centr ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2024 Registered Office: 9 Holyrood Street, London SE1 2EL www.centreforcifiies.or A Charitable Company Limited by Guarantee Registered in England and Wales Company No. 06215397 Registered Charity No. 1119841
CENTRE FOR CITIES CONTENTS YEAR ENDED 31 DECEMBER 2024 Pages Trustees. Annual Report 3-12 Independent Auditorf8 Report 13-16 statement of Financial Activities 17 Balance Sheet 18 statement of Cash Flows 19 Notes to the Accounts 20-30
CENTRE FOR CITIES TRUSTEES. ANNUAL REPORT YEAR ENDED 31 DECEMBER 2024 Foreword by Nigel Huglll, Chalr of Centre for Cities 2024 was a year of notable political and pollcy activity, shaped by a pivotal general election and significant metro mayor contests. Arnld this dynamic landscape. the Centre continued to fulfil its mlssion.. to provide rigorous. evidence-based Insight that informs better policy and declsion-making In government and citles across the UK. Over the course of the year, the Centre published 20 research reports and briefings, more than 100 blogs, launched 25 podGasls, and convened 53 public events. Each of these output8 played a role in shaping publlc dlscourse and strengthenlng the Ilnk between research and policy. At the start.of the year, we18unched ourflagshlp annual report on the UK'S urban aconomles. Thls report laid bare the perslstent challenge of weak economic productivity across citles since 2010-a reality that must underpin any serlous conversation about the country's long- term economic growth strategy. In the lead-up to the mayoral electlons In May, the Centre explored public perceptlons of metro mayors through targeted polling. The findings were widely dSss8minated via online events, press briefings, and media coverage. including a notable edltorlal in the Financlal Times. This work helped place th8 rol8 of metro mayors front and centre In the public and political debate. As the country prepared for the General Election In July, our engagement deepened, We worked closely with pollcymakers across the polltlcal spectrum and supported national and regional media coverage through expert brlefings. Our newly developed onllne tool enabllng Gomparlsons of constltuencies across England and Wales on key urban economlc Indlcator8-provided a valuable resource for Journallsts, campalgners and analy5t8 alike. In the 88cond half of the year, our influence was dearly vlslble In the new government's natlonal gr0h agenda, Our report Climbing th6 summit.. Blg cities in the UK and the G7 highlighted the underperformance of UK cities compared to thelr Intemation81 peers and dlrectly Informed the Government's Industrial Strategy Green Paper. Our three-part houslng research serles, Restartlng housebuilding, hlghlighted the gap between the new national housing targets and the scale of urban housebuilding. It Sparked a welcome response from the government setting out how they would ensure cities play an Important rol8 in the housing agenda, underscoring the Centre's growing role In shaping the natlonal conversation on housing and planning refonn. Throughout 2024, th8 Centre'swork has been grounded in the economic realities facing cities. As we look ahead, we remaln commltted to equipping leaders-local and national with the insights they need to make informed, effective decisions to achieve a more prosperous country, Nigel Huglll
CENTRE FOR CITIES TRUSTEES, ANNUAL REPORT YEAR ENDED 31 DECEMBER 2024 The Board of Trustees are pleased to present their Trustees, Annual Report and Accounts for the year ending 31 December2024. The Trustees, Annual Report contains a Directors, Report as required by company law. The aGcounts comply with the requirements of the Companies Act 2006 and Accounting and Reporting by Charities: Statement of Recommended Practi applicable to charities preparing their accounts in accordance with FRS102, effective 1 January 2019. Our Objectives and Activitles Centre for Cities is an independent charity. We work dosely with urban leaders. Whitehall and businesses to ensure our work is relevant. acSsible and of practical use to local and national policymakers. The purposes of the charty. as set out In the Memorandum of Association, are.. To promote education for the public benefit in issues of economics and publlc policy In relation to cities and large towns in the United Kingdom and elsewhere in the world; To promote for the public benefit research in the aforementioned fields,. and To publish the useful results of such research. 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 undgrstand how and why economic growth and change take place in cities in the UK and disseminate these findings widely in orderto help British cities improve their economic performance. To fulfil its purpo86, the Centre undertakes the following activitles: 1) Producing high-quallty research and policy: We publish a range of original research reports and briefings. blogs and papers on the economic performance of UK cities and large towns- and how to improve opportunities for their residents. Our research is produced by an in-house team of analysts, with input from external experts. The research is of high qualtty, drawing on a robust evidence base. It aims to inform public debate. policy and practi 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 Garry out research in association with UK cities and bring together networks of local and national decision-makers frcxn both the public and the private sector to share knowledge. This enables us to inform poliGy and practice directly and to publicise lessons from this work. which are relevant to other citie5. 2) Engaging wlth stakeholders: To ensure the public benefits of the work we do, all our reports and papers are available to the public free of charge on our website and we disseminate these findings to varied audiences through national, local and specialist broadcast and print media, social media and presentations at our own and others, events. Our events programme includes public events (free to attend) as well as events at the major party conferences each year. We publish a regular newsletter and work in partnership with others, including journalists. universities and cities, to publicise the findings of our work.
CENTRE FOR CITIES TRUSTEES, ANNUAL REPORT YEAR ENDED 31 DECEMBER 2024 a) 'demonstratlon' projects, or local policy experiments. In 2024 wg undertook work In the following area5: cities Outlook 2024 - The annual flagshlp report on the UK'S urban economles hlghlighted how a long-term decline in economic productlvity has affected places everywhere since 2010, providing a backdrop for discussion of UK econornic pollcles in that period. It was launched with an in-person event featurlng high-profile speakers includlng former Buslness Secretary Greg Clark. General Election 2024-The Centre engaged wtth key pollcy figures and politlcians In Government and opposltlon in antiCiP8tion of the General Election. Throughout the electlon campalgn, the Centre pursued actlvities to inform and Influence discussion. It hosted online panel disGusslons and brlefings; created a new online data tool to compare each England and Wales constituency on urban economic Indicators., and briefed broadcast Journallsts at BBC Radlo 4, Sky News and els8where a5 they reported locally on constltuency races and prepar8d for key broadcast events and debates outside of London. Following the election. Centre for Cities publlshed a shortllst of pollcy proposals fortackling urt)an economy challenges and hosted several onllne events to rnark the first 100 days of the new Government. Devolution - Centre for CEti8s developed its policy thinking on devolution, built on the ase for fiscal devolution and encouraged Government to conslder the ro18 these should play in its economic policy agenda, across several reports and in briefings with civll service in advance of the Engllsh Devolutlon Whlte Paper. It produced modelling, published wlth an accompanying online interactlve data tool, to support proposals for council tax reforms, and published a briefing arguing for a pragmatic Engllsh Devolution Whlte Paper that uses economlc geography 88 the basis for local government reorganisatlon. Mayoral electlons Centre for Cltles (wlth Focaldata) polled public perceptions towards metro mayors and awareness of their policies in the run-up to the 2024 Mayoral Elections. The Centre hosted online events to disseminate the polling findlngs aGross England and briefed natlonal and reglonal press leading to references throughout local reporting on election races and in an editorial by the Financial Times on the success of England's metro mayors. An FAQS page on metro mayors on the Centre's webslte has be8n seen by over 12.000 web users. Economic productlvlty - A report, tltled Cllmbing the summit.. Big citl8s in the UK 8nd the G7, demonstrated large UK cities, poor performance compared with G7 peers on several productivity performance Indicators. This analysis provides a valuable evldence base for pollcy development in key areas including industrial strategy planning and publlc transport. The influence of this work is reflected throughout the Government's Industrial Strategy Green Paper which contained several references to the report. Housebuildlng and planning A three-part research report titled Restarting housebuilding provided insight intothe geography of housebuilding in the period since
CENTRE FOR CITIES TRUSTEES. ANNUAL REPORT YEAR ENDED 31 DECEMBER 2024 the 1947 Town and Country Planning Act, based on historic local-level housing stock and housebuilding data digitised for the first time by Centre for Cities. It demonstrated that cities were likely lo under-perform against the housebuilding targets set by the Government and supported the case for bolder refomis of the aplnning system. The Centre's analysis and recommendations received widespread pick-up, to which the Ministry of Housing. Communities and Local Government responded with a blog post settirig out steps the Government was taking to accelerate housebuilding. Publication of the"reports was followed by a Parliamentary reception co-hosted with the Government's Growth Mission Champion Dan Tomlinson MP. attended by over 100 stakeholders including Parfiamentarians. Green belt reform - A report titIed Ship shape? How the planning system is holding back Bristol's economy showed that the restrictive green belt in the city and national planning policy together acted as a barrier to the growth in one of the UK'S fastest- growing local economies. Planning policy commentary - in The Sunday Times and Daily Telegraph and elsewhere - has referred to the work as a case study. Local gov2mment funding - What Works Growth and Centre for Cities produced joint report, L.A. Evidential.. Improving evidence use in local economic poliGymaking, to demonstrate areas of reform needed to promote economic development, focusing on local authorities, powers and incentives. This was used as a basis for further engagement with Govemment as MHCLG (then the Departm8nt for Levelling Up, Housing and Communities) and its activity to streamline local government grants. Levelling up - A report titled Donation nation explored the effectiveness of the charlty sector at addressing local needs and highlighted the of role of mayors, funds in Greater Manchester and West Yorkshire in directing local charitable donations towards key causes in Ihe area. The Centre provided two separate briefings on the research for the Mayors of the North East and West Yorkshire. Net zero - Centre for Crties co-hosted a roundtable with several of England's metro mayors to discuss net zero, before undertaking research into the rose of policy at devolv8d18vel in achieving the UK'S national net zero goals. It launched the r8search at an event in Leeds with Mayor of West Yorkshire Tracy Brabin as a keynote speaker. Visitor economy - The Centre undertook work to understand the opportunities for places to grow the local economy and improve local amenities through visitoi spending. Following analysis of card spending data and a series of policy roundtables, thB resulting report, Spending time.. The role of the visitor economy in UK cities. identified the cities and large towns with substantial visitor offerings and made recomm8ndations to places drawing up Local Growth Plans. The publication was accompanied wilh an online data tool showing place-to-place variation in the. contribution of visitors to local spending in cities and towns in the UK. London Several projects focused on the capital including a briefing on how its economy has been shaped by changes in population In the years affected by Covid and the Centre's widely-reported research report, Return to the office.. How London compares to other global Cities and why this matters. Return to th8 office compared
CENTRE FOR CITIES TRUSTEES, ANNUAL REPORT YEAR ENDED 31 DECEMBER 2024 the rate of return to the office post£ovid in London and global competitor cities such as New York and Paris. adding to the evidence base in support of continued investment in the capital's growth. City visits Centre for Cities held a programme of City Visits, visiting 12 cities and towns on its list of Primary Urban Areas to engage with local government leaders. urban policy experts and other stakeholders and exchange ideas and insights about the issues local areas face. What Works Centre for Local Economic Growth - What Works Growth continued running tr8ining throughout the country and producing resources for economic development professionals in local govemment. It produced four evidence briefings and four rapid evidence reviews on communty finance, plural ownership policies. social infrastructure. and the impact of local economic growth interventions on minority ethniG and immigrant groups. It also published a self-assessment tool for local government on their use of evidence in local growth, and 4 'how to, resources for evaluatlon practitioners. Publlc Benefit The trustees of a Gharity 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 2024. The Centre produces high-quallty research and policy analysis that are Independent of government, individual cllents or companies. The research is made available widely and free of charge to individuals. organisations, practitioners and others actlve 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 praGtical ways in which UK Glties can tackle longstanding challenges such as productivity and unemployment, drawing on the UK and international case studies. In 2024, we released over 120 briefings, blogs and research reports Govering topics inGluding cities, recovery from pandemic restrictions. efforts to increase public transport ridership and active travel, the potential for fiscal devolution to England's largest cities, and the role of big cities in driving pr05perily in their regions. Financial review The year ended with a surplus of £107.662 (2023: £141.316). Funds carried forward were £1,066.983 (2023: £959.321).
CENTRE FOR CITIES TRUSTEES, ANNUAL REPORT YEAR ENDED 31 DECEMBER 2024 During the year, our maln activities were Research, Extemal Affairs and the What Works Centre for Local Economic Growth. The income and expenditure linked to these activities were unrestriGted. Income Total incoming resources were £1,923,328 {2023: £1,878,873). Our main source of income was a Gore grant from the Gatsby Charitable Foundation. In 2024, we received £1,300,000, which was approximately 68 per cent of all our revenues. other funding was generated through sponsorship agreements for research projects and events. In 2024, the What Works Centre for Local Economic Growth project run in partnership with the London School of EconomiGS generated £345,950 (2023: £488,532) for the Centre. Resources expended The Centre's expenditure was £1,815,666 (2023: £1,737,557). The increase in expenditure was mainly due to the higher than in the previous year staff and projects costs. Reserves Policy The C8ntre for Cities, reserves are defined as unrestrlcted net current assets, and they are set to the equivalent of at least six months of the operating costs. 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 potentlal risks. Free reseNes held on 31 Dember 2024 were £1,058,392 (2023: £950,190), up by £108.202. The surplus on the free reserves will be expended in 2025 on new advocacy and research projects. FUTURE PLANS To continue to advance understanding of the economies of the UK'S largest cities and towns and exert influence on public policy in 2025, Cenlre for Cities will produce excellent research and communicate it across tts networks and to the public. In 2025, it will focus on those areas of national and local policy of more Importan to the eGonotnic performance of cities.. The flagship Cities Outlook 2025 report focuses on role of cutting-edge "new eGonomy industries in shaping productivity outcomes in cities and towns across the UK. As the Government devises an industrial stratogy, a key part of its economic growth mission. Cities Outlook will take the opportunity to demonstrate the role of city- centers, 8conomies in achieving higher average incomes. Centre for Cities will continue to bring attention to the economic performance of the UK'S cities and large towns wrth regular media commentary on key economic milestones and the development of new Govemment policy and legislation. The
CENTRE FOR CITIES TRUSTEES, ANNUAL REPORT YEAR ENDED 31 DECEMBER 2024 Planning and Infrastnjcture Bill. Industrial Strategy White Paper, Spending Review and English DevolLrtion Bill will present opportunities to inform public discussion and shape public policy. Centre for Cities, working in partnership with What Works Growth, will progress its research into the impact of devolution and govemment grant-making, aiming to inform Government thinking in its approach to increasing growth in all parts of the country. Centre for Ctiies will undertake new research and policy analysis on the likely impact of new devolved spatial planning powers and the role these will have in increasing productivity and housing delivery particularly in large ctties. Centre for Cities will build further on its post-covid use of city-centres by focusing next on the return-tooffice patterns in the UK'S large cities outside of London as well as the impact of hybrid working on the function of town centres and high streets, Centre for Cities will pursue research into the role of city centres in supporting business innovation and growth in "cutting-edge" industry, drawing on comparisons with internatlonal peers, to conlribute evidence in support of the Governrnent's Industrial 8tr8tegy. Centre for Cities wlll conlinue to promote and run in-person events and, onllne events to provide audienGes with commentary and insight on key policy ar8as, as well as hosting public panel discussions at party conferences. It will continue to run and promote its City Talks and City Minutes podcast series. with guests including former scien Minister George Freeman MP and Government Growth Champion Dan Tomllnson scheduled tojoln the City Talks serie5 in 2025. Engaging with senior figures from business, academia, poliGymaking, local and national government and Westminster to present research and tdeas, inform the public debate and discuss policy and practice will continue to be an important part of Centr8 for Cities, strategy to influence policy outcomes in recent years. REFERENCE AND ADMINISTRATIVE DETAILS Charity number Company number Registered office Website: 1119841 06215397 9 Holyrood Street. London SE12EL www.centreforcilies.or REGISTERED AUDITORS: Chariot House Chartered Accountants 44 Grand Parade Brighton and Hove Brighton BN2 9QA
CENTRE FOR CITIES TRUSTEES, ANNUAL REPORT YEAR ENDED 31 DECEMBER 2024 BANKERS: HSBC Bank PLC 16 King Street London WC2E 8JF 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.. William Nigel Hugill (Chairman) Miranda F4elen Sharp Alan Paul Harding John James Cummlns Joseph Christopher Burns Deborah Cadman Jane Elizabeth Robinson Marc Elllot Mogul KEY MANAGEMENT PERSONNEL: Andrew Carter Paul Swinney Sian Morgan Anna Bullegas Chief Executive Director of Policy and Research Director of Extemal Affairs Head of Finance and Operations STRUCTURE. GOVERNANCE AND MANAGEMENT Governlng Docum8nt Centre for Cities is a company limrted 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 reappointTnent. A trustee may be re-appointed by the trustees for a further period of three years. New members of the Goveming 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. 10
CENTRE FOR CITIES TRUSTEES, ANNUAL REPORT YEAR ENDED 31 DECEMBER 2024 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 subjeGt to any maximum. The Board is responsible forthe overall govemance 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. 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 confliGt of interest. This wrltten disclosure will be kept on file and trustees are emailed annualSy to check that it is up to date. It can be updated at any time throughout the year. In the course of meetings or activltles, trustees disdose any interests in a transaction or decision wh8re there may be a conflict between the organisation's best interests and the ' trustee's best inteStS, or a conflict between the best interests of two organisations with which the Trustee Is Involved. In the currgnt year, no related party transactions were reported. None of our trustees receives remuneration or other b8nefits from the charity. Pay pollcy for staff includlng key management personnel The pay of all staff, including senlor staff, Is reviewed annually. The current policy is to award all staff an increase in salary provided the Centre r6aches 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 face5, prioritising them in terms of impact and recommending controls to mitigate them. The ongoing risks Gontinue 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 relevanGe we have a quality assurance and poliGy relevance process in place, with internal
CENTRE FOR CITIES TRUSTEES. ANNUAL REPORT YEAR ENDED 31 DECEMBER 2024 and extemal 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. 12
CENTRE FOR CITIES TRUSTEES, ANNUAL REPORT YEAR ENDED 31 DECEMBER 2024 Statement of trustees, responsibilitles 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 AGcepted Accounting Practi) 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 ompany for that year. In preparing the accounts, the trustees are required to: select suitable accounting policies and then apply them consistently., obseNe the methods and principles in the Charities SORP (Statement of Recommended PractiGe>; make judgements and estimat85 that are reasonable and prudent., State whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained In the accounts; prepare accounts on the going concern basis unless it is inappropriate to presume that the Charity will continue in operation. The trustees are responsible for keeping proper accountlng records that disclose wlth reasonabl6 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 asspts of the charitable Company and hence taking reasonable steps for the prevention and detection of fraud and other Irregularities. Dlsclosure 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 identrfy such relevant information and to establish that the auditor is aware of such information. Auditor In accordance with section 485 of Ihe Companies Act 2006, a resolution proposing that Chariot House Ltd be reappointed as auditorof the company will be putto the Annual General Meeting. On b8half of the Board o Trustees 201 Nigel H Dat8 13
CENTRE FOR CITIES STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2024 Opinion We have audited the financial statements of Centre for Cities (the 'charitable company,) for the year ended 31st December 2024 which comprise the Statement of Financial Activities. the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting fiamework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (Unit8d Kingdom Generally AGGepted Accounting Practice). In our opinion the financial statements: give a true and fair view of the state of the charitable company'5 affairs as at 31st December 2024 and of its incoming resources and application of resources. including its result, for the year then ended have been properly prepared In a¢Gordance with United Kingdom Generally Accepted Accounting Practi. and have been prepared in accordan¢8 wlth the requirements of the Companies Act 2006 Basis for oplnlon We conducted our audit in accordance with Intemational Stand8rds 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 charlty 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 financial statements, 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 Ihat, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibi5ities of the Trustees with respect to going concern are described in the relevant sections of this report. Other information The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, otherthan the financial statements and our Report of the Independent Auditors thereon. Our opinion on the financial statements does not COV8r the other informatlon and. except to the extent otherwise explicitly staled in our report, we do not express any forrn of assurance conclusion thereon. 14
CENTRE FOR CITIES STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT) FOR THEYEAR ENDED 31 DECEMBER 2024 In connection with our audit of the financial statements. our responsibility is to read the other infomation and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our know]edge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistenGies or appat material misstatements. we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. 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 prescrfbed by the Companies Act 2006 In our opinion, based on the work undertaken in Ihe course of our audit.. the information given in the Report of the Trustees for the financial year for which the financial statements are pTrpared is consistent with the financial statements: and the Report of the Trustees has been prepared in accordance with applicable legal requirements. 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 Report of the Trustees. We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you rf, in our opinion: adequate accounting records have not been k8Pt. or returns adequate for our audit have not been received from branches not visited by us; or the financial statements are not in agreementwith the accounting records and retums; or we have not received all the information and explanations we require for our audit; or the Trustees were not entitled to take advantage of the'small companies exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Trustees. Responsibilities of trustees As explained more fully in the Statement of Trustees, Responsibilities. the trustees. who are also the directors of the charitable company for the purpose of company law. are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is neGessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements. thetrustees are responsiblefor assessing th8 Gharitable company's ability to continue as a going concern, disclosing, as applicable. matters related to going concem and using the going concem basis of accounting unless the trustees either intend to liquidate the charitable wmpany or to Gease operations, or have no realistic alternative but to do so. Our responsibilitles for the audlt of the flnanclal ststements 15
CENTRE FOR CITIES STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2024 Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement. whether due to fraud or error. and to issue a Report of the Independent Auditors that includes ouropinion. 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 rf. individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: We gained an understanding of the legal and regulatory framework applicable to the charitable company and the industry in which it operates, and considered the risk of acts by the charitable company that were contrary to applicable laws and regulations, including fraud. W8 considered these risks in the light of various factors including the level of complexity, subjeGtivity, uncertainty, potentlal management bias, fraud, materiality and any other rglevant factors. We considered the extent to which these would have a material impact on the financial statements and designed our audit work aardIngly. We identified that the following areas were of high risk: Completeness of income. We perfomied various audittests to ensure thaf Income was not materially understated In the financlal statements. Management override of controls. We performed various audit tests to 6nsure there was no material management override of controls We designed audit procedures to respond to the risks identified, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006, UK tax legislation, Charitie5 Act 2011 and Charities SORP 2019. We did not find any Instances of non-compliance or breach of the legislation framework applicable to the charitable company. We also; Agreed the financial statement disclosures to underlying supporting documentation, Made enquiries with management and of legal counsel when considered necessary. performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud. and reviewing significant or unusual transactions to identify their underlying supporting ratlonale Discussed and reviewed the charity'5 business model and fOard planning to assess going concern Carried out substantive testlng on income and expenditure 16
CENTRE FOR CITIES STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2024 R8-performed reconciliations of control accounts, and reGalGulated items such as depreciation Inspected the minutes of meetlngs of those charged with govornanGe, and made direct enquiries of management and the board of trustees concernlng the charity's policies There are inherent limitations In the audlt procedures described above and, the further removed non-compllance wlth laws and regulations Is from the events and transaGtions reflected In the financial statements, the less Ilkely we would become aware of it. We did not identify any key audit matters relatlng to irregularities, including fraud. As In all our audits, we also addressed the rlsk of management overrlde of internal controls, includlng testing journals and evaluating whether there was evidence of management bias by the directors that represented a risk of material mlssiatement due to fraud. A further desGription of our responsibillties for the audit of the financial statements Is located on th8 Financlal Reporting Council's webslte at www.frc.org.uklaudltorsresponsibillties. This desGriptlon forms part of our Report of the Independent Auditors. 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 Companles Act 2006. Our audlt work has been undertaken so that we might state to the charitable company's members thosg matters we are required to state to them in an auditor's report and for no other purp¢)se. To the fullest extent permltted by law, we do not aGcept or assume responslblllty to anyone other than the charitable company and th8 charitable company's members as a body, forthis report, orforthe oplnions we have formed. Mark Partridge FCA (Senior Statutory Auditor) for and on behalf of Chariot House Limited Chartered Accountants and Statutory Audltor 44 Grand Parade Brighton BN2 QQA Date.. 17
CENTRE FOR CITIES STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2024 2024 2023 Notes Income frorn: Donations and Grants 1.300,ODO 1,100,000 Charitable activities.. Research 138,600 137,166 External Affairs 88,955 83,500 What Works Centre 345,950 488.532 Total from charitable actlvities 573,505 709,198 Income from investments 49,823 28,787 Other Income 40,888 Total Income 1,923,328 1,878,873 Expenditure on.. Charitable activities: R8search-Policy 738,665 642,441 External Affairs 731,051 606,584 What Works Centre 345,950 488,532 Total 1 8_16,666 1,737,557 Net Income and net movement in funds 107,662 141,316 Re¢oncillatlon of funds Total funds brought forward 959,321 818,005 Total funds carried forward 1,066,983 959,321 All funds in the current and comparative year were unrestricted. All income and expenditure derive from continuing activities. The statement of financial activilies also complies with the requirements for an income arid expenditure account under the Companies Art 2006. 18
ConwuyReglBiratsM flumbÈrQ6215397lErtgl*nd •ndWaley CENTRE FOR CITIES BALANCE SHEET AS AT 31 DECEMBER 2024 2024 2023 Notes Fixed assets Tanglble assets 8,591 9,131 Total fixed assot8 9.131 Current assets Debtors C86h at bank and In hand 12 222,549 2,040,409 289,251 824.034 Total current a888t8 2 262 958 1113285 Llabllltlas 13 1204 566 1,204,566 183 095 163,095 Net current as8et8 1.058,392 950,190 Total assets less current Ilabllltles 1,068.983 959,321 Unrestrlcted funds: 16 1.066.983 1,066,983 959,321 959,321 Approved and authorised for issue by the Board of Trustees o signed on their behalf by Nigel Hugill fl 2oZS and 19
CENTRE FOR CITIES STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2024 2024 2023 Note Not Cash provld8d by operatlng actlvltles 1 172,146 883,534 Cash tlows from Investlng a¢tlvitlg6: Inte3t recelvablo 49,823 28,787 Purchase of tanglbl8 fixed asBets {5.5941 44,229 (4,527) 24,260 Change In cash and cash equlval8nts In the reporting pBriod 1216375 859 274 Ca8h and cash equlvalenls at thg bg9lnnlng of the reportlng perlod 824,034 1,683,308 Cash and ¢a5h equlv8lenls at the end of th8 r8POrtlng perlod 2 040 409 824 034 RECONCILIATION OF NET INCOMEIIEXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES 2024 2023 Net Incom8 for tha reporting period Adjustments for: Depreciation charg88 Interest rBGeivable Decrease in debtors Increase In creditors 107,682 141,316 6.134 (49.823} 66.702 1,041,471 8,690 128,787) 98,779 (1,103,532) N8t cash provided by {absorbed byy operallonal acllvlliès 1,172,146. 883,534 20
CENTRE FOR CITIES NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2024 AccouNTING POLICIES Accounting policies provide the basis on which the accounts are prepared and explain the accounting treatment of malerial transactions or items in the accounts. (a) Basis of preparation of accounts The accounts have been prepared in accordan 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 historica5 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 8mounls in these fEnancial statements are rounded to the nearest £. (b) Golng concern The Charity has confirmed corefunding of £1,100,000 per annurn from tho Gatsby Foundation for the period 2023 to 2025, and a supplementary grant of £200,000 In 2024. As set out in 'Reserves Policy, in the Trustees, Annual Report, the Charity holds reserves in the minimum required, which are avallable to support research and advocacy in coming years. The Trustees have a reasonable expectation that the Charity has ad2quate resources to remain In operation for the foreseeable future. Thus, the Trustees continue to adopt the going concem basis of accounting in preparing the accounts. {c) Critical acGounting 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 assumptians are based on historical experience and otherfactors 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, Dr 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 (d) Recognition of income Donations are accounted for as received. In the event that a donation is Subject to fulfilling performance conditions before the charity is entttled to the funds, the income is deferred until either those conditions are met in full. or their fulfilment is wholly within the control of the charity. and it is probable that those conditions will be fulfilled by the reporting period. 21
CENTRE FOR CITIES NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2024 Grants are recognised when the chartty has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released. (e) Interest receivable Interest on funds held on deposit is included when receivable. The charity records it upon notification from the Bank. (fj Funds Funds which are expendable at the discretlon of the Trustees in furtherance of the objectives or administration of the Charity are classified a5 unrestricted funds. Ig) FinanGial instrurnents The charity has elected to apply the provision5 of Section 11 'Basic Financlal Instruments and Section 12 '0ther Flnancial Instruments Issues, of FRS102 to its financial instruments. The Charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. These flnancial instruments are recognised at the amount payable or receivable when the instrument is first recognised and subsequently measured at their settlement value. (h) Debtors Trad8 and other debtors are recognised at the settlement amount due after any trade discount offered. Pr6payments are valued at the amount prepaid net of any trade discounts due. Cash and cash equivalents Cash and equivalents comprise cash on hand and call deposits, and other short-temi highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value. a) Liabilitie5 Liabilitles are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefil will be required in settlement. and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the company anticipates it will payto settle the debt or the amount it has received as advanced payments for the goods or ServIS it must provide. (k) Expenditure and recoverable VAT All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is prDbable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. 22
CENTRE FOR CITIES NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2024 Irrecoverab5e VAT is charged as a cost against the activily for which the expenditure was incurred. {1) Allocation of support costs Support costs are the cosls 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. (m) Operating leases Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease. (n) Tanglble fixed assets Tanglble fixed assets are staled at cost including any incldental expenses of acquisition and unrecoverable VAT where appropriate. All assets costing more than £500 are Gapitalised. Depreciatlon 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 Ilves for this purpose are: Comput8r equlpment and software- 3 years Fixtures and Fittings - 5 years Leasehold lrnprovements - Over the life of the lease To the extent that VAT is irrecoverable, the cost is inc5uded and identified separately within the contract or functlonal area to which it relates and where appropriate VAT on Fixed Assets Is capitalised. {0) Pension costs The Charity has a money purchase scheme for qualifying employees. Pension costs charged to the statement of Financial Activities represent the contributlons payable by the Charity in the period (see Note 9). COMPANY STATUS Centre for Cities is a company lirnited by guarantee and has no share. capital. Every member af the charity undertakes to contribute such amount a5 may be required (not exceeding £10) to the Charity'5 assets rf it should be wound up while he or she isa 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 SE12EL. 23
CENTRE FOR CITIES NOTES TO THEACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2024 GRANTS 2024 2023 Core Grant 1.300.000 1,100,000 In 2024, Centre for Cities received a grant of £1.300,000. This was an annual core grant of £1,100,000, and a supplementary grant of £200.000 from Gatsby Foundation, Lord Sainsbury's family charitable trust. INVESTMENT INCOME Centre for Citie5, investment income of £49,823 (2023: £28,787) arises from money held In deposit accounts. INCOME- OTHER ACTIVITIES None 24
CENTRE FOR CITIES NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2024 ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES Research- Pollcy External What Works Affalrs Centre Total 2024 Staff Cost5 Projects Direct Costs Premises Depreciation IT & Communication Printing & Stalionery Miscellaneous Off ice Costs Legal, Professional and Insurance 450.221 53.070 74,117 2,760 5.821 909 57.738 6,765 433,155 130,842 55.999 2.086 4,398 687 33,661 4.680 280.290 3.334 34,588 1,288 2,716 424 13,631 2.890 1.163,686 187,246 164,704 6,134 12.935 2.020 105,030 14,335 Subtotal 651,401 665,508 339,161 1,656,070 Support Costs (note 7) Gov8rnanc8 Costs (note 7) Subtotal 67,085 20,179 44.832 20,711 4,475 2.314 116.392 43.204 65,543 159,596 Total 738 6.65 731,051 345,950 1,815,666 Analysls of expendlture on charltablè acllvlties 2023 Resear¢h- Policy External What Works Affalrs Centre Total staff Costs Prolects Dlrect Cost5 Premises Depreciatlon IT & Communlcation Printing & Stationery Miscellaneous Office Costs Legal. Professional and Insuranc& 410,227 36,868 70,878 3,737 8,153 1,040 37,293 3,338 347,691 116,545 49,450 2,607 5,688 726 25,372 2.329 398,533 5,354 44,505 2,346 5,119 653 19.892 2,096 1,156,451 158,767 164,833 8,690 18,960 2,419 82,557 7,763 Subtotal 571,534 55D,408 478,498 1,600,440 Support Cost5 (note 7) Governance Costs (note 7) Subtotal 57.458 13.449 38.339 17,837 7,167 2,867 102.964 34,153 70.907 56,176 137,117 Total 642,441 606.584 488,532 1,7.37.557 Expenditure on charitable activities was £1,815,666 (2023: £1.737,557>- All expenditures were unrestricted. Most of the costs in the above table (note 6) relate to staff. project direct costs and premises Gosts. Staff costs Gonsist of gross pay, employer Nl and penslon costs and are directly attributable to th8 Centre for Cities, activities. Other staff costs are part of support costs. 25
CENTRE FOR CITIES NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2024 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 Gosts. Costs related to research projects include data. polling and printing of reports. Premises costs Include rent and rates, servlce charge, office security and insurance. ANALYSIS OF SUPPORT AND GOVERNANCE COSTS Centr8 for Cities Initially Identlfies the costs of Its support functions, It then Identifies those cost5, which relate to the governance function. Havlng Identified Its governance costs, the remaining support costs logether with the governance costs are apportioned between the three charitable activitles (see note 6) In the year. The table below shows an analysis of support and governance costs and the basis of apportlonment. 2024 Goneral Governance Support Functlon Total Basls of Apportlonment Salarles 113,684 32,183 145,867 Tlma Information Technology 2,707 2,707 C08t Audit Fees 10,000 10,000 Governance Legal & Other Profession81 Fee5 1,022 1,022 Gov8rn8nca Total 116,391 43,205 159,596 2023 General Governanc? Support FunGtion Total Basls of Apportionmont Sal8r188 100,435 23,533 123,968 Tim8 Inforrnation Technology 2.529 2,529 Cost Audit Fees 9,500 9,5DO Govemance Legal & Other Profess5onal Fees 1,120 1.120 Governance Total 102,964 34,153 137,117 26
CENTRE FOR CITIES NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2024 NET INCOMEI(EXPENDITURE) FOR THE YEAR Thls is stated after charging: 2024 2023 Operating leases - photocopier 352 Operating leases - propety 104.792 104.792 Depreciation 6,134 8,690 Auditoffs r8muneration.' Audit fees 10.000 9,500 ANALYSIS OF STAFF COSTS, TRUSTEE REMUNERATION AND EXPENSES AND THE COST OF KEY MANAGEMENT PERSONNEL 2024 2023 Wages and salariès Social securlty costs Pension costs 1.085,275 112,992 111,265 1,069,748 106,656 104,016 1,309,532 1,280,419 2024 2023 Employees earning between £60,001- £70,000 Employees èarning between £70,001- £80,000 Employees earning between £80.001- £90.000 Employees 8arning between £90,001- £100,000 Employees earning between £100.001- £120.000 Employees earning above £120.001 Eight trustees were reimbursed £1.022 fortheir travel and subsistence expenses at the AGM in N8wcastle in 2024 (2023: £254.10). They did nol receive any benefits. Pen51Dn contributions in respect of higher-paid employees totalled £60,464 (2023: £42,098). The total employee benefits (gross salaries, employer's Nl and employer's pension contributions) received by the key management personnel listed on page 10 were £465,732 (2023.. £437,200). 27
CENTRE FOR CITIES NOTES TO THEACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2024 10 STAFF NUMBERS The average Tnonthly headcount was 20 staff (2023: 21 stafQ and the average monthly number of the full-time equivalent employees dLJring the year was as follows: 2024 2023 Research External Affairs wwc Governance 19.0 20.0 11 TANGIBLE FIXED ASSETS Leasehoid Improvements Computer Equlpment Fixtures and Fittings Total Cost or book value At 1 J8nuary 2024 AdditlDns Disposals At 31 December 2024 111,704 73,656 5,594 (35.129) 44.121 41,514 226,874 5,594 35,129 197,339 111,704 41,514 A¢cumulated depreclatlon Al 1 January 2024 Charge for year Disposals 111.704 69.165 4,435 35.129 36,874 1.699 217,743 6,134 35,129 At 31 Decembor2D24 111.704 38.471 38,573 188,748 Net book value At 31 DpcBmber 2024 5.650 2,941 8,591 At 31 December 2023 4.491 4,640 9.131 All of the tangible fixed assets are used for charitable purposes. 12 DEBTORS 28
CENTRE FOR CITIES NOTES TO THE ACCOUNTS FOR THEYEAR ENDED 31 DECEMBER 2024 Total 2024 Total 2023 Due within one year: Trade Debtors Prepayments Other debtors 54.999. 74,266 93,285 113.714 75,203 100.334 222,549 289,251 13 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Total 2024 Total 2023 Trade creditors Taxation and soclal security Accruals Deferred income 2,727 52,869 48,970 1,100,000 6,284 67,180 69.631 20.000 1,204,566 163,095 14 OPERATING LEASE COMMrrMENTS On 31 December 2024, the charity had the following operating lease commitments: The above comrnitments are for an operating lease on the 2nd floor, 9 Holyrood Street. Land and buildings 2024 2023 Not later than one year Later than one year and not later than fivè years Over five years 104,792 84,416 104.792 189.208 189.208 294,000 Toshiba Photocopier Payable withln 1 year Payable after 1 year 705 2,466 15 RELATED PARTY TRANSACTIONS There were no related party transactions. 29
CENTRE FOR CITIES NOTES TO THE ACCOUNTS. FOR THE YEAR ENDED 31 DECEMBER 2024 16 THE FUNDS OF THE CHARITY The fund of £1,066,983 on 31 December 2024 was unrestricted. 17 ANALYSIS OF CHANGES IN DEBT The charity had no debt during the year. 18 TAXATION The Charity Is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charilable company for UK Corporation Tax purposes. Accordingly, the Charity is potentially exempt from taxation in respect of income or capital gains r6C8ived within categories covered by Chapter 3 Part 11 Corporation Tax Act 2010 or Section 256 of the Taxatlon of Chargeable Gains Act 1992, to the extent that such income or gains are applled exdusrvely to charitable purposes. 30