DD2744 Contracts and Funding Code

1.1.    The Contracts and Funding Code is one of the GLA’s key governance documents. It sets out the rules and processes for procurement and entering into contracts and other formal arrangements including grant funding.

1.2.    It was last approved in April 2022 under cover of Mayoral Decision (MD) 2830 and a further review has identified changes that need to be made, principally to reflect the new requirements of the Procurement Act 2023. 

1.3.    The Act came into force on 24 February 2025 and changes the framework for how public sector organisations spend money. The changes are designed to create a simpler, more flexible commercial system; open up public procurement to new entrants; and create more transparency so the use of public money can be better scrutinised and understood by the public. 

1.4.    Other revisions to the document include updating the document to reflect latest GLA practice in grant giving; additional guidance on the subsidy control regime; and further information on risk management in grant giving. In addition, factual changes have been made to reflect updates to job/team titles, and to reflect current detailed processes and other recent updates to governance documents.

1.5.    This Decision is being taken under the Executive Director’s authority under Section 2.4 of the Code to make amendments providing GLA policy is not significantly or materially altered, including to update the document to reflect changes in the law and other external guidance that directly impact on the GLA’s contracts and funding approach. 
 

2.1.    The purpose of the revision is to ensure that clear and up to date policies and guidance are set out in respect of contracts and funding matters, and in particular to ensure they reflect latest legislation including the 2023 Procurement Act.  

3.1.    Under section 149 of the Equality Act 2010, the Mayor and the GLA are subject to the public-sector equality duty and must have due regard to the need to eliminate unlawful discrimination, harassment and victimisation; advance equality of opportunity between people who share a relevant protected characteristic and those who do not; and foster good relations between people who share a relevant protected characteristic and those who do not.

3.2.    The Contracts and Funding Code ensures that the GLA takes decisions and manages its resources with probity and value for money and therefore assists the GLA in delivering for all Londoners. No specific adverse impacts for any groups sharing a protected characteristic have been identified.

3.3.    The Contracts & Funding Code includes provisions relating to responsible procurement and ensuring how, through our contracting arrangements, we support social value.
 

Key risks and issues

Links to Mayoral strategies and priorities

4.1.    Effective commissioning and procurement supports all of the Mayor’s priorities for Londoners, as well as the pursuit of effective value for public money. 

4.2.    There are no conflicts of interest from those involved in the drafting or clearance of this Decision Form. Section 5 of the Code sets out provisions for handling conflicts of interest on specific procurements, and staff involved in grant making activity are subject to the rules and guidance around handling interests in the Code of Ethics and Standards and supporting guidance.  
 

5.1.    A large proportion of the GLA’s business is conducted through contracted activity and hence it is important that clear guidelines are set and observed. The update of the code ensures that appropriate arrangements are in place to safeguard the GLA’s assets and ensure Value for Money is obtained. There are no direct financial implications arising from the Decision.

6.1.     In line with a range of applicable statutory requirements and good practice the GLA’s governance 

arrangements are designed to ensure it:
•    conducts business in line with the law and proper standards 
•    safeguards and properly accounts for public money and spends it economically, efficiently and effectively 
•    sets clear expectations for the Mayor, Assembly Members and GLA staff – and in particular that their conduct upholds the seven principles of public life: selflessness, integrity, objectivity, accountability, openness, honesty and leadership.      

       
6.2.    Officers have confirmed that the proposed changes to the Contracts and Funding Code do not significantly or materially the GLA policy it sets out, Accordingly, the amended Contracts and Funding Code (Appendix A) may be approved by the Executive Director of Corporate Resources and Business Improvement (formerly the Executive Director of Resources) pursuant to the current Contracts and Funding Code (as approved by the Mayor under cover of MD2830).

6.3    It should be noted that whereas certain changes have been made to the Contracts and Funding Code which purport to reflect latest GLA practice in grant giving and related guidance, TfL Legal have not been provided with details of such practice or guidance.
 

Appendix 1 - Contracts Funding Code
The Procurement Act 2023 - A short guide for suppliers