Appendix 5a NATIONAL, INTERNATIONAL AND CAPITAL CITY FUNDING: MPS SUBMISSION Executive Summary 1. The MPS’ income from the NICC grant in 2015/16 was £173.6 million, providing funding for the services required to ensure the safety and security of a rapidly changing world city. This appendix outlines the case for the MPS, exploring the reasons why NICC funding is essential to maintain the services we provide and to ensure we are prepared for the changes and challenges ahead. 2. The MPS manages a range of activities to support national and international policing, some of which are funded through the NICC grant, some are subsumed within the general policing provided by the MPS. 3. Since the start of the CSR period NICC special payments have decreased year-on-year but this has not been reflected in the costs of the NICC activities. 4. In breaking down the services under the definition of national, international or capital city, the MPS is being as transparent as possible about the cost of current service provision. We recognise that this breakdown does not match the current NICC funding provision. In total the MPS is submitting a Revenue bid of £345.5m for NICC funding, reflecting greater focus placed on capturing and evidencing the NICC related costs. This expenditure is £171.9m excess of the grant funding provided of £173.6m (see table 1 below with a full breakdown in Annex1). To note this excludes a placeholder of £250m for costs associated with the Area Cost Adjustment (see para 11.1 below). Table 1 – Revenue Expenditure - 2014/15 Budgeted NICC Costs and Grant* NICC Expenditure 2015/16 Budget Category £m 1. Public Order - including Operational Support 81.6 2. London as a Crime / Activity Hub 46.2 3. Specialist & Economic Crime 103.8 4. Protection Responsibilities 12.8 5. Global City 36.2 Estimated annual cost for major events 4.4 Total Direct Costs including major events 285.0 Overheads 60.5 Total MPS Revenue Costs 345.5 NICC Funding 173.6 NICC Activities Funded by the MPS 171.9 * Excludes £250m placeholder for the ACA 5. The key drivers of NICC activity and therefore cost are: The number of Foreign National Offenders in London is higher when compared to the rest of the UK. In the MPS this figure 27% (including 40% in Westminster)1. This has a disproportionate effect upon a number of policing activities. London as the seat of the UK Government and therefore a centre of protest London as one of the most popular tourist destinations in the world (the density of people providing opportunity). E.g. Westminster borough’s population (221,842) swells to over 800,000 with tourists, and over a million with tourists2 and those who work in the borough. 1 http://content.met.police.uk/News/Operation-Nexus-launches/1400012909227/1257246741786 2 http://data.london.gov.uk/dataset/daytime-population-borough/resource/7c9b10fb-f8c9-45bb-8844-d5e5cd7f6dca# V23 1 London as a global business and financial hub (is a generator of crime, particularly for cyber and fraud cases). The scale of serious and organised crime that occurs within or is generated from, London. The experienced investigative capability means the MPS is the only force able to carry out complex/high profile cases, e.g. Operation Weeting. The size of the specialist functions retained by the MPS, which support policing nationally e.g. increasingly an issue as other forces reduce in size. The London Factor 6. London is unique: the largest city in the European Union, with an ever changing population that is set to grow towards 9 million by 20203 and become one of the most diverse (culturally, ethnically and linguistically) cities on Earth. The complexities of policing a city on this scale are big: London is a centre for protest, for criminality, for transport and is a seat of Parliamentary, Royal and Diplomatic power. Over 300 languages are spoken, and around 40% of the population is Black or Minority Ethnic [BME]4 and these numbers are predicted to grow further as the city expands and develops further as an international centre. 7. London attracts people as a gathering place for demonstration, celebration and participation in sporting and national events. Policing the ‘public order’ elements of these requires considerable resource and the management of a balance between enabling lawful protest and providing security and safety. Public Order policing is funded by the NICC, along with traffic support for NICC related events and Police Support Unit costs for NICC related events. 8. Such is the scale of public order policing in the capital, the MPS has a dedicated Public Order team, planning and policing around 150 protests, 55 ceremonial events, 16 sporting events (along with 24 football matches) and around 60 concerts and festivals every month across the city. NICC funding provides a valuable funding stream to enable the safety and security of these events while providing the reassurance that officers are not being abstracted from neighbourhood policing to cover them. 9. Criminality taking place within London is on a more prevalent and serious level than other cities and communities across England & Wales. A quarter of all crime in England & Wales takes place in the capital, with the MPS policing the highest crime rate per 1000 population, and the highest rates of violence against the person and robbery in England & Wales. Crime in the capital is often connected to organised criminality, national and international networks of offending. The MPS has in place a number of teams to tackle more serious and organised crime and has a long established history of being world leaders in investigation. 10. London’s place at the centre of the UK transport network also provides opportunities for crime, offending and victimisation, with the city’s airports, stations and road network being bigger, busier and more internationally connected than anywhere else in the UK - they are also key targets for terrorism. NICC funding provides additional security to these vital parts of the UK transport infrastructure. 11. The MPS’ international reputation for investigation means we are often called upon to deal with complex cases that are of national or international significance or beyond the resources of other UK police services. The NICC grant funds economic and specialist crime service provision within the MPS, including the national investigations considered to resource-intensive or complex for other police forces. In recent years, the MPS has dedicated significant resources to the investigations into MPs concerning expenses, media organisations regarding ‘phone hacking’ and taken a lead in investigating the disappearance of Madaleine McCann. 12. London is one of the world’s global cities - ranked as either number 1 or 2 in all respected ‘lists’ of cities with global power (vying with New York). The MPS is also seen as a world leader in 3 http://data.london.gov.uk/dataset/2014-round-population-projections/resource/1b5bd5a7-376f-4dde-9b32-f8c4b3399231 4 https://www.london.gov.uk/priorities/arts-culture/promoting-arts-culture/20-facts-about-london-s-culture V23 2 policing with the ‘Scotland Yard’ brand known around the world as a symbol of quality investigation and traditional values of policing. As a result of this reputation, the services provided by the MPS are highly sought after, either through using our officers & staff in operational matters or by training and learning through our experiences. 13. The police funding formula does not consider the above activities separately when calculating the MPS funding, hence the additional NICC allocation. NICC grant funds national and international events, mutual aid funding for other forces supplying officers for NICC activity and support & training for international forces. The funding is a driver behind the perception of UK policing around the world and MPS services are key to enhancing that perception. Methodology 14. The MPS has followed the methodology developed for the 15/16 NICC bid, building on comments from HMIC visits to operational units in November 2014 and the Home Office NICC review undertaken in early summer 2015.The purpose of this bid is to identify the current costs of running the various policing units in the MPS where demand is driven in part or in full by London being a National, International and Capital City. The Operational leads for each of these areas reviewed the various data sets available to assess the percentage of total activity that relates to NICC activity (applying the definition provided by the Home Office in 2013). This percentage was then applied to the estimated 2015/16 expenditure in these areas, together with an allocation for overheads. 15. Few units’ activities are 100% in response to NICC activity and therefore there will always be an element of subjectivity to this process. We have taken the advice of the Home Office review of NICC bids and have adjusted some percentage attributions accordingly. In many cases, the percentage suggested by the Home Office is higher than had been included in the previous bids. V23 3 1 Background 1.1 Compared to many cities, London is unique in terms of its diversity and density of population, its geographical size and the complex interplay between national governance, London governance and local governance through the 32 boroughs. 1.2 London’s population swells due to an influx of commuters during the day and tourists throughout the year - in greater volumes than anywhere else in the UK. The City of London itself has a very low resident population (7,559) though increases during the daytime to 598,141 (including tourists) - excluding tourists, to 446,932. 1.3 All London boroughs have a similar pattern (though start from a higher resident population base).