centre cities ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2025 RegisteTed Office. 9 Holyrood Street. Lcidon SE12EL ¥W.￿nIre10rc4tles.or A Charitable Company Limiied by Guarantee Registered in England and Wales Company No 06215397 Registered Charity No_ 1119841 CENTRE FOR CITIES CONTENTS YEAR ENDED 31 DECEMBER 2025 Pages Trustees. Annual Report 3-12 Independent Auditor's Report 13-16 Slalemenl of Financial Activities 17 alance Sheet 18 Slalemenl of Cash Flows 19 Notes to the Accounts 20-29 CENTRE FOR CITIES TRUSTEES. ANNUAL REPORT YEAR ENDED 31 DECEMBER 2025 Foreword by Nigel Hugill, Chair of Centre for Cities 2025 ha5 seen Centre lor Cities deliver a focused and influential programme of research and public events. reinforcing its role as a leading voice on the UK'S urban economies. Our work has sharpened the national 9rowth debate by consistently Jemonslraling that the country's economic performance is inseparable from the perfoTman¢e of ils cities. Our flagship Cities Oullook 2025 sel Ihe foundation, provijing a clear and comprehensive assessment of the stale of urban Britain. It highlighted enduring disparities in produclivily and wages between the Greater South-East and olher parts of Irie country. and underscored the consequences of these gaps for national economic growth and living slandarcSs. This diagnosis has continued lo inform national and local ?olicymakers and stakeholders throughout the year. Building on this, our analysis of produclivily trends in the JK'S largest cities introduced an important shift in understanding. While longstanding challenges remain. the eviderice points lo emerging signs of improvemerkl in several major cities oul)ide London, along51de a notable slowdown iri the capital. This more nuanced picture has helped reframe discussions around the UK'S economic geography and future growih fflodel. Our thematic work- spanning high streets. housing. density. and devolution - has reinforced consistent message.. urban outcomes are driven by uncerlying economic fundamentals. Whether examining the struggles of high slreels or the constraints of low-densily development. our research has emphasised the need for slruclural, place-based policy responses rather than short-term fixes Across all oulpuls. a clear sel of priorities has emerged. Improving producI￿vIty.. addressing spatial Inequality, and aligning governance wilh economic geography are essential to unlocking the potential of UK cities. Taken logelher, our work in 2025 has stren9lhened the case for reform and provided a robust evidence base to support it. Centre foi Cities has not only diagnosed the challenges facing urban Britain but has also shaped a more informed and cons:ruclive policy conveisalion about how to address them Nig81 HugAII CENTRE FOR CITIES TRUSTEES" ANNUAL REPORT YEAR ENDED 31 DECEMBER 2025 The Board of Trustees are pleased lo present their Trustees. Annual Report and Accounts for the year ending 31 December 2025 The Trustees. Annual Report contains a Directors Report as required by compary law. The accounts comply with the requirements of the Companies Act 2006 and Accounting and Reporting by Charities.. Slalement of Recommended Practice applicable lo charities preparing their accounts in accordance with FRS102, effective 1 January 2019. Our Objectives and Activities Centre for Cities is an Independent charity. We work closely wilh urban 5eaders, Whitehall and businesses lo ensu￿ our work is relevant ac￿SSible and of practical use to local and national policymakers. The purpos- -s of the charity, as sel OLrt in the Memorandum of Associatiori, are.. To promote pducalion for the public benefii in issues of economic= and public policy in relation to ciliès and large towns in the United Kingdom and elseiiihere In the world, To promote lor the public benefi't research in Ihe aforementioned fields,. and To publish the useful results of such research. The vision shaping our acb"vilies each year Is of a UK economy Ihat makes the most of different cities, potential lo increase economic prosperily across the country. We work lo understand how and kvhy economic growth and change lake pla￿ in cities in the UK and disseminate these findings widely in order lo help British cities impii,ve their economic performance. To fulfil ils purpcse. the Cen+re up.dertake5 the fcllowing activitie5. 11 Producing high-quality research and policy analysis: We publish a range of original research reports and briefings. blogs and papers n the economic performance of UK cilies and lafge towns- and hovi lo improve opportunities for their residents Our research is produced by an In-house leam of an3',y51s. with input from external experts The research Is ol high quality. drawing on a rDbusl evidenkne base. 11 airns lo inform public debate. policy and practi￿ and ir,cludes Ihe development ol clear. evidence-based policy proposa15 We do this independently bul ir consultation with Whitehall departments. political parties. local authorities and bUsIn￿SseS We ¢3fFy out ￿searCh in association with UK cities and bring t￿ether networks of local and national decision-makers from both the public and the prI￿ale sector to share knowledge This erbables us to inform polici/ and practi￿ directly and lo publicise lessons from this work. which are relevant lo other cities. 21 Engaging with stakeholders". To ensure the public benefits of lie work we do, all our reports and papers are available lo Ile public free of charge on our website and vie disseminate these findings lo varied audiences through rational local and specialist b.. oadcasl and print medra. Rocial media and presenlaliois al our own and others events. Our evants prcgramme includes public evenls (free io attend and both online and in person) as iNell 2s e-oenls al the major party conferenc.es each year. We publish a regular newsleller and work Jn partnership wrth others, including iournalisls. universities and cities. lo publicise the findings of our work. CENTRE FOR CITIES TRUSTEES. ANNUAL REPORT YEAR ENDED 31 DECEMBER 2025 3) Promoting an evidence-based approach to policy-making: We are a partner in the What Works Centre for Local Economic Growih IWJVCI with Ihe London School of Economics. 11 is funded by the ESRC and 9oveinmfrnl departments. VMC analyses which policies are most effective in supporting and ircreasing local economic growth It works to provide solulions for local and national pclicymakers through" al Syslemalically reviewing the evidence base on policies for local economic growth using a robust methodology" bl Working with and Gonvenin events and wOr￿shO sfor local and combined authorities and central govemment to help them understand and make better use of evidence in designing and delivering policy", c) Improving the ualil of the UK eviden￿ baseby helping to develop 'demonslration' projects, or local policy experiments. In 2025 we undertook work in the following areas.. Cities Outlook 2025 - The annual Itagship reporl on the UK'S urban econofflies demonstrated the need for the Govemment to focus gn innovation firms and industries to deliver rts ambition of higher living standards ever￿here The Centre launched the research with media coverage across tTrational lilles including the Financial Times, The Guardian, The Daily Telegraph and BBC Radio 4. The findings were presented lo HMT, DBT and MHCLG and shared ils findings at a central London reception with an audience of stakeholders and a panel of speakefs iicluding Jim Mcmahon MP (then local government minislerl and Mayor Oliver Coppard al the launch event. Industrial strategy - The Centre continued to adva'ice the econornic case for a big cilies-focused Industrial Strategy During the year, lye cent￿ maintained a high level of direct engagement with key Government departnien15 particularly al DBT, DSIT and MHCLG - throughout the year as the Industr,'al Strategy was developed and launched Its fesearch report, 'Eighl sectors: one story.. highlighied the urban geography of the eight target industries. High streets Centre for Crties, analysis of the variation in the performance of the UK'S high streets. published in a report in July. secured widespread media coverage including on ITV'S Good Morning Britain, and presented findings lo MHCLG. The Cantre followed this with analysis of London's subu.ban high streets. presenting this lo London boroughs. It also produced analysis of tho impact of remote working on the distributs.on of spending throughout the week In larg- city centres. and new research inlo the role played by urt)an universrties In boosting cities. economies and cily-cenlre spending. Housebuilding and planning Centre for Cilies has continued lo engage with Government's planning reform agenda, presenllig several pieces of analysis COtT¥paring Ihe UK'S planning policy and housetjilding outcomes with those ol international peers. The Centre published innovative new research to estimate density gaps between the UK'S large cities and international comparators. further research on the urban 9eography of the Build-lo-Rent sector, analysis of the impact of anli-supply measures and potential reforms. and briefings on ltr,) potential for reform of Planning Committees, a priority area for Government. Devolution - Centre for Cities continued lo push for devolution. collaborating wilh the GIA on a briefing on areas for potential progress li London. It engaged with policy CENTRE FOR CITIES TRUSTEES, ANNUAL REPORT YEAR ENDED 31 DECEMBER 2025 stakeholders and media in ils campaign for Scottish Govemment to grant a devolution deal and metro mayor lor provosll ID Glasgow City Region. 11 hosted roundtable discussions with MSPS and published original evidence showing tho need for a mayor with powers lo improve econoTlllC Integration and productivity in the city region. Inlegraled transport Centre for Cities launched new research and an online inleraclive data tool demonstrating the 'size ol the pnze, of delivering integrated ransport for metro mayofs in big -Ilies in anlicipalion of Gov-rnment's national Integrated transport stralegy. 11 presented finding5 to DBT and and the research Pias been used as eVIden￿e lo build the Government s Northern Gr?wth Strategy. Local government reorganisalion ILGR) - Centre for Cities has coilinued to engage with the LGR process. publishing briefings Induding 'Economy first, and 'Priorily Groimh"" _ largeled al MHCLG decision-makers that set out a growti-driven approach and Identify the geograpkiies most In need of reform. Vthal Works Centre for Local Economic Growth- What Works Gro'o4th offers bespoke advice on evalu'ation and eviden￿ on loc31 economic growih. In 2025, staff provided advice lo l O of the 7 3 Mayoral Combined Authorities IMCASI. as trvell as advice and unpublished briefings lo 20 central gOvern￿ent departments and aqencies. With local government. this Included critical fnend support on draft Local Grovjlh Plans and M&E Frameworks. In addition. Vvhal Works Growth creates resources for use more broadly by central government and local government. They published two reports on impact evaluation in local grokvth policymakiLi.J and a how-to guide for lo,=al government on usino skills data. and their training and events reathed 31 Q/0 of all local government organisations Public Bonefit The trustees of a charity musl have tega..d to the Charity Commissior s guidance when exercis'ig aiy powers 01 duties to W￿liGh the guidan￿ is relevant The Charity remains committed lo the aim of providing public benefrt in accordance with the Charities A¢1 2011. The Trustees also confim) that, in carrying OSJt ils Pnncipal Activities, ItrE Centre provided public benefit during 2025 The Centre prodLJces high-qualily research and policy analysis that are independent of governmen;. Individual clienls or compan',es. The researcn is made availa'".,le widely and free of c.harge lo individuals. organisalions. praclilioners and others active in urban economic devplopmenl The Centre constanlli invests in improving outreach lo ensure our work reaches more policymakers. practitioners and rr,embers of the public. To complement our research work. we deliver briefings and blogs which highlight practical ways in which UK cilieg can tackle lontsslanding challenges such as productivity and low housebuilding. dr2wino on the UK and International case studies. In 2025. we released over 130 bnefings. blogs and research reports covering topics including ¥he Neiv To¥￿InS programme the Industrial Strategy and the reforms lo the National Planning Policy Framework. CENTRE FOR CITIES TRUSTEES, ANNUAL REPORT YEAR ENDED 31 DECEMBER 2025 Financial review The year ended with a deficit 01 £80.850 12024." £107,662). Funds carried forward were £986.13312024.' £1,066.9831. During the year. our main aclivities were Research. Exte11al Affairs and the What Works Centre for Local Economic Gro￿. The income and expenditure linked to these activities were unrestricted. Income Total incoming resources were £1.588.114 12024= £1.923,-.281. a decrease of £335.214 on previous yeaT. Our main source of income was a core grant from the Gatsbv Charilable Foundation. In 2025, we received £1,100,000 {2024.. £1.300,000 which included a one-off grant supplefflenll. The grant represerkted 69 per cent of all our revenues. The What Works Centre for Local Economic Growih Pfoject run in partnership with the London School of Economics generaled £299,94612024.' £345,950 for the Centre Other funding was generated through sponsorship ag￿eMentS for research projects and events_ Resources expended The Centre's expendtture was £1.668.96512024' t1.815.666). The decrease in expenditure was due lo the lower than in the previous year staff and proiecls costs. Reserves Policy The Cenlre for Cities reserves are defined as unrestricted net current assets. and they are set to the equivalent of at least six months of the operating costs. The reserves are required lo protect the continuity of the organisation against drops in income. to carry out rpsearch projects not funded by sponsorship, for capital iloms replacement and lo cover unplanned emergencies and potential risks. Free reserves held on 31 December 2025 were £973.7-, 4 12024." £1.058.3921. down by £84,618. The surplus on the free reserves will be expended in 2026 on new advocacy and research projects. FUTURE PLANS To continue lo advance undefStandin9 of the economies of the UK'S largest cities and towns and exert influence on public policy in 2026. Centre for Cities will produce excellent reseaich and communicate it across its networks and to the public. In 2026. il will focus on those areas of national and local policy of more importance lo the economic performance of cities" The flagship Cities Outlook 2026 report focuses ori role of large cities and towns in improving living standards in all regions Oi the UK. Cities Outlook will continue to be a core part of the Cenlre's direct engag6menl with Government and stakeholders Centre for Cilies will conb.nue to bring attention lo lie economic performance of the UK'S cities and large towns with regular media commentary ori key economic CENTRE FOR CITIES TRUSTEES, ANNUAL REPORT YEAR ENDED 31 DECEMBER 2025 miieslones and the dovelopmenl of new Govemmenl policy and legis181ion. The Railways 8111 8nd Integrated National Transport Slr8legy, the Northem Growth Siralegy. and the English Devolution and Community Empowerment Bill will present opportunities to Inform public discussion and shape public policy. Thl ay's local elections also pose an opportunity lo provide evidence-based insight Into Ioc31 economic policy '.ssues, particularly with many drban areas holding elections in 2026. Centre for Cities will continue engaging %vilh HM Treasury. DBT, MHCLG and other relevant Govemmenl departments lo encourage further policy developtnenl in support ol ils cilies-focused Induslnal Straiegy Particularly. it will sUPPOrt the development of he Mayors Revolving Grovrth Fund Strategic Sites Accele'alor and further Interventions I0￿used on expanding cily-¢enlre economic activity In big cities. Centre for Cities. working in partnership with Vvhat Works Growth, will progTess ils work with central government on the cap2bilit'/ of MCAS to deveiOO evidence-based conomic growth policy. as well as continue a programme of advice and support directly lo MCA5. Centre for Cities will Continue to engage iNith the process of local governrnenl reorg2nisaliop, and devolulion. publishing briefing material and where possible engaging direcl.'y with MHCLG_ Centre for Cities will continue to engage iNilh HM Treasury and MHCLG and provide evidence and policy thinking as uovernment WOi*s with metro mayors on Ihe Implerllentation of visitor levies in big cities. Centre for Cities ivill continue Imlh research and policy analysis relating to approaches lo Increasing urban density. and ils engagement with MHCLG on ils New Towns piogramme and ils plans lo lackle the decline in housebuilding in Greater London. New Centre for Cities research ana policy analysis will Investigate". the role played by eities li attracting equity Investment and the variation in growth aid scale of equity- backtsd businesses in the UK." hovi the impact ol April's rise in ltre minimurn wage varies beliveen cities.. and the variaiion In demand for higher skills in uiban areas. Centre for Cities viill conlinue lo promote and run in-person events ano online events to provide audiences with comThenlary and insight on key policy areas. as well as hosting public panel discussions ai party conferences. l* will continue lo run and promote ils City T2lks and City Mir..ules podcast series, Ivilh oueslg includ1ng Professor Will Jennings cnd Professor Alex Trew appearing on the City Talks podcast as guests in 2026. Engaging with senior Iigures from busiriess. academia, policymaking, local and national governmenL and Westminster lo present research and idaas. inform the public debate and discuss policy and practice will conlip.ue lo be an important part of Centre for Cities, strategy lo influence policy outcomes In recent years. CENTRE FOR CITIES TRUSTEES, ANNUAL REPORT YEAR ENDED 31 DECEMBER 2025 REFERENCE AND ADMINISTRATIVE DETAILS Charity number Company number Registered office Website: 1119841 06215397 9 Holyrood Street. London SE1 2EL Www.￿nIfefDrCItles.0r REGISTERED AUDITORS: Chariol House Charterud Accountants 44 Grand Parade Brighton and Hove Brighton BN2 9QA BANKERS: HSBC Bank PL 16 King Street Lon(Jon WC2E 8JF DIRECTORS AND TRUSTEES The directors of Centre for Cities a￿ its Iruslees for the purpose of charity law. The tru51ees serving during the year and up lo the date of approval of the accounts were as follows.. William Nigel Hugill {ChaiTman) Miranda Helen Sharp Alan Paul Harding John James Cummins Joseph Chnslopher Buins Deborah Cadman Jane Elizabeth Robinson Marc Elliot Mogul KEY MANAGEMENT PERSONNEL: Andrew Carter Anthony Breach Paul Swinney Sian Morgan Anna Bullegas Chief Executive Director of Policy and Resear-th Director of Policy and Resear-h lunlil 31108120251 Director of External Affairs Head of Finance and Operations CENTRE FOR CITIES TRUSTEES. ANNUAL REPORT YEAR ENDED 31 DECEMBER 2025 STRUCTURE, GOVERNANCE AND MANAGEMENT Governing Document Ceylre ior Cities Is a company limiled by guarantee. governed by ils Artibles of Association, las: amended on 11 April 2011. Appointment of trustees Tl)e Board of Trustees. who are also Members 2nd Directors of the Charitable Company, is self-appoinling A Iruslee's penod of office Is three years from the dale of appointment or reappoinlmenl A truste& may be re-appointed bi Ihe Iwslees for a furttr.er period of three years_ Neiv members of the G0VemiT￿ Body are elected on the basis of nominations from the Trusloes and the execu+ive officers based on the candidates. profession21 qualities, experieice and personal compele?ce. Trustee induction and training All new trustees are provided with an induction pack giving full delails of how the Charity is consliluled and operates. Any further information they require is provided by an appropriate SEniJr person ¥vilhin the Charity. Organisation The Board ol Trustees consists of not less than three members and is i)ol subject lo any maximum. The Board is responsible for the overall governance of the Charity It meets three limes a year lo oversee the arfairs of the Cenlre. The Board appoints a Chief Executive to manage the day-lo-day operations of the charity. Related parties Upon 3ppoirilmExnl, each trus.ee makès full written disclosure of interests, including relationships that may be of relavance to the Cenlre's work and pos'.b held that could potentially resull In a conflict of interest. This written disclosure ivill be kept on file and trustees are emailed annually lo check Ihat il is up lo dale. 11 can be updated al any lime throughout l*e year. In the course of meetings or aclivilies, trustees disclose any interests irl a transaction or deeisiori where there may be a conflict between the organisation's best interests and the Iruslee s best inleresls. or a conflict be￿een the test interests oftwo organisations with which IhÈ Trustee is involved. In the curreni year. one Irusiee currently also serves on the Board of the Gatsby Found31ior) None of our trustees r￿ceiVe5 remuneration or other benefits from Ihe charity_ Pay policy for staff including key management personnel The pay of 211 staff. including senior staff. is ￿vieWed annually. The current policy Is lo award all staff an Increase in salary provided the Centre reaches a fundraising milestone sel by the Finance and Audit Committee. The Increase Is based on a review of Ghai'ges in the cost of living during the course of the year and is agreed by the Finance and AL,dil Comrnittee. All 10 CENTRE FOR CITIES TRUSTEES. ANNUAL REPORT YEAR ENDED 31 DECEMBER 2025 the Cenlre's salaries. including those of senior staff. are benchmarked against pay levels in similar organisalions. Risk management The established risk assessment system involves identifying the types of threats the Charity faces, prioritising them in terms of impact and recommendin J controls lo miligale them. The ongoing risks conlinve to be around securing sufficient [￿ndIng to deliver the Cenlre's ambitions and ensuring our work is of high quality and policv relevance. The funding risks are mitigated by engaging with a wide range of potential sponsors arsd building long-term relationships with them. To ensure our work 15 of the highest st3noJard and relevance we have a quality assurance and policy ieSevance process in place, with internal and external checks al key slages lo 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 conlrols have been pul in place which are regularly reviewed and adiusled accordingly. CENTRE FOR CITIES TRUSTEES, ANNUAL REPORT YEAR ENDED 31 DECEMBER 2025 Statement of trustees, responsibilities The Charity's Iruslees {who are also Ihe direclors Df Centre for Cities for the purposes of coinpany lawl are responsible for preparing a Iruslees, annual report and accounts in accordance iNilh applicable lav4 and United Kiigdom Aecounling Standard- {Uniled Kingdom Generally A¢cepled Accounting Practice) iicluding FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland" Company law requires Charity Iruslees lo prepare accounts for each year which give a true 2nd fair view. of the slate of affai". 5 of Ihe claritable compaiy and of the incoming resources and application of resources, Including the income and expenditure, of the charitable company for that year. In preparing the a¢counts. the trustees are required to.. select SL5ilable accounting policies and then apply them consistently. observe the methods and principles in the Charities SORP (Slalement of Recommended Practicel." make judgements and estimates that are reasonable and prudent". slate whether applicable UK accoL¢fk+ing standards have been followed. subject lo any malenal departu￿$ disclosed and explained in the accounts. preoare accounts on the going concern basis unless It Is inappropriate lo presume that the Charity will contiiue in operalicn. The IrLislees are responsible for keeping proper accounting records that disclose with reasonable accuracy al any lime lie iinancial pos11ion of the Chariiy and :o enable Ihem lo ensure that the accounts comply with the Companies Act 2006. They are also responsible for safégiiarding the assets of the charitable cotnpany and he￿ce taking reasoriablÈ steps for the prevention and detection of fraud and other Irregularities. Disc105ure of infomiation to auditor Each of the Ifuslees has confimed that there Is no infomalion of which they are aware, which Is relevant to the audit. bul of which the auditor Is unaivare. They have further confirmed Ihal thes, havè taken appropriate steps lo Identify such relevant Information ar.d lo establish Ihal the 311ditor is ayvare of such information. Auditor IN accordance with section 485 01 the Compan'.es Act 2006. a resoluli)n proposing that Chariol House Ltd be reappointed as auditor of the cornpany will t)e put lo the Annual General Meeting. behalf of the.Boara of Trustees Dale 12 "CENTRE FOR CITIES INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF CENTRE FOR CITIES YEAR ENDED 31 DECEMBER 2025 Opinion We have audited the financial statements of Centre for Citie5 (the 'charilable company,) for the year ended 31 sl December 2025 which comprise the Statement ol Financial Activities, the Balance Sheet, the Cash Flow Stalemenl and notes lo Ifie financial slatemenls, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United section of our report We are independent of the charity in accordance with the ethical reouiremenls thal are relevant to our audit of the accounts in the UK, including the FRC'S Ethical Stsndard, and we have fulfilled our other ethical responsibilities in accordance with Ihese r#quirements. We believe Ihal the audit evidence we have obtained is sufficient and approJiiale to provide 8 basis for our opinion. Coneluslons relating to ongoing concern In auditing the financial slalements, we have concluded that the Truslees. use of the going concern basis of accountin9 in the preparation of the ac(x)L,nts is appropriate. Based on the work we have performed. we have not identified any matenal uncertainties relating lo events or conditions that. individually or collecliiely, may cast significant doubl on the charitable company's ability to continue as a going GOn￿rn for 8 period of al least twelve months from when the financial slalements are authorised for issue. Our responsibilities and the responsibilities of the Trustees with respect lo going concern are described in the relevant sections of this report. Other information The truslees are responsible for the other information Tha other information comprises the information included in the Annual Report, other than the finanaal slalemenls and our Report of the Independent Auditors Ihereon. Our opinion on the financial statements does not cover th! olher informalion and, eX￿p1 lo Ihe extent otherwise explicitly staled in our report, we do rol express any form of assuran conclusion Ihereoll. 13 'CENTRE FOR CITIES INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF CENTRE FOR CITIE5 YEAR ENDED 31 DECEMBER 2025 In connection with our audit ol the financial slaletnents. our responsibility Is lo read the olPier snformation and. In doing so. consider whether the other Information is maierially inconsistent with the financ121 slalements or our knowledge obtained in the audit or otherwise appears to be materially misslaled. If we idents.fy such material inconsistencies or apparent material misslalemenls, we are required lo determine whether this gives rise lo a material misslalemenl in the financial slalemenls themselves If. based on the work we have performed. we conclude that there is a material misstatement of this other information, we are require(I lo report that fact. We have nothing to report in this regard. Opinioiis on other matters prescribed by the Companies Act 2006 In our opinion. based oi the work undertaken in the course of our aLKlit'. the Information given in the Report of the Trustees for the financial year for which the financial slalemenls ale prepared is consistent with the financial statefflenls, 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 ol the knowledge and understanding of the charity and ils environment obtained iri the course of the audit, we have not Identif￿ material missl8lements in the Report of the Trustees. We have nothing lo report in Tespecl of the follovJing mallers where the Companies Act 2006 requires us lo report lo you if, in our opinion" adequate accc)bnling records have nol been kepl. or returris adeq4Jale for our audit have not been received from branches not visited by us", or the financial $13lements are not in agreement with l*e accounting rerords arKJ relums.. or we have not received all the information and explanations we require for our audit.. or the Trustees were noi enlilled to 18ke advantage ol the small companies exemption from the requirement lo prepare a Strategic Retx)rt or in preparing the Report of the Trustees. Responsibilities of trustees As explained more fu lil In the Slalement ol Trustees. Responsibilities. Ihe Iruslee5, who 2re also the directors of the charitable company for the purpose of company laii,, are iesponsible for the preparation of the financial slal•rnenls and for being satisfied that Ihey give a true and fair view. and for such Internal conlrol as the Iruslees determine Is necessary to enable the preparalicrn of financial slatemenls that are free from material misstaternenl, whether due lo fraud o," error. In preparing ihe Financial 5t8temenls. the Iruslees are respons',ble for assessing the charitable Tr4onipany's ability lo continue as 3 goin9 concern, disclosing, as applicable. mallers related to goip.g concem and using the going concem basis of accounting unless the IrLislees either Irilend to liquidate the charitable company or lo cease operations, or have no realistic 211ernative bul lo do so. 14 'CENTRE FOR CITIES INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF CENTRE FOR CITIES YEAR ENDED 31 DECEMBER 2025 Our responsibilities for the audit of the financial statements Our objeclives are to obtain reasonable assurance about whether Ihe financial slalemenls as a whole are tree from material mi55talemenl. whether due -.o fraud or error. and to Issue a Report of the Independent Auditors that includes our opinion. Reasonable assuiance is a high level of assurance but is nol a guarantee thal an audit conducted in accordance with ISA5 IUKI will always detect a material misstalemenl when it exis".s. Miss131emenls can ar15e from fraud or error and are considered material if. individually )r in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis ol these financial slatements. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.. We gained an understanding of the legal and regulatoiy framework applicable lo the tharitable company and the industry in which il operates, aid considered the risk of acts by the chantable company that were contrary lo applicable law< and regulations. including fraud. We considered these risks in the Itghl of various factors inclLKling the level of complexity, subjeclivily, uncertainly. polenlial management bias. fraud. malerialily and any other relevant faclors. We considered the extent lo which thesE would have a material impact on the financial statements and designed our audit work acc.ordingly. We Identified that the following areas were of high nsk.. Completeness of income. We performed various aud,1 tests to ensure that income was not materially understated in the financial stalemenlb. Management override of controls. We performed various audit tests lo ensure there was no material management override of controls We designed audit procedufes lo respond lo the risks idenirfied. recognising that the risk ol not detecting a material misstatement due to fraud is higher than the risk of not delecling one resulting from errof, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations. or through collusion_ We focussed on laws arKI regulations which could give rige to a Mate￿31 mi5slalemenl In the financial slalemenls. including but not limited ro. the Comp¢nies Act 2006. UK tax legislation, Charities Act 2011 and Chanties SORP 2019. We did not find any Instances of noTrcompi1an￿ or b￿ach of the legi51alion framework applicable to the charitable company. We also. Agreed the financial slalement disclosures lo under ying supporting documenlalion Made enquiiies with management and of legal coui)sel when considered necessapi. performing analytical procedures lo identify any unusual or unexpected relalionships that may indicate nsks of material misslalemenl due lo fraud. and reviewing significant or unusual Iransactions to identify their underlying s Jpporting rationale Discussed and reviewed the charity's business mocel and forward planning lo assess going concern 15 'CENTRE FOR CITIES INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF CENTRE FOR CITIES YEAR ENDED 31 DECEMBER 2025 Carried out sub51anlive lesling on in(y)me and expenditure Re-performed reconciliations of cor,Irol accounts and recalculaleil ilems such as depreciation Inspected the minutes of meetings of those charged with governance. and made direct enquiiies of managenent and the board of Iruslees CDnceming the charity's policies Tlere are inherent limitations iri the audit prO￿dureS dascribed aboiie and, the furiher removel non-compliar.ce ￿'ith laivs and ..egulalions is from the events and transactions reflected In the financial slaiemenls. the less ITkely we would become aware of it. We did not Identify any key audit mallers relating lo irreg￿larItIes, including fraud. As in all OLir audits. vJe also addressed the risk of managernent override of internal controls, including lesling Journals and evaluating whether there was evidence of management bias by the directors that represenied a risk of material misslalemenl due lo fraud A farther description of our responsibililies for the audit of the financial slalemenls is located OT) the Financi21 Reporting Council's website al www frc org.uklauditorsre>ponsibilities This description forms part ol our Report of the Independent Auditors. Use of our report This report is made solely lo the charitable company's members. as a body. in accordance with Chapter 3 of Part 16 of the Companies Act 200S_ Our audit work has been undertaken SO ihal bve might stale to the charitable company's members Ilose mallErs we ale required ID slate lo them in an auditor's report and for no other purpose. To the fullest eKkenl permilled by law. INe do not accept or assume rtssponsibility lo anyone other Ilan the charitable company and the chari+able company's members as a body. for this report or for the opinions we have fotmed Mark Partr., ge FCA (Senior Stalulory Audilorl lor and on behalf ol Chariot House Limited Chafiered Accourilants and Statutory Auditor 44 Grand Parade Brighton BN2 9QA 16 CENTRE FOR CITIES STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2025 2025 2024 Notes Donations and Grants 1.100,000 1,300.000 Income from Charitsble Activitie5: Research 78.750 138,600 External Affairs 74,134 88.955 What Vvorks Centre 299.946 345,950 Total from charitable actlvities 452,830 573,505 Income from investments 35.284 49.823 Total Income 1,588,114 1,923,328 Expenditure on: Charitsble activities: Research-Policy 676.901 738.665 Ex1ernal Affairs 692.117 731,051 What Works Centre 299.947 345.950 Total 1,668.965 1.815666 Net Income and net movement in funds (80.8501 107.662 Reconciliation of funds Totsl funds brought forward 1.066,983 959,321 Total funds Carried forward 986,133 1,066.983 All funds In the current and ¢ovnparalNe year were unieslricted. All income and expenditure denve from cont￿￿ul￿g activities. The statemenl of financial activities also complies with the requirements tor an Income and expendilure accounl under Ihe Companies A¢1 2006 17 , Ok2?$391IEnqliMIMYithsI CENTRE FOR CITIES BALANCE SHEET AS AT 31 DECEMBER 2025 2025 2024 Notes Fixed assets T2.ioible ¥ssets 10 8.591 Total fixed assels 12,360 8.591 Current assets Deoiors Cash al bank and In hand 224.775 2.330.8?2 222.549 2.040,409 Total current assets 2.5S5,597 2,262,958 Liabilities 1,581.8?4 1.581.824 1.204.566 1.204,566 Nel current assets 973.773 1,058.392 Total assets less current 986 133 1.066 983 Unrestricted funds- 986.133 1,066,983 1,066,983 1,066,983 Approved and aulhorised for issue bj the Board gf Trustees on and signed their ehail by Niael Hugill. 78 CENTRE FOR CITIES NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2025 2025 2024 Net cash provided by operating a¢tivities 264,837 1,172,146 Cash flows from investing activitie5- Interest receivable 35.284 49.823 Purchase of tangible fixed assets {9.708) 25,576 (5,5941 44,229 Change in cash and cash equivalents In the fepDrting period 290,413 1.216,375 Cash and cash equivalents at the beginning of the reporting period 2,040,409 824,034 Cash and cash equivalents al the end of the reporting period 2,330.822 2,040,409 Reconci5iation of net incomellexpenditurel lo net cash flow frorn operating activities 2025 2024 Nel income for the reporting period Adjustments for: Depreciation charges Interest receivable Decrease in debtors Increase in creditors 180,8501 107,662 5,940 {35,2841 12,226) 377,258 6.134 {49,823} 66,702 1.041.471 Net cash provided by (absorbed by)loperational activities 264,837 1,172,146 19 CENTRE FOR CITIES NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2025 AccouNTING POLICIES Accounting policies provide the basis on which the accounts are prepared and explain the accounting Irealmenl of material transactions or items In the accounts lal Basis of preparation of accounts The accounts have been prepared in accordance with the Charity'5 Memorandum & Articles the Companies Act 2006 and "Accounting and Reporting by Charilies.. Statement of Rerommended Practice applicable lo charities prepanng their accounts n accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 leff￿ClIve 1 January 2019}" The Ch8rily is a Public Benefit Entity as defined by FRS 102. Assets and liabilities a￿ initially recognised al historical or transaction valup unless otherwise $18led in the relevanl policy nolels}. The financial slalements are prepared in pounds sterling, which is the functional currency of thr¥ ckiarily. MoNel8ry amounts in Ihese financial statements ale rounded lo the nearest £. Ibl Going concern The Charity has confirmed core fundir)g of £7,500.000 per annum fTorp the Galsby Foundation for the pariod 2026 10 2028. As stsl out in 'Reserves Policy, in the Trusler5' Annual Report, the Chcjrily holds res￿￿eS in Ihe minimum required. which are available lo support research and adijocacy in comin J years. The Tnislees have a reasoiable expectation that the Charity has 2dequale resources lo rerriain iii operation for'.he foreseeablè LLJluie. Thus, the Trustees conlinue lo adopt the 9oin9 COn￿errn basis of a¢¢ounling in preparing the accounts. Critical accounting estimates and judgements In the application of the Charity's accounting policies. the Tru51ee5 are required to make judgements. eslimates and assumptioris about the carrying amount of asse15 and liabilities that are not readily 2pparenl from olhEr soJrces The eslimales and 2ssoc.ated assusnplions are based on historical experience and other factors Ihal are considerecl to be relevant. Actual results may differ from these eslimales. The estimates and underlying assumplionq are revieyied on an ongcing bas1s Revision5 to accounting eilimales are recognised in the period in ¥vhich the eslirr..ale is revised Vlhere the revision affects only that period. or in the period ol the revision and ILtlu". e P¥riods kvlere the revisioii affects both current and future periods. There viere no critical accounting eslimales during Ihe period. Idl Recognition of income Donations are accounte.d for as received. In Ile event that a donalion is Subject lo lullilling performance Eonditions befoie the charity is entitled to I￿,e Funds. the inconie is deferred until eilhar those conditions are mel In full. 01 their fulfilment Is Nvholly within the control of Ihe charity, and il is probable that those condilions will be fulfilled by the reporting period. Grants are recognised when the charity has an enlillemenl lo the funds and any condition5 linked lo the grants have been mel Wlnere performance condition5 are allached lo the grant 20 CENTRE FOR CITIES NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2025 and are yel to be mel. the income is recognised as a liabi1 ty and included on the balance sheet as defeffed income to be released. {e) Interest receivable Interest on funds held on deposit is included when receivable. The charity records il upon notification from the Bank. Funds Funds which are expendable al the discretion of the TnAslee> in furtherance of the objectives or adminislralion of the Charity are classified as unreslrictec funds. Ig) Flnanelal instruments The charity has elected to apply the provisions of Sectson 11 'Basic Financial Instruments and Section 12 '0ther Financial Instruments Issues of FRS102 10 its financial instruments. The Charity only has financial 2ssels and liabilities of a killd that qualify as b3si¢ financia1 instruments. These financial instruments are recognised al lrye amount payable or receivable when the instrument is first recognised and subsequently mfrasured al their settlement value. Ih Debtors Trade and other debtors are recognised at the seltlement amaunl due after any trade discount offere(J Prepayments are valued al Ihe amount prepaid nel ol any trade discounts due Cash and ¢ash equivalents Cash and equivalents comprise cash on hand and call deposits, and other short-lerm highly liquid investments that are readily convertible to a known amount of cash and are subject lo an insignificant risk of change in value. til Liabilities Liabilities are recognised when there is an obligalion al the 3alance sheet dale as a result of a past event, it is wobable Ihal a transfer of economic benefit will be requiied in selllemenl. and the amount of the settlement can be estimated re5iably Liabilities are recognised at the amount that the company anlicipales it will pay to settle the c.ebt 01 the amount it has received a5 advanced payments for the goods or services il musl prLvide_ Ikl Expenditure and recoverable VAT All expenditure is recognisetfj once the￿ is a legal 01 constructive obligation lo that expenditure, it is probable settlement is required and the amount cari be measured reliably. All costs are a11ocaled lo the applicable expenditure headirg thal aggregate similar costs lo that category. Irrecoverable VAT is charged as a cosl agaiisl the activity for which the expenditure was incurred. 21 CENTRE FOR CITIES NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2025 111 Allocation of support costs Support C051s are the costs of Ih05e functions that assist the work of the -harily bul are not directly charitable aclivilies. Support costs Include HR. finance. payroll. governance and general off Ice costs which suppofl Centre for Cities. aclivilies. The basis on which support costs have been allocated is sel out in note 6. {ml Operating leases Rentals paid under operating leases 3re charged lo the Statement of Financial Activities on a slraighl line basis over the period of the lease. Inl Tangible fixed assets Tangible fixed assets are slated at cost including any incidental expenses of acquisition and unrecoverable VA T where appropriate. All assels costing more than £500 are capilalised. Depreciation is calculated to write off the cost of fixed 2s5els on a slraighl-line basis over their estimated Lseful lives. Depreciation is charged from the month of acquisition. The principal eslimaled useful lives for this purpose are.. Computer equipment and software- 3 years Fixture5 ancl Fillings - 5 years Leasehold Improvernenls Over the life of the lease To the exlenl that VAT is irrecoverable. the cost is included and idenlifieu separately within the conlracl or furictional area lo which It relates and where appropr1ale VA T on Fixed Assets Is capitalised. lo} Pension costs The Charity has a Tnoney purchase scheme for qualifying employees. Pen>iori costs charged lo Ilie slalemenl ol Financial Aclivilies represent Ihe contribut￿OnS payable by the Charity in the period (see Note 91. COMPANY STATUS Centre for Cities is a company limited by guarantee and has no share capital. Every member of the charity undertakes to conlfibule such amount as may be required Inol exceeding £101 lo the Charity s assets if il should be wound up while he or she 1$ 8 member or within one year after he or she ceases lo be a member. for payment of the Charity s debts and liabilities contiacted before he or she ceases lo be a rrember. and ol the cosls. Charoes and expenses ol winding up. and for the adjustment of the rights of the contribiilories amon9 themselves. Its registered office is 9 Holyrood St￿et, 2nd Floor, London SE1 2EL. 22 CENTRE FOR CITIES NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2025 DONATIONS AND GRANTS 2025 2024 Cole Grant 1.100,000 1.300 0 In 2025, Cenlre for Cities feceNed an annual core grant of £1.100,000 from Gatsby Foundation. Lord Sainsbury's family charitable trust. INVESTMENT INCOME Centre for Cities. investment income of £35.284 (2024= £4G 8231 arises from money held in deposit accounts. 23 CENTRE FOR CITIES NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2025 ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES Research- Policy External Affairs 2025 What Works Totsl Staff Costs Projec15 Direct Costs .'emises Depreciation IT & Communication Printing & Stationery Miscellanèous Office C051s Legal, Professional and Insuran 431.010 1.002 88.710 2.970 5.702 404.572 102.308 70.968 2,376 4.561 2297 29.420 5,071 265.596 1,107,178 3.248 106,558 17.742 177,420 5,940 11,403 5,743 73,382 12,677 1.140 37 202 6.338 6.-, 60 1,268 Subtotal 581.806 621,573 296,922 1.500,301 Support Costs Inole 6) Governance Costs Incite 61 Sublolal 73.269 21.826 49,119 21.425 1,875 1.150 124.263 44.401 95,095 70.544 3,025 168,664 Total 676,901 692,117 299,947 1,668,965 Research- Policy External Affairs What Works Total 2024 Slafl Costs Proiecis Direct Costs Premises De?recialion IT & Communication Printing & Slalionery Miscellaneous Office Costs Leqal. Professional 2nd Insurance 45Q.221 53.070 74.117 433.155 130.842 55.999 2.086 4.398 687 33.661 4.680 280.290 1.163,666 3334 187,246 164,704 6.134 12.935 2,020 105.030 14.335 1 288 2716 424 13 031 2890 909 57.738 6.765 Subtotal 651.401 665.508 339.161 1,656,070 SuJport Costs (note 61 Governan￿ Costs Inote 6 ) 67.085 20.179 44.832 20.711 4475 2314 116.392 43 204 Sublolal 87.264 65,543 6.789 159,596 Total 738.665 731,051 345.950 1.81S,666 Expenditure on charitable activities iNas £1.668.965 12024. £1,815,666). All expenditures ver> unreslricled. Mosi of the costs in the above table (note 51 relate to staff. project direct costs premises costs 24 CENTRE FOR CITIES NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2025 Staff costs consist of gross pay, employer Nl and pension costs 2nd are directly attributable lo the Centre for Cilies, adivities. Olher staff costs are part of support COSt5. Projects, direct expenditures are made up of costs that relate lo events and research. Events costs include venue and equipment hire. catering, travel ar d accommodaliori c051s. Costs related to research projects include data. polling and prirlin9 01 reports. Premises costs include rent and rates. service charge. office security and in>urance. ANALYSIS OF SUPPORT AND GOVERNANCE COSTS Centre for Cities initially identifies Ihe costs of tts support functions. 11 then identifies those cosls, which relate lo the governance function. Having idÉntified its governan￿ costs, the remaining SLJPPOrt costs together with the governance costs are apportioned between the three charitable activities (see nole 5) in the year. The l¢ble below shows an an21ysis of 5UPPQrt and goverrFance costs and the basis of apportionment. 202S General Governance Support Function Totsl Basis of Apportionment Salaries 120.165 32.902 153.067 Time Information Technology 3.049 3.049 Cosl Audit Fees 10.000 10.000 Governan Legal & Olhef Pfofessional Fees 1.049 1.49Q 2.548 Governance Total 124,263 44,401 168.664 2024 General Governance Support Ftsn¢tion Totsl Basis of Apportionment Salaries 113.684 32.18- 145,867 Tirne Information Technology 2.707 2,707 Cost Audit Fees 10.OOC 10.000 Governance Legal & Other Professional Fees 1.02 1.022 Governance Total 116.391 43,20L 159,596 25 CENTRE FOR CITIES NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2025 NET INCOMEI(EXPENDITURE} FOR THE YEAR This is stated after charging: 2025 2024 Operating leas&s- phot(Kopier 705 352 Operating leases - property 104.792 104.792 Deprec*atior. 5.940 6.134 Auditorfs rerFuneralAOn." Audit fees 10.000 10.OOLI ANALYSIS OF STAFF COSTS, TRUSTEE REMUNERATIONAND EXPENSES ANOTHE cosfoF KEY MANAGEMENT PERSONNEL 2025 2024 Wa Jes and salaries ScKial secLJrity C05'.S Pènsion costs 1 040.007 108.491 1.085.275 112.992 111,265 111.741 1,260,245 1,309,532 2025 2024 Employ*es e3rntng terween £50.001 - £70.QOO Employees earnin9 betwèen I;0.001 - £80.000 Employees earning berween £80.001 £90.000 Employees eaffling betrween £90.001 £100 0.- Emplovees earning be￿een £100.001 - ¢ 120.000 Employees earning above £120 001 The Trustees did not receive from the charity any benefits or reimburserrenls of their travel expenses dunng the year. Pension contributions in respect of higher-paid employees lolalled £58.86012024. £60.4641. The total eTnployee benefits (gross salaries: employers Nl and erTiployer's pension conlributionsl received by the key management personnel listed on page 9 were £526.846 12024. £465.7321. 26 CENTRE FOR CITIES NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2025 9 STAFF NUMBERS The average monlhly headcount was 19 staff 12024". 20 staff) and the average monthly number of the full-time equivalent employees during the yea" was as follows.. 2025 2024 Research External Affairs wwc Governance 19.0 19.0 10 TANGIBLE FIXEO ASSETS Leasehokj Improvements Compu".et Equ1pmfrnt Fixtuies and Fittings Total Cost or book valu• At t January 2025 Addilions 111.704 44.1?1 9.7 )8 114.2£71 41.514 197,339 9.708 114,2671 192,780 Di5P05a15 At 31 December 2025 111,704 41,514 Ac¢umula¢ed dgpreciation At 1 January 2025 Charge for year Disposals 111.704 38.471 38.573 1.650 188.748 5.940 114.268 114.2681 At 31 December 2025 111.704 28.493 40.223 180,420 Net book value At 31 Deeembèr2025 11,069 1.291 12.360 At 31 De¢ember 2024 5.650 2,941 8.591 All of the tangible fixed assets are used for charitable purpcses. 27 CENTRE FOR CITIES NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2025 11 DEBTORS Debtors Total 2025 Total 2024 Duè vilhin one year-. Traoe Deblcrs Prepayments Other debtors 44.624 66,195 113,956 54.999 74,265 93,285 224,775 222,549 12 CREDITORS.. AMOUNTS FALLING DUE WITHIN ONE YEAR Total 2025 Total 2024 Trade cieditJrs Olhei creditors Tayation and social se-urity Accruals Deferred Income 2.727 52 49.253 27.519 1.505,000 52.869 48.970 1, 100,000 1,581,824 1,204,566 13 OPERATING LEASE COMMITMENTS On 31 December 2025. the charity had the fol'owing oporaliog lease comniilrp.enls'. The above corp.mitmenls are lor an operating lease on the 2nd floor. 9 Hollrood Street. 2025 2024 Not later than one year LatvTrr Ih3n oqe vear and not laiei than five Jears Over five years 84.416 104,792 84,416 189,208 Toshiba Photocopier Payable within l year Payable after 1 year 1585 28 CENTRE FOR CITIES NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2025 14 RELATED PARTY TRANSACTIONS One trustee currently 3150 serves on the Board of the G31sbs Foundalion. 15 THÈ FUNDS OF THECHARITY The fund of £986,133 on 31 Oecember 2025 was unrestricleJ. 16 ANALYSIS OF CHANGES IN DEBT The charity had no debt during the year. 17 TAXATION The Charity is considered lo pass the tesls set oui in ParagrJph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for LIK CorpoTalion Tax purposes. Accordingly, the Charity is potentially exempl frorn laxalion in respect of income or capit31 gains received within categories covered by Chapter 3 Part 11 Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gaini Act 1992. to the extent that such income or gains are applied exclusively to charitable piJrposes. 29