Appendix 5a

NATIONAL, INTERNATIONAL AND CAPITAL CITY FUNDING: MPS SUBMISSION

Executive Summary

1. The MPS’ income from the NICC grant in 2015/16 was £173.6 million, providing funding for the services required to ensure the safety and security of a rapidly changing world city. This appendix outlines the case for the MPS, exploring the reasons why NICC funding is essential to maintain the services we provide and to ensure we are prepared for the changes and challenges ahead.

2. The MPS manages a range of activities to support national and international policing, some of which are funded through the NICC grant, some are subsumed within the general policing provided by the MPS.

3. Since the start of the CSR period NICC special payments have decreased year-on-year but this has not been reflected in the costs of the NICC activities.

4. In breaking down the services under the definition of national, international or capital city, the MPS is being as transparent as possible about the cost of current service provision. We recognise that this breakdown does not match the current NICC funding provision. In total the MPS is submitting a Revenue bid of £345.5m for NICC funding, reflecting greater focus placed on capturing and evidencing the NICC related costs. This expenditure is £171.9m excess of the grant funding provided of £173.6m (see table 1 below with a full breakdown in Annex1). To note this excludes a placeholder of £250m for costs associated with the Area Cost Adjustment (see para 11.1 below).

Table 1 – Revenue Expenditure - 2014/15 Budgeted NICC Costs and Grant*

NICC Expenditure 2015/16 Budget Category £m 1. Public Order - including Operational Support 81.6 2. as a Crime / Activity Hub 46.2 3. Specialist & Economic Crime 103.8 4. Protection Responsibilities 12.8 5. Global City 36.2 Estimated annual cost for major events 4.4 Total Direct Costs including major events 285.0 Overheads 60.5 Total MPS Revenue Costs 345.5 NICC Funding 173.6 NICC Activities Funded by the MPS 171.9 * Excludes £250m placeholder for the ACA

5. The key drivers of NICC activity and therefore cost are:

 The number of Foreign National Offenders in London is higher when compared to the rest of the UK. In the MPS this figure 27% (including 40% in Westminster)1. This has a disproportionate effect upon a number of policing activities.  London as the seat of the UK Government and therefore a centre of protest  London as one of the most popular tourist destinations in the world (the density of people providing opportunity). E.g. Westminster borough’s population (221,842) swells to over 800,000 with tourists, and over a million with tourists2 and those who work in the borough.

1 http://content.met.police.uk/News/Operation-Nexus-launches/1400012909227/1257246741786 2 http://data.london.gov.uk/dataset/daytime-population-borough/resource/7c9b10fb-f8c9-45bb-8844-d5e5cd7f6dca# V23 1

 London as a global business and financial hub (is a generator of crime, particularly for cyber and fraud cases).  The scale of serious and organised crime that occurs within or is generated from, London.  The experienced investigative capability means the MPS is the only force able to carry out complex/high profile cases, e.g. Operation Weeting.  The size of the specialist functions retained by the MPS, which support policing nationally e.g. increasingly an issue as other forces reduce in size.

The London Factor

6. London is unique: the largest city in the European Union, with an ever changing population that is set to grow towards 9 million by 20203 and become one of the most diverse (culturally, ethnically and linguistically) cities on Earth. The complexities of policing a city on this scale are big: London is a centre for protest, for criminality, for transport and is a seat of Parliamentary, Royal and Diplomatic power. Over 300 languages are spoken, and around 40% of the population is Black or Minority Ethnic [BME]4 and these numbers are predicted to grow further as the city expands and develops further as an international centre.

7. London attracts people as a gathering place for demonstration, celebration and participation in sporting and national events. Policing the ‘public order’ elements of these requires considerable resource and the management of a balance between enabling lawful protest and providing security and safety. Public Order policing is funded by the NICC, along with traffic support for NICC related events and Police Support Unit costs for NICC related events.

8. Such is the scale of public order policing in the capital, the MPS has a dedicated Public Order team, planning and policing around 150 protests, 55 ceremonial events, 16 sporting events (along with 24 football matches) and around 60 concerts and festivals every month across the city. NICC funding provides a valuable funding stream to enable the safety and security of these events while providing the reassurance that officers are not being abstracted from neighbourhood policing to cover them.

9. Criminality taking place within London is on a more prevalent and serious level than other cities and communities across England & Wales. A quarter of all crime in England & Wales takes place in the capital, with the MPS policing the highest crime rate per 1000 population, and the highest rates of violence against the person and robbery in England & Wales. Crime in the capital is often connected to organised criminality, national and international networks of offending. The MPS has in place a number of teams to tackle more serious and organised crime and has a long established history of being world leaders in investigation.

10. London’s place at the centre of the UK transport network also provides opportunities for crime, offending and victimisation, with the city’s , stations and road network being bigger, busier and more internationally connected than anywhere else in the UK - they are also key targets for terrorism. NICC funding provides additional security to these vital parts of the UK transport infrastructure.

11. The MPS’ international reputation for investigation means we are often called upon to deal with complex cases that are of national or international significance or beyond the resources of other UK police services. The NICC grant funds economic and specialist crime service provision within the MPS, including the national investigations considered to resource-intensive or complex for other police forces. In recent years, the MPS has dedicated significant resources to the investigations into MPs concerning expenses, media organisations regarding ‘phone hacking’ and taken a lead in investigating the disappearance of Madaleine McCann.

12. London is one of the world’s global cities - ranked as either number 1 or 2 in all respected ‘lists’ of cities with global power (vying with New York). The MPS is also seen as a world leader in

3 http://data.london.gov.uk/dataset/2014-round-population-projections/resource/1b5bd5a7-376f-4dde-9b32-f8c4b3399231 4 https://www.london.gov.uk/priorities/arts-culture/promoting-arts-culture/20-facts-about-london-s-culture V23 2

policing with the ‘Scotland Yard’ brand known around the world as a symbol of quality investigation and traditional values of policing. As a result of this reputation, the services provided by the MPS are highly sought after, either through using our officers & staff in operational matters or by training and learning through our experiences.

13. The police funding formula does not consider the above activities separately when calculating the MPS funding, hence the additional NICC allocation. NICC grant funds national and international events, mutual aid funding for other forces supplying officers for NICC activity and support & training for international forces. The funding is a driver behind the perception of UK policing around the world and MPS services are key to enhancing that perception.

Methodology

14. The MPS has followed the methodology developed for the 15/16 NICC bid, building on comments from HMIC visits to operational units in November 2014 and the NICC review undertaken in early summer 2015.The purpose of this bid is to identify the current costs of running the various policing units in the MPS where demand is driven in part or in full by London being a National, International and Capital City. The Operational leads for each of these areas reviewed the various data sets available to assess the percentage of total activity that relates to NICC activity (applying the definition provided by the Home Office in 2013). This percentage was then applied to the estimated 2015/16 expenditure in these areas, together with an allocation for overheads.

15. Few units’ activities are 100% in response to NICC activity and therefore there will always be an element of subjectivity to this process. We have taken the advice of the Home Office review of NICC bids and have adjusted some percentage attributions accordingly. In many cases, the percentage suggested by the Home Office is higher than had been included in the previous bids.

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1 Background

1.1 Compared to many cities, London is unique in terms of its diversity and density of population, its geographical size and the complex interplay between national governance, London governance and local governance through the 32 boroughs.

1.2 London’s population swells due to an influx of commuters during the day and tourists throughout the year - in greater volumes than anywhere else in the UK. The City of London itself has a very low resident population (7,559) though increases during the daytime to 598,141 (including tourists) - excluding tourists, to 446,932.

1.3 All London boroughs have a similar pattern (though start from a higher resident population base). For example, Westminster borough’s population (221,842) swells to 819,085 with tourists, 1,017,622 with tourists and those who work in the borough.

1.4 The MPS has (as of March 2015) 31,877 of 126,818 police officers in England & Wales5 - around 25% of the police officers (London as a whole has 26%, with City included), policing 14.6% of the England & Wales population and dealing with 20.6% of all crime.

1.5 All forces are required to fulfil national obligations with regard to the National Policing Requirement. Given the nature of the criminal and terrorist threats and the need to prepare for civil emergencies, London is disproportionately affected. As such, the MPS holds significant responsibility for protecting UK infrastructure from the threat of crime and terrorism. Reductions in police service budgets around the country have resulted in forces becoming increasingly stretched with regard to national policing functions. Because of the scale of our resource and officer cadre, the MPS has been increasingly assisting other forces with the policing of national and international events, an example being Operation Ismay, the policing of the NATO conference in Wales in September 2014.

1.6 The paper is structured around five operational areas: Public Order, London as a crime/activity hub, Specialist and Economic Crime, Protection responsibilities and the ‘global city’ effect.

2. Public Order, including Operational Support

2.1 London's size, density and diversity make it a unique city in which thousands of events take place each year. The assessment, planning and policing of these place competing demands on the . As the seat of Government, the home to Royal residences, diplomatic premises and iconic locations there are a multitude of large demonstrations, ceremonial and State occasions as well as large scale sporting and cultural events within the capital. The SCO22 Event Planning Teams plan the most complex and significant of these policing operations. It is a fair assessment that 90-95% of the events in London take place due to the fact we are the capital city.

2.2 The past year has been fairly typical in terms of major, capital city, events and we have seen many high profile protests and demonstrations within central London which require complex operational planning. Such protests are a major resourcing and planning issue for the MPS - something not experienced elsewhere. Added to this are the numerous large scale annual events such as the Notting Hill Carnival and New Years Eve central London celebrations.

2.3 Sport also plays a significant part in London life and policing operations. Football features prominently with six clubs in the premier league and 17 professional football teams in total (many more than any other force area). There are fixtures, concerts and other events at Wembley National Stadium, Lords, the Oval, Wimbledon, Twickenham and the Queen Elizabeth Olympic Park which attract huge crowds. The Mayor of London has developed a strategy to attract more

5 https://www.gov.uk/government/statistics/police-workforce-england-and-wales-31-march-2015-data-tables V23 4

and more world class events to London as a legacy of the 2012 Olympic Games. These include large road events examples of these are Ride London, Tour De France, The London Marathon, World Triathlon, etc.

2.4 Throughout the year, SCO22 continue to plan policing operations for ceremonial, state and royal occasions involving members of the Royal family, Government, military and heads of states. These often involve complex and protracted security arrangements and examples of the larger and most significant of these events in the last year are State Opening of Parliament, Queen's Birthday Parade, National Service of Remembrance, two State Visits (per year) as well as international political summits and conferences attended by World Leaders.

2.5 A typical month’s activity in public order policing within London generally covers: . 151 Policed Protests (can vary in scale from a small number of officers to thousands of officers) . 55 Ceremonial Events (can vary in scale from a small VIP visit requiring two officers to the Queen’s Birthday parade requiring hundreds of officers) . 16 Policed Sporting Events (Non Football) . 61 Concerts/Festivals/Other Policed Events . 24 Policed Domestic Football Matches (with a further 8-10 International Matches per year plus FA Cup Semi-Final, Final, Play Offs, League Cup, etc. at Wembley National Stadium).

2.6 The Police Support Unit [PSU] is core within public order policing and provides the initial service mobilisation for the MPS. This is especially important in providing an ability to respond to world events and protests either at iconic sites or supporting the Diplomatic Protection Group at embassies (as demonstrated recently in relation to the Gaza conflict).

2.7 The London Region Forces are working very closely through the Operation Benbow arrangements to further develop understanding of strategic threat and risk. The London Region Strategic Threat & Risk Assessment [STRA] is the vehicle to set the resource (and by implication, training requirements for the London Region). The regional forces meet quarterly to discuss STRA issues via the Public Order Strategic Committee, chaired by Commander Met Ops.

2.8 In addition to the requirements set by Management Board, the National Public Order Mobilisation Formula sets the London Region Mutual Aid Requirement at 96 PSUs, with 75 retained in the London Region and 21 available for mutual aid.

2.9 This significant training requirement is met by the MPS at MPS Training Centre on behalf of the London Region and includes command and specialist public order training e.g. intervention at height. This includes provision of 24/7 on-call functionality.

2.10 NICC Funding would provide significant support to Public Order planning, Training delivery and operations across the London Region.

3. Operational Support

3.1 Significant support to public order is provided by the MPS Taskforce, which includes the Territorial Support Group, Mounted Branch, Marine Support Unit, Air Support Unit and Specialist Search Dogs. These units provide support to a number of NICC activities, which is why costs are shown outside of the 5 main categories. Of significance here is the reduction in capacity in these specialisms across the rest of UK policing.

3.2 The Mounted Branch provide a strong presence at ceremonial duties related to the Capital city, such as Trooping the Colour, State Opening of Parliament, State Visits, Letters of Credence, State funerals (as demonstrated at the funeral of Baroness Thatcher), Royal Wedding and Golden Jubilee. As a result of such deployments, we have assessed that 57% of Mounted Branch activity is NICC related.

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3.3 Units within the MPS Taskforce specifically support the high number of football stadiums within London including the National Stadium at Wembley, in addition to supporting national venues such as the O2 and Excel to manage crowd control during events.

3.4 The Marine Policing Unit [MPU] has responsibility for policing the 47 miles of River Thames within the MPS area (from Dartford to Hampton Court) as well as providing a specialist response to over 250 miles of canals and waterways, lakes and reservoirs and other bodies of water in London. The MPU retains specialist assets to undertake ‘Line Access’, searching at height and providing a diving and underwater search capability. These teams are essential security services, being used to support Trooping the Colour and the State Opening of Parliament as well as other events in London. The MPU also provide a warship escort, ensuring the safety and security of visiting national and international warships.

3.5 The Taskforce works closely with the City of London through the Public Order, Dog Support Unit [DSU] and Mounted Branch in particular. The MPS and share experience, good practice and resources as required - Operation Benbow public order operations form the basis for shared working.

3.6 The MPS provides support to national events in the form of specialist Taskforce assets - NATO conference, G8 conference in Northern Ireland. The training provided by the MPS is also sought after by other forces and international police and security organisations such those in Qatar and Jordan in relation to Mounted Branch, and the Netherlands in relation to DSU. The MPS Taskforce are seen as experts in their field with advice being sought from them both Nationally and Internationally i.e. Dog Support Unit deployments to the Ukraine, NATO conference planning. Within the Taskforce the Air Support Unit and Marine Policing Unit train and deploy CT Specialist Firearms Officers. National assets are trained by the ASU and MPU as the MPS is the only force with this capability.

3.7 Due to the nature of the threat presented to London, and the scale of activity with regard to protest and ceremonial events, these assets are routinely being used nationally to assist other forces in prevention and security activity. In effect, a considerable proportion of Taskfroce deployments are in the form of a ‘national asset’.

3.8 SCO19 delivers all firearms training to the MPS. Approximately 80% of this relates to the unique nature of London, for example protection training for SO1, SO6 and SO14. In addition the Firearms Unit provides support across a number of NICC activities with an estimate of 64% of Firearms-related costs being on NICC activities.

3.9 SCO19 are working in collaboration with City of London Police [CoLP], with a protocol in place to provide resilience to their strategic firearms command, however, this is rarely required and against a very low demand. In addition SC&O19 offers CoLP tactical firearms commanders the opportunity to undertake an attachment in our team in order to assist in widening their experience.

3.10 Approximately 66% of pre-planed firearms operations are in support of NICC activity, for example, in dealing with Organised Criminal Groups or in support of the National Crime Agency and other forces. SCO19 manages approximately 30,000 firearms licences, which is around three times the volume of Greater Manchester Police or West Midlands Police. .Approximately 66% of armed response vehicles are in support of addressing ‘capital city’ firearms crime. Whilst this information is the same as submitted for the 2015/16 bid, all the information remains accurate and reflects the contribution of SCO19 to NICC activity.

3.11 The costs of direct public order and operational support is approximately £81.6m per annum driven largely by the activities of the Taskforce as identified, costs of the public order event planning team, overtime costs of officers deployed on Aid and the direct operational support costs associated with these events, e.g. barriers, CCTV etc.

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3.12 In addition the opportunity costs of deploying officers from across the MPS to police public order events are significant. Whilst this bid does not seek these costs the scale of the cost adds important context.

4. London as a crime/activity hub

4.1 London is at the centre of the UK’s transport infrastructure, with 140 million passengers using its six airports in 20136, 49 million miles travelled per day7 on London’s roads and over 553 million passengers entering or exiting London’s railway termini annually8. The city is a hub for crimes motivated or facilitated by the transport network.

4.2 NICC funding covers the policing of crime related to high tourism influx, (with the main grant covering crime related to commuter influx). Currently, the Roads Traffic Policing Team [RTPC] is involved in a number of operations, notably:

4.3 Operation Grayling - There are currently 450 addresses being monitored across London with 196 of these being considered active with pickpockets. RTPC officers have been tasked to carry out non-enforcement intelligence visits to the 196 addresses.

4.4 Operation Caribou - This is a joint initiative with Home Office Immigration Enforcement [HOIE] and is a proactive operation, utilising the intelligence drawn from Operation Grayling. To date 130 prolific FNOs have been removed from the UK due to Operation Caribou.

4.5 Operation Hyrax (Operation Signal) - A joint initiative with the UK Border Force [UKBF]. The intention with this activity is to prevent relevant offenders entering the UK. To date 124 prolific FNOs have been refused entry to the UK, directly as a result of referrals from the RTPC (representing 13% of all referrals).

4.6 Roads Policing are deployed to carry out traffic management plans associated with demonstrations, protests and ceremonial events. Traffic Officers would be deployed to all of these events to ensure public safety of those attending the events and all road users using the road network around the event.

4.7 Criminality taking place within London is on a more prevalent and serious level than other cities and communities across England & Wales. It is often connected to organised criminality, national and international networks of offending. The MPS has in place a number of teams to tackle more serious and organised crime and has a long established history of being world leaders in investigation.

4.8 The MPS Trident Gang Crime Command is a centre of excellence nationally and the ‘go to’ unit for others in term of gun crime for advice and guidance. As an example, Trident has been transformational in advising in the start up and development Trident style units in Nottingham and Hampshire. There continues to be regular dialogue and often joint working on operations that impact displacement of London gangs elsewhere and the need for the MPS to support other forces with expertise to target and disrupt their activities.

4.9 There is a national and international threat posed by trafficked firearms arriving into the UK. A vast proportion of these arrive in London.

4.10 Trident always plays a significant role in supporting Carnival in terms of expertise and advice to support suppression before carnival and to provide proactive teams, SFC and TFC support resources during carnival.

6 http://www.caa.co.uk/application.aspx?appid=7&mode=detail&nid=2342 7 https://www.gov.uk/government/statistical-data-sets/tra89-traffic-by-local-authority 8 http://orr.gov.uk/statistics/published-stats/station-usage-estimates V23 7

4.11 The London Crime Squad [LCS] together with SCO7 has developed expertise in targeting so called ‘Smash and Grab’ robberies in the heart of London’s tourist zones. Organised Criminal Networks have targeted high end jewellery stores and other designer outlets frequented by wealthy tourists and ‘non domicile’ residents of London. Often the tourist themselves have been targeted with high value watches and jewellery being stolen. A recent operation saw 15 nominals arrested by the LCS. Strong enforcement and reduction seeks to reassure tourists and promote London as a safe tourist destination.

4.12 Combating fraud and cyber crime is a growth area of activity for the MPS of which a significant proportion can be attributed to London’s standing as a global financial and business hub.

4.13 The total direct costs of the activity in this area are approximately £46.2m.

5. Specialist and Economic Crime

5.1 The MPS’ international reputation for investigation means we are often called upon to deal with complex cases that are of national or international significance or beyond the resources of other UK police services. The NICC grant funds specialist and economic crime service provision within the MPS, and the cost of policing economic and specialist crime is assessed as £103.8m in 2015/16.

5.2 SCO1 (Homicide and Specialist Crime) is often tasked with assisting homicide investigations abroad, particularly with smaller Commonwealth countries. In recent years the MPS has assisted a number of Caribbean islands with investigations, including Jamaica, Antigua and St Vincent. Some high profile investigations are allocated to SCO1 that have no connection with London. In most cases, this is because the MPS is considered the only police service that can deal with such complex cases: Operation Grange, the investigation into the disappearance of Madaleine McCann is one example, with a Major Investigation Team dealing exclusively with this investigation.

5.3 There are also the deaths abroad where there can be jurisdiction to try a person who is a British citizen in this country. An example would be a British citizen travelling abroad to commit a so called ‘honour based’ murder where the foreign country has not mounted a prosecution. It can also occur if it is not possible to extradite the suspect to the foreign country because of their use of the death penalty.

5.4 SCO1 has units that oversee the training and learning in relation to Disaster Victim Identification [DVI] and contribute towards the UK DVI response. The use of trained DVI personnel is also required for non-terrorist incident where large numbers of people have been injured or killed. Officers have been deployed as far away as New Zealand and most recently to Kiev and the Netherlands.

5.5 The MPS is responsible for the training and resourcing Casualty Bureau based at Hendon. It is used for national and international emergencies that will generate large numbers of enquiries from the public. As London is an international city even an incident local to London will generate calls from across the world due to the diversity of the many nationalities present in London. The Bureau assists other forces with large incidents and is always available for the Foreign and Commonwealth Office to utilise.

5.6 Scotland Yard is a brand known across the world, synonymous with Scotland Yard detectives and homicide investigations. As a result SCO1 regularly entertains visits from law enforcement agencies from across the globe to explain our methods, both strategic and tactical. These include policing agencies from North America, Asia, Australasia, Africa and across Europe. The brand of Scotland Yard is regarded as the benchmark for UK Policing. All of these visits take up time and the use of resources that are not being deployed for the direct benefit of London.

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5.7 The Home Office has suggested that the MPS bid for Homicide be raised from 15% to 45% on SCO1 activity.

5.8 An increasing number of victims and suspects from London’s migrant communities is adding further complexity to sensitive investigations where such practical barriers as language are encountered, requiring funding for interpreters to overcome, adding more time to investigations that are rarely straight forward and often time critical.

5.9 Operation Yewtree is a national operation that has resulted in a significant commitment on MPS policing resources but is setting the context for future historic child abuse investigations across the UK. The expertise developed by operation Yewtree has recently led to enquiries emanating from London-based schools with international contacts being assigned to SOECA. Similarly, this expertise has led to allegations emanating from child abuse by national political figures also being placed within the command.

5.10 SOECA has also introduced a new Sexual Exploitation Unit. Over 2,000 referrals were received in 2014. Some of these referrals have a direct links into gangs from migrant communities trafficking children into and around the UK for the purpose of sexual exploitation. A common feature of Child Sexual Exploitation [CSE] is the child or young person does not recognise the coercive nature of their relationship with the perpetrator. Often, they do not see themselves as victims at all or they become resigned to their plight believing nobody cares. As a consequence, they are unlikely to report the abuse to police and/or partner agencies.

5.11 SOECA work closely with the UK Border Force and continue to carry out pro-active operations (e.g. Operation Limelight) to protect children at risk from such offences as Female Genital Mutilation. SOECA are proactively leading campaigns and operations to highlight the dangers and tackle such offences.

5.12 As the largest police forensic laboratory, the Directorate of Forensic Services attracts national and international attention, coordinating, collaborating and driving forensic science for the MPS, the UK, in Europe and across the world. MPS Forensic Services undertakes examinations and forensic reviews nationally and internationally. We have attributed 40% of the cost of forensics to NICC activity.

5.13 The MPS has covert capability across a range of key areas, with 18 surveillance teams with an armed capability. These dedicated teams are tasked to support every MPS business group, across all crime types. These teams are frequently deployed throughout the UK in support of national crime and counter terrorism tasking.

5.14 Direct costs in this area total approximately £103.8m and with the major part of the costs relating to child protection and the investigation of rape and serious sexual offences, both of which are driven by the disproportionate amount of offences being committed by FNOs. The major national operations that are run by the MPS are currently costing £10.1m, (the operations included within this bid are Elveden, Kudo, Tuleta and Weeting).

6. Protection responsibilities

6.1 London’s unique status as capital city, largest city and centre of government means that the MPS performs a combination of policing activities that no other UK police service does - protecting the Royal Family, Parliament and Government infrastructure, diplomatic buildings and people and well as sights of international cultural significance.

6.2 Patrols within the Government Security Zone [GSZ] maintain the security and integrity of the most sensitive and iconic sites in London. A number of MPS units provide security and protection to these sites and persons, notably the dedicated units within . SCO19 Armed Policing provides extensive and comprehensive Armed Response policing to protect the GSZ, including the Royal Household and the Diplomatic community. Aside from this Armed V23 9

Response Vehicles deliver CT taskings across London, with approximately 40% of ARV time devoted to these functions.

6.3 As London is the capital city and the seat of the UK Government, the Diplomatic Protection Group provides static armed protection to and some other governmental buildings. New Scotland Yard [NSY] is not just the headquarters for the Metropolitan Police Service, but also some national policing functions. Static protection is provided by uniformed unarmed police & security officers. In this area, 13 police officers and 60 members of police staff are employed at NSY. Separate discussions between the MPS, NCTPHQ and OSCT have taken place around protection with a suggestion from OSCT that some elements of protection (linked to the broader national interest) best fit within the NICC funding stream. The NICC costs have been adjusted accordingly but this highlights the need for clarity on funding streams and the importance of not looking at funding streams in isolation.

6.4 In addition, the MPS patrols transport hubs and piers (i.e. Woolwich ferry, Greenwich pier), a role likely to be expanded with the building of a large container port at Greenwich and 11 new piers under the Mayor of London’s River Plan.

6.5 Direct costs in this area total approximately £12.8m and cover the non-CT funded activities of the DPG. Support is provided in this area by Firearms and other Units but these costs are shown separately.

7 Global City

7.1 London is one of the world’s global cities - ranked as either number 1 or 2 in all respected ‘lists’ of cities with global power9 (vying with New York). The MPS is also seen as a world leader in policing with the ‘Scotland Yard’ brand known around the world as a symbol of quality investigation and traditional values of policing.

7.2 As a result of this reputation, the services provided by the MPS are highly sought after, either through using our officers & staff in operational matters or by training and learning through our experiences. The NICC grant funds national and international events, mutual aid funding for other forces supplying officers for NICC activity and support & training for international forces.

7.3 Westminster is unique within the UK - as well as being a centre of government and international diplomacy, over 28 million tourists visit the West End every year and Leicester Square sees more than 225,000 visitors every day10. A permanent team of officers is building a strong investment in an area to understand its problems, and is playing a key role in cutting crime and increasing confidence. In response to the challenges of policing this part of London, we have committed a team of 134 officers to police an Impact Zone in the centre of the West End, preventing and detecting crime and providing re-assurance to the local community, business and tourists.

7.4 The area has in excess of 3,200 licensed premises and is the one of the most profitable Night Time Economies [NTE] in Europe. The area is a major economic asset generating around £60 billion in Gross Value Added [GVA] per annum, representing 15% of London’s total GVA generation of £269 billion. A significant proportion of that is delivered by the NTE. The unparalleled footfall and NTE are the main drivers and enablers of theft, robbery and violence in the area, with non-res burglary driven by the number of businesses and hotels.

7.5 In terms of custody, direct costs in this area total approximately £36.2m with the main drivers being the cost of NICC related policing inside Westminster borough and the costs of operation Nexus, which targets FNOs.

9 http://www.forbes.com/sites/joelkotkin/2014/08/14/the-most-influential-cities-in-the-world/ ; http://www.citylab.com/work/2015/03/sorry-london- new-york-is-the-worlds-most-economically-powerful-city/386315/ 10 https://www.london.gov.uk/media/mayor-press-releases/2012/05/transformed-leicester-square-brings-new-jobs-and-boost-to-west V23 10

7.6 Heathrow is the sixth busiest airport in the world for total passenger traffic and third busiest worldwide for international passengers11. The airport sustains 76,000 jobs directly and 123,000 indirectly across the UK. It also contributes £6.2billion to the UK economy.

7.7 The MPS maintains the security of the airport from a Counter Terrorist and Organised Crime perspective through its bespoke policing command SO18 (Aviation Security). The airport operator holdings provide the majority of funding for policing the airport through the police service agreement. This is supplemented by CT grant funding.

8. Other major events

8.1 On occasion the MPS polices major royal or political events that are of a scale that require a separate category. Examples include the Royal Wedding in 2011, the Diamond Jubilee in 2012, and Lady Thatcher’s funeral (True Blue) in 2013. Each of these events requires a different level of policing therefore it is not possible to state an annual figure with confidence. However if we consider the additional costs of these events and take an average then this indicates an annual cost of £4.4m over the last 3 years.

2011/12 2012/13 2013/14 Average Operation / Event £m £m £m £m Royal Wedding* 3.6 0.0 0.0 Diamond Jubilee 0.0 8.1 0.0 True Blue 0.0 0.0 1.5 Total 3.6 8.1 1.5 4.4

8.2 We propose that this amount is provided to the MPS and used to create a reserve to cover the costs of policing such events in the future.

8.3 The MPS is the UK leader in the Counter Terrorism Specialist Firearms Network [CTSF]. The MPS delivers all training for the CTSFO Network in England, Wales and Scotland. It also comprises approximately 60% of the available resources. MPS CTSFOs are a national resource and we are the only mainland police service with a 24/7 on-duty capability. In terms of operational delivery fewer than 10% of deployments are CT related, however, the government requirement is that we have this capability available. The majority of operational deployments relate to high threat operations against organised criminal networks that frequently have a national or regional impact or, alternatively, gang related violent crime that appears to be a particular feature of London.

9. Overheads

9.1 Through the Met Change work and the need to reduce costs to meet budget requirements, the MPS has made considerable progress in reducing the costs of the back and middle office. Both functions provide support across the MPS and therefore, by definition, provide support for NICC activities. In addition we have considered certain central operational functions (Met Intelligence and Met Resources) as an operational overhead. We have linked both these sets of costs and apportioned pro rata to the overall NICC costs as a percentage of the total MPS budget. This results in an overhead cost relating to NICC of £60.5m.

10. Capital

10.1 This paper does not include a bid for capital costs however the MPS anticipates spending over £200m on capital projects this year, including estate enhancements and rationalisation, an IT programme to support a more mobile workforce and a vehicle replacement programme. This capital expenditure supports the whole of the MPS and therefore support NICC activities. Using

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the same methodology as applied to overheads, the capital to support NICC activities is in the region of £20m a year.

11. Funding Formula Review

11.1 Under the proposals under consultation for the Police Funding Formula the Area Cost Adjustment [ACA] has been removed. For 2015/16 24 forces received an ACA within their grant allocation (see appendix D of the Police Grant Report), with the MPS receiving the highest adjustment factor of all forces. Should the ACA remain omitted from the Police Funding Formula then the MPS will have to include the overall costs of policing in London as part of the NICC bid. This will include costs such as London weighting within police and staff salaries, assorted other costs that are affected by being transacted in London. Full detail on this has yet to be calculated but looking at the salary element alone (and adjusting for those elements already within the NICC bid), the ACA is over £200m. For the purpose of this report we are therefore including a placeholder sum of £250m, which can be reviewed in conjunction with the Funding Formula work.

11.2 Elsewhere within the Funding Formula proposals we have concerns that the indicators currently included are not all suitable for London. Without the exemplifications it is not possible to include a figure at this stage so a second placeholder has been included.

12. Summary

12.1 This represents the best evidenced-based appraisal that we can make of NICC activities. Costs have changed from previous assessments due to the emphasis upon supporting evidence and the degree of rigour applied to the production of this paper. Working with Home Office officials over the summer has also allowed us to further review the costs and amend as necessary, which has resulted in the increase in costs from last year. We would welcome the opportunity to continue work with the Home Office to review the costs included within and develop our methodology for future bids and how we can agree a way of reflecting this activity within the funding formula.

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