A review of the Metropolitan Police Authority policy on charging for events

Report: 9
Date: 20 December 2007
By: Assistant Commissioner Central Operations on behalf of the Commissioner

Summary

The Metropolitan Police Authority (MPA) and the Metropolitan Police Service (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 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 MPA published Special Services Agreement (SSA) rate so that the MPA is not subsidising their event to the detriment of communities.

While this review has found that the current policy is fit for purpose and is being effectively used, it has identified some areas where it can be made more effective. The report makes recommendations to both achieve this and also deal with new challenges on the horizon.

A. Recommendations

That:

1. the MPA should re-launch their policy and publicise it in such a way that those intending to hold commercial events in London are fully aware that they will be expected to pay the cost of the agreed policing for their event at the SSA rate;

2. the MPS publish internal Standard Operating Procedures (SOPs) that outline 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 must continue to take every opportunity to recoup policing costs from those responsible for commercial events, by working closely with the organisers and making use of partnership working with Local Authorities where appropriate;

4. the MPA move to a position that the organisers of commercial events in stadia will be required to meet the costs of all policing associated with their event in line with the published 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;

5. the MPA in moving towards full cost recovery by April 2009, outline to the organisers of commercial events in stadia the incremental increases it will require from organisers. This phased approach will allow event organisers to plan and budget accordingly;

6. the MPA inform the Mayor, and those intending to organise and promote large events that take place on the streets of London, that all the policing costs of these events will be have to be met by the event organisers. The MPA should also seek to be involved in any strategic meetings held by the GLA regarding events of this type that are being planned for the future; and

7. the MPA reiterate to the London Organising Committee of the Olympic Games (LOCOG) that they will be required to fund the full policing costs associated with any ‘warm-up events’ for the Olympics. These costs have already been included in the bid submitted by the MPS.

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.

MPA Policy

4. The MPA policy is that the organisers of commercial events should be charged the full economic cost of the police resources used on the event. However, the policy recognises that while there is a power in law to charge for officers deployed on private premises, this power does not provide the legislative framework to enforce payment for officers deployed in the streets outside the premises to deal with those attending the event. However, despite this, there are many examples where the MPS and organisers have worked together and the organisers have met the full costs of policing their event including the costs of officers deployed outside their premises.

5. The current process is:

1. An agreement is reached between the organiser and the MPS over the policing of an event. This agreement covers the levels and type of police resources that will be used. The organiser either signs an agreement form (form 236) or provides a letter indicating their willingness to pay for the agreed police resources.
2. At the conclusion of the event, the MPS unit concerned, sends a completed invoice request (MF6) to exchequer services. This form details the services that have been provided, 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 and published on their web site.
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 it was an appropriate time to review the policy given the increase in events that is likely to occur in the run up to the Olympics. DAC Allison was appointed to undertake the review and the terms of reference, which were agreed with MPA member Richard Sumray, 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.

8. It was agreed that all events during a snapshot in time would be examined to establish if the MPA policy had been adhered to. This would also allow the definitions of the types of event to be critically reviewed. It was agreed that the year from 1 October 2005 until the 30 September 2006 would be used as this data had already been collated.

9. The review 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 within the MPS. Richard Sumray has sought views from MPA members and DAC Allison has also met with others within the MPA.

Findings

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. By way of example, the number of Constable days used on events reduced from 201,525 days in 2005 to 159,344 days in 2006, a reduction of around 21%. However, the resources being used to police events are still 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 appropriate.

11. The review has found that the definitions of the 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.

12. As such, the focus of the review has been on those events identified as commercial events and the thrust of the report is about their costs.

13. 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 estimated costs are based on an assumed deployment of five hours per event and service-wide average hourly rates for each rank. While there would have been 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. The work to gather this data would have been significant, would have added little to this review and so these additional costs have not been taken into account.

14. Charges were levied for approximately 77% of the 1,300 commercial events. However, for reasons outlined later in the report, full cost recovery in line with the schedule of MPA charges could not be achieved for many of the events. The result was that, in total, the MPS only recouped £3.9 million.

15. The most costly commercial events to police 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 states that the MPS will only charge for officers deployed inside grounds.

16. During the period under examination, there were 346 football matches played in London and the cost of policing these matches was £6.6 million. The MPS sought payment for 257 of these matches but, because the policy is only to charge for those officers deployed inside the grounds, it only recouped £2.1 million. As such, the MPS subsidised football to the tune of £4.5 million.

17. There are also a number of other sporting events that take place across London such as tennis, rugby and cricket matches. In terms of overall cost, these are very minor in comparison with football but full cost recovery does not take place for the same reasons as in football.

18. There were over 470 film premieres and filming in the streets, all of which were charged at the full rate. It is clear from examination of the data and discussions with staff in various Operations Offices that the organisers of these types of events are more than willing to pay for all the policing because they receive 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.

19. No charges were levied for just over 230 of the other commercial events. While about 80 of them were fun fairs, almost all of the others were events that took place inside stadia or arenas. In most of these cases, no officers were actually deployed inside the stadia or arena and so no charges could be levied. In a small number of cases, there was also the de-minimus position. This 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.

20. 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, it is now appropriate for the detailed Standard Operating Procedures to be published ensure that there is consistency in the way in which the policy is being applied. These SOPs are currently in final draft form and are ready to be issued subject to the outcome of this review.

Issues

21. 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. In these types of commercial events those attending have to be managed, on their way to, during and as they leave the event.

22. This should not be confused with those commercial events, which attract protestors. These protestors do not attend the event itself but turn up to protest against it and it is a core duty of the MPS to police these protests as they fall under the definition of a statutory event. While organisers might still pay for the deployment of officers for other duties associated with their event, they would not be expected to pay for the policing of those who attend to exercise their right to protest.

23. 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 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.

24. 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.

25. However, the principles that apply to charging for the policing of football matches are equally applicable to any sport, any concert or any event that takes place inside a stadia or arena. 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, as stated above, the MPS has no power in law to demand payment for the policing that is delivered outside the stadium to manage the crowds coming to and going from the event. In full knowledge of this, a number of event organisers refuse to pay for any policing delivered outside the stadium and refuse to enter into any dialogue about it.

26. While the current legislative framework does not provide a legal basis for charging, steps could be taken to change the law. In the meantime, there are other potential opportunities to ensure that event organisers meet the costs of their event.

27. The MPS cannot be required in law to provide policing for a commercial event held inside a stadium and the withdrawal of all policing from such an event may result in the Local Authority reducing the capacity outlined in the safety certificate. It would then be a decision for the organisers whether to reach an agreement with the MPS on levels of policing in an effort to increase the capacity allowed by their safety certificate.

28. Another opportunity relates to licensed premises, which, as a part of their licence, provide live entertainment. These events often require policing outside the premises during the arrival and dispersal of the attendees to prevent crime and disorder that would otherwise occur. Using the provisions of the licensing act, boroughs could ask Local Authority Licensing Panels for licence conditions that require the licensee to have policing in the vicinity for such an event. While such a condition cannot make them pay for the policing, it could require policing to be present and the licensee would then have to enter into negotiations with the MPS about the provision of these officers under an SSA.

29. The second challenge relates to events, such as funfairs, which mainly 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.

30. For the most part, Local Authorities (LA) licence these fairs. Boroughs can be encouraged to work with their LA under the auspices of the Crime and Disorder Act to ensure that any licence that is issued includes the requirement for the fun-fair to have an appropriate policing presence in the vicinity to prevent crime and disorder. The owners of the fair would then have to enter into negotiations with police to provide services under an SSA before the fair could take place.

31. The third challenge facing the MPS 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.

32. 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 the position that it will take in relation to who should pay.

Recommendations

33. This report makes seven recommendations, which are, included in Part A. Five recommendations relate to the MPA and two to the MPS.

Summary

34. 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.

35. 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. Ensuring that the MPA is not subsidising their events to the detriment of London’s communities.

36. While the current policy is clearly working and being applied, there are opportunities to make it more effective.

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:

Table 1: Breakdown of events involving over 300 police officer shifts in 2005/06 and 2006/07

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 author: DAC Chris Allison, Central Operations, MPS

For more information contact:

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

Send an e-mail linking to this page

Feedback