Agenda item

To receive a report of the Commissioner of Police.

The Committee received a report of the Commissioner of Police which provided Members with information on the Force’s Medium Term Financial Plan for the period 2013-17.

Members were informed that a number of risks had been built into the budgets, which included a reduction in Dedicated Security Posts/Capital City funding, revenue contributions towards the financing of capital expenditure and the assumption that there would be no increase in the Business Rate Premium. If these risks were to materialise, and there were no measures implemented to mitigate the budget deficits, the Force’s General Reserve would move from £15.3m in hand at 1 April 2013 to an overdrawn position of £7.9m by 31 March 2017

It was noted that this would be contrary to the current Court of Common Council arrangements which require the Force to have a balance in its Reserves of no less than £4m.

It was agreed that the Force would liaise with the Chamberlain to produce a report to be brought back to the Committee in July to agree timelines to mitigate risk and balance the budget over the four year period.

Members and officers discussed the assumption presented in the report that the business rate premium would not be increased and were advised that the meeting of the Resource Allocation Sub (Policy and Resources) Committee (RA Sub) on 12 December would be considering whether an increase in the premium from April 2014 should be recommended.

Members noted that this Committee was sighted on why an increase in the business rate premium is critical to the long term financial stability of the Force whereas other Members may be unaware of the pressure on, and complexity of, Force funding.  The Commissioner noted that at the last two annual consultation meetings with Business Ratepayers, warnings had been given of a potential need for an increase in the premium.  However, an increase had not been agreed and the additional income which would be generated is now even more critical to sustaining the services provided by the Force.

The Chairman requested that information be circulated to Members of RA Sub to outline the Force’s funding structure and the impact of the business rate premium on the Force’s budget.

The Commissioner informed Members that the Assistant Commissioner would attend the meeting of RA Sub on behalf of the Commissioner. Members of the Committee who also sit on RA Sub would speak in support of an increase in the business rate premium.

RESOLVED - That,

a)    A joint report of the Commissioner and the Chamberlain be brought to the 4^th July 2014 meeting of the Committee to agree timelines to mitigate risk and manage budget reductions over a four year period.

b)    Members were supportive of an increase to the Business Rate Premium and agreed that this be communicated to the meeting of RA Sub on 12 December.