Members' allowances scheme

Report: 15
Date: 10 May 2001
By: Treasurer

Summary

This report proposes that the adequacy of the current financial year's ceiling on members' allowances be reviewed six months into the year, in the light of the further experience that will have been gained. It also invites the Authority to consider retrospectively raising the ceiling for 2000/01 to £13,500, as a result of actual experience of the commitment that members have had to make in carrying out their responsibilities.

A. Recommendations

1. That a further report on the members' allowances scheme be presented to the Authority in October, with particular reference to the adequacy of the ceiling agreed by the Authority in March 2001 and any guidance produced by the Association of Police Authorities.
2. That the Authority considers retrospectively raising the ceiling for 2000/01 to £13,500 for independent and magistrate members.

B. Supporting information

1. At its March meeting, the Authority was informed that the Home Secretary had agreed to waive the then ceiling of £7,500 for allowances paid to independent and magistrate members of the MPA. In light of this, the Authority agreed to increase the ceiling for 2000/01 to £10,000 and that for 2001/02 to £15,000.

2. At that time, this was accepted as an interim arrangement to address immediate issues. In anticipation of deregulation of Members' Allowances, the Association of Police Authorities is forming a working group to produce guidance for police authorities nationally. The Head of Secretariat will represent the MPA on this. The MPA will want to review its scheme in due course in the light of this guidance.

3. However, as a new organisation, the MPA is clearly on a learning curve as it develops its role. Not least, it is becoming clear that, because of the size and complexity of the MPS and the issues it faces, members are having to make a significant commitment in order to carry out their responsibilities effectively. This will, of course, vary depending on members' other commitments but for some members it is considerable.

4. In setting its 2000/01 and 2001/02 ceilings for members' allowances, the MPA has had no real historic data on which to base a decision, other than the experience of its first part year of operation. It is possible that the £15,000 ceiling for the current financial year may not be adequate and it is recommended that, as part of a future review of the scheme, this is looked at again six months into the financial year in the light of further experience. With regard to the last financial year, the claims from some members in carrying out valid duties on behalf of the MPA have exceeded the £10,000 ceiling. In the light of the above comments, the Authority is invited to consider retrospectively raising the ceiling for 2000/01 to £13,500.

C. Financial implications

Under accruals accounting arrangements, which apply to local authorities such as the MPA, expenditure has to be charged in the year to which it relates. This applies to allowances paid to members which then count against the ceiling set for that year. It would not be possible therefore to pay allowances incurred in respect of duties undertaken in 2000/01 in 2001/02 and charge against the latter year's ceiling. The adjustment to the ceiling in 2000/01 will result in a marginal increase in expenditure against the MPA's budget in that year.

D. Background papers

• Report to the Full Authority - Members allowance scheme - 8 March 2001

E. Contact details

The author of this report is Peter Martin, Treasurer.

For information contact:

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

Send an e-mail linking to this page

Feedback