Minutes - draft

Please note these minutes are currently draft and are subject to committee approval.

Minutes of the meeting of the Finance Committee held on 11 October 2004 at 10 Dean Farrar Street, London, SW1H 0NY.

Present

Members

• Graham Tope (Chair)
• Reshard Auladin
• Richard Barnes
• Elizabeth Howlett
• Bob Neill
• Richard Sumray

MPA officers

• Catherine Crawford (Clerk)
• Peter Martin (Treasurer)
• John Crompton (Committee Services)

MPS officers

• Sir Ian Blair (Deputy Commissioner)
• Keith Luck (Director of Resources)
• Sharon Burd (Director of Finance Services)
• Alan Croney (Director of Property Services)
• Terry Price (Director of Strategic Finance)
• Mike Jennings (Finance Services)

Part 1

60. Apologies for absence

(Agenda item 1)

An apology for absence was submitted on behalf of Murad Quereshi.

61. Declarations of interests

(Agenda item 2)

No declarations were made.

62. 2005/06 draft budget submission and medium term financial plan

(Agenda item 3)

The 2004/05 revenue budget draft submission was submitted for consideration by the Committee. The draft submission is to be presented at the Authority meeting on 28 October and the final submission made after the grant settlement at the Authority’s meeting on 7 December.

The Treasurer stressed that work was still being carried out on the technical supporting documents which were required to be submitted with the bid. The announcement of the grant settlement might be made on 16 November but if this target was not achieved the announcement could then not be made for a further two weeks or so.

The Treasurer reported that at the meeting of the Coordination and Policing Committee on 8 October some possible growth elements had been identified in the Authority’s own budget which would be included in the submission for specific approval at the Authority meeting on 28 October.

The Deputy Commissioner referred to a confidential briefing which had been provided for members on additional operational pressures which were not funded within the 2005/06 budget submission.

Members questioned the inclusion of a figure of £0.8m. for work on the Olympic Games when the status of the Games was not known. The Deputy Commissioner said that this budget line would be looked at again. Richard Sumray said that while he could not comment on the particular figure, he would stress the importance of the police being an integral part of the planning for the event from the outset in the light of experience in other Olympic venues.

The Committee requested that an exit strategy from the rail concession scheme should be provided.

Members expressed concern at the potential level of precept increase. The Deputy Commissioner expressed the view that no further savings target should be set before the grant settlement was announced in mid November. However, members were clear that there needed to be contingency work to identify options for reducing the budget which could be available for consideration one the grant position was clearer.

Resolved – That

1. The draft revenue budget submission for 2005/06 be agreed for submission to the Authority meeting on 28 October; and
2. Work should continue to identify options for reducing the budget which could be considered when the grant settlement was announced.

63. Draft borrowing and capital spending plan 2005/06 to 2009/10

(Agenda item 4)

This report provided information on a proposed five-year capital expenditure programme for 2005/06 to 2009/10, which is part of the budget proposal to the Mayor and Greater London Authority.

Summary information was provided on expected funding and on capital projects that fall to be funded from specific grants additional to the main capital programme. Confirmation of available funding through the local government settlement will be reported in detail to the Committee early in 2005.

Resolved- That

1. the indicative borrowing and capital spending plan 2005/06 to 2009/10 before referral to the full Authority (Appendix 1) be noted whilst recognising that further work is to be undertaken in clarifying expenditure proposals; and
2. it be noted that final approval of the detailed five-year capital programme 2005/06 to 2009/10 will be sought from the Committee in early 2005 following announcement of the capital settlement by the Home Office.

64. Draft budget and environment submission 2005/06

(Agenda item 5)

The GLA Group budget Process for 2005/06 requires, for the first time, the inclusion of a submission on the Budget and Environment to support the budget application. The Committee’s approval of this draft document is sought. The draft submission is to be approved by the full authority on 28 October and the final submission at the Authority’s meeting on 7 December. A completed Environmental Strategy document will be submitted to Members early in 2005 in the usual manner.

Resolved – That the draft budget and environment submission be approved for submission to the Authority meeting on 28 October.

65. Step Change Programme– business case for growth in the Metropolitan Police Service 2005-06

(Agenda 6)

In 2004/05 the MPS initiated a Step Change Programme which provided community based policing teams in 96 neighbourhoods and growth in the supporting infrastructure. This report examines options for the second stage of the Step Change Programme (2005/06) and presented the business case for growth. The draft revenue budget submission identifies that further savings or reductions in spending proposals will need to be identified to allow the continued expansion of the Step Change Programme.

Members commented on the continued lack of clarity over the size of a “neighbourhood” and how this term related to wards.

Members asked whether consideration had been given to amending the expenditure profile by reducing the supervisory element perhaps by the sharing of Sergeants between teams . The Deputy Commissioner said he could not support that particular suggestion as in his opinion there could not be successful delivery of the programme without adequate supervision.

Members also indicated that it was not easy to identify the differences between option 2 - the MPS preferred option and option 3 which had been prepared in line with a remit from the GLA. The Deputy Commissioner confirmed that option 2 remained the preferred option for the MPS. He realised that option 3 had lower revenue commitments and it was now confirmed that option 3 could reflect the redeployment of existing officers as contained in option 2. He was clear that the step change programme must include input from Special Operations and Specialist Crime Directorate. He therefore undertook to submit a revised version of option 2 which removed the additional budget lines apart from Special Operations and Specialist Crime.

Resolved – That the Step Change Programme business case for growth in 2005/06 be noted and revised options be presented to the full Authority.

The meeting closed at 4.40 p.m.

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