Agenda item

Joint report of the Chamberlain and Commissioner.

(This report was not available at the time of the agenda despatch and will be circulated separately)

The Committee received the Chamberlain’s annual submission of the revenue and capital budgets overseen by the Committee, which also sought approval of the latest revenue budget for 2016/17 and the provisional revenue budget for 2017/18, for subsequent submission to the Finance Committee.  Details of the Committee’s draft capital budget were also provided. 

The draft Medium Term Financial Plan indicated that there was a revenue funding shortfall of £0.2m in 2017/18.  This was after allowing for mitigating actions including; the relaxation of the reserve threshold of £4m, funding from the City for the budgeted revenue contribution to capital of £1.4m and the application of the additional £2m headroom on the business rate premium.  The provisional police funding settlement was a flat rate decrease of 1.4% in cash terms in core grant funding.  This equated to a £0.7m reduction in core grant for the City of London Police increasing the revenue funding shortfall in 2017/18 to £0.9m.  The City was also funding additional IT costs and increased pension costs across the Corporation for which the police's share was £1.6m p.a. bringing the total of additional support in 2017/18 to £5.9m.

Members were advised that the proposed budget for 2017/18 included a cashable saving of £1.2m (£3.6m across the MTFP period), and a report would be submitted to the May Committee outlining the options for achieving savings in-year.

As the Police general reserve will be completely exhausted by 31 March 2018 the City Fund would effectively be providing the Police with reserve cover for the revenue shortfall pending the outcome of the demand and value for money review due to be completed by the end of April.

RESOLVED - To

a)            Note the latest 2016/17 revenue budget,

b)            Review the provisional 2017/18 revenue budget to ensure it reflects the Committee’s objectives and, if so, approve the budget for submission to the Finance Committee,

c)            Review and approve the draft capital and supplementary revenue budget;

d)            Note the proposed governance arrangements over the allocation of City Fund resources to finance Police capital and supplementary revenue projects;

e)            Note a further report will be submitted to committee in May on the plans to address the rise in Police staff numbers and also to achieve the proposed cashable savings of £3.6m over the MTFP period;

f)             Authorise the Chamberlain to revise these budgets for the re-phasing of the Action Fraud cash flow advance and repayments, the revenue implications of the Police Accommodation Strategy, and funding of the capital budget; and

g)            Note a report on the results of the Demand and Value for Money will be presented to Members before the Summer recess.