Hi Max, it looks like City University's arms to me, and the motto is theirs, as you say. I found a colour version of the City Uni arms here for comparison: http://www.heraldica.org/topics/acad-uk.htm
(scroll down about half-way).
There is a slight difference in the design but heraldic artists can vary interpretation slightly anyhow. The design below the cross in both examples is clearly a fire beacon of some sort, so I'd say it's a match. As to 1977 - I checked City's history and nothing jumps out as special to them for that year, but 1977 was of course, the Queen's Silver Jubilee year so all sorts of 1977 things may have been produced for that. It could also have been for someone graduating in 1977 and nothing to do with the Queen at all!
It might be worth contacting the Uni - send them a copy of the pics and ask if they can throw any light on the item?