Shares Magazine – May 23, 2019

(Ron) #1

The relief of revenue


reserves


dŚĞƌĞŝƐŶŽƋƵĞƐƟŽŶƚŚĂƚǁĞĮŶĚŽƵƌƐĞůǀĞƐ
ŝŶƵŶĐĞƌƚĂŝŶƟŵĞƐ͘/ƚŝƐĚƵƌŝŶŐƉĞƌŝŽĚƐŽĨ
ƵŶĐĞƌƚĂŝŶƚLJƚŚĂƚƚŚĞŝŶǀĞƐƚŵĞŶƚƚƌƵƐƚƐƚƌƵĐƚƵƌĞ
ŚĂƐĚŝƐƟŶĐƚŵĞƌŝƚƐ͘dŚĂƚ͛ƐďĞĐĂƵƐĞŝŶǀĞƐƚŵĞŶƚ
ƚƌƵƐƚƐ͕ǁŚŝĐŚĂƌĞůŝƐƚĞĚĐŽŵƉĂŶŝĞƐŝŶƚŚĞŝƌŽǁŶ
ƌŝŐŚƚ͕ĐĂŶƐƚŽƌĞĨƵƚƵƌĞŝŶĐŽŵĞĂǁĂLJĨŽƌĂƌĂŝŶLJ
ĚĂLJʹĂƵŶŝƋƵĞĨƵŶĐƟŽŶŽĨŝŶǀĞƐƚŵĞŶƚƚƌƵƐƚƐ
ĐĂůůĞĚƌĞǀĞŶƵĞƌĞƐĞƌǀĞƐ͘

ZĞǀĞŶƵĞƌĞƐĞƌǀĞƐĂƌĞƚŚĞŵĞĂŶƐďLJǁŚŝĐŚ
ŝŶǀĞƐƚŵĞŶƚƚƌƵƐƚƐĐĂŶĐŽŶƟŶƵĞƚŽŐƌŽǁƚŚĞŝƌ
ĚŝǀŝĚĞŶĚƐĞǀĞŶǁŚĞŶĚŝǀŝĚĞŶĚƐĂĐƌŽƐƐƚŚĞƐƚŽĐŬ
ŵĂƌŬĞƚĂƌĞĨĂůůŝŶŐ͕ƚLJƉŝĐĂůůLJĚƵƌŝŶŐĞĐŽŶŽŵŝĐ
ĚŽǁŶƚƵƌŶƐ͘/ŶǀĞƐƚŵĞŶƚƚƌƵƐƚƐĚŽŶŽƚŚĂǀĞƚŽ
ĚŝƐƚƌŝďƵƚĞĂůůŽĨƚŚĞŝƌŝŶĐŽŵĞŝŶĞĂĐŚĮŶĂŶĐŝĂůLJĞĂƌ͘
dŚĞLJĂƌĞĂůůŽǁĞĚƚŽŚŽůĚďĂĐŬƵƉƚŽϭρйŽĨƚŚĞŝƌ
ĂŶŶƵĂůŝŶĐŽŵĞ͘&ŽƌĞdžĂŵƉůĞ͕ŝŶĂŐŽŽĚLJĞĂƌĨŽƌ
ŝŶǀĞƐƚŵĞŶƚŝŶĐŽŵĞ͕ĂŶŝŶǀĞƐƚŵĞŶƚƚƌƵƐƚŵŝŐŚƚŚŽůĚ
ďĂĐŬρйŽĨŝƚƐŝŶĐŽŵĞ͕ǁŚŝůĞĚŝƐƚƌŝďƵƟŶŐƚŚĞŽƚŚĞƌ
ερйŝŶĚŝǀŝĚĞŶĚƐƚŽŝƚƐƐŚĂƌĞŚŽůĚĞƌƐ͘dŚĞρйƚŚĂƚ
ŝƐŚĞůĚďĂĐŬǁŝůůďĞĂĚĚĞĚƚŽƚŚĞƌĞǀĞŶƵĞƌĞƐĞƌǀĞ͘
KǀĞƌƚŚĞLJĞĂƌƐ͕ƚŚĞƌĞǀĞŶƵĞƌĞƐĞƌǀĞĐĂŶďƵŝůĚƵƉƚŽ


ĂƐƵďƐƚĂŶƟĂůƐƵŵŝĨƚŚĞŝŶǀĞƐƚŵĞŶƚƚƌƵƐƚŝƐĂďůĞƚŽ
ŵĂŬĞĨƵƌƚŚĞƌƌĞƚĞŶƟŽŶƐ͘

/ŶĐŽŶƚƌĂƐƚ͕ĚƵƌŝŶŐĂŶĞĐŽŶŽŵŝĐƌĞĐĞƐƐŝŽŶ͕ƚŚĞƌĞ
ǁŝůůďĞĚŝǀŝĚĞŶĚĐƵƚƐ͘/ĨĚƵƌŝŶŐƚŚĞƐĞƟŵĞƐĂŶ
ŝŶǀĞƐƚŵĞŶƚƚƌƵƐƚ͛ƐŝŶĐŽŵĞĨƌŽŵŝƚƐƉŽƌƞŽůŝŽ
ĚĞĐůŝŶĞƐ͕ŝƚŝƐƐƟůůƉŽƐƐŝďůĞƚŽŐƌŽǁŝƚƐĚŝǀŝĚĞŶĚďLJ
ĚƌĂǁŝŶŐĚŽǁŶĨƌŽŵƚŚĞƌĞǀĞŶƵĞƌĞƐĞƌǀĞ͘KďǀŝŽƵƐůLJ͕
ƌĞǀĞŶƵĞƌĞƐĞƌǀĞƐĂƌĞĮŶŝƚĞĂŶĚƐŽƵƐŝŶŐƚŚĞ
ƌĞǀĞŶƵĞƌĞƐĞƌǀĞƐƚŽƐƵƐƚĂŝŶĚŝǀŝĚĞŶĚŐƌŽǁƚŚĐĂŶ
ŽŶůLJƚĂŬĞƉůĂĐĞĨŽƌĂůŝŵŝƚĞĚŶƵŵďĞƌŽĨLJĞĂƌƐ͘dŚĞ
ƌĞǀĞŶƵĞƌĞƐĞƌǀĞŽĨĂŶŝŶǀĞƐƚŵĞŶƚƚƌƵƐƚŝƐƌĞǀĞĂůĞĚ
ĞĂĐŚLJĞĂƌŝŶŝƚƐĂŶŶƵĂůƌĞƉŽƌƚĂŶĚĂĐĐŽƵŶƚƐ͘dŚĞ
ůĂƌŐĞƐƚƌĞǀĞŶƵĞƌĞƐĞƌǀĞƐƚĞŶĚƚŽďĞĨŽƵŶĚŝŶŽůĚ
ŝŶǀĞƐƚŵĞŶƚƚƌƵƐƚƐǁŚŝĐŚŚĂǀĞĂĐĐƵŵƵůĂƚĞĚƚŚĞŵ
ŽǀĞƌŵĂŶLJLJĞĂƌƐ͘

CITY OF LONDON’S USE OF REVENUE RESERVES
/ŚĂǀĞŶŽǁŵĂŶĂŐĞĚŝƚLJŽĨ>ŽŶĚŽŶ/ŶǀĞƐƚŵĞŶƚ
dƌƵƐƚĨŽƌŵŽƌĞƚŚĂŶϮϳLJĞĂƌƐĂŶĚǁĞŚĂǀĞŐƌŽǁŶ
ŽƵƌĚŝǀŝĚĞŶĚŝŶĞĂĐŚŽĨƚŚŽƐĞLJĞĂƌƐ͘tĞŚĂǀĞ
ŚĂĚƚŽƵƐĞƌĞǀĞŶƵĞƌĞƐĞƌǀĞƐŝŶƐĞǀĞŶĚŝīĞƌĞŶƚ
LJĞĂƌƐƚŽŝŶĐƌĞĂƐĞƚŚĞĚŝǀŝĚĞŶĚ͘KƵƌĮŶĂŶĐŝĂůLJĞĂƌ

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