Agenda item

To consider a report proposing that approval be given to the use of reserves.

POLICE COMMITTEE

(Douglas Barrow, Deputy)

15 December 2016

City of London Police Medium-Term Financial Plan

The revised City of London Police Medium Term Financial Plan (MTFP) showed a deteriorating financial position. This position had been arrived at within a context of increased terrorism threats post the attacks in France, Belgium and Germany and revised national planning assumptions in the United Kingdom. The associated additional pressures on frontline policing capability, protective services, growing cybercrime, online crime demand and intelligence requirements had also been considered along with work undertaken in the last quarter to better understand increasing pressures within policing directorates.

The MTFP assumptions and financial and operational risks had been reviewed and options being identified to mitigate new threats and risks across the MTFP and consider future viable efficiencies. The current position could also be offset by the use of reserves, which required agreement from the Court of Common Council. The threshold required reserves to be maintained at or above £4m and current estimates showed that the drawdown on reserves would take reserves below that amount in 2016/17 with a forecast drawdown of £2.6m. Reserves would be completely exhausted by 2017/18.

The Policy & Resources Committee had endorsed the proposed relaxation of the reserve threshold, whilst noting the planned professional analytical review which would take place, and it was recommended that the Court approve the relaxation of the reserve threshold of £4m and approve the use of reserves in 2016/17 totalling £2.6m and 2017/18 totalling £1.5m.

Resolved – That approval be given to the relaxation of the reserve threshold of £4m the use of reserves in 2016/17 totalling £2.6m and 2017/18 totalling £1.5m.