A review of the MPA policy on charging for events

Report: 8
Date: 25 October 2007
By: Assistant Commissioner Central Operations on behalf of the Commissioner

Summary

[This report was deferred at the the meeting and will be revised when it is submitted to the November meeting of the Authority]

The following report outlines the current position in relation to charging for events, details of the review that has been undertaken and makes recommendations for the future.

The MPA and the MPS recognise their statutory responsibilities to deal with marches, demonstrations, and ceremonial and security events. They also recognise the importance of community events to the well being of London.

However, commercial events are very different. Every police officer deployed on a commercial event is a police officer that is not able to deal with the problems experienced by the community where they normally serve. There is a need to ensure that the organisers of commercial events meet the full cost of policing them in line with the Special Services Agreement (SSA) rate so that the MPA is not subsidising their event to the detriment of communities.

A. Recommendation

That

1. the policy on charging for events be re-launched:
2. subject to approval of recommendation 1, the MPS be asked to publish Standard Operating Procedures (SOPs) that outlines how the policy will be put into practice and the administrative arrangements to ensure that there is a transparent audit trail;
3. Borough Commanders and event Commanders should seek to ensure that every opportunity is taken to recoup policing costs from event organisers through partnership working;
4. the organisers of events in stadia be informed that they will be required to meet the costs of all policing associated with the event, both inside and outside the stadia , in line with SSA rates.;
5. full cost recovery in line with SSA rates will be expected for all commercial events held in stadia by April 2009.
6. organisers of large events that take place on the streets to promote London be informed that all the policing costs of these such events need to be met by the event organisers either through their budgets or through sponsorship; and
7. the London Organising Committee of the Olympic Games (LOCOG) be informed that they will be expected to fund the full policing costs associated with any ‘warm-up events’ for the Olympics.

B. Supporting information

Background

1. The following report outlines the current position in relation to charging for events, details of the review that has been undertaken and makes recommendations for the future.

Introduction

2. On 19 July 2004, the MPA agreed a policy on charging for events. This policy was produced as the Authority was concerned about the costs of the policing of events and the consequential impact on other policing priorities because of the abstraction of resources.

3. The policy splits events into four categories:

• Statutory events.
  Events where there is no financial gain to the organiser and which reflect a constitutional right or a cause of specific royal, historical or public interest. Examples are state events, ceremonial events and public demonstrations.
• Commercial events.
  Events where there is financial gain or profit to the organiser or company without specific community benefit, usually, but not exclusively, through members of the public having to pay an entry fee to gain access to the event. This includes football matches and other professional sporting events, exhibitions, award ceremonies, music concerts, filming in the street, etc.
• Charity events.
  In this case there is financial gain but for non-profit charitable distribution.
• Community events.
  These are not for personal or corporate financial gain, but may raise funds for community institutions, and are generally for community or local interest purposes, such as carnivals and festivals, amateur sporting events, parades, etc.

4. The MPA policy is that all commercial events will be charged the full economic cost of the agreed police resources. Where this relates to the deployment of officers on private premises such as an event venue, this is covered by legislation. However, this legislation does not cover policing outside premises but despite this, there are many examples where police and organisers have worked together and the latter have agreed to pay for event policing that is delivered in public streets.

5. The current process that should be followed is:

1. An agreement is reached between the organiser and the MPS over the policing of an event. The organiser either signs a form 236 or provides a letter indicating their willingness to pay for police resources.
2. At the conclusion of the event, the MPS unit concerned sends a completed MF6 to exchequer services. This form highlights the services that have been provided, the details of the person who will be invoiced and the cost centre to which any payment is to be credited.
3. Exchequer services raise an invoice, which is based on the services provided and is calculated from the schedule of fees and charges that are agreed annually by the MPA.
4. Exchequer services send the invoice to the organisers, ensure that it is settled and the money credited to the appropriate cost centre.

Review

6. Following some separate discussions between AC Ghaffur, the Commissioner and the Chair of the Police Authority, it was agreed that DAC Allison would conduct of review of the MPA policy. The terms of reference were agreed with MPA member Richard Sumray and are set out below:

1. To review the MPA policy to ensure that it is being applied.
2. To review whether the definitions of ‘community’, ‘charitable’ and ‘commercial’ are fit for purpose.
3. To review the standard operating procedures to ensure that they are fit for purpose.
4. To identify any gaps in current policy and make recommendations to fill them.

Methodology

7. DAC Allison has regularly met with Richard Sumray and Ken Hunt, MPA Treasurer and kept them updated as to the progress of the review. It was agreed that all events during a snapshot in time would be examined to establish if the policy had been adhered to. This would also allow the definition of the types of event to be critically reviewed. As the data was readily available, it was agreed that the year from 1 October 2005 until the 30 September 2006 would be used.

8. The review has comprised of a detailed analysis of the data, discussions with a range of practitioners (including borough and OCU commanders) and an examination of the systems and processes that are currently used.

Findings

9. The review has found that the definitions of event types, as set out in the MPA policy, are fit for purpose. There is a good understanding of what they mean and while there are the occasional events that could fall in one or another category, the definitions provide a good and consistent framework that underpins the policy. As such, the focus of the review has been on those events identified as commercial events and the thrust of the report is about the costs of commercial events.

10. As reported to the MPA in the Public Order Review, the MPS is constantly reviewing the way in which it deals with events with a view to reducing the aid commitment whilst still maintaining an effective and appropriate policing response. The last calendar year saw the number of Constable days used on events reduce from 201,525 in 2005 down to 159,344 in 2006, a reduction of around 21%. However, the resources being used to police events are a significant abstraction and given that the number of events is likely to increase over the next few years in the run up to the Olympics, this reinforces the need for the MPS to apply charges when it can.

11. During the period examined, there were over 1,300 events that were identified as commercial events. The cost of policing these events was estimated at over £9.2 million. These costs are based on an estimated deployment of 5 hours per event and service-wide average hourly rates for each rank. While there are additional costs in relation to some of these events (such as overtime and transport), these costs are very small in comparison with the cost of the staff and the work to gather this data would have been significant and add little to this review.

12. Charges were levied for approximately 77% of these commercial events and as a result, the MPS recouped £3.9 million.

13. The most costly commercial events are football matches. Charging for the policing of football matches has been the subject of much discussion over the years and in developing their policy, the MPA met with representatives from the clubs, the Premiership and the League. No firm agreement on payment for policing outside football grounds could be reached and the MPA decided that without the legal framework, they were not in a position to force payment. As such, the current policy is that the MPS only charges for officers deployed inside grounds.

14. During the period under examination, there were 346 football matches played in London and the cost of policing these events was £6.6 million. The MPS sought payment for 257 of these matches and recouped £2.1 million, these being the costs associated with officers being deployed inside the grounds. As such, the MPS subsidised football to the tune of £4.5 million.

15. During the period under examination, there were over 470 film premieres and filming in the streets, all of which were charged for. It is clear from examination of the data and discussions with the staff in various Operations Offices that the organisers of these types of events are more than willing to pay for all policing as they get considerable benefit from the police presence. The units that deliver the policing derive the income in these cases and as such, the appropriate charges are always levied.

16. No charges were made for just over 320 commercial events. About 90 of these were football matches and nearly 80 of them were fun fairs. Of the remainder, the majority were events that took place in arenas or stadia with only a few being events that actually took place on the streets. In most of the cases involving arenas or stadia, no officers were actually deployed inside and so no charges could be levied. There is also the de-minimus position, which states that where the deployment of police asset is equivalent to less than 24 hours, it could be seen as part of reassurance policing and so charges don’t always have to be levied. However, the total cost of policing these events was about £2 million.

17. Standard Operating Procedures for the charging for events have never been formally issued by the MPS. Advice and guidance has always been available from CO11 (Public Order Branch) and from Costings Branch who have considerable expertise in this area. Since the policy was published, draft SOPs were produced but their publication was delayed to ensure that they were in synergy with the ACPO policy which itself was being produced. This has now been published and the MPA policy is consistent with it, although the former does allow for some discretionary charging for some other event types. This review does not advocate any change to the current MPA position, which is not to charge for community or charity events. While advice and guidance has always been available in the MPS, there is now a clear need for detailed Standard Operating Procedures to ensure that there is consistency in the way in which the policy is being applied.

Issues

18. The biggest challenge currently facing the service in relation to cost recovery comes from events that take place inside private premises, such as stadia, arenas and conference centres. Since Lord Justice Taylor’s report into the Hillsborough tragedy, there have been many changes to the way in which football grounds are managed. The move to all-seated football stadia and an increase in the use of stewards have meant that less officers are now required to police inside the ground. However, officers are still required in large numbers outside the ground to manage the crowds as they arrive and depart. The organisers of other events inside private premises are now using the same crowd management principles, with a greater focus on the use of stewards to manage the crowds internally.

19. While the financial commitment of the football authorities to the ‘Kickz’ community based youth diversion project and the benefits that this brings are fully acknowledged, it is clear that it is the policing of football matches that causes the largest financial burden upon the MPS.

20. However, the principles that apply to charging for the policing of football matches are equally applicable to rugby, cricket or any concert or event that takes place inside a stadium. When an event organiser asks for policing inside such a location, the MPS can require payment for the policing resources deployed in that role. However, the MPS has no power to demand payment for any policing delivered outside the stadium and in full knowledge of this, a number of event organisers are unwilling to enter into any dialogue or to pay for any policing on the public streets.

21. The second challenge relates to events, such as funfairs, which take place in open spaces owned by the local authority. These events have an effect on crime and disorder in the area and require policing but at present, charges are not applied.

22. The third challenge facing the service relates to events, such as the Tour de France, which take place on the streets of London. The number of these types of events is likely to grow significantly in the next few years as, following the Beijing Olympics in August 2008, the Mayor is keen to promote London as the Olympic city. The policing costs associated with these events are likely to be significant and the MPA needs to consider the position that it will take in relation to who should pay. It is vital that there is consistency in the approach adopted so that all organisers are treated in a fair and transparent manner.

23. The fourth challenge relates to the ‘warm-up’ events for the Olympics. These will require a level of policing and in a similar vein to the previous issue; the MPA needs to consider who should be responsible for meeting these costs.

Recommendations

24. In line with the terms of reference, this report makes the following recommendations, which will help to ensure that the policy is followed and that the MPS recovers appropriate costs from the organisers of commercial events.

25. Recommendation 1 - The MPA should re-launch their policy, both internally and externally and publicise it in such a way that those intending to hold commercial events in London are fully aware of the requirements on them. This will ensure that both those within the service and those who are event organisers are aware of the policy and the fact that the latter will be expected to pay the cost of policing such events at the Special Services Agreement (SSA) rate.

26. Recommendation 2 - Following the re-launch of the policy, the MPS should publish SOPs which will outline not only how the policy will be put into practice but will also cover the administrative arrangements to ensure that there is a transparent audit trail. These SOPs are in draft form at present and following further consultation, would then be published.

27. Recommendation 3 - Borough Commanders and event Commander’s should attempt to ensure that they take every opportunity to recoup policing costs from event organisers through partnership working.

28. One such example is fun fairs where boroughs put in place a policing operation to deal with crime and disorder that results in the vicinity. For the most part, the Local Authorities (LA) licenses these fairs and boroughs will be encouraged to work with the LA under the auspices the Crime and Disorder Act to ensure that any licence that is given includes the requirement for the fun-fair to have an appropriate policing presence in the vicinity. The owners of the fair would then have to request police to provide services under an SSA before the fair could take place.

29. A second example could relate to licensed premises, which, as a part of their licence, provide live entertainment. These events often require policing outside at the arrival and dispersal to prevent crime and disorder that would otherwise occur. Using the provisions of the licensing act, boroughs should be encouraged to ask LA Licensing Panels for licence conditions that require the licensee to have policing in the vicinity if they wish to hold such an event. While such a condition cannot require them to pay for the policing, the requirement may require that policing is present and the licensee would then have to enter into negotiations with the police about the provision of these officers under an SSA.

30. Recommendation 4 - The MPA adopt the position that, in the future, the organisers of events in stadia will be required to meet the costs of all policing associated with the event, both inside and outside, in line with SSA rates. The MPA should lobby central Government to enact legislation to give a legal basis for such charging but recognising that this will not be easy, should also approach London Councils to use the legislative framework that exists for London to create such a legal basis.

31. Recommendation 5 - The MPA position should be that full cost recovery in line with SSA rates will be expected for all commercial events held in stadia by April 2009. The MPA should formally communicate that fact with those responsible for running such events and should outline the incremental increases it would require from organisers in the move towards full cost recovery.

32. To assist in delivering this, the MPA would need to support an MPS position of declining to provide any policing to an event where there was an un-willingness to pay these more representative costs. The lack of police at an event may impact on the safety certificate for the stadia and its capacity for the event in question.

33. Recommendation 6 - The MPA inform the Mayor and those intending to organise large events that take place on the streets to promote London, that all the policing costs of these type of events need to be met by the event organisers either through their budgets or through sponsorship. The MPA should seek to be involved in any strategic meetings held by the Mayor’s office over proposed events of this type that are being planned for the future.

34. Recommendation 7 - The MPS should inform the London Organising Committee of the Olympic Games (LOCOG) that they will be expected to fund the full policing costs associated with any ‘warm-up events’ for the Olympics.

Summary

35. The MPA and the MPS recognise their statutory responsibilities to deal with marches, demonstrations, ceremonial and security events. They also recognise the importance of community events to the well-being of London. However, commercial events are very different. Every police officer deployed on a commercial event is a police officer who is not able to deal with the problems experienced by the community where they normally serve. There is a need to ensure that the organisers of the commercial events meet the full cost of policing them in line with the SSA rates so that the MPA is not subsidising their event to the detriment of communities.

C. Race and equality impact

1. The race and equality impacts of this policy have been examined. The policy defines a number of different categories of events and unlike the ACPO position, which applies a sliding scale of charges for different types of events; the MPA policy only applies charges for commercial events.

2. An examination of the events that fell within the commercial category during the period in question did not identify any particular group that was being, or would be, disproportionately affected by this policy. The events that might have a race or equality impact all fall within the other three definitions and as such, no charges are applied. Good examples of this are the various religious events that take place annually through to Notting Hill Carnival, all of which are seen as community events. As such, there are no apparent race or equality impacts arising from this report or its recommendations.

D. Financial implications

1. The Authority is asked to consider a number of issues in respect of recovery of police costs incurred in supporting commercial events. The main report identifies the results of a detailed analysis of 1,300 commercial events carried out between 1 October 2005 and 30 September 2006. The cost of policing these events is calculated at £9.2m of which £3.9m was recouped.

2. A high-level analysis of events involving over 300 police officer shifts is routinely reported to the Finance Committee and for the last two financial years indicates the following costs to the MPS:

3. The income identified is less than that identified in section D Financial Implications paragraph 1 as the majority of commercial events, i.e. where cost recovery is currently permitted, are policed by less than 300 officers. In total, the MPS police some 3,000 events a year. With the establishment of SOPs reinforcing the need for event organisers to pay for policing commercial events, systems will be put in place to provide financial management reports on income recovered on all commercial events to highlight achievement against the approved policy.

4. At present a significant resource is effectively subsidising the delivery of commercial events. Any measures taken to increase the Service’s ability to recoup its costs will allow resources to be realigned to the delivery of MPA/MPS policing objectives.

E. Background papers

None

F. Contact details

Report authors: DAC Chris Allison, Central Operations.

For information contact:

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

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