Provisional Police and Community Safety Funding Settlement 2009-10

Report: 07
Date: 19 March 2009
By: Treasurer and Director of Resources on behalf of the Commissioner

Summary

The Final Police Grant Report 2009-10 was announced by the Minister of State for Policing, Crime and Security on 21 January. The details were as anticipated following the Provisional Settlement in November. The details of some grants are still awaited.

A. Recommendations

That members note the report.

B. Supporting information

1. The Policing Minister Vernon Coaker presented the Final Police Grant Report 2009-10 to the House of Commons on 21 January 2009. The Minister for Local Government, John Healy, also presented the Final Local Government Finance Settlement. The final figures published for 2009-10 confirm those originally published with the 2008-09 settlement in January 2008 and those presented to this committee in the report on the Provisional Settlement on 18 December 2008.

2. In line with the Government’s policy on multi-year settlements, it was always clear that the grant settlement for 2009-10, as the second of a three year settlement, would not be changed from that previously published other than in exceptional circumstances. The government in reviewing the position found no exceptional circumstances.

3. Formula Grant. The formula grant settlement is as expected, with the MPA/MPS being on the grant floor and subject to a 2.5% increase in both 2009-10 and 2010-11. This grant includes a ‘floor damping’ payment of £35M in 2009-10 and £25M in 2010-11 recovered from other police authorities whose grant entitlement is above the floor, by scaling back their grant. The MPA is one of 17 police authorities on the grant floor. The national average increase in formula grant across England for 2009-10 is 2.8%. As members will be aware the Mayor’s budget guidance to the MPA is now based on net revenue expenditure and he takes the risks/benefits from variations in general grant levels.

 Table 1: Details of the final grant settlement

4. Specific Grants. Specific grants were also confirmed as previously announced in the Provisional Settlement, with the detailed figures for 2010-11 now being confirmed. As anticipated only the Neighbourhood Policing Fund receives an inflationary increase.

Table 2: Details of specific grants

5. Capital Grants and Government Supported Borrowing. As expected, capital grant was announced at £38.442M and supported borrowing at £19.635M. It was reported to this committee in December that as part of the Chancellor of the Exchequer’s Pre Budget Report on 24 November 2008, the Government intends to take fiscal action to support the economy, businesses and households. One of the measures included bringing forward £3bn of capital spending from 2010-11 to 2008-09 and 2009-10. There were no indications whether the Home Office was to be included as part of this initiative. The MPS has since written to Tony McNulty, on 12 January, to explore the opportunity for capital assistance, indicating schemes which could be accelerated if the government were minded to support the Authority. If a response is received before the committee meeting it will be reported orally.

6. Government Efficiency Savings. As previously reported, the Pre Budget Report on 24 November mentioned that “the Government will find a further £5bn of efficiency savings in 2010-11…”. No further details have been released by the Government. Any financial implications are thus not known at this stage, but would have to be worked through once any details are released and could impact on future grant settlements or on efficiency targets.

7. Counter Terrorism Grant. The grant settlement has confirmed the national grant totals indicated in the Provisional settlement, viz an increase of 5.3% to £552M in 2009-10 and a further increase of 4.9% to £579M in 2010-11. The detailed CT grant & Dedicated Security Posts grant has yet to be announced, but is expected shortly. If details are available before the committee meeting they will be reported orally.

8. The Dedicated Security Posts specific grant for 2009-10 has been announced at £112.6M compared to £127.8M in the current year. The reduction is accounted for by specific grant still to be allocated by ACPO (TAM) for certain defined areas of the grant - see exempt Appendix 1. The like for like increase is 1.8% - below the present police pay inflation levels.

9. Council Tax. In his statement, the Local Government Minister repeated the warnings he made about Council Tax in November 2008, saying: “There can be no excuse for excessive council tax increases…the Government expects the average council tax increase in 2009-10 to be substantially below 5%.” Mr Healy added that the Government, as in previous years, would take action to cap excessive increases. It should be noted however that the precept is a GLA rather than an MPA calculation.

C. Race and equality impact

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

D. Financial implications

As included above.

E. Background papers

• Local Government Finance Reports 2009-10
• Provisional Grant Settlement 2009-10

F. Contact details

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

For more information contact:

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

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