Resource allocation formula - progress on review

Report: 07
Date: 25 October 2001
By: Treasurer and the Commissioner

Summary

This paper summarises progress on the joint MPA/MPS review of the Resource Allocation Formula (RAF) including the proposed structure of the new formula, consultation arrangements and a broad timetable leading up to implementation in 2002/3.

A. Recommendations

That

1. Members note the progress on the joint project, and the requirement for formal approval of the project outcome at the December meeting of the Metropolitan Police Authority.
2. Members note that it is proposed that the formula be implemented for 2002/3 and that no borough should lose police officers against its existing strength.

B. Supporting information

Background

1. A fundamental review of the RAF commenced in February 2001 steered by a joint MPA/MPS Project Board. The purpose and scope of the review is attached at Appendix 1. The Board is chaired by Lord Tope, and the MPA is additionally represented by Nicholas Long and Peter Martin. The MPS representatives are Ian Blair, Tim Godwin and Keith Luck.

2. The Project Board has overseen the research and development work undertaken by a number of working groups, which have examined the various components of the existing formula and made recommendations on what factors should be included in the new model. Several borough commanders have taken part in these groups.

3. At its meeting on 30 August, the Project Board considered some preliminary proposals on the formula. These incorporated indicators of policing need including deprivation factors and daytime population, rather than merely historical workload data. The Board also looked at ensuring the operational viability of smaller boroughs during the allocation process.

4. The Project Board confirmed the importance of consultation during the course of the review and stated that this should include all MPA members, GLA members, local authorities and community consultative groups, as well as MPS borough commanders. A preliminary workshop was therefore held in April for MPA members, followed by a more detailed presentation on 6 September to explain the provisional proposals and potential outcomes for individual boroughs.

5. Following on from this workshop the Deputy Commissioner wrote on behalf of Project Board to Members, London MPs, London borough leaders, London borough chief executives and chairs of the community and police consultative groups outlining the proposed structure of the new formula, and setting out a broad timetable of MPS and MPA meetings where the key decisions would be taken.

6. A number of responses were received from individual boroughs. Several of these sought further clarification either regarding the structure of the formula, the level and timeliness of consultation, or the potential impact on a particular borough.

7. The Project Board has sought to reassure all key stakeholders that its objective is to ensure that no borough will receive fewer police officers under the new RAF than its strength at the end of September 2001. This will inevitably mean a degree of 'topping up' for some boroughs for next year. The ease with which this can be done depends upon next year's budget and the extent to which additional officers will be available for allocation to boroughs.

8. At its meeting on 2 October, the Project Board decided that, in view of the interest shown in the review, the most effective way of debating all the issues around the new formula would be to have an open forum for crime and disorder partnerships to present their views. This has been scheduled for Wednesday 21 November at 1.30pm at Central Hall, Westminster where all Project Board members will be present. GLA members, MPA members and London MPs have also been invited, together with CPCG chairs.

9. The Project Board is due to meet next on Friday 2 November to consider some final draft proposals from PA Consulting Group, who are supporting the MPS project team. After the meeting, full details of the new formula will be circulated to all the partnerships and other delegates. This will enable issues to be identified and notified to the project team in advance of the forum, and thus allow better management of the event.

10. The intention has been to produce a new formula which could be implemented for 2002/03. Final approval for implementation will need to be given by the full Authority, probably at its meeting on 10 December.

C Financial implications

The consultancy will involve additional external costs for 2001/02. The cost of engaging PA Consulting to carry out the review in 2001/2 will be £175,317. This is in addition to the £79,910 spent on the earlier phase of the review in 2000/2001.

The in-year cost is based on the agreed fixed contract price of £130k excluding VAT, plus some minor additional work requested by the Project Board. There should, however, be no long-term financial implications in principle, although the review of the formula may lead to an assessment of overall allocation levels to boroughs.

Costs can be contained within existing estimates.

D. Background papers

None.

E. Contact details

The author of this report is Michael Debens, MPS Corporate Development Group.

For information contact:

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

Appendix 1: Purpose and scope for the Resource Allocation Formula (RAF) Review

To review the principles underlying the Resource Allocation Formula (RAF) and make recommendations for amending RAF or developing an alternative apportionment process.

The review will:

• ensure the allocation of resources to boroughs is transparent and addresses the current challenges to RAF
• demonstrate that alternative options, e.g., using different socio-economic criteria, have been considered
• provide the Authority with the opportunity to influence and agree the use of the formula
• consult with stakeholders and demonstrate that any revised formula addresses their views
• ensure that a formula fit for purpose can be implemented in 2002/3

The review should be completed by December 2001.

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