Provisional policing and community funding settlement 2009/10

Report: 06
Date: 18 December 2008
By: Treasurer and Director of Strategic Finance on behalf of the Commissioner

Summary

The provisional police funding allocations 2009/10 were announced by the Minister of State for Policing, Crime and Security on 26 November. The details were as anticipated following the first three year grant announcement from Ministers last year.

A. Recommendations

That members note the report.

B. Supporting information

1. The Minister of State for Policing, Crime and Security announced proposals for allocation of police grant for 2009/10 on 26 November 2008. Last year the government announced provisional funding totals for the three year period 2008/09 to 2010/11. The announcement had covered formula grant for three years, with the latter two years being provisional. The government now intends to implement the settlement for 2009/10 broadly unchanged from last year’s announcement.

The provisional announcement has taken the form of a consultation proposal and any representations should be made to the government by 7 January 2009. The formula grant settlement is as expected:

The maintenance of a 2.5% grant floor was also confirmed. The MPA is one of 17 police authorities on the grant floor.

2. Specific grants were also confirmed as announced previously:

3. Capital Grants. As part of the Chancellor of the Exchequer’s Pre Budget Report on 24 November 2008, it was announced that Government intends to take fiscal action to support the economy, businesses and households. One of the measures includes bringing forward £3bn of capital spending from 2010/11 to 2008/09 and 2009/10. As a consequence, the capital grant figures included alongside the provisional 2009/10 settlement must be treated as indicative only and subject to change. The indicative allocation for the MPA/MPS is £58.077M for capital grant and supported capital expenditure.

4. Icelandic Banks. The Minister for Local Government as part of the provisional settlement announced in his statement to the House of Commons that authorities ‘need not make provision in 2009/10 budgets for any possible loss on Icelandic investments’.

5. Efficiencies. The provisional funding settlement 2009/10, made reference to efficiencies and that improving performance and increasing efficiency remains critical. In the Pre Budget Report (24 November) it was mentioned that the government "will find a further £5bn of efficiency savings in 2010/11 to help fund the action being taken". The financial implications for the MPA/MPS are not known at this stage and will have to be worked through once full details are released. But it could impact on future grant settlements or our efficiency targets.

6. Counter terrorism. In 2008/09 the ring fenced national funding available for Counter Terrorism was £524.0m, an increase of 11%. At the time of the 2008/09 Final Grant Settlement, 2009/10 funding was announced as increasing again by 5.3% to £552.0M (4.9%). This national amount remains unchanged following the provisional settlement.

7. Additional Funding Announced Nationally. Below is a list of funding that is being provided nationally but no details have been released yet. The implications for the MPA/MPS are not fully known. This will need to be worked through once full details are released, but the MPA/MPS may possibly benefit from these funding sources:

• Protective services - £35m has been made available nationally from 2008/09 to 2010/11 to support tackling serious organised crime and other protective services
• Guns, gangs and knives – For 2009/10 the Home Office will consider making additional specific grant available to areas where knife and gun crime is particularly prevalent
• The Safer and Stronger Communities Fund

C. Race and equality impact

There are no specific implications arising from information set out in this report.

D. Financial implications

1. As included above.

E. Background papers

• Local Government Provisional Finance Reports 2009-10

F. Contact details

Report author(s): Ken Hunt, MPA & Anne McMeel, MPS

For more information contact:

MPA general: 020 7202 0202
Media enquiries: 020 7202 0217/18

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