Revenue budget monitoring 2002/03

Report: 07
Date: 13 February 2003
By: Commissioner

Summary

This report sets out the income and expenditure for the MPA/MPS to the end of January 2003 (Month 10) and provides an update to the projected financial outturn for the year.

A. Recommendation

1. Members are asked to note the contents of this report.

B. Supporting information

Introduction

1. The purpose of this report is to provide members with an update of the revenue budget position of the MPA/MPS for the financial year 2002/03. The statement attached at Appendix 1 reflects the year to date position for income and expenditure to January 2003 (Month 10) and provides a projected outturn position based on data collated in January.

Overall position

2. The summary position is shown at Appendix 1, with a business group summary at Appendix 2. These statements show expenditure to 31 January 2003 £20.7m below budget. In addition income continues to be buoyant and is £5.2m in excess of the budgeted level.

3. The forecast to the year-end shows expenditure remaining below budget by £13.6m. The reduction in the underspend on total expenditure reflects an increase in the rate of spending towards the year-end as compared to the budget profile. The forecast for income also remains in excess of the budget with an overachievement of budget provisions by £6.3m. Overall there is a net under spending forecast of £19.9m. This is slightly higher than the overall position of a net underspending of £18.8m reflected in the last report.

Police pay

4. The forecast for expenditure on police pay shows a reduction from the last report and the forecast underspend for this item now amounts to £19.2m (£18.3m). This accounts for the bulk of the underspend in the overall forecast. The underlying reasons for reduced level of expenditure have been previously reported to this Committee. Appendix 3a sets out the progress in meeting the police officer recruitment target towards the overall budgeted level of 28,412 by 31 March 2003.

Civil staff pay

5. This budget continues to show an underspend on the year to date as the effect of the recruitment freeze last financial year slowed the recruitment process in the early part of 2002/03. Whilst recruitment is now picking up, factors such as enhanced security clearance for new staff continue to have an effect and the forecast underspend has increased from that previously reported.

6. Appendix 3b sets out an update on the number of civil staff posts that are formally filled by police officers. In addition police officers are also engaged in covering staff duties where this is required to complete essential tasks. As previously reported information on numbers of these posts is not accessible but overall is likely to be of the same order as the posts formally identified.

Police overtime

7. The police overtime budget is projected to underspend by £0.1m. The pattern of expenditure on overtime is volatile and influenced by a number of factors. Incidents such as the siege at Hackney result in additional demands as will other public order events such as Stop the War demonstrations planned between now and the end of March. The costs of premium payments and overtime covering the Christmas and New Year Bank Holidays will also fall in the last three months. Further savings may however accrue if overtime payments remain at the reduced level.

Police pensions

8. This forecast incorporates additional provision for the pilot scheme for payment of the commuted lump sum to officers with 30 years service, whilst they remain employed in the police service.

Service wide premises costs

9. Previous reports have identified additional costs in respect of Tintagel House, increased rates and expenditure to establish Charlton Car Pound. The forecast also allows for expenditure on backlog maintenance that was approved by the MPA to be met from the overall underspending in the current financial year.

Supplies and services

10. Supplies and services show a small overspend for the year. This reflects the cumulative effect of local decisions on devolved budgets applying some of the probable underspend on civil staff pay.

Income

11. Business group income shows a similar level of over achievement to the previous forecast statement relating to operational receipts and income generation. Whilst income forecasts must always be treated with some caution, there is increasing confidence that this will be realised.

Ongoing budget pressures and overall financial position

12. The full year forecast reflects a satisfactory position with expenditure slightly below budget enhanced by an overachievement on income. This produces a total variation of a little under 1% of the full year budget. It should be recognised, however that significant financial pressures remain especially with the current concerns over the threat from terrorism. Close monitoring and control will continue to be exercised to ensure that spending remains within budget.

Public order events

13. An annual report is made of policing of public order events. Appendix 4 and the accompanying Annex set out details of the cost implications of policing public order events during 2002.

C. Equality and diversity implications

1. There are no equality and diversity implications arising from this report.

D. Financial implications

1. The financial implications are those set out in this report.

E. Background papers

Corporate Finance – 2002/03 Capital Budget Files

F. Contact details

Report author: Mike Jennings, Director of Finance, MPS.

For more information contact:

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

Appendix 3a

Police Officer Recruitment and Retention Summary

 Appendix 3b

Police Officer in designated civil staff posts

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