Agenda item

Joint report of the Chamberlain and the Commissioner

The Committee considered a joint report of the Chamberlain and the Commissioner of Police that sought Members’ approval of the latest revenue budget for 2017-18 and the provisional revenue budget for 2018-19, for subsequent submission to the Finance Committee.

The Chairman noted that, in reference to paragraph 4, that the report did not mention that the Court of Common Council had agreed for additional reserve to be provided by the City Fund to cover any additional revenue shortfall.  He asked that this be recorded for the record.

The Commissioner explained that, although the CoLP were still awaiting the final grant settlement, they were confident of their position which was marginally better than had been predicted.  He explained that the core grant provided an increase of £700,000 (1.2%) over the sum outlined within MTFP assumptions.

The Commissioner explained that the CoLP hoped to finish 2018 in a stronger position than they did 2017.

The Commissioner explained to Members that the Reserves were split into two separate funds, the General Reserves (£3.5m) and POCA Reserves (£3.6m).  In reference to the table following paragraph 6 of the report, the Commissioner clarified that the £1.5m in funds budgeted from the Reserves for 2017-18 were actually from the POCA Reserves, leaving £3.5m remaining in the General Reserves as budgeted for draw down in 2018-19.

The Chamberlain agreed that the current position was better than had been predicted and suggested that there may even be an underspend in the final quarter.  He explained that this would provide a robust Reserves starting position for the following year, though it could not be predicted at this stage. 

The Chamberlain explained, however, that the budget had been balanced predominantly through a process of cost savings rather than efficiencies, and was therefore not sustainable.  He explained that there was still a need to optimise. The Chamberlain explained that £1.2m in efficiencies had been built in to the budget this year, and the plan was to build on this figure next year, alongside increased grant funding.

The Chairman noted that the Premium income (Business Rate) figure remained the same year on year, and asked whether we should seek to increase this going forward.  The Chamberlain agreed, explaining that small growth of this figure would usually be expected.  The Chairman explained that he feared the CoLP would convey a negative impression by seeking increases out of synchronisation with other forces that seek them incrementally on an annual basis.  A Member stated his agreement with the suggestion to seek an increase, and stated that it would be ludicrous for it not to be considered as an option.  Another Member stated their support of the Business Rate increase, and explained that they felt exasperated by the constant demands for policing to cut costs.  They suggested that it was the appropriate time to stand up for the Police by countering these demands.  A fourth Member suggested that one year’s notice of a Business Rate increase could be given at the annual meeting, preparing them for a rise in 2020.  The Chamberlain confirmed that this meeting was scheduled to take place in February.

A Member explained the importance of representing Police staff numbers in two categories, so that front line and back office distinguished.  They noted that some who might appear to be ‘non-crucial’, were in fact working on the front line, such as those working on Economic Crime.

A Member asked if a breakdown of POCA Reserve funds was available, the Commissioner confirmed that it was and agreed to circulate to Members. (2) 

The Commissioner explained that the POCA Reserves fund had benefitted from a lucrative operation that had been running until recently, but which was no longer available to the Force.  This change had a significant effect on the POCA income, though following the Criminal Finances Act 2017, a new opportunity for seizures of unlawful funds has become available.  The Commissioner explained that the CoLP are currently awaiting the code of practice before actioning the plan to take advantage of this.  The Commissioner explained that beyond 2020, the Reserves will have funding issues that will need to be addressed.

The Chairman proposed that the Police Committee send a resolution to the Policy & Resources Committee to propose a rise in the Business Rates Premium in 2019-20, and contact businesses to inform them of the planned changes.  Members all agreed. (3)

The Chamberlain explained that the Demand and Value for Money Review identified up to £15m of efficiencies available, and that the Force’s commitment to these should not be overlooked.  This, alongside increased grants income, would ensure that officer numbers could be protected.  The Chairman agreed.

A Member agreed with the proposal to raise the Premium, but explained that the narrative needed to be secured so that the proposal is positioned with little room for debate.  The Chairman explained that a robust background to the argument was first needed but that now was the correct time to do this.

RESOLVED – That Members agreed to:

1. Note the latest forecast outturn for 2017/18 revenue budget of a balanced financial position.

2. Review the provisional 2018/19 revenue budget, which is balanced by a draw down on reserves to ensure it reflects the Committee’s objectives and, if so, approve the budget for submission to the Finance Committee.

3. Review and approve the draft capital and supplementary revenue budget.

4. Note that a further report will be submitted to committee in March on the plans to achieve the proposed cashable transformation savings of £1.2m for 2018/19.

5. Note the budget mitigation contained within the report which will help to

manage risks in 2018/19 and addressed the underlying deficit.

6. 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.

7. Send a note to the Policy & Resources Committee proposing an increase in the Business Rates Premium for 2019-2020, supported by background evidence from the CoLP STRA process.