Budget and business plan 2010/13

Report: 5
Date: 19 November 2009
By: Director of Resources on behalf of the Commissioner and MPA Acting Treasurer

Summary

This report provides members with MPS priorities, budgets and proposed headline performance indicators for 2010-13 as set out in the draft of the Budget and Business Plan 2010-13, in line with the Mayor’s guidance and the increasingly constrained financial environment. This submission also provides a statement on the robustness of the estimates by the Authority’s Acting Treasurer and a copy of the Mayor’s letter of consultation regarding the preparation of the draft component budget for 2010/11.

A. Recommendations

That committee

1. Note progress on the development of the draft Budget and Business Plan 2010-13 and the supporting financial information
2. Comment on the draft Plan, including priorities and work to bridge the budget gap, and on the supporting financial information
3. Comment on proposed measures for 2010/11 and note the timeline for targets
4. Note that the Budget and Business Plan 2010-13 will be submitted to MPA Full Authority for approval on 26 November
5. Note that they will have further opportunities to comment on the Policing London Business Plan 2010-13 before it is finalised in March 2010
6. Note the statement (Appendix 3) by the Acting MPA Treasurer (the Chief Finance Officer under the Local Government Act 2003) on the robustness of the estimates made for the purposes of the calculations and the adequacy of the proposed financial reserves
7. Note the 2010/11 Budget for Greater London Authority and Functional Bodies Preparation of Draft Component Budget letter (Appendix 4). Members will be given the opportunity to comment specifically on the draft response as part of the discussion on this paper

B. Supporting information

Budget and Business Plan

1. The draft Budget and Business Plan 2010-13 (Appendix 1) is developed in five broad sections:

Section 1 is the MPA section outlining MPA functions and strategic priorities as reflected in MetForward and the MPA Budget.

Section 2 outlines the major influences that the MPS consider when setting its direction of travel (Strategic Outcomes and Corporate Objectives) for the next three years and beyond, and in determining the key areas to tackle this year.

Section 3 outlines what the MPS aims to achieve for London and our Communities, the Commissioner’s approach to achieving these outcomes through corporate objectives and standards of service delivery, and the resources available to the Service.

Section 4 outlines the part played by MPS Business Groups in delivering on Corporate Objectives and sets out how resources are allocated across each.

Section 5 outlines the performance framework against which the MPS is accountable, the approach to managing performance in the MPS, and details key performance indicators for 2010/11.

2. Appendix 2 provides the supporting financial information to the draft Budget and Business Plan required to meet the Mayor’s budget guidance requirements.

3. In order to keep the Plan as compact as possible, there are no Appendices.

4. This draft Budget and Business Plan 2010-13 has been built over the past six months in a way that has put engagement at the heart of the process, including over 110 meetings with decision makers and subject experts in the MPA and MPS, 72 in the last three months.

5. Ongoing consultation with the MPA includes bi-weekly planning meetings and monthly budget meetings, one-to-one briefings, Business Group scrutiny sessions and MPA committees. The Interim Budget Submission was approved by MPA Full Authority on 24 September 2009.

6. A Budget and Business Plan 2010-13 round table discussion between MPA and MPS finance, planning and performance officers took place on 26 October 2009. Subsequent meetings on Business Planning and the Policing London Business Plan have been committed to.

7. Feedback from the 26 October, and where appropriate from previous meetings, has been taken into account in the proposed Budget and Business Plan 2010-13. MPS officers have responded to MPA officer’s written comment on the draft Plan, and on the Business Planning cycles for 2010-13 and 2011-14.

8. The Budget and Business Plan 2010-13, and the published Policing Plan that follows in January-February 2010, underscore individual Business Group plans but take a broader perspective for the Authority and Service. They also reflect overall Revenue and Capital budgets and use of resources.

Strategy

9. A summary of MetForward, the Authority’s strategic priorities, is set out at the front of this plan.

10. The Commissioner has determined three key outcomes for policing London. The focus is on public Safety and Confidence, cutting and solving crime, securing our streets, convincing all our communities that we are on their side, delivering the policing communities want and being intolerant of violence in any form. To achieve these priorities we must deliver the right service at the right price, through Improvement.

11. How the Service will deliver is reflected in our values as represented by the Commissioner’s 5 Ps:

• Presence – the presence of our officers in our communities
• Performance – in improving public safety and confidence
• Productivity – in the effective and efficient use of our resources
• Professionalism - in taking personal responsibility for our actions
• Pride – in our policing, in our uniform, and in our service delivery.

12. The Service’s corporate objectives have been drafted with due attention to public priorities, Home Office strategy, the Mayor’s priorities, MetForward and legislative requirements.

13. There is more work to do in detailing the MPS’ cross-cutting and collaborative work to deliver on each of these corporate objectives. This will be reflected in the final version of the Policing London Business Plan 2010-13 which will be submitted for consideration in February 2010.

Performance management

14. Greater emphasis has been placed on explaining our Performance Framework, and on managing performance at the MPS. This is supplemented by the draft proposed indicators for 2010/11.

15. Members are invited to comment on the proposed indicators, specifically whether these represent a balanced set at the corporate level. All indicators have been proposed in consultation with senior MPS leads and with MPA officers, and reviewed through a specialist performance indicator forum, including MPA representation, before submission.

16. In line with these comments and MPS MB’s request for a tighter indicator set for 2010/11, 10 draft headline key performance indicators (KPI) are proposed (against 19 for 2009/10), supported by a broader set of 22 draft operational and corporate health indicators (against 116 for 2009/10).

17. These are grouped into eight performance areas, shaded grey in the Plan (p67-69). The draft set of KPIs aligned to these, shown with proposed headline KPIs in BOLD FONT, are in development. Within this context it is proposed that:

• 2 headline KPIs remain unchanged from those agreed (as CPAs) for 2009/10, with additionally KPI 7a cashable efficiencies being clarified
• User Satisfaction and Comparative User Satisfaction are combined into one KPI (2a) whilst retaining the same focus
• Serious Acquisitive Crime (SAC) and SAC OBTJ are combined into one KPI (3a) whilst retaining the same focus
• Most Serious Violence (MSV) and MSV OBTJ are combined into one KPI (4a) whilst retaining the same focus
• Homicide has been proposed as a headline KPI (5b)
• KPIs 5d Counter terrorism and 6 Olympics are retained with specific wording
• KPI 8 replaces the previous KPI (‘percentage of officer recruits from minority ethnic groups’, retained as an indicator) to demonstrate a focus on warranted officer deployment in the Service.

18. The indicators proposed in the broader set have been changed most significantly in the Confidence domain, with additional perceptual indicators drawn from the PAS (such as 1c, local perception of ASB).

19. The Safety domain retains volume and SD indicators, strengthened in some areas, whilst also adding some perceptual indicators (such as 4j Drugs) drawn from the PAS.

20. The Improvement domain has been strengthened with indicators that are more representative of the breadth of work across the Service (such as 8a warranted officer deployment).

21. There is more work to do in finalising this proposed indicator set, and in aligning it with the set to be used for monthly reporting on Confidence and Safety. This work will continue through to early February 2010.

22. There are no targets for 2010/11 shown in this Plan. Targets setting is in process but is materially affected by changes in the environment and by scoping of detailed deliverables at Business Group level. The TP Variable Target Setting (VTS) process is underway, with Borough target setting meetings scheduled for January 2010. Targets remain subject to final mediation through year end outturn data.

Financial information

23. The supporting financial information highlights the issues facing the MPA/MPS which are expected to impact on next year’s budget and the medium term financial forecasts. This summary is complementary to the budget and corporate objectives set out in the Budget and Business Plan 2010-13, and provides a more detailed commentary on the information provided in that document. The MPA Treasurer, under the remit of the Chief Finance Officer in accordance with the Local Government Act 2003, has provided a statement on the robustness of the estimates made for the purpose of the calculations and the adequacy of the proposed financial reserves (Appendix 3).

24. It should be noted that whilst the information provided is based on best estimates, many uncertainties still remain which may impact on the MPA final budget and precept requirement for 2010/11 including: funding from government, the GLA and third parties; the delivery of significant savings; and unplanned events.

25. Within that context, this report is the MPA/MPS submission in accordance with the requirements of the GLA group 2010/11 budget and business plan process. As part of this process, and on the basis of the Authority’s interim budget submission, a consultation letter (Appendix 4) has been received from the Mayor as part of the preparation of his draft component budget. The proposed component reflects the guidance given to the Authority in July 2009. The budget submission and supporting information will provide the basis of the Authority’s response to the Mayor’s consultation. A response is presently being compiled and will be circulated separately to enable members the opportunity to comment.

Policing London Business Plan 2010-13

26. The timetable for the production of the 2010-13 Policing London Business Plan is set out in Appendix 5. The draft Budget and Business Plan 2010-13 and Supporting Financial Information will be submitted for approval to MPA Full Authority on 26 November 2009. If approved, it will be sent to the Mayor on 27 November.

27. The iterative process of drafting and producing the final public version of the Policing London Business Plan will continue through to February 2010. It will be presented for approval to MPA Full Authority on 25 February 2010. The Plan will be published electronically on 29 March 2010 - there are no plans to publish a hard copy (disabilities and reasonable requests excepted).

28. A summary version of the Policing London Business Plan 2010-13, and a 4 page executive brief will be produced during February.

C. Race and equality impact

There are no equality or diversity implications arising directly from this proposal. Equality Impact Assessments are undertaken on the Corporate Planning process and on Corporate Objectives.

D. Financial implications

The final budget envelope for the MPA will not be known until February 2010. The Policing Plan considered by MPS Management Board and the MPA in February will reflect the budget limit agreed by the Mayor and actions required to deal with financial issues which have emerged since this budget submission was made.

E. Legal implications

1. The Greater London Authority Act 1999, as amended, sets out the requirements of the GLA to calculate the budget requirements for the Mayor and the Assembly and four functional bodies. The budget requirement for each body is calculated by determining the difference between projected expenditure and projected income including specific Government grants. In order for the GLA to estimate the sums required by the MPA/MPS, the MPA/MPS must provide information to the Mayor and Assembly to facilitate this. The Mayor is required to consult with the MPA/MPS prior to setting the final budget.

2. To help assist budget setting and fulfil meeting the priorities within the Policing Plan, the budget and business development process is a key element to ensure there are sound financial plans within which the MPA/MPS priorities and objectives are adequately funded.

3. Expenditure or activities undertaken by the MPA/MPS as statutory bodies must only budget for activities that fall within its statutory powers. There are also positive duties under S3 Local Government Act 1999 to secure the continuous improvement in the ways functions are exercised having regard to a combination of the economy, efficiency and effectiveness. This report identifies steps under the budget and business plan process will be taken to ensure best value is achieved in the delivery of policing services.

4. The Local Government and Public Involvement in Health Act 2007 confers a duty on named public sector agencies to co-operate with the local authority to agree LAA targets and then to have regard to the targets they have agreed. The Act further confers a duty to involve local representatives - Police Authorities are exempt from this duty as they are already covered by similar provisions in Section 96 of the Police Act 1996, and Section 157 the Serious Organised Crime and Police Act 2005.

F. Environmental impact

The Budget and Business Plan 2010-13 references the MPS’ Corporate Social Responsibility (CSR) Strategy for 2010-13 and the 2009/10 Environment Report, which detail the MPS’ work to improve the quality of life for Londoners and our employees and to drive the sustainable consumption of resources.

G. Background papers

• Business Group submissions
• Mayor’s 2010/11 Budget Guidance (July 2009)
• Interim 2010-13 Budget Submission

H. Contact details

Report author(s): Paul Clarke, Strategy and Improvement, MPS

For more information contact:

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

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