Funding of Resource Allocation Formula (RAF) 2005/06

Report: 06
Date: 17 February 2005
By: Treasurer and Commissioner

Summary

This report sets out the financial aspects of the review of the Resource Allocation Formula (RAF) for 2005/06, and proposed changes to the 2005/06 budget to fund its implementation.

A. Recommendation

Members are asked to approve the proposed changes to the 2005/06 Budget listed in paragraphs 8 and 9 below.

B. Supporting information

Background

1. The Co-ordination and Policing Committee on 11 February 2005 approved a revised formula for the allocation of police officers between BOCUs for 2005/06.

2. The Committee also considered proposals for the funding of the additional resources required by deferment of new growth initiatives pending the outcome of the Service Review.

3. The key financial implications arising from the revised formula concern, in particular, how to support those boroughs that would lose officers under the new formula. The cost of maintaining those boroughs at existing BWTs with a capped application is £5m-of which £3.3m represents police pay. A sum of £4m would cover the cost of police officers plus immediate support costs.

4. The report also proposed to bring forward the growth in Specialist Operations (SO) and Specialist Crime (SC) under the Step Change Programme to 1 October 2005 (i.e. extended from the original four months included in the current budget proposals) at an additional cost of £1.02m

5. The total sum required is thus £5.02m which is proposed to fund from within the existing budget proposed for 2005/06 by deferring some growth items pending the Service Review, and one off savings from reduced computer workstation costs. It is intended that, once the Service Review has identified sufficient resources during 2005/06, the deferred items would be re-submitted for approval to be re-instated.

6. The proposals are made in the context of an approved budget, which the Treasurer has already advised contains risks in relation to some of the savings proposals and the potential for overspending in 2005/06, especially the police officer overtime budget. The budget for 2004/05 is currently forecasting a small underspend but this needs to be considered prudently in relation to the potential risks around some budgets, and does not include any tsunami costs not recovered from government. The Authority has reviewed all its reserves in agreeing the budget submission and no further sums have been identified as not being required for their original purpose, and all existing reserves thus need to be retained.

New Initiatives 2005/06

A schedule of the new initiatives currently included in the 2005/06 Budget totalling £17.774m is enclosed at Appendix 1. A brief commentary on all the items, separately identifying those proposed for deferment, is set out below. It should be noted that some items represent a change of funding stream rather than a new programme or initiative.

G8meeting/EU presidency/General Election

One off protection and mutual costs, effectively already committed, and unable to defer or reduce.

NIM/CRIMINT

Funding to implement, maintain and develop NIM, which allows intelligence-led assessment of all operational activities and also to introduce Crimint Plus system.

Armed Hospital Guards

Proposed reduction of 35% and £700k by re-phasing recruitment of some of the extra 46 police officers until later in year.

Safer Schools Project

Existing partnership programme within schools, and closely aligned to Safer Neighbourhoods programme. Cessation of external funding requires new funding source from April 2005.

Implementation of Genesys Systems in IBOs

Part of phased programme (linked to C3i) to close CAD rooms on boroughs and replace with IBOs with town centre CCTV, access control systems, panic alarms etc now being controlled from a single workstation.

Custody Command team/restorative justice

Establishment of pan-London Custody Command and dedicated Restorative Justice Team to co-ordinate custody facility provision and availability, develop custody partnership liaison and develop a custody strategy

Strategic Development Programme

Additional funding to meet new statutory requirements such as criminal justice data returns, additional PPAF data returns and surveys, implement and manage National Incident Recording Standard, and implement MetMIS, and set up Corporate Change Co-ordination Unit.

South London Training Site

Proposed deferral of funding of £1,030k for implementation of new site to alleviate pressure on facilities at Hendon until later in year.

Vehicle Recovery & Storage expansion

Additional funding for running costs (and opening of 2nd site) to deal with anticipated 33% growth in demand in 2005/06 and increased number of vehicle forensic examinations from all lost and stolen vehicles and those involved in serious accidents.

Additional resourcing to CUSU re C3i

Funding for extra 10 staff for DOI Communication User Support Unit for user support to underpin new and existing C3i systems. Proposed reduction of 50% (and £ 375k) with recruitment being phased over the year.

Support to Covert/overt operations

Growth in running costs for provision of technological support and emerging technologies by DOI Operational and Technical Support Unit to front line policing.

Freedom of Information (SO)

Funding for extra 20 staff for FOIA implementation in SO Directorate and proposed reduction from £600k by £200k by re-phasing recruitment of staff over the year.

Fees for solutions re new cells/custody centres

High priority project to examine options to invest in improved custody suites possibly in partnership with Magistrates Court Authority, due to operational pressure.

Criminal Justice Support to CPS point of charge

Funding for high priority joint partnership initiative with Crown Prosecution Service to support service at point of charge.

Growth in MPA Secretariat

Additional funding for various initiatives including additional support to MPA members, Publicity and promotion, capacity building and oversight of MPS Professional Standards.

Foundation Training (Hendon/Satellite Sites)

Funding for 5 additional (police staff) trainers due to expected increase in numbers of recruits, future modernisation of probationer training and possible delivery from satellite sites. Proposed reduction by 50% and £125k with staff recruitment spread across the financial year.

Fibre Optic link for C3i

Monies for new fibre optic links to ensure video systems are operational at all three C3i buildings.

Provision of Tasers

Increased funding for further rollout of tasers in 2005/06, which is effectively already committed.

8. A summary of the proposed items to be frozen is as follows

9. In addition, negotiations have recently been concluded on the extension of the ICT outsourced contract which result in lower computer workstation costs than previously estimated over the period to March 2006.The net effect is a reduction of £3.9m of which £2.6m will occur in 2005/06(with the balance of £1.3m occurring in this financial year) These savings are, however, one off in nature and will need to be replenished in the budget for 2006/07 in due course.

Summary

10. The proposed budget adjustments total £5.03m, which if approved, will be reflected in the final budget for 2005/06 to be submitted to the MPA Full Authority meeting on 31 March 2005.

C. Equality and diversity implications

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

D. Financial implications

The financial implications are those set out in this paper.

E. Background papers

• MPA/MPS Revenue Budget papers 2005/06

F. Contact details

Report author: Sharon Burd, Director of Finance Services, MPS.

For more information contact:

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

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