francesca Gains, Rob Parsons of the Yorkshire Post and Richard Brown of Centre for London Media coverage 394 pieces of coverage Media reach 75 million people Blogs 11 MAY Research and High Streets Recovery Tracker (updated monthly) analysis Unemployment Tracker (updated monthly) Events Devolution and governance structures in the UK – lessons from the evidence in partnership with the Industrial Strategy Council With:  Kate Barker, Industrial Strategy Council  Andy Haldane, Bank of England  Greg Clark MP, former Secretary of State  Arianna Giovannini, De Montfort University Podcasts What do the 2021 metro mayor elections mean for England’s cities? Media coverage 436 pieces of coverage Media reach 43 million people Blogs 13 JUNE Research and Get on board – why mayors should franchise buses analysis So you want to level up? An uneven recovery? How Covid-debt and Covid-savings will shape post-pandemic cities sponsored by Clarion Housing Group Covered by the Guardian, Telegraph, i newspaper, Yorkshire Post and Liverpool Echo Unemployment Tracker (updated monthly) High Streets Recovery Tracker (updated monthly) Covered by the Sunday Times and BBC outlets Events An uneven recovery? – report launch sponsored by Clarion Housing Group With:  Peter Tutton, StepChange  Martin Reeves, Coventry City Council  Clare Miller, Clarion Housing Group Making transport work in cities and large towns sponsored by Midlands Connect With:  David Astill, Nottingham City Transport  Verna Bayliss, Derby City Council

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CENTRE FOR CITIES TRUSTEES’ ANNUAL REPORT YEAR ENDED 31 DECEMBER 2021


Andrew Smith, Leicester City Council

Bridget Rosewell, National Infrastructure Commission
Ready to recover? Levelling up and building back better
sponsored by PWC
With:

Andy Burnham, Mayor of Greater Manchester

Tracy Brabin, Mayor of West Yorkshire

Abi Brown, leader of Stoke
Podcasts The politics of levelling up
With Prof Will Jennings
The legacy of sporting events on urban economies
How to level up… skills
How Covid-debt and Covid-savings will shape post-pandemic
cities
How to level up… high streets and city centres
Media coverage 773pieces of coverage
Media reach 224 millionpeople
Blogs 10
JULY
Research & High Streets Recovery Tracker(updated monthly)
Analysis Unemployment Tracker(updated monthly)
Events The levelling up dilemma: Can the Government strike the right
balance between politics and economics?
With:

Gemma Tetlow, Chief Economist at Institute for Government

Paul Swinney, Director of Policy and Research at Centre for Cities

Duncan Weldon, Economics Correspondent at The Economist
Levelling up dilemma: productivity, employment and wellbeing
With:

Philip McCann, Professor of Urban and Regional Economics,
University of Sheffield Management School

Victoria Sutherland, Head of Evidence, What Works Centre for
Local Economic Growth

Paul Swinney, Director of Policy and Research at Centre for Cities
Podcasts How to level up… public services
Media coverage 76
Media reach 306,051,238
Blogs 12
AUGUST
Research and High Streets Recovery Tracker(updated monthly)
analysis Unemployment Tracker(updated monthly)
Events
Podcasts
Media coverage 263
Media reach 2,379,330,108
Blogs 11

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CENTRE FOR CITIES TRUSTEES’ ANNUAL REPORT YEAR ENDED 31 DECEMBER 2021

SEPTEMBER

Research and
analysis
Events
Podcasts
Media coverage
Media reach		 Southampton city centre - Strengthening the core
In partnership with GO! Southampton
What levelling up really means: changing the geography of
knowledge
High Streets Recovery Tracker(updated monthly)
Unemployment Tracker(updated monthly)
The levelling up dilemma: innovation here, there or everywhere?
With:

Diana Beech, Chief Executive Officer, London Higher

Tom Forth, Head of Data, ODI Leeds
The levelling up dilemma: who will deliver levelling up?
With:

Joanne Roney, CEO, Manchester City Council

Jill Rutter, Senior Research Fellow, UK in a Changing Europe

Mark Sandford, Senior Research Analyst, House of Commons
The levelling up dilemma: What do voters want from levelling up?
With:

Kelly Beaver, Managing Director for Public Affairs, Ipsos Mori
Labour Party Conference Reception: Welcome to Brightonsponsored
by HSBC
With:

Baroness Blake of Leeds, Shadow spokesperson (Communities
and Local Government)

Sir Sherard Cowper-Coles, Group Head of Public Affairs, HSBC

Cllr Phelim Mac Cafferty, Leader of Brighton and Hove City Council

Steve Reed, Shadow Secretary of State for Communities and
Local Government
Labour Party Conference: In conversation with Andy Burnham
With:

Andy Burnham, the Mayor of Greater Manchester
Labour Party Conference Fringe: Cities leading the recovery
With:

Susan Hinchcliffe, Leader of Bradford Council

Nik Johnson, Mayor of Cambridgeshire and Peterborough

Dan Norris, Mayor of West of England
Labour Party Conference Fringe: Holding our breath? How to clean
up our cities’ airsponsored by Policy@Manchester
With:

Polly Billington, Chief Executive, UK100

Professor Sheena Cruickshank, Immunologist and Professor of
Biomedical Sciences and Public Engagement, The University of
Manchester

Ruth Jones, Shadow Minister for Natural Environment & Air Quality

Ian Ward, Leader, Birmingham City Council
Tracy Brabin - her vision for West Yorkshire
How can we level up struggling UK towns?
Exploring the cities versus towns debate
163
1,214,427,878

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CENTRE FOR CITIES TRUSTEES’ ANNUAL REPORT YEAR ENDED 31 DECEMBER 2021

Blogs
OCTOBER
Research and
analysis
Events
Podcasts
Media coverage
Media reach
Blogs		 14
What urban leaders want from the Levelling Up White Paper
High Streets Recovery Tracker(updated monthly)
Unemployment Tracker(updated monthly)
Conservative Party Conference Reception: Welcome to Manchester
sponsored by HSBC
With:

Katy Balls, Deputy Political Editor, The Spectator

Sir Richard Leese, Leader, Manchester City Council

Neil O’Brien, Parliamentary Under Secretary of State, Department
for Levelling up, Housing and Communities

Ian Stuart, Chief Executive of HSBC UK
Conservative Party Conference Fringe: Holding our breath? How to
clean up our cities’ airsponsored by Policy@Manchester
With:

Professor Sheena Cruickshank, Immunologist and Professor of
Biomedical Sciences and Public Engagement, The University of
Manchester

Roger Evans, Political Advisor, UK100

Wayne Fitzgerald, Leader, Peterborough City Council

Rebecca Pow, Parliamentary Under Secretary of State at the
Department for Environment, Food and Rural Affairs
In conversation with Andy Burnham
With:

Andy Burnham, the Mayor of Greater Manchester
Conservative Party Conference: In conversation with Ben Houchen
With:

Ben Houchen’,the Mayor of Tees Valley
How can cities help meet the UK’s net zero targets?
With:

Philip Graham, Executive Director Good Growth

Stephen Peacock, Executive Director of Growth and Regeneration,
Bristol City Council

Laura Shoaf, Chief Executive, West Midlands Combined Authority

Valentine Quinio, Analyst, Centre for Cities
Andy Burnham on his vision for Greater Manchester
Ben Houchen on his vision for Tees Valley
What can German reunification teach the UK about levelling up?
Think Tank views – what should be in the Levelling Up White Paper?
160
1,180,188,787
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CENTRE FOR CITIES TRUSTEES’ ANNUAL REPORT YEAR ENDED 31 DECEMBER 2021

NOVEMBER

NOVEMBER
Research and High Streets Recovery Tracker(updated monthly)
analysis Unemployment Tracker(updated monthly)
Events In Conversation with Professor Ed Glaeser
With:
Ed Glaeser, Professor of Economics at Harvard University
Andrew Carter, Chief Executive at Centre for Cities
How will working from home change our cities?
With:
Jessica Bowles, Director of Strategic Partnerships and
Impact, Bruntwood
Dave Brittain, Business Development Director, Amazon
Europe
Bill Page, Head of Real Estate Markets Research. LGIM Real
Assets
Andrew Carter, Chief Executive at Centre for Cities
If people can work anywhere, will they want to stay living in
cities?
With:
Timothy Bannister, Director, Rightmove
Dan Batterton, Senior Fund Manager, Build to Rent Fund,
LGIM Real Assets
Samantha Veal, Chief Executive, Blueprint
Andrew Carter, Chief Executive at Centre for Cities
Will the pandemic change how people in cities spend their
leisure time?
With:
Sacha Lord, Night-Time Economy Adviser, Greater
Manchester
Denzier Ibrahim, Head of Retail and Futuring, LGIM Real
Assets
Trish Willetts, Director, Bid Coventry
Andrew Carter, Chief Executive at Centre for Cities
Podcasts City Minutes: How do transport networks in big cities measure
up to their Western European peers?
Media coverage 522 (15-30th of November)
Media reach 264,535,955
Blogs 14
DECEMBER
Research and High Streets Recovery Tracker(updated monthly)
analysis Unemployment Tracker(updated monthly)
Event: 0
Podcast: 0
Media Coverage**: ** 49
Media reach: 201,292,419
Blogs: 9

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CENTRE FOR CITIES TRUSTEES’ ANNUAL REPORT YEAR ENDED 31 DECEMBER 2021

Financial review

The year ended with a surplus of £64,091 (2020: £56,172). Funds carried forward were £1,034,111 (2020: £970,020).

During the year, our main activities were Research, External Affairs and the What Works Centre. The income and expenditure linked to these activities was unrestricted.

Income

Total incoming resources were £1,728,753 (2020: £1,594,438). Our main source of income was a core grant from the Gatsby Charitable Foundation. In 2021, we received £1,100,000, which was approximately 64 per cent of all our revenues.

Other funding was generated through sponsorship agreements for research projects and events.

In 2021, the What Works Centre for Local Economic Growth project in cooperation with the London School of Economics generated £417,231 (2020: 328,604) for the Centre.

Resources expended

The Centre’s expenditure was £1,664,662 (2020: £1,538,266). The increase in expenditure was mainly due to the higher staff cost and projects direct costs.

Reserves Policy

The Trustees’ reserves policy is reviewed annually. The Centre for Cities’ reserves are defined as unrestricted net current assets.

The trustees decided that the Centre should keep reserves for at least six months of the operating expenditure. Our current policy is that they should not fall below £870,000.

The reserves are required to protect the continuity of the organisation against drops in income, to carry out research projects not funded by sponsorship, for capital items replacement and to cover unplanned emergencies and potential risks. The reserves also include a rent deposit of £75,000, which would be forfeited should we need to leave our current office early and therefore the deposit is not accessible.

Total unrestricted net assets held at 31 December 2021 were £1,012,889 (2020: £954,488). Total reserves held at 31 December 2021 were £1,034,111 (2020: 970,020). Free reserves are calculated as net current assets less fixed assets and the rent deposit and stand at £937,439 at 31 December 2021.

The surplus on the free reserves will be expended in the forthcoming year on new advocacy and research projects, and upgrade and renewal of the Centre’s website and digital media functions and capabilities.

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CENTRE FOR CITIES TRUSTEES’ ANNUAL REPORT YEAR ENDED 31 DECEMBER 2021

PROGRAMME FOR 2022

To have the impact we desire, we need to continue to produce excellent research and communicate it effectively across our government and city networks, and to the public. In 2022, we are focusing on those areas of national and local policy of most importance to the economic performance of cities:

Events

To support our research programme, we will run a busy schedule of public events and roundtables, as well as our programme of receptions and panel debates at the party conferences.

REFERENCE AND ADMINISTRATIVE DETAILS

Charity number 1119841 Company number 06215397 Registered office 9 Holyrood Street, London SE1 2EL

REGISTERED AUDITORS: HW Fisher LLP Acre House 11-15 William Road London NW1 3ER

BANKERS: HSBC Bank PLC 2[nd] Floor, 16 King Street Covent Garden London WC2E 8JF

Website: www.centreforcities.org

DIRECTORS AND TRUSTEES

The directors of Centre for Cities are its trustees for the purpose of charity law.

The trustees serving during the year and up to the date of approval of the accounts were as follows:

Nigel Hugill (Chairman)

Alex Plant Martin Reeves Nicola Yates

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CENTRE FOR CITIES TRUSTEES’ ANNUAL REPORT YEAR ENDED 31 DECEMBER 2021

Tom Riordan

Miranda Sharp Alan Harding John Cummins Joe Burns

KEY MANAGEMENT PERSONNEL:

Andrew Carter Chief Executive Paul Swinney Director of Policy and Research Anna Bullegas Head of Finance and Operations Tom Flude Director of External Affairs (left on 2 September 2021) Sian Morgan Director of External Affairs (appointed to the post on 1 February 2022)

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

Centre for Cities is a company limited by guarantee, governed by its Articles of Association, last amended on 11 April 2011.

Appointment of trustees

The Board of Trustees, who are also Members and Directors of the Charitable Company, is self-appointing. A trustee’s period of office is three years from the date of appointment or reappointment. A trustee may be re-appointed by the trustees for a further period of three years.

New members of the Governing Body are elected on the basis of nominations from the Trustees and the executive officers based on the candidates’ professional qualities, experience and personal competence.

Trustee induction and training

All new trustees are provided with an induction pack giving full details of how the Charity is constituted and operates. Any further information they require is provided by an appropriate senior person within the Charity.

Organisation

The Board of Trustees consists of not less than three members and is not subject to any maximum. The Board is responsible for the overall governance of the Charity. It meets three times a year to oversee the affairs of the Centre. The Board appoints a Chief Executive to manage the day-to-day operations of the charity.

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CENTRE FOR CITIES TRUSTEES’ ANNUAL REPORT YEAR ENDED 31 DECEMBER 2021

Related parties

Upon appointment, each trustee makes full written disclosure of interests, including relationships that may be of relevance to the Centre’s work and posts held that could potentially result in a conflict of interest. This written disclosure will be kept on file and trustees are emailed annually to check that it is up to date. It can be updated at any time throughout the year.

In the course of meetings or activities, trustees disclose any interests in a transaction or decision where there may be a conflict between the organisation’s best interests and the trustee’s best interests, or a conflict between the best interests of two organisations with which the Trustee is involved.

In the current year, no related party transactions were reported. None of our trustees receives remuneration or other benefits from the charity.

Pay policy for staff including key management personnel

The pay of all staff, including senior staff, is reviewed annually. The current policy is to award all staff an increase in salary provided the Centre reaches a fundraising milestone set by the Finance and Audit Committee. The increase is based on a review of changes in the cost of living during the course of the year and is agreed by the Finance and Audit Committee. All the Centre’s salaries, including those of senior staff, are benchmarked against pay levels in similar organisations.

Risk management

The established risk assessment system involves identifying the types of threats the Charity faces, prioritising them in terms of impact and recommending controls to mitigate them. The ongoing risks continue to be around securing sufficient funding to deliver the Centre’s ambitions and ensuring our work is of high quality and policy relevance.

The funding risks are mitigated by engaging with a wide range of potential sponsors and building long-term relationships with them. To ensure our work is of the highest standard and relevance we have a quality assurance and policy relevance process in place, with internal and external checks at key stages to peer review our work and ensure it continues to be objective, independent, robust and rigorous.

The Board is satisfied that, for all major risks, appropriate controls have been put in place which are regularly reviewed and adjusted accordingly.

Statement of trustees’ responsibilities

The Charity’s trustees (who are also the directors of Centre for Cities for the purposes of company law) are responsible for preparing a trustees’ annual report and accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”.

Company law requires Charity trustees to prepare accounts for each year, which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year. In preparing the accounts, the trustees are required to:

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CENTRE FOR CITIES TRUSTEES’ ANNUAL REPORT

YEAR ENDED 31 DECEMBER 2021

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and to enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to auditor

Each of the trustees has confirmed that there is no information of which they are aware, which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

Auditor

In accordance with section 485 of the Companies Act 2006, a resolution proposing that HW Fisher LLP be reappointed as auditor of the company will be put to the Annual General Meeting.

On behalf of the Board of Trustees

…………………………. Nigel Hugill

14 Jul 2022

………………………….. Date

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CENTRE FOR CITIES INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF CENTRE FOR CITIES YEAR ENDED 31 DECEMBER 2021

Opinion

We have audited the accounts of Centre for Cities (the ‘charity’) for the year ended 31 December 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the notes to the accounts, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 the Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the accounts:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the accounts section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the accounts in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to ongoing concern

In auditing the accounts, we have concluded that the Trustees’ use of the going concern basis of accounting in the preparation of the accounts is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the accounts are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report, other than the accounts and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the accounts does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the accounts or our knowledge obtained in the audit or otherwise appears to be materially misstated. If

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CENTRE FOR CITIES INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF CENTRE FOR CITIES YEAR ENDED 31 DECEMBER 2021

we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the accounts or a material misstatement of the other information. If based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ Report included within the Trustees' Annual Report.

We have nothing to report in respect of the following matters in relation to which the

Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the accounts and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of accounts that are free from material misstatement, whether due to fraud or error. In preparing the accounts, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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CENTRE FOR CITIES INDEPENDENT AUDITORS’ REPORT

TO THE MEMBERS OF CENTRE FOR CITIES YEAR ENDED 31 DECEMBER 2021

Auditor's responsibilities for the audit of the accounts

Our objectives are to obtain reasonable assurance about whether the accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these accounts.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

As part of our planning process:

The key procedures we undertook to detect irregularities including fraud during the course of the audit included:

20

CENTRE FOR CITIES INDEPENDENT AUDITORS’ REPORT

TO THE MEMBERS OF CENTRE FOR CITIES

YEAR ENDED 31 DECEMBER 2021

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the accounts even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the trustees of the charity.

A further description of our responsibilities for the audit of the accounts is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Andrew Rich

Andrew Rich (Senior Statutory Auditor) for and on behalf of HW Fisher LLP

Chartered Accountants Statutory Auditor Acre House 11-15 William Road London United Kingdom NW1 3ER

14 Jul 2022

.........................

21

CENTRE FOR CITIES STATEMENT OF FINANCIAL ACTIVITIES

(INCLUDING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2021

Notes
Income from:
Donations
3
Charitable activities:
Research
External Affairs
What Works Centre
Total from charitable activities
Income from investments
4
Other Income
5
Total income
Expenditure on:
Charitable activities:
6
Research-Policy
External Affairs
What Works Centre
Total
Net income and net
movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 2021
£
1,100,000
93,000
92,154
417,231
602,385
537
25,831
1,728,753
639,234
608,197
417,231
1,664,662
64,091
970,020
1,034,111		 2020
£
1,100,000
135,759
26,372
328,604
490,735
3,703
0
1,594,438
658,792
550,870
328,604
1,538,266
56,172
913,848
970,020

All funds in the current and comparative year were unrestricted. All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

22

Company Registration Number 6215397 (England and Wales) Registered Charity Number 1119841

CENTRE FOR CITIES

BALANCE SHEET

AS AT 31 DECEMBER 2021

Notes
Fixed assets
Tangible assets
11
Total fixed assets
Current assets
Debtors
12
Cash at bank and in hand
Total current assets
Liabilities
Creditors falling due within one year
13
Net current assets
Total assets less current
liabilities
Funds
16
Unrestricted funds:		 2021
£
21,222
21,222
143,450
1,000,449
1,143,899
131,010
131,010
1,012,889
1,034,111
1,034,111
1,034,111		 2020
£
15,532
15,532
136,083
948,507
1,084,590
130,102
130,102
954,488
970,020
970,020
970,020

14 Jul 2022

Approved and authorised for issue by the Board of Trustees on ……………. and signed on their behalf by Trustee

Nigel Hugill

23

CENTRE FOR CITIES STATEMENT OF CASH FLOW

FOR THE YEAR ENDED 31 DECEMBER 2021

Note
Net cash provided by (absorbed by)/operating activities
17
Cash flows from investing activities:
Interest receivable
Purchase of tangible fixed assets
Change in cash and cash equivalents in the
reporting period
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the end of the
reporting period		 2021
2020
£
£
67,405
(735,383)
537
3703
(16,000)
(10,143)
(15,463)
(6,440)
51,942
(741,823)
51,942
(741,823)
948,507
1,690,330
1,000,449
948,507

24

CENTRE FOR CITIES NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2021

1 ACCOUNTING POLICIES

Accounting policies provide the basis on which the accounts are prepared and explain the accounting treatment of material transactions or items in the accounts.

(a) Basis of preparation of accounts

The financial statements have been prepared in accordance with the Charity's Memorandum & Articles, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The Charity is a Public Benefit Entity as defined by FRS 102.

Assets and liabilities are initially recognised at historical or transaction value unless otherwise stated in the relevant policy note(s).

The financial statements are prepared in pounds sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

(b) Recognition of income

Income under grants, donations or sponsorships is recognised in the accounts on a receivable basis. Income under contracts is recognised in the financial statement to the extent that entitlement to the income has been earned during the year through completion of the contract.

(c) Interest receivable

Interest on funds held on deposit is included when receivable. The charity records it upon notification from the Bank.

(d) Funds

Funds which are expendable at the discretion of the Trustees in furtherance of the objectives or administration of the Charity are classified as unrestricted funds.

(e) Debtors

Trade and other debtors are recognised at the settlement amount due after any discount offered.

(f) Expenditure and recoverable VAT

All expenditures have been recognised on an accruals basis.

(g) Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments and Section 12 ‘Other Financial Instruments Issues’ of FRS102 to its financial instruments.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

25

CENTRE FOR CITIES NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2021

The Charity only has financial assets and liabilities of a kind that qualify as basic financial subsequently measured at their settlement value.

(h) Allocation of support costs

Support costs are the costs of those functions that assist the work of the charity but are not directly charitable activities. Support costs include HR, finance, payroll, governance and general office costs which support Centre for Cities’ activities. The basis on which support costs have been allocated is set out in note 7.

(i) Operating leases

The charity classifies the lease of the photocopier as an operating lease. The ownership of the photocopier remains with the lessor and is replaced every 5 years. The rental costs are charged on a straight-line basis over the term of the lease.

(j) Tangible fixed assets

Tangible fixed assets are stated at cost including any incidental expenses of acquisition and unrecoverable VAT where appropriate. All assets costing more than £500 are capitalised.

Depreciation is calculated to write off the cost of fixed assets on a straight-line basis over their estimated useful lives. Depreciation is charged from the month of acquisition. The principal estimated useful lives for this purpose are:

Computer equipment and software - 3 years Fixtures and Fittings - 5 years Leasehold Improvements - Over the life of the lease

To the extent that VAT is irrecoverable, the cost is included and identified separately within the contract or functional area to which it relates and where appropriate VAT on Fixed Assets is capitalised.

(k) Pension costs

The Charity has a money purchase scheme for qualifying employees. Pension costs charged to the statement of Financial Activities represent the contributions payable by the Charity in the period (see Note 9).

(l) Going concern

The Charity has confirmed core funding of £1,100,000 per annum from the Gatsby Foundation for the period 2020 to 2023. As set out in ‘Reserves Policy’ in the Trustees’ Annual Report, the Charity holds reserves in excess of the minimum required, which are available to support research and advocacy in coming years.

The Trustees have a reasonable expectation that the Charity has adequate resources to remain in operation for the foreseeable future from the date of approval of these accounts. Thus, the Trustees continue to adopt the going concern basis of accounting in preparing the accounts.

26

CENTRE FOR CITIES NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2021

(m) Critical accounting estimates and judgements

In the application of the Charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. There were no critical accounting estimates during the period.

2 Company status

Centre for Cities is a company limited by guarantee and has no share capital.

Every member of the charity undertakes to contribute such amount as may be required (not exceeding £10) to the Charity’s assets if it should be wound up while he or she is a member or within one year after he or she ceases to be a member, for payment of the Charity’s debts and liabilities contracted before he or she ceases to be a member, and of the costs, charges and expenses of winding up, and for the adjustment of the rights of the contributories among themselves. Its registered office is 9 Holyrood Street, 2nd Floor, London SE1 2EL.

No taxation is payable due to the charitable status of the organisation.

3
Donations
Core Grant
Donations		 2021
2020
£
£
1,100,000
1,100,000
-
1,100,000
1,100,000

In 2021, Centre for Cities received a donation of £1,100,000. The donation was an annual core grant from Gatsby Foundation, Lord Sainsbury’s family charitable trust.

4 Investment Income

Centre for Cities’ investment income of £537 (2020: £3,703) arises from money held in deposit accounts.

5 Income - Other Activities

Income received for seconded employee.

27

CENTRE FOR CITIES NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2021

6 Analysis of expenditure on charitable activities

2021
Staff Costs
Projects Direct Costs
Premises
Depreciation
IT & Communication
Printing & Stationery
Miscellaneous Office Costs
Legal, Professional and Insurance
Subtotal
Support Costs (note 7 )
Governance Costs (note 7 )
Subtotal
2020
Staff Costs
Projects Direct Costs
Premises
Depreciation
IT & Communication
Printing & Stationery
Miscellaneous Office Costs
Legal, Professional and Insurance
Subtotal
Support Costs (note 7)
Governance Costs (note 7)
Subtotal
Total
Total		 Research-
Policy
External
Affairs
What Works
Centre
Total
£
£
£
£
375,597
354,654
344,972
1,075,223
66,923
115,833
2,609
185,365
63,357
42,697
31,678
137,732
4,742
3,197
2,371
10,310
8,610
5,801
4,305
18,716
2,765
1,863
1,382
6,010
42,346
40,197
16,679
99,222
4,519
3,045
2,259
9,823
568,859
567,287
406,255
1,542,401
57,956
25,462
9,136
92,554
12,419
15,448
1,840
29,707
70,375
40,910
10,976
122,261
639,234
608,197
417,231
1,664,662
Research-
Policy
External
Affairs
What Works
Centre
Total
£
£
£
£
410,322
321,532
245,964
977,818
56,256
112,835
7,246
176,337
72,378
42,385
30,063
144,826
16,048
9,308
6,741
32,097
9,253
5,367
3,887
18,507
3,050
1,769
1,281
6,100
28,531
21,068
12,302
61,901
7,893
4,578
3,314
15,785
603,731
518,842
310,798
1,433,371
39,395
22,849
16,546
78,790
15,666
9,179
1,260
26,105
55,061
32,028
17,806
104,895
658,792
550,870
328,604
1,538,266

Expenditure on charitable activities was £1,664,662 (2020: £1,538,266). All expenditures were unrestricted. Most of the costs in the above table (note 6) relate to staff, project direct costs and premises.

Staff costs consist of gross pay, employer NI and pension costs and are directly attributable to Centre for Cities’ activities. Other staff costs are part of support costs.

28

CENTRE FOR CITIES NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

Projects’ direct expenditures are made up of costs that relate to events and research. Events costs include venue and equipment hire, catering, travel and accommodation costs. Costs related to research projects include data, polling and printing of reports. Premises costs include rent and rates, service charge, office security and insurance.

Legal and Insurance Costs - legal costs under this heading were incurred during the acquisition of new office premises.

7 Analysis of support and governance costs

Centre for Cities initially identifies the costs of its support functions. It then identifies those costs, which relate to the governance function. Having identified its governance costs, the remaining support costs together with the governance costs are apportioned between the three charitable activities (see note 6) in the year. The table below shows an analysis of support and governance costs and the basis of apportionment.

2021
2020
Total
Salaries
Information Technology
Audit Fees
Legal & Other Professional Fees
Salaries
Audit Fees
Total
Legal & Other Professional Fees
Information Technology		 General
Support
Governance
Function
Total
Basis of
Apportionment
£
£
£
87,027
21,707
108,734
Time
2,027
-
2,027
Cost
-
8,000
8,000
Governance
3,500
-
3,500
Governance
92,554
29,707
122,261
General
Support
Governance
Function
Total
Basis of
Apportionment
£
£
£
77,121
20,105
97,226
Time
1,669
-
1,669
Cost
-
6,000
6,000
Governance
-
-
-
Governance
78,790
26,105
104,895

29

CENTRE FOR CITIES NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2021

8
Net income/(expenditure) for the year
This is stated after charging: 2021 2020
£ £
Operating leases - photocopier 1,272 1,272
Depreciation 10,310 32,097
Auditor's remuneration:
Audit fees 8,000 6,000
9
Analysis of staff costs, trustee remuneration and expenses and the cost of key
management personnel
2021 2020
£ £
Wages and salaries 987,834 900,786
Social security costs 98,106 84,814
Pension costs 98,017 89,444
1,183,957 1,075,044
2021 2020
Employees earning between £60,001 - £70,000 1
Employees earning between £70,001 - £80,000 1
Employees earning between £80,001 - £90,000 3
Employees earning between £90,001 - £100,000 1
Employees earning between £100,001 - £120,000 1

Pension contributions in respect of higher-paid employees totalled £46,604 (2020: £20,898).

The charity trustees were not paid and did not receive from the charity any benefits or reimbursement of their travel expenses during the year.

The total employee benefits received by the key management personnel listed on page 15 were £318,385 (2020: £373,863).

30

CENTRE FOR CITIES NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

10 Staff numbers

The average monthly headcount was 19 staff (2020: 19 staff) and the average monthly number of the full-time equivalent employees during the year was as follows:

Research
External Affairs
WWC
Governance		 2021
2020
9.0
8.5
6.0
5.0
4.0
4.0
0.5
0.5
19.5
18.0

11 Tangible fixed assets

Cost or book value
At 31 December 2021
Accumulated depreciation
At 1 January 2021
Charge for year
At 31 December 2021
Net book value
At 31 December 2021
At 31 December 2020
At 1 January 2021
Additions		 Leasehold
Improvements
Fixtures and
Fittings
Computer
Equipment
Total
£
£
£
£
111,704
36,612
53,997
202,313
-
-
16,000
16,000
111,704
36,612
69,997
218,313
111,704
35,663
39,414
186,781
-
200
10,110
10,310
111,704
35,863
49,524
197,091
-
749
20,473
21,222
-
949
14,583
15,532

All of the tangible fixed assets are used for charitable purposes.

31

CENTRE FOR CITIES NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2021

12 Debtors

Due within one year:
Trade Debtors
Prepayments
Other debtors
13
Creditors: amounts falling due within one year
Trade creditors
Taxation and social security
Accruals
Deferred income		 Total
Total
2021
2020
£
£
6,867
-
43,425
9,883
93,158
126,200
143,450
136,083
Total
Total
2021
2020
£
£
15,353
11,809
51,915
60,907
63,742
37,386
-
20,000
131,010
130,102

13 Creditors: amounts falling due within one year

14 Operating lease commitments

On 31 December 2021, the charity had the following operating lease commitments:

Land and buildings

Not later than one year
Later than one year and not later than five years
Over five years		 2021
2020
£
£
104,792
104,792
398,792
419,168
-
84,416
503,584
608,376

The above commitments are for an operating lease on 2nd floor, 9 Holyrood Street.

15 Related party transactions

There were no related party transactions.

32

CENTRE FOR CITIES NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

16 The funds of the charity

The fund of £1,034,111 on 31 December 2021 was unrestricted.

17
Reconciliation of net income/(expenditure) to net cash flow from		 17
Reconciliation of net income/(expenditure) to net cash flow from		 operating
activities
2021 2020
£ £
Net income for the reporting period 64,091 56,172
Adjustments for:
Depreciation charges 10,310 32,097
Interest receivable (537) (3,703)
Decrease/(increase) in debtors (7,367) 220,822
(Decrease)/increase in creditors 908 (1,040,771)
Net cash provided by (absorbed by)/ operational activities 67,405 (735,383)

18

Analysis of changes in debt

The charity had no debt during the year.

33