Cumbria Police and Crime Panel
Thursday, 28 January 2021 at 10.30 am
VENUE: This will be a virtual meeting, therefore, will not take place in a physical location. To view this event please click link below: https://teams.microsoft.com/l/meetup- join/19%3ameeting_NzNlNzJlNDUtYWQzYS00NWFjLTlkNDMtY2MwYmQ 5YzRiMTkx%40thread.v2/0?context=%7b%22Tid%22%3a%22ac4b07 7e-a758-4bc5-9465- 35c192007704%22%2c%22Oid%22%3a%221b53f8e4-118d-41e8- a6d5-efcd2d7713f3%22%2c%22IsBroadcastMeeting%22%3atrue%7d
AGENDA
PLEASE NOTE THERE WILL BE A BRIEFING FOR THE PANEL AT 9.15 AM
Please note this will be a virtual meeting and, therefore, will not take place in a physical location. Please follow the link to view this event:
https://teams.microsoft.com/l/meetup- join/19%3ameeting_NzNlNzJlNDUtYWQzYS00NWFjLTlkNDMtY2MwYm Q5YzRiMTkx%40thread.v2/0?context=%7b%22Tid%22%3a%22ac4b 077e-a758-4bc5-9465- 35c192007704%22%2c%22Oid%22%3a%221b53f8e4-118d-41e8- a6d5- efcd2d7713f3%22%2c%22IsBroadcastMeeting%22%3atrue%7d
1 ROLL CALL FOR MEMBERS AND OFFICERS 2 APOLOGIES FOR ABSENCE
To receive any apologies for absence.
3 DECLARATIONS OF INTEREST
To receive any declarations of interest.
4 EXCLUSION OF PRESS AND PUBLIC
To consider whether the press and public should be excluded from the meeting during consideration of any item on the Agenda.
5 PUBLIC PARTICIPATION
To receive any items of public participation.
(Questions and petitions must be received in writing by Lynn Harker, Senior Democratic Services Officer at least seven working days before the date of the Panel meeting).
6 MINUTES
To confirm as a correct record the minutes of the meeting of the Panel held on 16 October 2020 (copy enclosed). (Pages 5 - 14)
7 REVENUE BUDGET MONITORING - QUARTER 2
(1) Office of the Police and Crime Commissioner Budget Report
To receive a report from the Office of the Police and Crime Commissioner (copy enclosed).
(2) Cumbria Constabulary Budget Report
To consider a report from Cumbria Constabulary (copy enclosed). (Pages 15 - 18) 8 POLICE AND CRIME COMMISSIONER PRECEPT PROPOSALS
a Revenue Budget and Medium Term Financial Forecast (enclosed). (Pages 19 - 38)
b Draft Capital Programme 2021/22 and Beyond (enclosed). (Pages 39 - 54)
c Precept Consultation Responses To receive a verbal update.
d Precept Proposal and Medium Term Budget 2021/22 to 2024/25 (enclosed). (Pages 55 - 70)
9 DRAFT PRECEPT PROPOSALS (CUMBRIA COUNTY COUNCIL) 2021/22
To consider a report by the Director of Finance (Cumbria County Council) (copy enclosed). (Pages 71 - 76)
10 UPDATE ON COMPLAINTS
To consider a report from the Monitoring Officer (Cumbria County Council) (copy enclosed). (Pages 77 - 78)
11 DATE OF NEXT MEETING
The next meeting of the Panel will be held on Tuesday 20 April 2021 at 10.30 am at a venue to be agreed.
INSPECTION OF PAPERS AND GENERAL QUERIES - if you wish to inspect Minutes or Reports relating to any item on this agenda or have any other general queries about the meeting, please contact:
Lynn Harker, Senior Democratic Services Officer, Cumbria House, 117 Botchergate, Carlisle, Cumbria CA1 1RD Telephone No: 07825340229 This page is intentionally left blank Agenda Item 6
CUMBRIA POLICE AND CRIME PANEL
Minutes of a virtual Meeting of the Cumbria Police and Crime Panel held on Friday, 16 October 2020 at 10.30 am.
PRESENT:
Mr W McEwan (Cumbria County Council) (Chair)
Mr RK Bingham, Cumbria County Council Ms G Dinsdale, Copeland Borough Council Miss HJ Fearon, Cumbria County Council (Vice-Chair) Mr KR Hamilton, Barrow Borough Council Ms D Holden, Eden District Council Mr MA Johnson, Cumbria County Council Mr P McSweeney, South Lakeland District Council Mr K Meller, Carlisle City Council Miss L Vance, Independent Co-opted Member
Also in Attendance:-
Mr T Gale - Senior Policy and Scrutiny Project Officer Mrs L Harker - Senior Democratic Services Officer Mr R Marshall - Joint Chief Finance Officer, Office of the Police and Crime Commissioner Mr P McCall - Police and Crime Commissioner (PCC) Mrs G Shearer - Deputy Chief Executive - Office of the Police and Crime Commissioner Mr B Spencer - Group Solicitor/Deputy Monitoring Officer Ms V Stafford - Chief Executive, Office of the Police and Crime Commissioner
PART 1 – ITEMS CONSIDERED IN THE PRESENCE OF THE PUBLIC AND PRESS
Members were advised this would be the last meeting of the Panel which Linda Vance would attend in her capacity as an Independent Member.
The Chair and Vice-Chair, on behalf of the Panel, thanked Linda for her valued contributions and service to the Panel and wished her well for the future.
5 The Cumbria Police and Crime Commissioner, on behalf of his Office and the Chief Constable, thanked Linda for her work with the Panel and the challenges she had given him and wished her every success for the future.
Linda Vance thanked everyone for their kind words and offered any support in the future to both the Panel and the Commissioner.
1 ROLL CALL FOR MEMBERS AND OFFICERS
All of the above members and officers were in attendance at the meeting.
2 ELECTION OF CHAIR
RESOLVED, that Mr W McEwan be elected Chair of the Panel for the ensuing year.
Mr McEwan thereupon took the Chair.
3 ELECTION OF VICE-CHAIR
RESOLVED, that Miss H Fearon be elected Vice-Chair of the Panel for the ensuing year.
4 APOLOGIES FOR ABSENCE
Apologies for absence were received from Ms M Bellis and Mr A Kirkbride.
5 DECLARATIONS OF INTEREST
There were no declarations of interest on this occasion.
6 EXCLUSION OF PRESS AND PUBLIC
RESOLVED, that the press and public be not excluded from the meeting for any items of business on this occasion.
6 7 PUBLIC PARTICIPATION
There were no items of public participation to be considered at this meeting.
8 MINUTES
With reference to Minute 26 – Apologies for Absence it was noted Miss H Fearon should have been included.
RESOLVED, that with the inclusion of the above amendment the minutes of the meeting held on 7 February 2020 be confirmed as a correct record.
9 CUMBRIA POLICE AND CRIME COMMISSIONER'S ANNUAL REPORT 2019-20
The Panel received the Cumbria Police and Crime Commissioner’s Annual Report 2019-20. Members noted that it was consistent with last year’s format and had been written with accessibility in mind, so that a member of the public could easily understand how the Commissioner had carried out his functions and what his key achievements had been so far.
Members received additional information with regards to the current pandemic. The Commissioner informed the Panel that the Force had been involved in enforcement and assistance during the lockdown in March and April highlighting the increasing challenges the Constabulary now faced as crime returned to normal levels.
During the course of discussion the Commissioner confirmed contingency plans were in place but raised his concerns regarding pressures on resources due to part of the senior team being engaged to manage the county response through the Strategic Co-ordination Group. It was highlighted that the Force had managed the situation well but, bearing in mind that crime had returned and anti-social behaviour had increased, he explained that regular discussions regarding resilience of individuals were being undertaken with the Chief Constable and the situation would continue to be monitored.
The Panel welcomed the partnership working and highlighted the Cohesion Group which had been established in Barrow-in-Furness to consider hate crime. The Commissioner acknowledged the community cohesion work being undertaken in Barrow together with other effective community groups and activities in the area and agreed to consider inclusion of this information in a future Annual Report.
7 Members drew attention to the wide success of the Commissioner’s themed videos regarding anti-social driving and were informed they appeared on a number of social media platforms which allowed an analysis of data to be undertaken.
The Panel raised their concerns regarding county lines and was informed of successful operations during the summer. During the course of discussion the importance of the continued co-ordination and collaboration with other partners to combat this was highlighted.
A discussion took place regarding the 101 Service and concerns were raised regarding the dissatisfaction of the public with the length of time it took the Constabulary to answer those calls. Members asked whether extra resources or improved hard and software could be introduced to overcome those issues.
The Commissioner acknowledged the service had to be as effective as possible. He informed the Panel that improved technology had been introduced together with approximately 80 staff being employed in the control room of which 15-20 would be available at any one time. It was agreed that further information on the number of officers available in the control room would be made available separately to members. It was explained that following the success of the introduction of access via e- mail it was anticipated that live chats would also be introduced in the future.
A discussion took place regarding the use of e-mails and members were informed they involved a series of levels of response; a call-back request could be made which would take place within 24 hours or an e-mail response would be made within 48 hours.
The Panel was informed that the success of the service was also affected by other emergency 999 calls from around the country being diverted to Cumbria during particularly busy periods; together with a vast number of calls being received which were not police matters but were made by individuals in crisis because they provided a 24/7 service.
Members were requested to encourage their constituents to use the e-mail service or their local focus teams. It was agreed that further information regarding local focus teams would be circulated to the Panel.
The Panel welcomed the positive impact of the Mini Police Programme which was partnered with 30 schools across the Force with almost 600 mini police officers and asked if it was intended to roll this out further in the future. Members were informed there were capacity issues at present but confirmed there was a commitment to include more schools in the future.
8 A discussion took place regarding anti-social behaviour and the possible installation of CCTV in Barrow Park; it was agreed that further information would be provided to the Commissioner.
The Chair, on behalf of the Panel, thanked officers for their report.
RESOLVED, that the report be noted.
10 ANNUAL REPORT FROM THE CUMBRIA POLICE AND CRIME PANEL
The Chair of the Panel informed members that in normal times the Police and Crime Panel would have presented an Annual Report at the July Panel meeting but due to the current pandemic this had not been possible.
He explained that whilst this had not been undertaken to allow a focus on the response and recovery from the pandemic, further information regarding the activities of the Panel would be provided at the next meeting.
11 POLICE AND CRIME PLAN 2020-21
The Panel received the Police and Crime Plan 2020-21. Members were informed that following the outbreak of the Coronavirus pandemic and the subsequent postponement of the 2020 Police & Crime Commissioner (PCC) elections, the Commissioner had determined that his priorities set out in the current Police and Crime Plan would remain the same for 2020- 2021.
It was explained that to underpin this, the Commissioner had developed an Action Plan, setting out key pieces of work that would deliver those priorities over the next year. Furthermore, it was noted that as an immediate response to Covid-19, the Commissioner had developed an Emergency Plan, detailing the measures and arrangements he, and his office, had put in place to support Cumbria Constabulary, partner agencies and local communities during the pandemic and beyond, and how he continued to fulfil his statutory responsibilities.
9 A discussion took place regarding priorities to tackle crime and anti-social behaviour. Whilst the Panel welcomed the delivery of the Home Office Safer Streets Fund, providing crime prevention advice, home security equipment and street lighting in the Barrow area raised their concerns regarding the lack of communication with members and officers of Cumbria County Council. It was agreed that this matter be investigated with the Project Officer with a view to a representative attending a meeting to discuss the matter further.
During the course of discussion an issue was raised regarding anti-social behaviour in Eden and a lack of communication between all partners including the local members. It was agreed that local councillors would be engaged in any processes in the future.
The Panel asked for further information regarding the Priorities to Support Public Accountability and it was agreed this would be provided separately to members.
RESOLVED, that the report be noted.
12 APPOINTMENT OF INDEPENDENT CO-OPTED MEMBERS OF THE PANEL
The Panel received a joint report from the Chair and Vice-Chair of the Panel which provided an update on the process to recruit two new Independent Members of the Police and Crime Panel and recommended the appointment of two Independent Members following the recruitment process.
During the course of discussion it was confirmed that there were applicants from the south of the County and members noted that the membership of the Panel was balanced through elected member representation.
RESOLVED, that Ruth Hunter and Jonathan Little be appointed to the Cumbria Police and Crime Panel as Independent Members for a four year term of office as of 1 January 2021.
13 THE POLICING OF CHILDREN IN CUMBRIA
Members received a paper regarding The Policing of Children in Cumbria.
10 The Panel was informed there were approximately 12 million children in England and Wales, 112,000 of which lived in Cumbria; the vast majority lived healthy, safe and stable lives but, amongst those children there were some who were exposed to childhood trauma and increased vulnerability.
Members noted that over a million young people faced risks from any of the so-called ‘toxic trio’ of living in households with addiction, poor mental health and domestic abuse. It was explained that Cumbria was well below the national average for children living in households where those vulnerabilities were prevalent, however, data from the Children’s Commissioner highlighted an increase in the prevalence of the toxic trio for children under one with a similar trend in relation to children under 4.
The Panel was informed it was important that those children and their families were identified at the earliest opportunity and that Cumbria Constabulary recognised the correlation between Adverse Childhood Experiences and a greater risk of needing acute safeguarding support in later life, mental ill health and entering the criminal justice system.
Officers explained that a Child Centred Policing (CCP) approach was vital to achieving this aim. Members welcomed the Child Centred Policing Teams which would be based within the Local Focus Hubs in three policing areas in Cumbria to improve the lives of children within communities and would be managed by a Sergeant plus five others.
A question was raised regarding the recruitment of children to the Stop and Search Scrutiny Panels and it was agreed officers would provide further information on this matter.
During the course of discussion officers emphasised the need to work collaboratively with a range of partners to ensure positive outcomes. It was explained that during time success would be measured in the reduction of repeat offenders and hopefully a reduction in the number of younger people going missing.
The Panel welcomed this initiative and looked forward to a future update.
RESOLVED, that the report be noted.
14 REVENUE BUDGET MONITORING 2020/21 - QUARTER 1
(1) Office of the Police and Crime Commissioner Budget Report
To Panel received a report from the Office of the Police and Crime Commissioner which provided the Commissioner’s Revenue Budget Monitoring 2020/21 forecast as at 30 June 2020.
11 Members noted that the expenditure and income variances included reductions in staffing of £4,000, training and conferences £2k, transport £3k and printing and other running costs of £9k. It was explained there was an additional expenditure on Premises which amounted to £69k and was mainly on additional cleaning due to COVID 19 and small overspends on utilities and maintenance. The Panel was informed those additional costs were partially offset by a reduction in expenditure of £14k on property insurance.
The Panel noted that the funding provided to the Constabulary was +£630k with the overspend, in the main, due to additional costs in response to COVID 19 and included PPE, sanitisers, ICT costs and overtime, and totalled £632k.
Members were informed that the savings to in-year budgets as a result of reduced activity in areas such as travel, fuel and training during the pandemic were estimated at £521k, however, they were offset by reductions in core income of £512k. It was explained that additional contributions to local and national collaborations had increased (£138k).
(2) Cumbria Constabulary Budget Report
Members considered a report from Cumbria Constabulary which provided details of the Constabulary’s Revenue Budget Monitoring 2020/21 as at 30 June 2020.
The Panel was informed that the forecast spend in respect of the Constabulary’s COVID 19 response assumed the current level of additional cleaning and purchase of PPE to at least September 2020. It was explained this also included £331k of ICT hardware purchase.
Members noted that the forecast income related to reimbursement of costs received from the purchase of PPE kit on behalf of other forces or public services. It was explained that in mid-July it had been confirmed that expenditure on ‘medical grade PPE’ would be reimbursed by central Government, therefore, the management accounts position at June assumed £250k would be received based on actual spend to 30 June plus estimated spend for July to September.
The Panel received an update on the impact on core budgets and was informed that with reduced activity levels in some areas a total potential saving of £521k was anticipated based on the assumption that the reduced activity continued until at least the end of September 2020. It was explained those savings were offset by a forecast reduction in route income of £512k.
12 Members were informed of Operation Uplift 2020/21 which was a Government programme to recruit 20,000 additional police officers nationwide. It was explained the forecast spend on Operation Uplift assumed an additional 51 full-time equivalent officers would be recruited by 31 March 2021.
The Panel welcomed Operation Uplift emphasising this was a significant achievement for Cumbria and congratulated everyone concerned. In response, the Commissioner gave a positive update on the effects of this, informing members that additional resources had allowed for police deployment in additional areas around the county including Brampton, Alston and Ambleside.
Members were informed that revenue was being sought from the Home Office for additional resources through phase 2 of the scheme.
The Panel raised their concerns regarding the potential rise in Council Tax due to additional resources. The Commissioner acknowledged this concern and explained that they were lobbying to the best of their ability to ensure they got the best financial settlement.
A discussion took place regarding the pending pay award for Police Community Support Officers (PCSOs) and, whilst this had not been agreed, officers anticipated this would be approximately 2.5%. During the course of discussion it was confirmed that at present there were 73 PCSOs which equated to 67.7 full-time equivalent.
RESOLVED, that the Revenue Budget Monitoring 2020/21 forecast as at 30 June 2020 be noted.
15 UPDATE ON COMPLAINTS
The Panel received a report from the Monitoring Officer (Cumbria County Council) which advised members of any complaints received in accordance the Panel’s Complaints Procedure. The report outlined where appropriate, what, if any, action had been taken in respect of the complaints.
Members noted that there had been no complaints since the last meeting of the Panel and that there were currently none outstanding.
RESOLVED, that the report be noted.
13 16 PANEL UPDATE REPORT
Members received a Panel Update report which provided information on key issues and developments that had occurred since the last informal meeting of the Panel on 20 July 2020.
The Panel welcomed the new guidance on Modern Slavery and emphasised the need for everyone to be aware of the signs of this.
Members received an update on Taser changes and were informed that trained police officers could be equipped with a more effective Taser following the approval of a new model by the Home Secretary.
The Panel was informed that a number of police officers and all firearm officers were Taser trained. It was explained that training and annual licenses were a significant cost but taking into account the geography of the county their use was supported in controlled situations.
It was agreed that further detailed information regarding the more effective Taser would be circulated to members.
RESOLVED, that the report be noted.
17 DATE OF NEXT MEETING
It was noted that the next meeting of the Panel would be held on Thursday 28 January 2021 at 10.30 am at a venue to be confirmed.
The meeting ended at 12.50 pm
14 Item 07 The Police and Crime Commissioner for Cumbria Financial Summary 2020/21 as at 30 September 2020 Police and Crime Panel 28 January 2021
P Capital Budget Group Revenue Budget Constabulary Revenue Budget To allow time to consider the recovery from Covid Overspend £122k (0.09%) Group Overspend £304k (0.38%) 19 and the effect on the digital infrastructure the ICT budgets have largely been re-profiled into Constabulary Overspend £122k (0.09%), Increased Expenditure £26k (0.02%), 2021/22. The remainder of the programme is
15 PCC Overspend £182k (0.33%) Reduced Income £96k (1.96%) currently reporting to be on track.
(see page 2) (see pages 3 and 4)
Treasury Management
Operation lectern - Covid 19 Operation Uplift Agenda Item 7 Investment Balance 30/09/20 £20.237m The current forecast combined revenue and The current forecast combined revenue and (up 79% from £4.314m at 30/06/20). capital spend on the Constabulary COVID 19 capital spend on Operation Uplift is £2.049m response (Op. Lectern) is £1.531m This increase reflects the receipt of the Home (revenue £2.049m, capital £0k). office Pension grant in July for £20.046m. (revenue £1.531m, capital £0k). The current investment income forecast has been reduced from £96k to £26k to reflect the (see page 3 for more details) extremely low interest rates currently being (see page 3 for more details) received whilst prioritising the security of the principal funds.
1
PCC Revenue Budget 2020/21 as at 30 September 2020
Description Revised Provisional Provisional Provisional Projected Change in Expenditure & Income Variances Budget Outturn (Under)/ (Under)/ (Under)/ Forecast Overspend Overspend Overspend JUN-20 to Office of the PCC -£4k Includes reductions in staffing (£5k), transport 2020/21 2020/21 2020/21 2020/21 @ JUN-20 SEP-20 £'000s £'000s £'000s % £'000s £'000s (£3k) and printing and other running cots (£5k), depreciation (+£10k).
Office of the Police and Crime Commissioner 812 808 (4) -0.49% (18) 14 Other PCC Budgets (54,830) (54,644) 186 -0.34% (187) 373 Other PCC Budgets +£186k Additional expenditure on Premises (£113k) Movements To / (From) Reserves (1,840) (1,840) 0 0.00% 0 0 mostly on additional cleaning due to COVID 19 and small overspends Total OPCC Budgets (55,858) (55,676) 182 -0.33% (205) 387 Funding Provided to the Constabulary 134,850 134,972 122 0.09% 629 (507) utilities and maintenance. Reduction in Investment Income (£70k). Net Expenditure 78,992 79,296 304 0.38% 424 (120) External Funding (78,992) (78,992) 0 0.00% 0 0 Funding Provided to the Constabulary +£122k Of the total overspend, Total 0 304 304 424 (120) £393k is due to additional direct costs incurred in response to COVID 19 (PPE, sanitisers, ICT cost, overtime), mitigated by re-imbursement from 16 Government and indirect savings from some budgets as a result of reduced activity during the pandemic (such as travel, fuel and training)
Overall, underspending on non Covid 19 related Constabulary activities of £271k is forecast.
Pages 3 and 4 provide a more detailed analysis of the Constabulary revenue budget position. The balance on the police property act fund as at 30 September 2020 was £56k. Details of the awards made from this fund to community bodies can be found on the Commissioners website. https://cumbria- pcc.gov.uk/what-we-do/funding/property-fund/
Details of the constabulary budget position are included on the following pages.
2
Constabulary – Revenue Budget 2020/21 (1)
Description Revised Forecast Forecast Forecast Forecast Change Budget Outturn (Under)/ (Under)/ (Under)/ from Operation Lectern (Covid-19 Response) Overspend Overspend Overspend JUN-20 2020/21 2020/21 2020/21 2020/21 @ JUN-20 to SEP-20 The main elements of the forecast additional direct expenditure spend in respect of £'000s £'000s £'000s % £'000s £'000s the Constabulary’s COVID-19 response includes: Constabulary Funding Police Officers 93,907 94,552 645 0.69% 394 251 • Police Doctors & Surgeons £458k of First Aid / PPE equipment. Police Community Support Officers 2,272 2,343 71 3.13% 63 8 Police Staff 24,480 24,449 (31) -0.13% (251) 220 • Communications & Computing £391k includes ICT Hardware Purchases £331k Other Employee Budgets 1,952 1,715 (237) -12.14% (65) (172) Transport Related Expenditure 2,001 2,045 44 2.20% (302) 346 (laptops etc.), additional licensing £38k and Network Hardware Purchases £13k. Supplies & Services 12,949 12,391 (558) -4.31% 464 (1,022) Third Party Related Expenses 2,183 2,275 92 4.21% 138 (46) • Officer pay and overtime in relation to policing the pandemic £510k.
Total Constabulary Funding 139,744 139,770 26 0.02% 441 (415) In addition, a reduction of income of £629k mainly due to reduced policing of events and enforcement activities is anticipated. Income (4,894) (4,798) 96 -1.96% 188 (92) Of the above costs the Government has agreed to reimburse a total of £701k (loss of
17 Total Constabulary Funding Net of Income 134,850 134,972 122 0.09% 629 (507) income £449, Covid 19 enforcement £252k).
With reduced activity levels in some areas the following savings on core budgets are anticipated based on the assumption that the reduced activity continues until at least Change in Revenue Budget Position the end of March 2021:
Overall – An overall overspend of £122k is forecast on the Constabulary budget. • Appleby Fair £111k Breaking down this sum, £393k relates to additional costs arising from Covid-19, leaving a core underspend of £271k on other budgets. • Training £280k
• Vehicle Hire, Mileage & Public Transport £173k June – September the forecast budget overspend at the end of September has reduced by £507k compared to the £629k forecast at the end of June (Qtr 1). The • Accommodation & Subsistence £137k reduction is largely due to the announcement of Government grants to reimburse forces for loss of income and some costs of Covid enforcement. Changes to forecasting • Vehicle Fuel £252k assumptions have also been made to reflect the fact that reduced activity in some Total Potential Savings £953k areas as a result of the pandemic will now last for the full year.
Operation Uplift
Operation Uplift is the name given to the Government’s programme to recruit an additional 20,000 additional police officers nationwide.
The forecast spend on Op Uplift reflects that Cumbria’s recruitment target of an additional 51 FTE officers was achieved by early in the 2020/21 financial year. Further intakes of recruits are planned in the remainder of the year to contribute to the second phase of the programme. Staffing requirements to support Op Uplift, particularly in Learning and Development and ICT, are currently being reviewed and an underspend of £151k is forecast on these posts. 3
Constabulary – Revenue Budget 2020/21 (2)
Pay Expenditure Police Officers +£645k this principally reflects changes to the workforce plan including recruitment of officers in advance of phase 2 of Operation Uplift, a small number of acting and temporary promotions, additional spend re Op. Lectern plus other additional overtime (Crime £94k, TP £76k). Non-Pay Expenditure
PCSOs +£71k Changes to the workforce plan including starting 1 FTE above Other Employee -£237k Includes reductions in recruitment costs (£50k), budgeted FTE and profile of leavers. welfare costs (£29k), training (£66k) and apprenticeship levy costs (£95k). Police Staff -£31k Op. Uplift underspend (£151k) and other workforce plan changes (£87k) offset by additional spend in respect of Op. Lectern and Transport + £44k The increase in transport spend is largely due to other overtime (Comms Centre etc.) £110k. additional spend on repairs and maintenance (£61k) offset by savings on fuel (£8k) and travel costs (£10k).
Supplies & Services - £558k In addition to the impact of Covid 19
18 Pay expenditure includes the September 2020 pay award at 2.5%. underspends are forecast on Forensics (£137k), Office Equipment, Uniform and Custody (£144k), ICT (Airwave £280k). Third Party Payments +£92k Increased contributions to national ICT programmes and other national initiatives.
Income
Income +£96k After removing £629k of income lost due to COVID 19 (Driver Awareness Income, Costs Awarded to Police, Kendal Calling and other events) the additional reduction in income arises, in the main due to a reduction in POCA income (£33k), Sale of Goods and Assets and Fees and Charges.
4 Agenda Item 8a Agenda Item 08a NOT RESTRICTIVELY MARKED
Cumbria Office of the Police and Crime Commissioner
Title: Revenue Budget and Medium Term Financial Forecast (MTFF)
Police and Crime Panel: 28 January 2021
Report of the Joint Chief Finance Officer Originating Officers: Michelle Bellis, Deputy Chief Finance Officer and
1. Introduction
1.1. The purpose of this report is to provide a detailed analysis of the figures contained within the revenue budget for 2021/22 and the MTFF to 2024/25.
1.2. The report provides more detailed analysis of the budgets for 2021/22 together with comparative information from the 2020/21 approved budget.
1.3. The report also provides additional information in respect of the more unusual aspects of the budget and explanations where the budgets have changed significantly between the years.
1.4. The overall revenue budget and MTFF position is summarised in Appendix A. Further analysis is provided in supporting appendices (B and C) which are cross referenced from the main appendix.
Page 1 of 19
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Appendix A
Revenue Budget & Medium Term Financial Forecast to 2024/25
Description Supporting 2020/21 2021/22 2022/23 2023/24 2024/25 Schedule £'s £'s £'s £'s £'s
Commissioner's Budgets Appendix A (21,207,143) (21,257,441) (12,233,710) (16,355,838) (15,988,162) Constabulary Funding Appendix B 132,329,683 136,972,658 136,308,869 139,698,780 143,343,106 Movement to /(from) Revenue Reserves Note 1 (923,057) (55,363) 95,634 45,634 45,634 Movement to /(from) Capital Reserves Note 1 0 (250,000) (3,750,000) 0 0 Net Expenditure 110,199,483 115,409,854 120,420,793 123,388,577 127,400,579
Funding Formula Grants/Funding Note 2 (64,429,188) (68,490,485) (72,570,485) (72,570,485) (72,570,485) Council Tax Note 3 (45,770,295) (46,919,369) (47,850,309) (48,796,764) (49,758,735) Net Deficit / Savings Requirement 0 0 (0) 2,021,327 5,071,358
Note 1 –More information on reserves is provided as part of the precept proposal report (see agenda item 08d).
Note 2 – The funding settlement for formula funding was announced on 17 December 2020. The formula funding allocated for 2021/22 included a 6.3% increase on 2020/21 levels, this increase provided is to provide funding for the additional police officers and ancillary costs to be provided as part of the Governments increase known as “operation uplift”. The funding settlement provided for 2021/22 was again a ‘one year’ settlement, it is anticipated that during 2021/22 a comprehensive spending review will be carried out and this will inform grant levels for future years. At this stage, it has been assumed that the core funding figure included in the draft settlement for 2021/22 will be increased by a further 6% in 2022/23 to reflect the final phase of the uplift programme and will then continue to be maintained on a flat cash basis for the remainder of the MTFF.
Note 3 – The council tax figures currently assume that the council tax base will increase by 0% per annum. Council taxbase and deficit figures for 2021/22 are currently being collated. There is a risk that funding will reduce when these figures are finalised, however specific Government support is expected to mitigate this risk at least in the short term. The figures also assume council tax precept rises of £6.57 (2.47%) per band D property for 2021/22 and then 2% per annum (around £5 per annum) for the final 3 years of the MTFF, all of which are subject to consultation.
Page 2 of 19
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Appendix B
Commissioner’s Budgets
The Commissioner’s budgets include commissioned services and a number of other technical statutory accounting adjustments. The budget can be analysed as follows:
Description Paragraph 2020/21 2021/22 2022/23 2023/24 2024/25 £'s £'s £'s £'S £'s
Commissioner's Office B1 822,715 846,580 856,587 872,788 891,064 Commissioned Services B2 2,249,590 2,215,782 2,215,782 2,215,782 2,215,782 Premises Related Costs B3 4,452,921 4,569,451 4,677,942 4,791,557 4,908,448 Insurances B4 622,104 803,217 814,417 825,917 837,717 LGPS Past Service Cost B5 22,300 22,300 22,900 23,500 24,100 Provision for Insurance liability B6 105,500 105,500 105,500 105,500 105,500 Statutory Accounting Adjustments B7 89,023 86,505 86,505 86,505 86,505 Capital Financing B8 4,592,925 5,213,416 8,823,053 4,567,385 4,797,106 Grants & Contributions B9 (34,067,730) (35,110,192) (29,826,395) (29,834,771) (29,844,383) Interest/investment Income B10 (96,491) (10,000) (10,000) (10,000) (10,000)
Total (21,207,143) (21,257,441) (12,233,710) (16,355,838) (15,988,162)
B1. Commissioner’s Office The budget for the Commissioner’s office includes funding for the Commissioner plus his office comprising of 12.7 FTEs. As a result of the announced public sector pay freeze in 2020 the pay budget has not been increased by pay inflation in 2021/22 and simply reflects the full year effect of the September 2020 pay increase of 2.5%. The remaining years of the MTFF reflect a modest assumption regarding future pay inflation at 1.75% in 2022/23, 2.00% in 2023/24 and 2.25% in 2024/25. The non- pay budgets in general have not been subject to an inflationary increase in 2021/22 with general inflation assumptions returning to 2% for the remainder of the MTFF.
B2. Commissioned Services The commissioned services budget provides for the Commissioner’s statutory responsibilities across the areas of victim support, community safety and enhancing criminal justice. It is funded by a combination of ministry of justice grants, successful Home Office innovation funding bids and base budget. Following the devolution of responsibility for local provision of victim’s services from 2015/16, this budget now funds a full programme of commissioned services targeted at crime prevention and victim support. This includes victims referral, independent domestic and sexual violence advisory and counselling services
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(including The Bridgeway), Turning the Spot Light Restorative Justice, perpetrator programmes e.g. Restorative Solutions.
B3. Premises Related Costs The Commissioner is statutorily responsible for and owns the police estate. The Chief Constable manages the estate on behalf of the Commissioner. The estate is comprised of police headquarters at Carleton Hall, larger police stations which include custody facilities, smaller police stations and a small number of residual police houses. The premises budget can be analysed as follows:
Description Paragraph 2020/21 2021/22 Increase Increase £'s £'s /(Decrease) /(Decrease) £'s %
Property Repairs & Maintenance A 831,272 831,272 0 0.00% Utilities B 1,127,856 1,159,222 31,366 2.78% Rent & Rates C 1,723,270 1,775,350 52,080 3.02% Cleaning & Domestic Supplies D 679,590 712,674 33,084 4.87% Other Premises Costs E 90,933 90,933 0 0.00%
Total 4,452,921 4,569,451 116,530 2.62%
Notes: This table provides a split of the premises budget by subjective heading. A brief summary of items included within each heading is provided below.
A. Property Repair & Maintenance includes both planned and reactive maintenance and grounds maintenance. Property repair and maintenance costs are based on a schedule of planned maintenance, the budgets for 2021/22 are the same as those in 2020/21 as a result of the inflation freeze applied during budget setting. B. Utilities includes gas, electricity, water and heating oil charges. Costs are showing increased costs as a result of increases in contract prices which are currently being experienced. C. Rent and Rates includes business rates (NNDR), property leases, room hire charges and PFI occupancy charges for the PFI building at Workington. The budget for 2021/22 includes a forecast increase in line with inflation and the actual rating assessment for the Eden Deployment Centre which was previously an estimated figure. D. Cleaning and Domestic Supplies includes building cleaning, window cleaning, refuse collection and clinical waste collection services. This increase in this category is largely as a result contract increases as a result of increased cleaning regimes in response to the coronavirus pandemic.
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E. Other Premises Costs include fire and security equipment maintenance, legal and valuation fees which have seen no increase for general inflation in 2021/22.
The Commissioner’s estate had an accounting value of £58m at 31/03/2020
An analysis of premises budgets by category of premises is provided below:
Description 2021/22 2021/22 Budget Budget £ % This table provides a split of the premises budget by category of Police HQ, Carleton Hall Penrith 1,354,569 30% premises. From the table and the chart below it can be seen Larger Police Stations with Custody and 2,512,403 55% that Police HQ and the 6 main Deployment Centres deployment centres account for Smaller Police Stations 304,543 7% 85% of the total budget. The Leased or Rented Premises 158,446 3% table overleaf provides a split of Police Houses 55 0% each category over individual Misc/Other 239,435 5% premises.
Total 4,569,451 100%
Police House – The PCC/Constabulary has one remaining police house in Kendal which is due to become surplus to requirements in 2021.
The chart below illustrates this graphically:
Police Houses, 55 , 0% Misc/Other, 239,435 , 5%
Leased or Rented Premises, 158,446 , 3%
Smaller Police Stations, 304,543 , 7%
Police HQ, Carleton Hall Penrith, 1,354,569 , 30%
Larger Police Stations with Custody and Deployment Centres, 2,512,403 , 55%
The following page includes a split of the premises budget on a site by site basis.
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Premises Related Expenditure Budget 2021/22 on Site by Site Basis
Property Property Utilities Rent & Cleaning & Other Grand Percentage Repairs & Rates Domestic Premises Total of Total Maintenance Supplies Costs
£ £ £ £ £ £ % Police HQ, Carleton Hall Penrith Headquarters : Carleton Hall Penrith 415,758 503,858 195,270 223,534 16,149 1,354,569 30% 415,758 503,858 195,270 223,534 16,149 1,354,569 30% Larger Police Stations with Custody and Deployment Centres Barrow : Andrews Way 66,092 120,210 174,535 90,048 2,052 452,937 10% Carlisle : Durranhill 115,827 185,051 309,735 101,755 2,253 714,621 16% Leaning & Development Centre 3,542 82,000 139,480 51,064 0 276,086 6% Kendal : Busher Walk 90,723 77,130 106,188 67,149 2,282 343,472 8% Whitehaven : Scotch Street 22,363 38,464 54,705 25,269 1,140 141,941 3% Workington : Hall Brow 20,863 85 558,669 3,729 0 583,346 13% 319,410 502,940 1,343,312 339,014 7,727 2,512,403 55% Smaller Police Stations Ambleside 4,238 2,668 3,859 1,352 144 12,261 0% Appleby 8,714 9,215 6,982 7,984 198 33,093 1% Brampton 5,381 10,399 8,034 9,666 146 33,626 1% Cockermouth (Allerdale Rural) 9,421 11,641 16,503 8,908 1,152 47,625 1% Kirkby Stephen 1,608 2,644 1,422 2,367 258 8,299 0% Lake Road Hostel, Windermere 1,410 1,860 1,872 0 0 5,142 0% Longtown 2,880 7,490 6,728 3,683 1,247 22,028 0% Penrith Hunter Lane & William Street 4,426 39,781 30,958 24,718 0 99,883 2% Windermere 11,891 8,170 9,023 12,789 713 42,586 1% 49,969 93,868 85,381 71,467 3,858 304,543 7% Leased or Rented Premises Alston : The Topps 2,502 3,463 9,975 1,666 38 17,644 0% Askham-in-Furness : Community Portacabin 0 911 314 0 0 1,225 0% Barrow Island Interview Suite 2,200 4,700 900 7,800 0% Carlisle : Shadygrove Road 2,927 4,487 12,585 8,343 331 28,673 1% Dalton-in-Furness : Drill Hall 70 0 4,400 1,249 0 5,719 0% Keswick Town Hall 0 0 3,238 0 0 3,238 0% Keswick Fire Station 47 0 0 0 0 47 0% Millom : Network Centre 0 0 7,727 833 0 8,560 0% Milnthorpe Lane End Farm 69 0 0 0 0 69 0% Sedbergh : CIO 72 Main Street 0 0 2,400 0 0 2,400 0% Specialist Services Accommodation 5,803 8,365 44,368 2,746 1,669 62,951 1% Ulverston Business Centre Offices 0 0 12,528 0 0 12,528 0% Wigton : Innovia Suite 0 0 7,592 0 0 7,592 0% 11,418 19,426 109,827 15,737 2,038 158,446 3% Police Houses
16 Hillswood Avenue, Kendal (to 2021) 55 0 0 0 0 55 0% 55 0 0 0 0 55 0% Misc/Other Carlisle : Northern Traffic Unit 33,662 31,993 18,153 7,737 1,207 92,752 2% Estate & Facilities - Forcewide 1,000 7,137 22,309 55,185 59,954 145,585 3% Kendal Calling 0 0 1,098 0 0 1,098 0% 34,662 39,130 41,560 62,922 61,161 239,435 5% Total 831,272 1,159,222 1,775,350 712,674 90,933 4,569,451 100%
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B4. Insurances During 2016/17 the Commissioner and Constabulary retendered and awarded long term agreements in respect of insurance which ran until 31 October 2019 with an option to extend for a further 2 years to 31 October 2021 which has been exercised. On an annual basis insurance policies are renewed based on current data. The increase in premiums between 2020/21 and 2021/22 in the main reflects an increase in the motor premium applied by the insurer.
B5. Local Government Pension Scheme (LGPS) Past Service Cost For the LGPS (police staff and PCSOs) the PCC/Constabulary are required to pay past service contributions with the aim to reduce the pensions’ deficit over the next 13 years. The amount paid is based on a calculation by the scheme actuary following an actuarial valuation of pension liabilities which is carried out on a three yearly basis. The most recent valuation was undertaken on 31 March 2019 and has provided an increase in the contribution rates (from 15.4% to 18.4%) and a reduced deficit reduction payment, both of which took effect from 1 April 2020. The next actuarial valuation will take place on 31 March 2022 with any new rates becoming effective from 1 April 2023.
B6. Provision for Insurance Liability The Commissioner makes an annual contribution to a provision for insurance liabilities. The provision covers costs associated with claims below the insurance policy excess levels and is based on a biennial actuarial valuation of those liabilities. The next review is due to take place in March 2022.
B7. Statutory Accounting Adjustments Statutory accounting adjustments relate to the mechanism by which capital grants are received through the revenue budget and are then transferred to capital grants unapplied until these are utilised to fund the capital programme. The capital grant received from the home office in 2020/21 amounted to £100k, the funding settlement for 2021/22 sees this figure reduced to £97k (a reduction of 2.52%).
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B8. Capital Financing Capital financing includes the following items:
Description Paragraph 2020/21 2021/22 Increase Increase £'s £'s /(Decrease) /(Decrease) £'s %
Direct Revenue Contrbutions (DRC) A 3,424,299 3,796,427 372,128 10.87% DRC - Use of Capital Reserves B 0 250,000 250,000 100.00% Minimum Revenue Provision C 606,265 628,655 22,390 3.69% Private Finance Initiative (PFI) Interest D 562,361 538,334 (24,027) -4.27%
Total 4,592,925 5,213,416 620,491 13.51%
Notes: A. The Commissioner makes annual contributions from the revenue budget to the funding of the capital programme. The annual contribution is currently set at £3.8m for 2021/22 which represents an increase from 2020/21 when it was £3.4m. The increase is mainly due to an additional contribution made to recognise that the police officer uplift programme will have implications for capital in the form of ICT requirements, additional vehicles and estates costs. The relevant capital requirements are still being worked through and until this work is completed an additional contribution has been made of £300k in 2021/22 and £500k in 2022/23. Additional contributions from partner organisations for specific aspects of the capital programme (e.g. CCTV, Sellafield vehicles) are also included in this line.
B. The Commissioner holds a number of reserves that have been earmarked for specific capital purposes. When these are applied to fund the capital programme the mechanism is for these to be cycled through the revenue budget. There is a corresponding opposite entry contained within the movements to/from reserves line. The budget is showing a capital reserve drawdown for 2021/22 of £250k which reflects the initial stages of the work to develop options for the estate in West Cumbria, the remainder of this scheme (£3.75m) is due to fall into 2022/23 and will see the reserve being extinguished.
C. The Commissioner has an underlying need to borrow which is known as the Capital Financing Requirement (CFR). In order to ensure that budget proposals are prudent, the Commissioner is statutorily required to make a Minimum Revenue Provision (MRP). The MRP can be likened to making the minimum payment on a credit card debt.
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D. The Commissioner has a 25 year PFI agreement in respect of the West TPA HQ at Workington. The arrangements for accounting mean that the interest element of the annual unitary change made by the PFI provider is treated as capital financing. The PFI arrangement was entered into in 2001 and is due to expire in August 2026, work is currently underway and a project team established to progress arrangements for the end of the PFI agreement.
B9. Grants & Contributions The Commissioner receives a number of grants and contributions from Central Government bodies and other partner organisations. The majority of this income is in respect of the pensions top up grant received from the Home Office. The table below provides an analysis of the budgeted income for 2021/22 with comparatives for 2020/21.
Description Paragraph 2020/21 2021/22 Increase Increase £'s £'s /(Decrease) /(Decrease) £'s %
Home Office - Police Pension Top Up A (24,923,000) (26,506,000) (1,583,000) 6.35% Home Office - Other B (2,924,091) (2,386,071) 538,020 -18.40% DCLG Grant - PFI Grant (687,708) (687,708) 0 0.00% DCLG Grant - Council Tax Freeze Grant (857,812) (857,812) 0 0.00% DCLG Grant - Council Tax Support Grant (3,991,947) (3,991,947) 0 0.00% Ministry of Justice (583,172) (583,172) 0 0.00% Home Office - Non Specific Capital Grant C (100,000) (97,482) 2,518 -2.52%
Total (34,067,730) (35,110,192) (1,042,462) 3.06%
Notes: A. This is the estimated amount that will be received from the Home Office in respect of the police Pensions Top-up grant. As it represents grant funding it is shown in the grant income receivable by the Commissioner.
The police officer pension scheme is an unfunded pension scheme which means that there are no assets held by the pension scheme to cover liabilities. The constabulary operates a Pension Fund Account for police pensions into which contributions from current serving police officers are paid (contribution rates between 11% and 15.05%) together with contributions from the constabulary as employer (at 31%). From this fund, pension payments to former police officers are made. The net balance on this pension fund account is a deficit and the Commissioner receives a Pensions Top-up
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Grant from the Home Office to balance the fund. The transfer of this grant to the police pension fund account is shown within the constabulary funding section below (see C2).
B. In 2020/21 the Constabulary received £1.4m additional funding to offset costs in relation to operation uplift, this grant has reduced to £800k in 2021/22. For the purposes of financial planning, it has been assumed that this grant will continue for the remainder of the MTFF, although it is likely to be incorporated into general formula funding once Operation Uplift is completed.
C. The Home Office Non Specific Capital Grant forms part of the annual funding settlement from the Home Office. The figure for 2021/22 is £97k and represents a further reduction on the amount received for 2020/21 of £100k.
B10. Interest/Investment Income The Commissioner invests surplus funds until these are required to fund operational requirements with financial institutions in accordance with the investment strategy (approved in February each year as part of his Treasury Management Strategy). The current forecast for investment income is based on the forecast sums available for investment and the most likely interest rate that will be achieved on those investments. The forecast income is relatively low due to the historically low bank base rate which was reduced first to 0.25% and then to 0.10% in March 2020 from its previous level of 0.75% which was set in August 2018.
Interst Rate 2020/21 2021/22 2022/23 2023/24 2024/25 Forecast £'s £'s £'s £'S £'s The reduction in forecast income during for future years reflects the assumed reduction as a result of a Quarter 1 0.10% 0.10% 0.10% 0.10% 0.10% reduction in overall balances Quarter 2 0.10% 0.10% 0.10% 0.10% 0.10% available for investment as capital Quarter 3 0.10% 0.10% 0.10% 0.10% 0.10% reserves are depleted. Quarter 4 0.10% 0.10% 0.10% 0.10% 0.10%
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Appendix C
Constabulary Funding
The largest portion of expenditure for the Commissioner (£142m in 2021/22) relates to funding provided to the Chief Constable by way of the funding arrangement. The funding provided by the Commissioner is set out in the table below and is analysed into subjective headings. More detailed analysis of the subjective headings is provided in the sections below (see C1-C10).
Description Paragraph 2020/21 2021/22 2022/23 2023/24 2024/25 £'s £'s £'s £'s £'s
Police Officer - Pay & Allowances C1 67,504,354 69,370,540 71,274,405 74,509,403 77,102,542 Police Officer - Contribution to Pension Fund Account C2 24,923,000 26,506,000 21,215,000 21,215,000 21,215,000 Police Officer - Ill Health & Injury Pensions C3 1,246,534 1,262,613 1,287,866 1,313,624 1,339,897 Police Community Support Officers C4 2,272,443 1,893,869 3,401,723 3,446,250 3,500,243 Police Staff - Pay & Allowances C5 24,259,557 25,287,149 25,670,289 26,782,226 27,536,250 Other Employee Benefits C6 1,745,039 2,211,809 2,527,656 1,947,545 1,986,496 Transport Related Expenditure C7 2,453,549 2,365,626 2,435,666 2,508,243 2,583,464 Supplies & Services C8 11,094,206 10,931,144 11,149,767 10,632,543 10,845,194 Third Party Related Expenditure C9 2,178,139 2,404,892 2,452,990 2,502,050 2,552,091 Gross Constabulary Expenditure 137,676,821 142,233,642 141,415,362 144,856,884 148,661,177 Income C10 (5,347,138) (5,260,984) (5,106,493) (5,158,104) (5,318,071)
Net Constabulary Funding 132,329,683 136,972,658 136,308,869 139,698,780 143,343,106
Third Party Related Transport Related Supplies & Services, Expenditure, £2,405, 2% Expenditure, £2,366, 2% £10,931, 8% Other Employee Benefits, £2,212, 1%
Police Officer - Pay & Police Staff - Pay & Allowances, £69,371, 49% Allowances, £25,287, 18%
Police Community Support Officers, £1,894, 1%
Police Officer - Ill Health & Injury Police Officer - Pensions, £1,263, 1% Contribution to Pension Fund Account, £26,506, 18%
Constabulary Gross Expenditure of £142m in 2021/22 (figures in £000s)
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In overall terms expenditure has increased from £137.7m in 2020/21 to £142.3m in 2021/22, an increase of £4.6m. Of the increase, £2.5m relates to increased police officer and police staff pay through a combination of increases in numbers as part of operation uplift and the full year effect of the September 2020 pay award (2.5%), police pensions £1.6m, with the balance being due a combination of a small amount of investment to improve productivity and efficiency and unavoidable commitments and price increases, which were otherwise capped at their 2020/21 levels.
C1. Police Officer Pay and Allowances Police officer pay and allowances account for the majority (49%) of the Constabulary budget. The budget is based on the current workforce plan. The budget for 2021/22 is based on a forecast 60 FTE increase in police officer numbers as part of Operation uplift. This figure is slightly more than the phase 2 Operation Uplift recruitment target of 49 officers, reflecting the workforce plan to recruit in advance of the final year of Operation Uplift, as this phase will be the most challenging to deliver. The workforce plan currently indicates that officer numbers will stand at 1,293 FTE by March 2022, which compares with an establishment of 1,120 FTE officers in 2017/18. The pay budgets for Police Officers only include the fully year effect of the September 2020 pay award of 2.5%, the chancellor announced a public sector pay freeze in 2021/22 in his autumn statement. The pay budgets in the remainder of the MTFF assume modest pay rises of 1.75% in 2022/23, 2.00% in 2023/24 and 2.25% in 2024/25.
C2. Contribution to the Police Pension Fund Account The Police Officer pension scheme is an unfunded pension, scheme which means that there are no assets held by the pension scheme to cover liabilities. The constabulary operates a Pension Fund Account for police pensions into which contributions from current serving police officers are paid (contribution rates between 11% and 15.05%) together with contributions from the constabulary as employer at 31%). From this fund, pension payments to former police officers are made. The net balance on this pension fund account is a deficit and the Commissioner receives a Pensions Top-up Grant from the Home Office to balance the fund. This line within the constabulary budget reflects the constabulary’s contribution to the pension fund account to meet this deficit. The grant itself is recorded within the Commissioner’s budgets (see Appendix B, line B9).
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C3. Ill Health & Injury Pensions The Constabulary has to meet the pension payments of police officers who have been required to be retired on an ill health or injury basis. The budget is made up of two main elements: • Injury Allowance of £782k, this represents the initial lump sum and ongoing pension payments made to officers who have been retired as a result of an injury on duty. • Ill Health pension capital equivalent charge £480k. When the constabulary is required, under police pension regulations, to retire an officer on ill health grounds, the constabulary has to meet a capital equivalent charge, this charge is equivalent to 2 years pay (approx. £80k). The budget is based on the assumption that there will be six ill health retirements per year.
All other pension payments are met by the Pension Fund Account (see above) which is funded from in year officer and employer contributions plus a top up grant from the Home Office.
C4. Police Community Support Officers The budget for Police Community Support Officers accounts for 1% of the Constabulary budget and is based on an establishment of 95 FTE posts. The budget recognises that under the workforce plan numbers of PCSOs are likely to continue to operate below the establishment during 2021/22. The pay budgets for PCSOs only include the fully year effect of the September 2020 pay award of 2.5%, the chancellor announced a public sector pay freeze in 2021/22 in his autumn statement. The pay budgets in the remainder of the MTFF assume modest pay rises of 1.75% in 2022/23, 2.00% in 2023/24 and 2.25% in 2024/25.
C5. Police Staff Police staff pay and allowances account for 18% of the Constabulary budget. Police staff budgets are based on the current workforce plan. The pay budgets for Police Staff only include the fully year effect of the September 2020 pay award of 2.5%, the chancellor announced a public sector pay freeze in 2021/22 in his autumn statement. The pay budgets in the remainder of the MTFF assume modest pay rises of 1.75% in 2022/23, 2.00% in 2023/24 and 2.25% in 2024/25.
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C6. Other Employee Benefits The other employee benefits budget covers a mix of individual budget lines. In the main these budgets have not automatically been subject to an inflationary increase. The proposed other employee benefits budget for 2021/22 and a comparison with that of 2020/21 is shown in the table below:
Description Paragraph 2020/21 2021/22 Increase Increase /(Decrease) /(Decrease) £'s £'s £'s %
Temporary & Agency Staff A 50,305 51,563 1,258 2.50% Staff & Officer Recruitment Costs 79,633 79,633 0 0.00% Staff Welfare Costs B 256,986 261,986 5,000 1.95% Employee Insurance 8,203 8,203 0 0.00% Police Staff Pension Additional Payments 67,441 67,441 0 0.00% Management of Change / Termination Costs C 0 282,533 282,533 100.00% Training & Conferences Expenditure D 961,471 1,023,608 62,137 6.46% Apprenticeship Levy E 321,000 436,842 115,842 36.09%
Total 1,745,039 2,211,809 466,770 26.75%
Notes: A. The Temporary and Agency staff budget provides funding to cover the incremental cost associated with providing temporary resources to cover in instances of parental leave or long term sickness.
B. The increase in staff welfare costs in 2021/22 reflects increases in relation to operation uplift. Staff welfare costs include, counselling, physiotherapy, ergonomists and other medical fees and tests.
C. Management of Change/Termination costs reflect a provision for potential costs associated with the restructure of the workforce as a result of a number of ongoing reviews.
D. The increase in training and conferences reflects increased demands for training as a result of operation uplift, increases operational training (some of which arises from training not undertaken in 2020/21 due to covid restrictions), and costs associated with the implementation of the police education qualification framework (PEQF). PEQF has required all police officer recruits to have a degree or join as an apprentice from January 2020.
E. The apprenticeship levy was introduced on 1 April 2017 and is set at 0.5% of the pay budget. The levy is paid into an electronic account and can be used to offset training costs.
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C7. Transport Related Budgets Expenditure on transport budgets accounts for approximately 2% of Constabulary expenditure. The transport budgets have not been uplifted for inflation in 2021/22. The proposed transport related budget for 2021/22 and a comparison with that of 2020/21 is shown in the table below:
Description Paragraph 2020/21 2021/22 Increase Increase /(Decrease) /(Decrease) £'s £'s £'s %
Vehicle Repair & Maintenance 784,714 784,714 0 0.00% Vehicle Fuel A 1,076,121 999,431 (76,690) -7.13% Vehicle Contract Hire & Operating Leases B 252,217 247,255 (4,962) -1.97% Car Allowances & Travel Expenses B 298,878 292,607 (6,271) -2.10% Transport Other 41,619 41,619 0 0.00%
Total 2,453,549 2,365,626 (87,923) -3.58%
Notes: A. The vehicle fuel budget has reduced as a result of it being rebased to reflect the current level of activity and fuel prices.
B. Vehicle Hire costs and car allowances are showing a slight reduction as a result of the budgets being realigned to reflect assumed activity levels in 2021/22.
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The vehicle fleet consists of 282 vehicles and can be broadly categorised as follows:
Fleet Summary Number of vehicles in category
Covert 14 Neighbourhood Policing 92 Fleet vehicle Specialist Vehicles 28 replacements are Dog Vehicles 10 provided through Motor Cycles 8 the capital Pool Cars 29 programme. The Protected personnel Carriers 9 current 10 year Roads Policing Vehicles 20 capital programme for fleet Crime Command 39 replacements Crime Scene Investigators 10 amounts to £13m Garage 6 Boat Chief Officer Pool 2 Partnership Vehicles 15 Total Fleet Vehicles 282
The vehicle fleet travels Cumbria officers check Cumbria has 4,784 approximately 5.3 on average 125 miles of roads of which million miles per year thousand vehicles per 76 are motorway. (reduced from 6.8m in year. 2010/11).
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C8. Supplies & Services Expenditure on supplies & services accounts for approximately 8% of Constabulary budgets. The majority of budgets have not automatically been increased for general inflation.
Description Paragraph 2020/21 2021/22 Increase Increase /(Decrease) /(Decrease) £'s £'s £'s %
Office Equipment, Furniture & Materials 234,721 226,741 (7,980) -3.40% Catering Contract 186,562 186,562 0 0.00% Clothing, Uniform & Laundry 501,316 493,879 (7,437) -1.48% Custody Costs 226,565 226,565 0 0.00% Forensics Costs A 856,869 769,841 (87,028) -10.16% Investigative Expenses 101,324 103,818 2,494 2.46% Police Doctors & Surgeons 1,372,818 1,384,089 11,271 0.82% Interpreters & Translators 47,022 47,022 0 0.00% Communications & Computing 5,164,431 5,139,085 (25,346) -0.49% Members Allowances / Expenses 8,993 9,132 139 1.55% Other Supplies & Services B 2,299,495 1,761,170 (538,325) -23.41% Printing Recharges 72,290 61,940 (10,350) -14.32% Catering Recharges 21,800 21,300 (500) -2.29% Covid Recovery & Renewal C 0 250,000 250,000 100.00% Innovation Fund D 0 250,000 250,000 100.00%
Total 11,094,206 10,931,144 (163,062) -1.47%
Notes:
A. The budget for Forensics has reduced as a result of a reduced level of samples being set away for forensic analysis.
B. Other Supplies and Services includes a variety of budget lines including accommodation and subsistence, legal costs, subscriptions, audit fees, operational equipment and accommodation, consultancy and efficiency savings. The reduction in Other Supplies & Services is made up of the removal of one off costs associated with the business transformation and business intelligences projects (£234k), savings made in the travel & accommodation budget as a result of changes to ways of working as a result of the covid pandemic (£125k) and the removal of the general budget contingency.
C. A covid recovery and renewal budget has been established to cover costs associated with the continued coronavirus pandemic, this is still to be determined in detail but may include staffing resources, increased overtime for patrols, minor changes to premises to promote the safety of the workforce and the provision of PPE.
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D. A Constabulary Innovation fund budget has been provided to provide budget capacity for pieces of work such as proof of concept projects and investment in continuous improvement with the aim of providing efficiencies and savings in the longer term.
C9. Third Party Related Expenditure on third party payments accounts for just 2% of overall Constabulary funding and covers a wide range of items.
Description Paragraph 2020/21 2021/22 Increase Increase /(Decrease) /(Decrease) £'s £'s £'s %
Collaborations & Co-Working 321,812 321,812 0 0.00% Outsourced Services A 188,426 125,762 (62,664) -33.26% Collaboration Payments B 839,992 991,279 151,287 18.01% Police National Computer / Database C 477,271 567,604 90,333 18.93% Other Third Party Payments D 331,983 358,435 26,452 7.97% Contribution to NPAS E 18,655 40,000 21,345 114.42%
Total 2,178,139 2,404,892 226,753 10.41%
Notes: A. The reduction in the Outsourced Services budget relates to an element of the payroll managed service contract being moved to the ICT software maintenance budget to reflect the split of the charge between a payroll bureau change and an element in respect of the managed service software charges.
B. The increase in collaboration payments reflects new collaborations in relation to ICT/Information Management with Durham and a NW Forces Forensics Collaboration.
C. The increase in Police National Computer/Database charges reflects an increase in Home Office National ICT charges.
D. The increase om Other Third Party Payments reflects a number of increased contributions to national policing initiatives.
E. The increased contribution to the National Police Air Service (NPAS) is based on a change to the allocation model used for allocating the cost of the national service.
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36 Agenda Item 08a NOT RESTRICTIVELY MARKED
C10. Income The Constabulary receives a relatively small amount of income each year, just 4% when compared with Constabulary gross expenditure. Income budgets have not been increased for general inflation in 2021/22.
Description Paragraph 2020/21 2021/22 Increase Increase /(Decrease) /(Decrease) £'s £'s £'s %
Local Government Funding - Specific Partnership (137,453) (151,104) (13,651) 9.93% Sale of Assets & Goods (286,228) (283,208) 3,020 -1.06% Fees & Charges - Public Fees (315,545) (298,924) 16,621 -5.27% Fees & Charges - Rental & Hire Charges (25,940) (25,940) 0 0.00% Fees & Charges - General A (1,169,088) (1,271,391) (102,303) 8.75% Private Hire - Single & Reccuring Events (172,659) (172,659) 0 0.00% Inter Force Reimbursements Incl. Collaboration (350,001) (354,659) (4,658) 1.33% Reimbursed Services - Other Public Bodies B (1,617,584) (1,389,729) 227,855 -14.09% Transport Trading Income (2,163) (2,163) 0 0.00% General Trading Income C (463,144) (520,330) (57,186) 12.35% Contributions & Reimbursements by Staff (1,784) (1,790) (6) 0.34% Proceeds of Crime (123,212) (113,212) 10,000 -8.12% Reimbursements of Licence Expenditure (15,300) (15,300) 0 0.00% Sources of Income from Other Forces (556,439) (564,794) (8,355) 1.50% Internal Recharges Income - Printing (86,598) (71,781) 14,817 -17.11% Internal Recharges Income - Catering (24,000) (24,000) 0 0.00%
Total (5,347,138) (5,260,984) 86,154 -1.61%
Notes:
A. The increase in fees and charges general income reflects forecast reimbursements in respect of the Collision Reduction Officers from the driver awareness funding.
B. The reduction in income in respect of reimbursed services other public bodies, is largely as a result a reduction of officers seconded to other bodies and the resultant loss of income.
C. The increase in General Trading Income relates to the forecast income we will receive as a supporting training provider for the new Policing Education Qualification Framework (PEQF).
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37 This page is intentionally left blank Agenda Item 8b Agenda Item 08b
Cumbria Office of the Police and Crime Commissioner
Title: Draft Capital Programme 2021/22 & Beyond
Police and Crime Panel: 28 January 2021
Report of the Joint Chief Finance Officer
Originating Officers: Michelle Bellis, Deputy Chief Finance Officer Lorraine Holme, Financial Services Manager
1. Purpose of the Report
1.1. The purpose of this report is to provide information on the proposed capital programme for 2021/22 and beyond, both in terms of capital expenditure projections and the financing available to fund such expenditure. The capital programme is developed in consultation with the Constabulary who are the primary user of the capital assets under the ownership of the Commissioner.
2. Recommendations
2.1. Police and Crime Panel members are asked to note the proposed capital strategy for 2021/22 and beyond as part of the overall budget process for 2021/22.
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39 Agenda Item 08b 3. Capital Funding and Expenditure
3.1. Local Authorities (including Police and Crime Commissioners) determine their own programmes for capital investment in non-current (fixed) assets that are essential to the delivery of quality public services. The Commissioner is required by regulation to have regard to The Prudential Code when carrying out his duties in England and Wales under part 1 of the Local Government Act 2003. The Prudential Code establishes a framework to support local strategic planning, local asset management planning and proper option appraisal. The objectives of the Prudential Code are to ensure: “within a clear framework, that the capital investment plans of local authorities are affordable, prudent and sustainable”. To meet these requirements, all schemes within the 4-year medium term capital programme are only approved on the basis that they are fully funded either through capital grants, capital reserves, capital receipts, revenue contributions or planned borrowing.
3.2. There are three main recurring elements to the Commissioner’s capital programme namely: Fleet Schemes, Estates Schemes and ICT Schemes. In addition to these, there are currently a small number of “other schemes” which do not fall into the broad headings above and in particular include the replacement of the countywide CCTV system and resources set aside to support the additional officers recruited through Operation Uplift.
3.3. The table below provides a high-level summary of the proposed capital programme and associated capital financing over the four-year timeframe of the medium term financial forecast (2021/22 to 2024/25).
Capital Expenditure Yr 0 Yr 1 Yr 2 Yr 3 Yr 4 2020/21 2021/22 2022/23 2023/24 2024/25 £ £ £ £ £
ICT Schemes 2,029,816 2,692,539 6,721,276 2,850,369 1,987,939 Fleet Schemes 2,096,670 1,768,374 1,085,280 1,185,600 897,184 Estates Schemes 311,794 300,000 7,710,000 5,600,000 310,000 Other Schemes 468,307 450,000 850,000 0 0
Total Capital Expenditure 4,906,587 5,210,913 16,366,556 9,635,969 3,195,123
Capital Receipts 0 0 (2,437,945) (532,606) 0 Contributions from Revenue (2,885,527) (3,796,427) (3,908,862) (3,405,881) (3,461,459) Capital Grants (2,021,060) (1,164,486) (2,869,749) (97,482) 0 Capital Reserves 0 (250,000) (3,750,000) 0 0 Borrowing 0 0 (3,400,000) (5,600,000) 0
Total Capital Financing (4,906,587) (5,210,913) (16,366,556) (9,635,969) (3,461,459)
(Excess)/Shortfall 0 (0) (0) 0 (266,336)
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40 Agenda Item 08b
3.4. The profile of capital expenditure fluctuates annually. Across the current ten-year programme, annual average expenditure typically comprises £1.3m to replace fleet vehicles and around £3.0m for replacement of ICT systems and equipment. The profile of Estates schemes is more ‘lumpy’, with peaks of expenditure when major buildings are replaced. ICT Expenditure reflects the Constabulary Strategy to invest in digital technology and the national programme to replace the Police Radio System (Airwave) with an Emergency Services Network (ESN). The diagram below shows the make up of the capital programme over 10 years.
3.5. A summary of the 10-year capital programme is provided for information at Appendix 1. The appendix shows that the capital programme is fully funded over the medium-term four-year period to 2024/25. The appendix also shows that in years 5-10 of the programme there are some shortfalls and deficits but overall the budget is balanced. This has been achieved through an increase in revenue contributions from year 5 (see paragraph 3.8). The estimates for 5-10 years are built on a number of assumptions, which, particularly in rapidly changing sectors such as ICT, are difficult to accurately predict. This means that project costs in the later years of the capital programme become increasingly indicative and should be treated with caution.
3.6. In relation to the financing of the capital programme, the Government’s grant settlements for 2020/21 and 2021/22 both included a reduced level of specific capital grant funding of £100k pa. However, additional funding for the recruitment of 20,000 additional Police Officers, known as Operation Uplift was integral to the settlement. The Policing Minister’s statement, which accompanied the settlement, made it clear that the additional revenue funding for Operation Uplift included a capital element to Page 3 of 16 Corporate Support / Financial Services / LVH & MB
41 Agenda Item 08b
support the infrastructure costs required to equip the additional officers in their roles. The money was deliberately directed to the revenue budget to provide forces with maximum flexibility to decide upon the most appropriate balance between officers and equipment to support Operation Uplift. A scheme totaling £800k (£300k 2021/22 and £500k 2022/23) for Operation Uplift has now been included in the programme, funded from the revenue budget. The detailed allocation of this budget will be decided during 2021/22, with a significant proportion likely to be allocated to vehicles.
3.7. As a result of the majority of capital expenditure being in relation to relatively short lived assets (e.g. ICT and fleet of up to 10 years’ life), choices for financing the capital expenditure are fairly limited. Borrowing for short-lived assets is not a viable consideration due to the requirement to set aside funds from the revenue budget for the repayment of debt over the life of the asset. Therefore, any future borrowing would have to be in relation to building projects with a life of 50 years. It can be seen in Appendix 1 that during 2022/23 and 2023/24 it is estimated that the Commissioner will need to borrow £9m. This is linked to an indicative scheme to improve the Commissioner’s estate in the west of the county. A full options evaluation exercise and formal report will be required before any firm decisions are made in relation to this project.
3.8. By the end of 2022/23 historic capital grant and general capital reserves will have been fully utilised. This, in combination with the reduced level of capital grant, means that the capital programme becomes more reliant on revenue contributions to support capital expenditure. Historically, the annual contribution from the revenue budget was set at £1.2m. The following increases have been approved since then • PCP Jan 2017 - Increase of £0.48m to £1.68m for 2018/19 and 2019/20 • PCP Jan 2017 – Increase of £1.3m to £2.98m for 2020/21 onwards - as accumulated capital reserves and grant are fully extinguished. • PCP Jan 2019 – Increase £0.3m to £3.28m from 2020/21. • PCP Feb 2020 – Increase £0.27m to £3.56m from 2020/21 (to replace lost grant –see above)
As described in paragraph 3.6 revenue support for the capital programme in 2021/22 and 2022/23 has been increased as a result of Operation Uplift. However, in the absence of other funding streams, there is a likelihood that the level of revenue budget support for the underlying capital programme will need to increase still further. The ten year capital programme in appendix 1 shows revenue support for the capital programme increasing to over £3.7m pa from 2025/26.
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42 Agenda Item 08b
The chart below illustrates capital expenditure and funding over a historic five year period and forecast for ten-year period which illustrates how the capital programme will become almost entirely dependent upon revenue funding in future:
Capital Programme - Historic 5 Year's outturns, Predicted 2020/21 outturn and 10 years forecast to 2030/31 18,000 16,000
14,000 12,000
10,000
£000's 8,000
6,000 4,000
2,000 0
Year
Capital Contributions Capital Capital Borrowing Expenditure Receipts from Revenue Grants Reserves
3.9. ICT Schemes The ICT Capital Programme primarily provides for the cyclical replacement and improvement of the full range of ICT equipment, hardware and application software to meet the strategic and operational needs of the Constabulary. However, over the period of the medium term financial forecast it also supports the Constabulary strategy to invest in technology to modernise the police service that is delivered to our communities. The Policing Vision 2025 issued by the APCC and NPCC seeks to transform the delivery of policing services and positions ICT as a key enabler of change. These plans for the future will be developed and managed locally within the work streams of Cumbria Vision 2025.
The ICT capital programme is supported by the Digital Strategy, an annual update of which will be presented to the Commissioner for approval at the Public Accountability Conference in February 2021 as part of the overall budget process for 2021/22.
The ICT Capital Programme also makes provision for a large number of national ICT programmes, which include changes of major strategic importance, in particular, the programme to replace the Police Radio System (Airwave) with an Emergency Services Network (ESN). The ESN scheme is included in the capital programme at the estimated cost of £3.0m over the four years of the MTFF and £7.4m over
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43 Agenda Item 08b
10 years. Details of requirements are still emerging and it won’t be clear as to the financial commitment needed locally until the Home Office release further information and devices are developed. The timescales for the project are constantly changing and it is likely to be the new financial year before we get any further clarity. These prudent commitments in the strategy place the Commissioner in a good position for any announcements. The replacement Airwave handsets will use different technology to the old radios and the Constabulary’s control room infrastructure has been upgraded so it is ready to support the connection to ESN.
The pandemic shifted the focus of ICT resources as they were quickly required to equip the workforce with hardware and a resilient network to allow for agile working at home. Whilst some projects were able to continue, the largest replacement in 2020/21 for the converged infrastructure had to be stalled. The pandemic has provided the Constabulary with an opportunity to assess the current agile working and look at how this will affect future working arrangements. This will help determine the ICT infrastructure that is needed to support a more agile future. The Infrastructure is currently a consolidation of server hardware in an on-site data center. The desire is to move away from this expensive hardware and towards cloud storage. This would be a managed software solution and would therefore be revenue expenditure but until such time that a ‘Proof of Concept’ provides us with a firm pathway to Cloud, the budget is provisioned for in capital. The budget has been reprofiled from the large server replacement each 4 years to an even budget across all 10 years to reflect more accurately the financing of a managed solution.
If these two large schemes are discounted, the programme shows that the ICT capital programme presented remains broadly flat over the 10 years at an average of £1.4m per annum. This provides for the cyclical replacement and improvement of the full range of ICT services: the networks and security and that ensures information can be moved securely between the different systems and device end points through which it is entered, processed and stored. It also covers local and mandated national police systems such as the main crime and intelligence system, command and control, forensics management, prisoner information systems, case and custody, including digital files for sharing with Criminal Justice partners and the police national data base that supports the sharing of information between forces. The Constabulary also maintains a range of ICT systems to manage corporate functions including financial transactions, human resources, payroll, fleet management, estates management, ICT support systems and training and learning systems. Over recent years significant investment in mobile and digital ICT has been undertaken, the capital strategy presented includes for the subsequent replacement of existing mobile devices as they reach end of life. Budgets for devices also provide for the costs of all the different technology used to access systems, including
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44 Agenda Item 08b
traditional desktop computers, laptops, tablets as well as the smartphones that use application technology (police apps), but importantly provide end user access to all systems and applications. Appendix 2 provides a high-level analysis of the ICT capital programme.
3.10. Fleet Schemes The constabulary fleet replacement programme consists of around 300 vehicles. The capital programme provides for the replacement and kit out of these vehicles on a periodic basis at the end of their useful life. The fleet schemes are supported by the fleet strategy, an annual update of progress against which will be presented to the Commissioner for approval at the Public Accountability Conference in February 2021 as part of the overall budget process for 2021/22. The fleet strategy sets out the constabulary fleet requirements over the coming years. The main aim of the fleet strategy is to provide a cost effective fleet service to meet the needs of operational policing. The majority of vehicles are procured through a national framework agreement which ensures value for money is achieved.
During 2020/21 85 vehicles were planned for replacement at an estimated cost of £2847k. Many these vehicles are to replace the ‘Single Vehicle platform’ that was rolled out in 2014/15. The conclusion was reached that there is no longer a single vehicle that meets all the requirements of the differing teams that use the vehicle and that a mix of cars and vans would be the most appropriate option. Unfortunately, due to the world wide pandemic production of vehicles largely ceased for a time, before beginning slowly again. This has meant that the lead time for delivery of some models has increased. Of the 85 vehicles planned for replacement, 79 have been ordered. Of these; 16 have been received, 39 are still expected before the year end and unfortunately 24 will now not be received until 2021/22. Following a few minor changes to the plan a total of 28 vehicles with a budget of £966k have been moved forward to 2021/22 to reflect these delays.
The plan for 2021/22 is to replace 37 vehicles with a budget of £772k. This is made up with a mix of operational vehicles for the Mobile and Pro-active Support Groups, several unmarked Area Drug Team vehicles and a number of pool vehicles. The budget has been created on pricing from current
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45 Agenda Item 08b
frameworks but at this point in time the effect of Brexit and trade negotiations is unknown, but the general feeling is that prices will increase.
Appendix 3 provides a high-level analysis of the fleet capital programme.
3.11. Estates Schemes The Commissioner’s estate currently consists of 30 premises (including police headquarters, larger police stations/Territorial Policing Area HQ, which include custody suites, smaller police stations, one police house, leased in and leased out property together with surplus assets subject to disposal). The estates schemes are supported by the estates strategy, an annual update of progress against will be presented to the Commissioner for approval at the Public Accountability Conference in February 2021 as part of the overall budget process for 2021/22. The estates strategy aims to provide a link between the strategic objectives of the organisation and priorities for the estate. The strategy outlines the current and future requirements of the estate and documents the changes that are required to meet these.
The main focus of the strategy in recent years has been the development of the new Eden Deployment Centre and replacement hostel accommodation on the HQ site at Penrith. In response to the Government announcement of investment in additional Police Officers (Operation Uplift) the property will be temporarily utilised as a Learning and Development Centre to support the increased level of police officer recruitment.
The emphasis shifts for the coming years to focus on improved premises in the west of the county in response to major flooding incidents in recent years, options for which will be developed over 2021/22. The west scheme accounts for the majority of the estates capital spend with some smaller items of life cycle replacement making up the difference, £13m out the £13.9m planned over the medium term. Beyond this, in the 10 year plan, the estates capital budget reduces significantly once the west scheme is complete, to leave on average £225k per year for replacement schemes. Appendix 4 provides a high-level analysis of the estates capital programme.
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3.12. Other Schemes Other schemes include cross cutting or operational programmes of work and include the replacement of Tasers and Firearms, works to expand and replace the Countywide CCTV system.
Also included in the is section is a scheme titled Operation Uplift. This scheme refers to the Governments decision to ‘uplift’ the number of officers in each Constabulary and as such they have provided additional revenue and capital grants to facilitate this growth. This funding will be required to make changes to the Estate, increase the vehicle Fleet and purchase the additional ICT equipment that each officer will require to undertake their roles. Detailed planning is underway to ascertain exactly where this funding is required but until that is complete it will be held in total as ‘other schemes’.
Appendix 5 provides a high-level analysis of the ‘other’ schemes.
4. Capital Receipts
4.1. Appendix 7 provides details of property disposals and the proceeds of those sales over recent years. The table shows total receipts of £4.769m. At 31 March 2020 there was a balance of capital receipts unapplied of £2.096m, this means that £2.673m have already been applied to the capital programme. The majority of the sales resulted from an estates rationalisation programme and those sale proceeds were used to finance the South Area Headquarters in Barrow.
4.2. The remainder of the capital receipts will be applied to the capital programme from 2022/23 as reserves and grants are extinguished.
5. Supplementary information
Attachments Appendix 1 Capital Expenditure and Financing 10 years 2021/22 to 2030/31 Appendix 2 ICT Schemes Appendix 3 Fleet Schemes Appendix 4 Estates Schemes Appendix 5 Other Schemes Appendix 6 Analysis of the change in Capital Strategy between February 2020 and December 2020 Appendix 7 Capital Receipts Breakdown 2009/10 to 2020/21
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47 Agenda Item 08b Appendix 1 Capital Expenditure and Financing 10 years 2021/22 to 2030/31
Capital Expenditure Yr 0 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr 1-10 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Total £ £ £ £ £ £ £ £ £ £ £
ICT Schemes 2,029,816 2,692,539 6,721,276 2,850,369 1,987,939 2,902,508 2,544,082 1,957,695 3,001,228 2,759,106 1,872,157 29,288,899 Fleet Schemes 2,096,670 1,768,374 1,085,280 1,185,600 897,184 709,560 2,430,890 1,386,000 1,917,480 746,460 1,071,440 13,198,268 Estates Schemes 311,794 300,000 7,710,000 5,600,000 310,000 350,000 245,000 170,000 155,000 320,000 105,000 15,265,000 Other Schemes 468,307 450,000 850,000 0 0 0 0 150,000 350,000 43,000 0 1,843,000
Total Capital Expenditure 4,906,587 5,210,913 16,366,556 9,635,969 3,195,123 3,962,068 5,219,972 3,663,695 5,423,708 3,868,566 3,048,597 59,595,167
Capital Financing Yr 0 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr 1-10 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Total £ £ £ £ £ £ £ £ £ £ £
Capital Receipts 0 0 (2,437,945) (532,606) 0 0 (1,161,674) 0 (649,935) 0 0 (4,782,160) 48 Contributions from Revenue (2,885,527) (3,796,427) (3,908,862) (3,405,881) (3,461,459) (3,716,600) (3,744,984) (3,769,840) (3,772,167) (3,711,965) (3,710,733) (36,998,916) Capital Grants (2,021,060) (1,164,486) (2,869,749) (97,482) 0 0 (292,446) 0 (194,964) (97,482) (97,482) (4,814,090) Capital Reserves 0 (250,000) (3,750,000) 0 0 0 0 0 0 0 0 (4,000,000) Borrowing 0 0 (3,400,000) (5,600,000) 0 0 0 0 0 0 0 (9,000,000)
Total Capital Financing (4,906,587) (5,210,913) (16,366,556) (9,635,969) (3,461,459) (3,716,600) (5,199,104) (3,769,840) (4,617,066) (3,809,447) (3,808,215) (59,595,167)
(Excess)/Shortfall 0 (0) (0) 0 (266,336) 245,468 20,868 (106,144) 806,642 59,120 (759,617) 0
A more detailed analysis of capital expenditure is provided at Appendices 2-5.
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Agenda Item 08b Appendix 2 ICT Schemes
ICT Summary Yr 0 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr 1-10 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Total £ £ £ £ £ £ £ £ £ £ £ £
ICT End User Hardware Replacement (002x) 388,606 1,000,068 961,666 348,084 813,579 643,628 446,621 698,538 661,125 881,714 450,871 6,905,894 ICT Core Hardware Replacement (003/004x) 496,414 2,205,003 1,687,400 1,868,050 964,110 1,447,719 1,014,347 1,380,748 2,283,899 991,478 1,514,254 15,357,009 ICT Core Infrastructure Replacement (projects) 933,400 280,423 2,615,383 382,378 99,325 1,210,336 1,416,831 106,397 308,750 1,250,695 112,909 7,783,428 ICT Infrastructure Solution Replacement (Projects) 211,396 207,045 456,827 251,857 110,925 113,033 115,239 117,488 277,081 122,120 124,503 1,896,117
Savings Target - 15% Year 5-10 (linked to ICT tech 0 0 0 0 0 (512,207) (448,956) (345,476) (529,628) (486,901) (330,381) (2,653,549) advances) General Prudent Slippage (linked to workloads and (1,000,000) 1,000,000 0 0 0 0 0 0 0 0 0 staffing levels) 49
Total ICT Summary 2,029,816 2,692,539 6,721,276 2,850,369 1,987,939 2,902,508 2,544,082 1,957,695 3,001,228 2,759,106 1,872,157 29,288,899
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Agenda Item 08b Appendix 3 Fleet Schemes
Fleet Summary Number of Yr 0 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr 1-10 Proposed Vehicles in 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Total Category £ £ £ £ £ £ £ £ £ £ £ £ Covert 14 72,328 79,674 26,520 78,000 91,160 21,600 66,660 51,520 85,500 99,760 23,600 623,994 Neighbourhood Policing 92 854,781 660,000 482,460 374,400 0 64,800 1,195,150 1,000,160 410,400 0 0 4,187,370 Specialist Vehicles 28 189,960 265,000 0 115,440 118,720 237,600 121,660 112,000 417,240 128,760 101,480 1,617,900 Dog Vehicles 10 80,661 280,000 0 0 0 75,600 269,500 0 0 0 82,600 707,700 Motor Cycles 8 15,000 0 0 0 0 152,280 0 0 0 0 17,700 169,980 Pool Cars 29 13,260 174,200 15,300 64,480 38,584 19,440 125,070 14,560 224,580 17,400 73,160 766,774 Protected personnel Carriers 9 183,600 0 244,800 0 0 0 132,000 0 205,200 0 283,200 865,200 Roads Policing Vehicles 20 618,000 174,000 40,800 312,000 434,600 79,920 374,000 112,000 353,400 433,840 165,200 2,479,760 Crime Command 39 15,300 30,000 0 202,800 114,480 58,320 114,400 33,600 0 0 283,200 836,800 Crime Scene Investigators 10 0 20,500 275,400 0 0 0 0 0 0 23,780 0 319,680 Garage 6 0 0 0 0 0 0 0 0 153,900 0 0 153,900 Chief Officer Pool 2 0 0 0 38,480 37,100 0 0 0 0 42,920 41,300 159,800
50 Above Strength Vehicles 16 0 0 0 0 0 0 0 0 0 0 0 0 Partnership Vehicles 15 53,780 85,000 0 0 62,540 0 32,450 62,160 67,260 0 0 309,410
Total Fleet Summary 298 2,096,670 1,768,374 1,085,280 1,185,600 897,184 709,560 2,430,890 1,386,000 1,917,480 746,460 1,071,440 13,198,268
Number of Vehicles Replaced Each Year 70 65 32 45 33 27 84 44 57 18 40
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Agenda Item 08b Appendix 4 Estates Schemes
Estates Schemes Yr 0 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 £ £ £ £ £ £ £ £ £ £ £ Existing Schemes Roof Repairs - Various Whitehaven Police Station 37,625 0 0 0 0 0 0 0 0 0 0 0 Kendal Police Station 56,249 0 0 0 0 0 120,000 0 0 25,000 0 145,000 Roof Repairs - HQ Dog section 70,000 0 0 0 250,000 0 0 0 0 0 0 250,000 Heating, Ventilation & Cooling Plant - Various Police Headquarters 0 0 0 0 0 300,000 0 0 0 200,000 0 500,000 Barrow HVAC 0 0 0 0 0 0 0 60,000 0 0 0 60,000 Other Existing Schemes UPS Durranhill 0 0 0 0 60,000 0 0 0 0 0 0 60,000 UPS HQ 100,000 0 0 0 0 0 0 0 30000 0 0 30,000 UPS Barrow 0 0 0 0 0 0 0 60,000 0 0 0 60,000 51 Garage Provision 0 0 500,000 0 0 0 0 0 0 0 0 500,000 Durranhill - Replacement CCTV system and cell call 0 0 0 0 0 50,000 0 0 0 0 0 50,000 Kendal CCTV and Cell Call 0 0 0 0 0 0 0 50,000 0 0 0 50,000 West Resilience Flood Management 0 250,000 7,150,000 5,600,000 0 0 0 0 0 0 0 13,000,000 Roof Repairs & Glazing - Durranhill 0 0 0 0 0 0 75,000 0 0 0 0 75,000 HQ Static invertor 0 0 0 0 0 0 0 0 50000 0 0 50,000 HQ window conservation 0 0 0 0 0 0 50,000 0 0 0 0 50,000 Durranhill heat and vent plant 27,920 0 0 0 0 0 0 0 0 0 0 0 Gas suppression cylinder replacements 20,000 0 0 0 0 0 0 0 0 25,000 0 25,000 Barrow CCTV camera replacement 0 0 0 0 0 0 0 0 35,000 0 0 35,000 Comms Centre Cooling plant life cycle replacement 0 0 0 0 0 0 0 0 0 70,000 0 70,000 Kendal M&E plant 0 0 0 0 0 0 0 0 20,000 0 0 20,000 Carlisle M&E plant (area 2) 0 0 60,000 0 0 0 0 0 20,000 0 0 80,000 Sub Total Existing Estates Schemes 311,794 250,000 7,710,000 5,600,000 310,000 350,000 245,000 170,000 155,000 320,000 0 15,110,000 New Estates Schemes 2021/22 Kendal - yr 10 electrical and plant infrastructure 0 0 0 0 0 0 0 0 0 0 50000 50,000 Durranhill curtain walling life cycles 0 0 0 0 0 0 0 0 0 0 30000 30,000 ELC life cycles 0 0 0 0 0 0 0 0 0 0 25000 25,000 Barrow - custody services to support digital roll out 0 50000 0 0 0 0 0 0 0 0 0 50,000 Sub Total New Estates Schemes 0 50,000 0 0 0 0 0 0 0 0 105,000 155,000
Total Estates Schemes 311,794 300,000 7,710,000 5,600,000 310,000 350,000 245,000 170,000 155,000 320,000 105,000 15,265,000 Page 13 of 16 Corporate Support / Financial Services / LVH & MB
Agenda Item 08b
Appendix 5 Other Schemes
Other Schemes Yr 0 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr 1-10 2021/22 onwards 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 Total £ £ £ £ £ £ £ £ £ £ £ £
CCTV 23,890 150,000 350,000 0 0 0 0 150,000 350,000 0 0 1,000,000 New CED migration (currently Taser X26) 302,055 0 0 0 0 0 0 0 0 0 0 0 Glock Pistol Replacement 45,167 0 0 0 0 0 0 0 0 0 0 0 Portable Ballistic Protective Equipment 0 0 0 0 0 0 0 0 0 43,000 0 43,000 Laser Scanning 58,191 0 0 0 0 0 0 0 0 0 0 0 Business Transformation 0 0 0 0 0 0 0 0 0 0 0 0 Operation Uplift 14,379 300,000 500,000 0 0 0 0 0 0 0 0 800,000 Operation Lecturn 24,625 0 0 0 0 0 0 0 0 0 0 0
52 Total Other Schemes 468,307 450,000 850,000 0 0 0 0 150,000 350,000 43,000 0 1,843,000
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Agenda Item 08b Appendix 6 Analysis of the change in Capital Programme between February 2020 and the December 2020 proposal.
Yr 0 Yr 1 Yr 2 Yr 3 Yr 4 4 Year 2020/21 2021/22 2022/23 2023/24 2024/25 TOTAL £ £ £ £ £ £
Capital Strategy - Approved (February 2020) 7,552,976 8,035,056 10,884,805 8,358,113 3,477,887 30,755,861 Capital Strategy - Proposed (December 2020) 4,906,587 5,210,913 16,366,556 9,635,969 3,195,123 34,408,560 Difference (decrease)/Increase (2,646,389) (2,824,143) 5,481,751 1,277,855 (282,764) 3,652,699
Difference by Type - ICT Schemes (2,238,548) (1,771,496) 3,191,161 1,063,391 (144,408) 2,338,648 - Fleet Schemes (750,150) 992,353 (384,410) 214,464 (138,356) 684,051 - Estates Schemes 29,169 (1,775,000) 1,825,000 0 0 50,000 - Other Schemes 313,140 (270,000) 850,000 0 0 580,000 Difference (decrease)/Increase (2,646,389) (2,824,143) 5,481,751 1,277,855 (282,764) 3,652,699
Explanation of the Difference by Type - ICT Schemes Realignments Current Year (2,547,894) 1,380,198 1,393,441 2,773,638 Realignments Future Years 448,488 (600,592) (152,105) New Scheme 104,265 0 0 0 0 0 Transfer From Revenue 12,269 0 0 0 0 0 Transfer to Revenue 192,812 0 0 0 (512,025) (512,025) Changes to Infrastructure (smoothing) 0 (1,629,494) 700,000 502,284 800,000 185,159 Changes to Tablet repacements (smoothing) 0 (522,200) 97,720 112,620 168,209 (260,850) New Year 0 Prudent Slippage (1,000,000) 1,000,000
- Fleet Schemes Price Correction 0 0 1,500 0 0 1,500 Slippage from 19/20 130,354 0 0 0 0 0 Previously approved SVG/COG report changes (63,300) (185,000) (100,000) 300,000 50,000 65,000 Motorcycle replacement B/Fwd 15,000 0 0 (15,000) 0 (15,000) Effect of previous Write Offs 111,461 0 0 0 (70,000) (70,000) Mileage Issues B/Fwd 0 281,200 (224,000) (44,200) 0 13,000 Slippage to 2021/22 (926,000) 926,000 0 0 (75,000) 867,000 Inflation (17,665) (29,847) (61,910) (26,336) (43,356) (161,449)
- Estates Schemes Kendal Police Station 1,249 0 0 0 0 0 Garage Provision 0 (500,000) 500,000 0 0 0 West Resilience Flood Management 0 (1,325,000) 1,325,000 0 0 0 New Schemes Added in 0 50,000 0 0 0 50,000 Slippage from 19/20 27,920 0 0 0 0 0
- Other Schemes CCTV 23,890 (350,000) 350,000 0 0 0 New CED migration (currently Taser X26) 192,055 (220,000) 0 0 0 (220,000) Laser Scanning 58,191 0 0 0 0 0 Operation Uplift 14,379 300,000 500,000 0 0 814,379 Operation Lecturn 24,625 0 0 0 0 24,625
Difference (decrease)/Increase (2,646,389) (2,824,143) 5,481,751 1,277,855 (282,764) 3,652,699
Difference left to explain 0 0 0 0 0 0
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53 Agenda Item 08b Appendix 7 Property Disposals – Details of Sale Proceeds Net Capital Year Premises Sold Receipts £ 2020/21 At the time of writing this report there had been no 0 funds received for any premises sold. 2019/20 There were no property sales 0 2018/19 Police House -39 Liddle Close Carlisle 156,454 2018/19 Ulverston Police Station 490,963 2017/18 Cleator Moor Police Station 103,061 2017/18 Barrow Police Statation 439,639 2016/17 Police House - 21 Thornleigh Road 260,630 2016/17 Maryport Police Station 78,505 2015/16 Police House 11-12 The Green, Penrith 57,994 2015/16 Wigton Police Station 182,955 2015/16 Ambleside Police Station 315,369 2013/14 Dalton in Furness Police Station 118,244 2013/14 Keswick Police Station 327,000 2012/13 Kirkby Stephen Police Station & House 149,143 2012/13 Police House - 3 Centurians Walk, Carlisle 172,673 2012/13 Police House - 4 Allan Court, Workington 171,400 2012/13 Alston Police Station 164,877 2012/13 Ambleside Police Station 139,247 2012/13 Cockermouth Police Station 238,387 2012/13 Millom Police Station 43,956 2012/13 Milnthorpe Police Station 139,240 2012/13 Sedbergh Police Station 88,672 2011/12 Police House - Durdar 147,930 2011/12 Police House - 12 Derwent Drive Kendal 181,557 2011/12 Police House - 10 Clifton Court, Workington 123,680 2010/11 Police House - 52 Whitestiles, Seaton 113,576 2010/11 Police House - 6 Helsington Road, Kendal 213,332 2009/10 Police House - 3 Derwent Drive, Kendal 150,143 Please note there were no property disposals in 2014/15 0
Total 4,768,625
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54 Agenda Item 8d Agenda Item 08d
Cumbria Office of the Police and Crime Commissioner
Police and Crime Panel 28th January 2021
Precept Proposal and Medium Term Budget 2021/22 to 2024/25 Report of the Joint Chief Finance Officer
1. Purpose of the Report 1.1. The purpose of this report is to provide for members of the Police and Crime Panel an overview of the medium term financial outlook. It includes the proposal for the precept that the Commissioner is presenting to the Panel for their views as part his budget setting process. This report comprises a high level analysis of the overall financial position in support of the precept proposal. Further detail and analysis on revenue and capital budgets and supporting information is provided in a series of accompanying separate reports on the agenda.
2. Precept Proposal 2.1. The precept proposal for 2021/22 is for an increase in precept of 2.47%. This is an increase of £6.57 per annum for a band D property and takes the total police element of the precept at band D to £272.16.
2020/21 Council Tax Proposed 2021/22 Precept Band D Council Amount Amount Increase Increase The Band D precept is proposed to Tax Band £s £s £s % increase to £272.16 which equates to £5.23 per week or £0.75p per day. Band A 177.06 181.44 4.38 2.47% Band B 206.57 211.68 5.11 2.47% Band C 236.08 241.92 5.84 2.47% Band B Band D 265.59 272.16 6.57 2.47% In Cumbria the largest number of Band E 324.61 332.64 8.03 2.47% properties fall into Band B. For that band, the precept is proposed to Band F 383.63 393.12 9.49 2.47% increase to £211.68 which equates to Band G 442.65 453.60 10.95 2.47% £4.07 per week or £0.58p per day. Band H 531.18 544.32 13.14 2.47%
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55 Agenda Item 08d
2.2. For members information a survey of the precept intentions undertaken by the Police and Crime Commissioners Treasurers Society in early January indicated that the average council tax increase being proposed was £13.48, with 20 out of 29 Commissioners who responded expected to increase council tax by or close to the maximum allowed figure of £15. A further update will be provided at the Panel meeting.
2.3. Of the further sections within this report, and in support of this proposal, section three summarises for members for 2021/22 the main areas of income and expenditure within the budget, including the contribution made by council tax. Section four sets out the medium term financial position, explaining the gap between income and expenditure, this being a significant factor influencing the precept proposal. Section five highlights the actions being taken to address the potential real terms reduction in the level of financial resources that will be available to police Cumbria beyond 2022/23, when Operation Uplift is completed. Finally, section six summarises some of the wider financial risks within the budgets.
3. The 2021/22 Budget
3.1. The net budget requirement comprising expenditure by the Police and Crime Commissioner and the Constabulary for 2021/22 is £115.410m. This is the total net expenditure funded externally by income from the Home Office Police Grant and Council Tax. It represents a real terms increase of income of 4.73% compared to 2020/21. The table and charts below set out the main areas of consolidated expenditure and income for the Commissioner and Constabulary.
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56 Agenda Item 08d Medium Term Budget 2020/21 2021/22 2022/23 2023/24 2024/25 2021 - 2025 £000s £000s £000s £000s £000s
Police Pay - Police Officer Pay & Allowances 67,504 69,370 71,274 74,509 77,102 Police Pay - Contribution to Pension Fund A/c 24,923 26,506 21,215 21,215 21,215 Police Pay - Ill Health & Injury Pensions 1,247 1,262 1,288 1,314 1,340 PCSO Pay 2,272 1,894 3,402 3,446 3,500 Staff Pay 24,925 25,972 26,362 27,487 28,256 Other Employee Costs 1,750 2,217 2,533 1,953 1,992 Premises Costs 4,454 4,571 4,679 4,793 4,910 Transport Costs 2,458 2,369 2,439 2,512 2,587 Supplies & Services 11,213 11,061 11,282 10,767 10,983 Third Party Expenditure 2,194 2,416 2,464 2,514 2,564 LGPS Past Service Costs 22 22 23 23 24 Insurances/Management of Change 728 909 920 931 943 Commissioned Services 2,250 2,216 2,216 2,216 2,216 Accounting and Financing Costs 4,693 5,311 8,921 4,665 4,895 Contributions to Reserves Revenue 96 96 96 46 46 Total Expenditure 150,729 156,192 159,114 158,391 162,573
Funded by Home Office Pension Top Up Grant (24,923) (26,506) (21,215) (21,215) (21,215) Other Grants & Contributions (9,145) (8,604) (8,611) (8,620) (8,629) Sales, Fees, Charges & Rents (5,347) (5,261) (5,108) (5,158) (5,319) Interest/Investment Income (96) (10) (10) (10) (10) Revenue Reserves Drawdown (1,019) (151) 0 0 0 Capital Reserves Drawdown 0 (250) (3,750) 0 0 Formula Grant (64,429) (68,491) (72,570) (72,570) (72,570) Council Tax Income (45,770) (46,919) (47,850) (48,797) (49,759) Total Income/Funding (150,729) (156,192) (159,114) (156,370) (157,502)
Net Savings Requirement 0 0 0 2,021 5,071
Police Officer Pay The Constabulary maintains a Police Pension The figure in the table above for Police Officer Pay Fund Account. From this account pension payments to former police officers are made. amounts to £97.138m. This can be divided into 3 segments: The payments are funded by employers and • Police Pay and Allowances £69.370m, this employee contributions from serving police officers and a top up grant received from the includes salary and allowance payments made to police officers and employers Home Officer (see separate line within income contributions in respect of police pensions analysis). (at a contribution rate of 31% which amounts to £14.1m in 2021/22).
• Police Pensions Top Up Grant Transfer LGPS Past Service Cost £22k £26.506m which represents the transfer of For the Local Government Pension Scheme Home Office Police Pension Top Up Grant (LGPS) which is the pension scheme for police to the Police Pension Fund Account. staff and PCSOs, the PCC/Constabulary are • Ill Health/ Injury Pensions of £1.262m required to pay past service contributions with (explanation on page 4). the aim to reduce the pension deficit over the
next 13 years. Page 3 of 16
57 Agenda Item 08d
The total expenditure for 2021/22 is shown graphically in the table below:
Expenditure 2021/22 £156.192m (figures in chart £m)
LGPS Past Service Costs, Insurances/Management of Commissioned Services, Accounting and £0.022, 0% Change, £0.909, 1% £2.216, 1% Financing Costs, £5.311, Third Party Expenditure, 3% £2.416, 2% Contributions to Supplies & Services, Reserves, £0.096, 0% £11.061, 7% Transport Costs, £2.369, 2%
Premises Costs, £4.571, 3%
Other Employee Costs, £2.217, 1% Police Pay, £69.370, 44%
Staff Pay, £25.972, 17%
PCSO Pay, £1.894, 1% Police Ill Health & Injury Police Pensions - Top Up Pensions, £1.262, 1% Grant, £26.506, 17%
Police Ill Health & Injury Pensions £1.262m These payments relate to officers that the Constabulary has been required to retire on ill health/injury grounds under pension regulations. These costs fall to be met by the Constabulary rather than the pension fund. The budget is made up of two main elements: Injury Allowance £0.782m, this represents the initial lump sum and ongoing payments made to officers who have been retired as a result of an injury on duty. Ill Health pension capital equivalent charge £0.480m, whenever the Constabulary is required to retire an officer on ill health grounds, the Constabulary has to meet a capital ill health charge in respect of pensions. This payment amounts to approximately 2 years pay per officer (£80k). The budget assumes that there will be six such retirements in 2021/22.
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58 Agenda Item 08d
The total funding and income for 2021/22 is shown graphically in the table below:
Income/Funding 2021/22 £156.192m (figures in chart £m)
Home Office Pension Top Up Grant, £26.506, 17%
Other Grants & Contributions, £8.604, Council Tax Income, 6% £46.919, 30%
Sales, Fees, Charges & Rents, £5.261, 3%
Interest/Investment …
Revenue Reserves Drawdown, £0.151, 0%
Capital Reserves Formula Grant, £68.491, Drawdown, £0.250, 0% 44%
3.2. The significant proportion of expenditure within the 2021/22 budget provides for the costs of policing within Cumbria. The current budget aims to provide the Chief Constable with a net expenditure budget of £136.973m. This provides for an anticipated 1,233 FTE officers at the start of 2021/22, rising to 1,293 FTE officers by the 31st March 2022. This increase of 60 officers is slightly more than the target for Cumbria to recruit 49 officers in phase 2 of Operation Uplift and reflects the Constabulary’s intention to begin recruitment to Phase 3 of Uplift in advance, as the final year of the programme as this will be the most challenging to deliver. The MTFF provides for an establishment of 95 PCSO’s, the budget for 2021/22 reflects the fact that actual numbers will be operating below the establishment during the coming year.
Constabulary Net Budget 2021/22 Expenditure £142.234m.
Earned Income (£5.261m) Net Budget (£136.973m)
The chart on the next page provides an illustration of the main areas of constabulary spend with a brief description of each item. It demonstrates that the majority of expenditure is on operational policing or services which directly facilitate it. Page 5 of 16
59 Agenda Item 08d
Local Policing – neighbourhood policing, incident management, community liaison, local command team and support overheads. Police Pensions – this reflects the constabulary’s contribution to the police pension fund account to meet the pension deficit. A top up grant from the Home Office to offset this amount is received by the Commissioner. Crime, Intelligence, Investigations and Public Protection - crime support command team and support overheads, major investigations unit, economic crime, serious and organised crime unit, public protection, local investigation, central intelligence, intelligence/threat assessments, covert policing, scenes of crime officers, external forensic costs, fingerprint/DNA bureau, photographic image recovery and other forensic services. Information Communication Technology – includes the cost of the provision and support of a wide range of computer and communications systems to operational policing. Criminal Justice Arrangements – custody/prisoner handling, criminal justice arrangements, Police National Computer, civil disclosure/criminal records bureau, coroner assistance, fixed penalty scheme/central ticket office. Support Services – includes costs associated with providing business support to operational policing including HR, finance, legal, procurement, fleet, estates, press and media. Dealing with the Public – local call centre/front desk, central communications unit. Other Operational Policing – providing support to operational policing which includes transport costs, force command, professional standards and training. Road Policing – traffic units, vehicle recovery, road safety partnership. Specialist Operations – central operations command team and support overheads, underwater search/marine support, dogs sections, level 1 advanced public order, firearms unit, civil contingencies.
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60 Agenda Item 08d 3.3. The balance of expenditure within the budget is managed by the Police and Crime Commissioner. The Commissioner’s budgets include all the specific grants received from government and in overall terms, is a net income budget. It also includes expenditure on behalf of both the Commissioner and the Constabulary, for example the cost of the property estate, insurances and the capital financing that funds the capital programme to provide the ICT and fleet needed to deliver policing. The chart below sets out forecast income and expenditure for 2021/22.
Commissioner's Net Budget 2021/22 £21.257m Interest/investment Income Grants & Contributions Commissioner’s Net Budget Accounting, Treasury and Financial 2021/22 LGPS Past Service Cost Expenditure £13.863m. Insurances Income Premises Related Costs (£35.120m) Net Budget Commissioned Services (£21.257m) Commissioner's Office
-£40 -£30 -£20 -£10 £0 £10 £m
3.4. Further detail on the Commissioner’s budgets and the funding provided to the Constabulary, including the capital programme, is set out in the separate reports on this agenda. Appendix A provides the overall financial position for the next four years, setting out a summary of Constabulary budgets, the Commissioner’s budgets, the use of reserves to fund this expenditure and the budget requirement funded by formula grant and council tax.
3.5. The 2021/22 budget includes a proposed increase in council tax of £6.57, arising from the Commissioner’s precept proposal. The precept proposal for 2021/22 is for an increase in precept of 2.47%. This is an increase of £6.57 per annum for a band D property and takes the total police element of the precept at band D to £272.16.
3.6. The most significant feature of the 2021/22 Home Office grant settlement was the Government’s continued commitment to recruit an additional 20,000 officers nationally by the end of the 2022/23 financial year, known as Operation Uplift. The recruitment target for the second phase of the plan in 2021/22 was moderated slightly from 8,000 to 6,000 officers, however there are strong indications from the Home Office that achievement of the original plan remains a key policy objective. Accompanying the headline policy announcement was a package of additional funding amounting to £415m, which was more favourable than anticipated. This was designed to enable forces not only to meet the salary costs of the additional officers but also those of police staff in enabling roles, non-staff costs and capital.
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61 Agenda Item 08d
3.7. Operation Uplift funding has had the effect of increasing grant funding to Cumbria by £3.461m in 2021/22, of this figure £0.8m is conditional upon achievement of the officer recruitment target at a local level. This additional grant funding has been largely committed to support the workforce plan in recruiting and training an additional 60 police officers in 2021/22 and associated costs. The grant settlement makes little or no allowance for the effect of pay and price inflation on the cost of providing existing policing services. In the short term, the precept proposal therefore seeks to address the real terms funding reductions over recent years, to enable the budget to be balanced without cutting services, whilst in the medium term contributing to the sustainability of the enhanced officer numbers.
3.8. The pay award for both police officers and staff in 2020 was 2.5%. In his autumn statement in December 2020, the chancellor announced a public sector pay freeze for 2021/22 and as such the detailed budget for 2021/22 contains only the full year effect of the 2020/21 pay award. The MTFF for future years assume pay rises of 1.75% in 2022/23, 2.00% in 2023/24 and 2.25% in 2023/24. The budget for 2021/22 does not include any automatic increases for general (non pay) inflation, from 2022/23 general inflation of 2% per annum is made within the forecast along with 5% for fuel. Whilst there may be a short term hiatus during the current pandemic, there is likely to be continued upward pressure on expenditure budgets over the medium term. Every effort is made to manage budgets including the Constabulary’s Star Chamber process, which zero bases non staff expenditure, and detailed assessment of vacant posts prior to granting approval to recruit. However, after implementing these measures for several years the ability to fully offset the inflationary pressures described above without impacting on services is limited.
3.9. The Police and Crime Commissioner was given the power to increase council tax precepts by up to £15 (5.65%) and many Commissioners have indicated their intention to fully exercise this power. In determining the proposed increase in council tax for Cumbria the Commissioner has aimed to balance support for the Constabulary in its efforts to maintain performance and keep Cumbria safe with a recognition of the financial pressures being experienced by many residents of the County as a result of the covid-19 pandemic. The Commissioner is therefore proposing a lower increase of £6.57 per annum for a Band D property, which equates to a rise of 2.47%. Council tax increases, in combination with judicious use of reserves to support the budget, will help to manage budget pressures and therefore maintain services at a higher level than would otherwise be the case. However, under current financial assumptions there will still be a need to identify savings beyond 2022/23 to balance the budget over the period of the medium term financial forecast period.
4. The Medium Term Financial Forecast 2021/22 to 2024/25
4.1. Over the life of the medium term financial forecast the net cost of policing services (constabulary funding – Appendix A) is estimated to increase by £6.370m from the 2021/22 budget of £136.973m to £143.343m by 2024/25. This is because of the impact of increased officers and inflation on salary and supplies and services Page 8 of 16
62 Agenda Item 08d costs, in addition to the cost of pensions. Police pension’s costs fluctuate year on year and, to a large degree, will be funded by a central government grant. Whilst other costs are subject to increase, work during the budget process has been undertaken to challenge requirements and reduce cost. As outlined in paragraph 3.8 above, inflation on salary costs is provided for within the life of the medium term forecast at 0% in 2021/22 (reflecting the public sector pay freeze), 1.75% in 2022/23, 2.00% in 2023/24 and 2.25% in 2024/25. Inflation on supplies and services was largely removed for 2021/22, as an internal efficiency target for budget-holders, which will be re-invested in continuous improvement and is provided for at 2% in line with Bank of England forecasts for the remainder of the MTFF. Significantly, all budgets have been rigorously challenged through a Star Chamber of senior officers and, where appropriate, zero-based.
In the context of the likelihood that Covid-19 pandemic will have a catastrophic impact on the national finances and the further postponement of the next Comprehensive Spending Review, the grant funding outlook beyond 2021/22 remains highly uncertain. Given the Government’s continued assertion that it remains committed to Operation Uplift it has been assumed that grant income in 2022/23 will include a pro-rata increase for phase 3 of Operation Uplift, which has been corroborated by the NPCC finance lead on the recruitment programme. Excluding the effect of Operation Uplift, a prudent assumption that core formula grant funding will be maintained at its 2021/22 cash level over the duration of the forecast has been made, which is consistent with recent Government policy. The effect is that once Operation Uplift has been completed in 2022/23 formula grant will remain at flat cash. It has also been assumed that the pension grant of £1.2m which is currently only guaranteed on a year by year basis will be retained. In relation to council tax, for planning purposes an increase of 2.47% has been assumed for 2021/22, in line with the Commissioner’s precept proposal, after which annual increases of 2% are assumed. These increases will be subject to further consultation with the Chief Constable, Police and Crime Panel and public.
The Commissioner has yet to receive information on council tax-bases and collection fund information from all District Councils. Given the uncertain impact of the pandemic on the local economy this has the potential to impact negatively on the budget in 2021/22 and in future years. For the purposes of preparing this report it has been assumed that there will be no change in either the council tax-base or any collection fund surpluses or deficits over the duration of the forecast. There is some assurance that Government funding will mitigate this risk, at least in the short term. A further update will be provided at the Panel meeting.
Under the financial assumptions described above, the table below illustrates that the proposed increases in council tax, would enable the budget to be balanced up to 2022/23. After this point, the combination of the impact of incremental growth in salary costs and inflation relative to funding, the increasing need to fund capital expenditure from the revenue budget and pension cost increases give rise to a budget deficit of just over £5m by 2024/25.
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63 Agenda Item 08d
Description 2020/21 2021/22 2022/23 2023/24 2024/25 £'s £'s £'s £'s £'s
Commissioner's Budgets (21,207,143) (21,257,441) (12,233,710) (16,355,838) (15,988,162) Constabulary Funding 132,329,683 136,972,658 136,308,869 139,698,780 143,343,106 Movement to /(from) Revenue Reserves (923,057) (55,363) 95,634 45,634 45,634 Movement to /(from) Capital Reserves 0 (250,000) (3,750,000) 0 0 Net Expenditure 110,199,483 115,409,854 120,420,793 123,388,577 127,400,579
Funding Formula Grants/Funding (64,429,188) (68,490,485) (72,570,485) (72,570,485) (72,570,485) Council Tax (45,770,295) (46,919,369) (47,850,309) (48,796,764) (49,758,735) Net Deficit / Savings Requirement 0 0 (0) 2,021,327 5,071,358
4.2. The favourable funding settlement for 2021/22 has mitigated the risk of having to draw down reserves to balance the budget in the short term. However, in light of current demands on policing and enhanced scrutiny of the level of reserves held by policing bodies by central government, the Commissioner intends to make judicious use of reserves as a financial management tool. This will potentially involve support both the revenue budget and capital programme, balanced against the need to retain some reserves to provide financial resilience to meet the costs of unexpected future events. A reserves plan is shown as Appendix B of this report.
5. Resourcing Implications of addressing the medium-term deficit
5.1. The Constabulary continues to work with the Commissioner to develop plans to deliver a number of strategic options for savings. The savings that need to be made over the life of this medium-term financial forecast are in addition to savings of over £26m that have been delivered since 2010. Proposals need to address the potential future gap in funding but also the changing nature of police demand. Extensive work has been undertaken in recent years to understand the impact and resource implications of changing demand on police services and this is reviewed annually.
5.2. Members will be aware from previous reports that the Constabulary developed its Vision 2025 Strategy, which is aligned to the national policing vision and aims to equip the force to deal with the emerging threats and challenges over the next decade. There are five key strands of the strategy, namely local policing, specialist capabilities, workforce, digital policing and business support, each of which is supported by objectives and a detailed work-plan. In 2020/21 work-streams within Vision 2025 were further developed, recognising that sustainability will be critical to the ultimate success of the strategy.
As part of the budget preparation process for 2020/21 a Change and Benefits plan has been developed and considered by both the Constabulary Chief Officer Group and the Commissioner’s Executive Team. Potential
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64 Agenda Item 08d opportunities to deliver savings and efficiencies with the aim of balancing the budget have been identified from aggregating functions to provide greater capacity, changing the workforce mix, making better use of management information, and, in particular, ensuring that benefits are realised from investment in new technology. Of particular note has been the re-negotiation of the contract for Airwave radio services, which is expected to deliver savings of around £0.5m per annum.
5.3. It should be noted that with officers pay and other costs driven by officer activity constituting over 70% of the budget, Operation Uplift effectively constrains the ability to deliver cash savings in large parts of the budget. This means that future savings will need to be found from relatively small areas of the budget, many of which have already been reduced.
6. Risks and Issues
6.1. When considering the risks and issues which may impact on the medium term financial forecast, the impact of Covid 19 on both operational policing and finances is key emerging issue. A consequence of the pandemic has been to further delay publication of the Government’s Comprehensive Spending Review which will be crucial in determining the future direction of funding for policing and to slow progress on a number of other issues presenting financial challenges. As a result, there remains an element of deja-vu in this section of the report. Whilst the provision of generous funding for Operation Uplift has eased the immediate financial pressures on the service, the fundamental question of the sustainability of a funding model, which relies substantially on local taxpayers to fund inflation and other cost pressures in policing remains just a pertinent now as it did last year.
6.2. The Medium Term Financial forecast is under pinned by a number of estimates, which if they ultimately prove to be inaccurate, may affect the financial position. Particularly crucial are those relating to future cost increases and their relationship to future government funding. The Government has announced a pay freeze for 2021/22 for most public sector workers including the police. Beyond this it is much more difficult to predict wage inflation until the Chancellor is able to outline his plans to repair the public finances. The MTFF is based on an assumption that the pay freeze will be relaxed in 2022/23 but there will be a continuation of pay restraint for the remainder of the forecast. However, because pay constitutes such a large proportion of the overall budget even slight deviations from forecast pay rises can ultimately have a large impact on expenditure. As previously stated a neutral position on council tax-base and collection rates has been assumed in this report, which will be revised once more information is available.
6.3. In relation to Government grant funding risks there are risks which are specific to Operation Uplift. Despite the Government’s current assertion that it intends to progress recruitment of the full 20,000 officers nationally, there is a possibility that the economic situation may preclude it from doing so. This would expose Cumbria to a degree of financial risk as the current workforce plan includes recruitment of some officers in advance of phase 3, Page 11 of 16
65 Agenda Item 08d however this can be largely mitigated by scaling back recruitment in 2022/23. There is also uncertainty over the Government’s funding intentions for Operation Uplift once recruitment is completed. If, as currently assumed, there will be no additional funding beyond 2022/23 Cumbria, along with all other forces, will be exposed to a financial risk that costs will continue to rise significantly for a number of years due to annual pay increments, with police constable’s following a seven point pay scale. The largest salary gains are also towards the top of the pay scale. Whilst current funding for Operation Uplift may be perceived as generous now, this may not be true in subsequent years.
6.4. More generally in relation to Government grant funding, recent police settlements have only protected police funding in cash terms and have made no provision for increases in the existing cost base. The funding model has relied on Police and Crime Commissioner’s to levy above inflation council tax rises to make up the funding shortfall. There are currently no indications that this policy will change, which is reflected in the assumption of flat cash grant funding beyond 2022/23. However, there is a risk of the sustainability of this model as a means of funding policing services.
6.5. Pensions costs remain a hot topic across the public sector. Members were made aware in last year’s report of the legal judgement known as ‘McCloud’, which determined that public sector pension reforms breached age discrimination legislation. In the autumn the Government announced its planned remedy. Although the exact arrangements are expected imminently, they are expected to substantially unwind the changes introduced in 2015, by offering officers a choice of whether to remain in the pre 2015 scheme. The remedy will affect both officers and staff and is likely to be both complex and administratively complex to implement. Provision has been made within the 2021/22 budget for a small team to undertake this work, however it is unclear as to the extent to which public sector bodies will be expected to meet the costs of the increased pension benefits.
6.6. In relation to pensions more generally, members were previously alerted to the increase in the rate of police officer employer contributions to the pension fund from 24.2% to 31%. The Home Office and Treasury have provided Cumbria with £2.4m of additional funding, which offsets much of the additional pension cost, £1.2m of which is through a special pension grant. This special grant was retained for 2021/22 however, whilst the MTFF assumes that the additional funding will be continue beyond 2021/22, this is not guaranteed and will considered as part of the wider CSR. The Police pension scheme is subject to revaluation with revised contribution rates payable from 2023/24. In light of the McCloud judgement, the NPCC pension lead has indicated that forces should expect a similar level of increase in employer contributions to the last revaluation. Similarly, contribution rates to the Local Government Pension Scheme will be updated in 2023/24 and are likely to increase as a result of McCloud and falling stock markets. It is not possible to quantify the financial impact on the PCC and Constabulary budgets, however a provision of £1m pa has been included in the MTFF from 2023/24 onwards, but there is no guarantee that this will be sufficient.
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66 Agenda Item 08d 6.7. There are a number of significant national policing initiatives, which will be implemented over the period covered by the MTFF including major ICT developments and in particular the replacement of radios with mobile technology known as the Emergency Services Network (ESN). Over the last year this project has been further delayed, however, there are significant concerns across the service over escalating costs and the extent to which forces will be expected to meet them. Whilst adequate provision has been made in the budget and capital programme, based on the best available information, there is potential for the ultimate costs to be higher than those estimated, which could impact on the wider budget.
6.8. Members have received regular updates over the last few years on progress of the police funding formula review. This represented the most significant risk to the financial forecasts, with the potential to challenge the ability to present a balanced budget in the longer term. There are no significant developments on this issue to report since last year, although the subject it is raised periodically at a national level by those forces who perceive that they are disadvantaged by the current funding formula. There is a continuing recognition by the Home Office that the police funding formula is out-dated and no longer fit for purpose but, as yet, there is no indication from Government that there is a firm appetite to fundamentally review the formula at this juncture. The effect of any change in the funding formula therefore remains a risk in the medium term, however, given the uncertainty over the timing and implications of any future changes, it has been assumed that there will be no impact on the financial forecasts contained in this report.
6.9. In the context of increasing demand for policing services and having already delivered £26m of savings since 2010, as articulated earlier in this report, there is a risk that future savings will be difficult to deliver without adversely affecting front-line service delivery. The Constabulary is committed through the Vision 2025 programme, to critically examine its ways of working and striving for greater efficiency. The medium term savings requirement outlined in the financial forecast is considered challenging, but manageable.
6.10. The proposed annual increase in council tax alongside the impact of the tax base increases, will provide additional income of almost £1.15m in 2021/22. The council tax increases assumed over the life of the medium term budget have a cumulative annual impact of £4.0m. Whilst savings are still likely to be required in the medium term, the precept increase will support stronger financial resilience and ensure Cumbria Constabulary is better placed to deal with the totality of service and financial challenges than would otherwise be the case.
6.11. Whilst this report proposes a council tax increase of 2.47% for 2021/22, final decisions are subject to consultation with the public, the Police and Crime Panel and the Chief Constable and will be taken in the context of the confirmed budget settlements and feedback from Panel members following their January meeting.
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67 Agenda Item 08d Appendix A: Medium Term Financial Forecast 2021/22 to 2024/25
Description Base Base Base Base Base Budget Budget Budget Budget Budget 2020/21 2021/22 2022/23 2023/24 2024/25 £ £ £ £ £ Constabulary Funding Police Officer - Pay & Allowances 67,504,354 69,370,540 71,274,405 74,509,403 77,102,542 Police Officer - Contribution to Pension Fund A/c 24,923,000 26,506,000 21,215,000 21,215,000 21,215,000 Police Officer - Ill Health & Injury Pensions 1,246,534 1,262,613 1,287,866 1,313,624 1,339,897 Police Community Support Officers 2,272,443 1,893,869 3,401,723 3,446,250 3,500,243 Police Staff - Pay & Allowances 24,259,557 25,287,149 25,670,289 26,782,226 27,536,250 Other Employee Benefits 1,745,039 2,211,809 2,527,656 1,947,545 1,986,496 Transport Related Expenditure 2,453,549 2,365,626 2,435,666 2,508,243 2,583,464 Supplies & Services 11,094,206 10,931,144 11,149,767 10,632,543 10,845,194 Third Party Related Expenditure 2,178,139 2,404,892 2,452,990 2,502,050 2,552,091 Earned Income (5,347,138) (5,260,984) (5,106,493) (5,158,104) (5,318,071) Total Constabulary Funding 132,329,683 136,972,658 136,308,869 139,698,780 143,343,106
Commissioner's Budget Office of the Police & Crime Commissioner 822,715 846,580 856,587 872,788 891,064 Commissioned Services Budget 2,249,590 2,215,782 2,215,782 2,215,782 2,215,782 Premises Related Costs 4,452,921 4,569,451 4,677,942 4,791,557 4,908,448 LGPS Past Service Costs 22,300 22,300 22,900 23,500 24,100 Insurances & Management of Change 727,604 908,717 919,917 931,417 943,217 Accounting & Financing Costs 4,681,948 5,299,921 8,909,558 4,653,890 4,883,611 Contributions to Reserves Revenue 95,884 95,884 95,884 45,884 45,884 Grants & Contributions (33,384,558) (34,429,538) (29,145,741) (29,154,117) (29,163,729) Grants - Victims & Restorative Justice (583,172) (583,172) (583,172) (583,172) (583,172) Grants - Capital (100,000) (97,482) (97,482) (97,482) (97,482) Interest/Investment Income (96,491) (10,000) (10,000) (10,000) (10,000) Total Commissioner's Budget (21,111,259) (21,161,557) (12,137,826) (16,309,954) (15,942,278)
Use of Reserves Revenue Reserve Drawdown (1,018,941) (151,247) (250) (250) (250) Capital Reserve Drawdown 0 (250,000) (3,750,000) 0 0 Total Use of Reserves (1,018,941) (401,247) (3,750,250) (250) (250)
Budget Requirement 110,199,483 115,409,854 120,420,793 123,388,577 127,400,579
Formula Grant & Council Tax Income General Police Grant (64,429,188) (68,490,485) (72,570,485) (72,570,485) (72,570,485) Council Tax Precepts (45,770,295) (46,919,369) (47,850,309) (48,796,764) (49,758,735) Total Formula Grant & Council Tax Income (110,199,483) (115,409,854) (120,420,794) (121,367,249) (122,329,220)
Net Deficit/Savings Requirement 0 0 (0) 2,021,327 5,071,358
Council Tax per Band D Property £265.59 £272.16 £277.56 £283.05 £288.63 Increase over previous year £6.57 £5.40 £5.49 £5.58 Percentage Increase 2.47% 1.98% 1.98% 1.97%
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68 Agenda Item 08d Appendix B: Reserves Plan 2021-2025
Reserves Plan Actual Estimated Forecast Net Forecast Net Forecast Net Forecast Net Forecast 2021 - 2025 Balance Gain/(Use) Balance Gain/(Use) Balance Gain/(Use) Balance Gain/(Use) Balance Gain/(Use) Balance 31/03/20 2020/21 31/03/21 2021/22 31/03/22 2022/23 31/03/23 2023/24 31/03/24 2024/25 31/03/25 Note £000s £000s £000s £000s £000s £000s £000s £000s £000s £000s £000s
General Reserve/Police Fund 1 3,000 0 3,000 0 3,000 0 3,000 0 3,000 0 3,000 Total General Reserve/Police Fund 3,000 0 3,000 0 3,000 0 3,000 0 3,000 0 3,000
Capital Reserves 2 HQ Refurbishments 294 (60) 234 0 234 0 234 0 234 0 234 West Cumbria Estate 4,000 0 4,000 (250) 3,750 (3,750) 0 0 0 0 0 Total Capital Reserves 4,294 (60) 4,234 (250) 3,984 (3,750) 234 0 234 0 234
Budget Stabilisation/Insurance 3 PCC Operational Reserve 250 0 250 0 250 0 250 0 250 0 250 Constabulary Operational Reserves 250 0 250 0 250 0 250 0 250 0 250 Chief Constable's Contingency 500 0 500 0 500 0 500 0 500 0 500 Insurance Reserve 1,186 46 1,232 46 1,278 46 1,324 46 1,370 46 1,416 Total Budget Stabilisation/Insurance Reserves 2,186 46 2,232 46 2,278 46 2,324 46 2,370 46 2,416
Budget Support Reserves 4 Budget Support Reserve 7,674 (717) 6,957 0 6,957 0 6,957 0 6,957 0 6,957 Total Budget Support Reserves 7,674 (717) 6,957 0 6,957 0 6,957 0 6,957 0 6,957
Short Term Project Reserves 5 Body Armour (Future Roll Out) 237 50 287 50 337 50 387 0 387 0 387 Business Intelligence 58 (30) 28 0 28 0 28 0 28 0 28 Business Transformation 1,175 (1,175) 0 0 0 0 0 0 0 0 0 Cohort Software 25 (25) 0 0 0 0 0 0 0 0 0 Commissioned Services 1,883 (18) 1,865 (46) 1,819 0 1,819 0 1,819 0 1,819 Covid-19 Response 236 0 236 0 236 0 236 0 236 0 236 Cumbria Road Safety Initiatives 25 0 25 0 25 0 25 0 25 0 25 HQ Security 130 0 130 0 130 0 130 0 130 0 130 Learning & Development (Business Transformation) 195 (195) 0 0 0 0 0 0 0 0 0 PFI Lifecycle Replacements 256 0 256 0 256 0 256 0 256 0 256 Red Sigma 252 (147) 105 (105) 0 0 0 0 0 0 0 Total Short Term Project Reserves 4,472 (1,540) 2,932 (101) 2,831 50 2,881 0 2,881 0 2,881
Total Earmarked Revenue Reserves 14,332 (2,211) 12,121 (55) 12,066 96 12,162 46 12,208 46 12,254
Total All Reserves 6 21,626 (2,271) 19,355 (305) 19,050 (3,654) 15,396 46 15,442 46 15,488
Note 1: General Reserves are held at £3m, this is based on an assumed level of approximately 3% of the Net Revenue Budget.
Note 2: Capital Reserves. The majority of capital reserves have now been fully utilised, the exception to this is the reserve established for the West Cumbria Estate. A scheme is currently being developed for approval. At the point of writing this report the reserve is anticipated to be fully drawn down by March 2023.
Note 3: Budget Stabilisation/Insurance Reserves The Budget stabilisation reserves includes operational contingencies recommended by the Home Office Financial Management Code and operational reserves that make provision for a range of expenditure that has been reduced from annual budgets to achieve savings. For example, recurrent fuel budgets now exclude any provision for a severe winter. If this circumstance arises the estates budgets can draw down from the contingency which will be topped back up in the following year’s budget process. All recurrent budgets have had general contingencies removed. The insurance reserve provides for uninsured costs beyond the amount of the actuarially assessed annual provision. These costs are charged to the budget and the reserve will be drawn down to meet those costs when they arise.
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69 Agenda Item 08d Note 4: Budget Support Reserve, this reserve has been established to provide support to the revenue budget in the shorter term and also to meet the costs associated with business change. See note #.
Note 5: Short Term Project Reserves primarily fund the one off revenue implications of approved capital schemes, usually concerning ICT. The Cumbria Road Safety Initiatives reserve is a partnership reserve held by the Commissioner on behalf of the Road Safety Partnership. This section also includes future liability reserves for areas within the budget where there is a future liability for which the amount or timing is uncertain for example the PFI lifecycle reserves match actual liabilities on the PFI contract reflected in the financial statements and the Body Armour reserve covers costs that do not arise on a recurrent annual basis e.g. the cyclical purchase of body armour.
Note 6: Total Reserves are currently showing a considerable change between 2020/21 and 2024/25. This is primarily as a result of the capital reserve established for Estates West Flood Management being drawn down, this reserve is planned to be fully utilised by the end March 2023. Once this has been drawn down the balance on reserves will be £15.5m. By comparison, reserves at 1 April 2014 were £32.8m.
# The medium term financial forecast for the revenue budget (contained within this report) shows an unbalanced budget arising from 2023/24. The cumulative balance of funding to be found in these 2 years is £7.1m. It is expected that this budget shortfall will be financed through a combination of the use of the budget support reserve and the generation of efficiency savings.
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70 Agenda Item 9
CUMBRIA POLICE AND CRIME PANEL
Meeting date: 28 January 2021
From: Director of Finance (Cumbria County Council)
DRAFT PRECEPT PROPOSALS (2021/2022)
1. EXECUTIVE SUMMARY
1.1. The purpose of this report is to accompany the report from the Police and Crime Commissioner which will set out the proposed budget and precept for 2021/2022. This report explains the Panel’s options for decision making.
2. RECOMMENDATION
2.1. The Panel is asked to review the proposed precept report from the Police and Crime Commissioner accompanying this report. 2.2. The Panel is then asked to decide whether to:
a) support the precept without qualification or comment; b) support the precept and make recommendations, or c) veto the proposed precept.
3. BACKGROUND
3.1. The Police and Crime Panel are consulted on the level of precept (Council Tax demand) requested by the Police and Crime Commissioner as he looks to set the budget for the Cumbria Police Force for 2021/22. The precept proposal from the Police and Crime Commissioner is set out in today’s agenda. 3.2. The process for the police and crime panel’s (PCP) scrutiny of the police and crime commissioner’s (PCC) proposed precept should be read alongside:
71 Schedule 5 of the Police Reform and Social Responsibility Act 2011 (“the Act”) http://www.legislation.gov.uk/ukpga/2011/13/contents/enacted Part 2 of the Police and Crime Panels (Precepts and Chief Constable Appointments) Regulations 2012 (“the Regulations”) https://www.legislation.gov.uk/uksi/2012/2271/part/2/made 3.3. Appendix 1, Process for Panel scrutiny of Police and Crime Commissioners proposed precept, provides a flow chart of the process described in this report. 3.4. The Police and Crime Panel are required to review the proposed precept and upon consideration of the proposed precept decide whether to: - a) support the precept without qualification or comment; b) support the precept and make recommendations, or c) veto the proposed precept (by the required majority of at least two thirds of the persons who are members of the Panel at the time the decision is made). 3.5. If the Panel were to decide (a) or (b) this would need reported to the Commissioner in writing no later than 8 February making any recommendations clear in both the meeting and the report. 3.6. The Commissioner would then consider the report, and any such recommendations, subsequently advising the Panel of his decision which would be to either; Issue the proposed precept as the precept for the financial year, or Issue a different precept, but only if it would be in accordance with a recommendation made in the Panel’s report 3.7. The Panel could decide to hold a special meeting to consider this response or to consider the response at the next ordinary meeting of the Panel. 3.8. If the Panel were to decide (c) and exercise its veto, the Panel would need to provide a report to the Commissioner by 8 February setting out its reasons and indicating whether the precept proposed is too high or too low. A veto requires at least two-thirds of the persons who are members of the panel at the time the decision is made to vote in favour.
72 3.9. Where the panel vetoes the proposed precept, the Commissioner must have regard to the report made by the panel, give the panel a response to the report and publish the response, by 15 February. In his response the Commissioner must notify the panel of the revised precept that he intends to issue. 3.10. Where the panel’s report indicates that they vetoed the precept because it was: too high, the revised precept must be lower than the previously proposed precept. too low, the revised precept must be higher than the previously proposed precept. 3.11. For clarity the Panel may only veto the first proposed precept. Such a veto must be agreed by two-thirds of Panel members (the full membership rather than those present at a meeting). Where a veto occurs, the report to the Commissioner must include a statement to that effect. 3.12. On receipt of a response from the Commissioner notifying them of the revised precept proposal, the panel must review the revised precept proposal and make a second report to the Commissioner on the revised precept by 22 February. This report may: indicate whether the Panel accepts or rejects the revised precept (although rejection does not prevent the Commissioner from issuing the revised precept); and make recommendations, including recommendations on the precept that should be issued. 3.13. The Commissioner would then have regard to this second report and would issue a response by no later than 1 March. However, the rejection by the Panel of the revised precept would not prevent the Commissioner from issuing the revised precept as the precept for the financial year 2021/22.
4. CONCLUSION
4.1. The Police and Crime Panel is asked to review the proposed precept report from the Police and Crime Commissioner and decide whether to support or veto the precept proposal.
Julie Crellin Director of Finance (s151 Officer), Cumbria County Council
73 74 Appendix 1 – Process for Panel Scrutiny of Police and Crime Commissioners Proposed Precept
BACKGROUND PAPERS
No background papers.
Contact: Paul Turney, Senior Manager – Accountancy & Financial Planning (Deputy s151 Officer)
Tel: 07827 449394 or e-mail [email protected]
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CUMBRIA POLICE AND CRIME PANEL
Meeting date: 28 January 2021
From: Monitoring Officer (Cumbria County Council)
UPDATE ON COMPLAINTS
1.0 EXECUTIVE SUMMARY
1.1 This report advises members of any complaints received in accordance with the Panel’s complaints procedure. The report outlines where appropriate, what, if any, action has been taken in respect of the complaints.
2.0 RECOMMENDATION
2.1 Members are asked to note the report.
3.0 BACKGROUND
3.1 At the meeting on 15 October 2018 the Panel agreed to adopt a revised complaints procedure to consider non-criminal complaints in relation to the Police and Crime Commissioner or other office holders. 3.2 The Procedure 3.2.1 As part of the revised procedure, the Monitoring Officer of Cumbria County Council will consider all complaints matters in the initial stages. If the Monitoring Officer cannot broker a resolution, a sub-committee of the Panel should be convened to consider the matter further.
77 3.2.2 The Panel will receive a report to each meeting detailing the position with all ongoing complaints, and requesting a sub- committee be convened if appropriate.
4.0 DETAILS OF COMPLAINTS RECEIVED
4.1 As at the date of this report and since the previous report, only one complaint has been received. On the face of the correspondence however was no discernible complaint against the Commissioner. An appropriate response has been sent to the complainant with guidance as to matters the Panel can consider. A further update will be brough to the Panel’s next meeting.
Iolanda Puzio Monitoring Officer, Cumbria County Council
January 2021
APPENDICES
None
BACKGROUND PAPERS
No background papers
Contact: Ben Spencer E-mail: [email protected] Telephone: 07919 297914
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