Agenda item

Each year, as part of the budget setting process, a Medium Term Financial Plan (MTFP) is prepared in order to show that the Force is financially sustainable in the medium term.

Witnesses:

Kelvin Menon - Chief Finance Officer (OPCC)

Lisa Townsend - Police and Crime Commissioner for Surrey

Key points raised in the discussion:

1.    The Chief Finance Officer (OPCC) highlighted that:

·         The report outlined an initial attempt at a Medium Term Financial Plan (MTFP) forecast based on the current budget with assumptions of two percent for inflation, that funding would stay level and the Council Tax increase was capped at two percent meaning that an increasing gap would develop as costs were increasing and revenues were static.

·         The MTFP forecast highlighted that the Force needed to take action on where it could be more efficient, a review on efficiencies had started for each individual department to ensure savings going forward particularly if the Government settlement 2022/23 was inadequate.  

·         The PCC was working with other PCCs to press upon the Government the importance of policing and adequate funding to cover pay increases and to re-visit the funding formula; which was unlikely until the end of forecast.

·         As more information became available, the forecast would be reviewed and would be discussed further with the Panel’s Finance Sub-Group in the budget setting time.

2.    A Panel member noted that Surrey Police had made many cuts previously in relation to reviewing its bureaucracy, he could not see that substantial savings could be made due to previous cuts over many years and asked what savings figure was expected.

-       The Chief Finance Officer (OPCC) explained that in terms of the gross budget, £6 million in savings was needed for one year against a spend of £250 million. Police officer numbers could not be reduced due to the Government’s Operation Uplift.

-       The Chief Finance Officer (OPCC) explained that any reduction in personnel would fall on police staff which would impact the service the police could deliver and instead collaboration opportunities and procurement could provide savings.  

-       The Chief Finance Officer (OPCC) recognised that Surrey Police had made significant savings over last five years plus, so making any further savings going forward would be difficult and it was a wider public sector issue.

3.    The Vice-Chairman noted that unless the funding available increased, there was a risk going forward in terms of the review of the funding formula and the funding allocation; whereby prosperous areas such as Surrey would continue to be allocated less and residents would have to pay more via their Council Tax. He sought views on how the issue could be pressed upon the Government.

-       The Chief Finance Officer (OPCC) noted that Surrey was viewed as a prosperous area with low deprivation and that affected the funding it received from the Government.

-       The Chief Finance Officer (OPCC) noted that the case made for increased funding was that Surrey had crime travelling in and out from London, Surrey had two airports and a lot of traffic, the inadequate funding of Surrey Police was a long-standing issue and had lobbied the Government over many years to which the PCC would continue to do.

-       The PCC noted that it was good that people saw Surrey positively, conversely the extent of the pressures and challenges that Surrey Police faced was not known.

-       The Vice-Chairman noted the considerations made above concerning the justification for an increased funding allocation to Surrey Police and that it was vital to keep pressing the Government on the matter.

-       The PCC provided assurance that she had and would continue to lobby the Home Office.

4. The Chairman asked how the pessimistic assessment of Surrey Police’s budget and its funding allocation would affect the drafting of the new Police and Crime Plan.

-       In response, the PCC noted that the themes being gathered on the draft new Police and Crime Plan were as expected, that it was an ongoing battle for Surrey Police to do more with less and so it was vital to ensure efficient and collaborative ways of working to provide the best public service to Surrey.

RESOLVED:

1.    The Panel noted the initial outcome of the forecast, the likely need for additional

savings and the challenge that this will present.

2.      The Panel noted the current assumptions being employed in the scenarios and the risks therein.

3.      The Panel commented on the report as appropriate.

Actions/further information to be provided:

None.