Accommodation for MPS Police Federation

Report: 10
Date: 20 March 2001
By: Commissioner

Summary

To consider the basis for providing financial support to the Federation towards their new accommodation in Bromley; and to seek the return of MPA accommodation they have already vacated at Limehouse. This follows the meeting of the MPA Estate Sub-group in February when the Federation presented their request for financial support.

A. Recommendations

Members views are sought on:

1. Recommending an appropriate level of financial subsidy, if any, by the MPA towards the accommodation costs of the Federation, based on either Option A, Option B or Option C.
2. To decide whether to fund the cost of the rates for the property at Bromley at £32k per annum.
3. Following decision by the MPA, to require the Federation to release all the accommodation previously occupied at Limehouse within four weeks of notification of the decision.

B. Supporting information

1. The Federation has occupied a variety of offices, both locally and centrally. Their main offices were located in the former Harold Scott Section House at Limehouse, comprising one whole floor and totalling 440 sq.m. Their accommodation included a large board room as well as a kitchen and dining facilities.

2. In 1999 the Federation sought to expand onto another floor. Although qualified support was given to some expansion there were reservations over the timing and extent. At the same time the Federation were also considering the possibility of relocating to private premises elsewhere in Bromley owned by the Metropolitan Police Friendly Society. The principle of some limited financial support from the MPS was considered by the (then) Receiver, who intimated that modest support may be possible should they vacate, but no undertaking was given.

3. Meetings were held with the Federation when the terms of their new lease were discussed and the basis for providing some financial assistance was explored. Although the Federation's expectation was not quantified at that stage, a substantial financial commitment was sought, as well as support with other services; they also wanted to retain the Board Room at Limehouse. The Federation subsequently decide to move to new premises relocating to Bromley in 1999, but continue to use the Board Room at Limehouse.

4. This matter has since been raised at meetings between the Commissioner and the Federation. Currently the Federation has not relinquished any of the space they vacated at Limehouse. This delay is causing problems for the MPS in progressing essential alterations needed there to house other units.

5. In November 2000 the Federation detailed their bid:

• a one off payment of up to £250,000 to cover the costs of fitting out their new offices in Bromley and £13,000 to cover removal expenses;
• an annual subsidy towards their running costs, comprising £100,000 for rent; £32,000 for rates; £6,000 for electricity; £1,500 for insurance; (and other costs not yet available);
• they also require a Board room to be available, but will vacate the Limehouse Board room if suitable alternative conference facilities for approximately 30 meetings per year - for up to 40 members - are provided elsewhere, along with facilities for associated storage. Good access to public transport has been stipulated. (They have previously had experience of booking the conference room at NSY only to be displaced at short notice.)

6. Legal advice has been sought from MPS solicitors regarding the MPA's authority to incur such expenditure in lieu of providing modest accommodation in their own premises.

7. Section 60(2) (d) of the Police Act 1996 provides: "for the payment by the Secretary of State of expenses incurred in connection with the Federations and for use by the Federations of premises provided by police authorities for police purposes." This has not been amended with the introduction of the Greater London Authority Act 1999. Section 310 of the GLA Act deals with the duties of the MPA which are to maintain a police force for the Metropolitan Police District. Section 6(1) of the Police Act 1996 provides : "every police authority established under Section 3 shall secure the maintenance of an efficient and effective police force for its area". Section 111(1) of the 1972 Act provides for a Local Authority to "do anything (whether or not involving expenditure, borrowing or lending of money or disposal of any property or rights) which is calculated to facilitate, or is conducive or incidental to, the discharge of their functions".

8. It would appear that the MPA could agree to assist the Federation with their funding if it is conducive to "the maintenance of an efficient and effective police force in its area" and the sum(s) is appropriate and reasonable in the circumstances. There is no provision for reimbursement by the Secretary of State to the Police Authority in respect of such expenditure. The level of any subsidy should be capable of being justified as "appropriate and reasonable" in the circumstances. Linking a payment to the level of MPS accommodation previously available for their use might be considered a suitable way to demonstrate that the sum is appropriate.

9. The Federation met the MPA Estate Sub-group in February to explain their position when possible alternative options were also considered. These were:

Option A

10. We have previously suggested a single payment of between £185k (which could be increased to £200k to reflect improvements carried out by the Federation). That equates to the amortised value of the market rent for the office space vacated at Limehouse. It would increase to £325k (£375k as improved accommodation) if the Board room and Dining Room were also included, but the higher sums would not be appropriate if alternative Board room facilities continue to be made available within MPA accommodation.

11. The majority of the Federation meetings are comparatively small and can be accommodated within one of the several conference rooms at either NSY, Tintagel House or Cobalt Square. There are fewer large meetings each year and these are all pre-diaried. One possibility is to make the dining room at Cobalt Square available for a specified number of days and planned in advance with the catering service providing meals on the usual basis.

12. This arrangement has now been agreed in conjunction with the Federation and the MPS Catering Department.

Option B

13. To provide a single payment of up to £265k to reimburse their costs of relocation and office fit-out.

Option C

14. As Option A or B together with an annual payment to reimburse their rates. (These were previously embodied as part of the rates for the Limehouse building paid by the MPS. Any such payment could be adjusted to reflect the different scale and quality of new accommodation occupied.)

15. Further discussions have been held with the Federation but the level of financial support sought remains unchanged.

16. The MPS Resource Allocation Committee considered the Federation's bid together with the suggested options at their meeting on 13 March 2001. They considered the level of any financial payment should be seen to be appropriate and support the higher payment at Option B.

17. They also noted the extent of the space occupied by the civil staff Unions (in the Victoria area) which totals 189 sq.m. (An equivalent rent would equate to £18k/annum if located at Limehouse).

Review arrangements

18. If any financial support to the Federation towards their own accommodation is limited to a single, one off, payment, no further review should be necessary. Any annual payment towards rates would need to be reviewed as part of PSD's annual base budget review.

C. Financial implications

A single payment of £265k will reimburse the Federation's costs in fitting out offices at Bromley and their removal costs. There has been no allowance for such payment and funding towards the current level of Council rates paid by the Federation at £32k p.a. would be a further additional cost to the MPA.

D. Contact details

The author of this report is Trevor Lawrence, Director of Property Service, MPS.

For information contact:

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

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