Minutes

Minutes of the special joint meeting of the Finance and Planning Performance & Review Committees held on 10 October 2005 at 10 Dean Farrar Street, London, SW1H 0NY.

Present

Members

• Graham Tope
• Richard Sumray
• Reshard Auladin
• Cindy Butts
• Elizabeth Howlett
• Karim Murji
• Murad Qureshi
• Rachel Whittaker

MPA officers

• Catherine Crawford (Chief Executive and Clerk)
• David Riddle (Deputy Chief Executive and Clerk)
• Ken Hunt (Treasurer)
• Jane Owen (Head of Planning and Performance)
• John Crompton (Committee Services)

MPS officers

• Richard Bryan (Deputy Assistant Commissioner)
• Keith Luck (Director of Resources)
• Sharon Burd (Director of Finance Services)
• Terry Price (Director of Strategic Finance)
• Simon Hart (Director of Business Support)
• Assistant Commissioner Godwin attended for consideration of item 6
• Chief Supt Minton attended for consideration of items 3 and 4
• Alan Croney (Director of Property Services) attended for consideration of item 8.

It was agreed that Richard Sumray (Chair, Planning Performance and Review Committee and Deputy Chair of the Finance Committee) would chair the meeting.

1. Apologies for absence

(Agenda item 1)

An apology for absence was received on behalf of Dee Doocey.

2. Declarations of interests

(Agenda item 2)

There were none.

3. Draft corporate strategy

(Agenda item 3)

A report concerning the draft corporate strategy was considered following its agreement by the full Authority at its meeting on 27 September.

Resolved –That the draft corporate strategy be used as the basis for the business plan submission to the Mayor.

4. Update on the planning process 2006/07

(Agenda item 4)

This report outlined the progress on the development of the planning process and highlighted the key dates for the delivery of high level planning products. This report also updated members on the key milestones regarding the development of the MPA and MPS 2006–09 Corporate Strategy, the latest position on the draft National Policing Plan, and the outcome of the MPA/MPS consultation process.

Resolved - That the development activity required to produce the high level planning products outlined in the report be noted.

5. Revenue and capital monitoring 2005/06

(Agenda item 5)

The report outlined the revenue and capital monitoring position for 2005/06 at Period 5 (to the end of August). The revenue budget is forecast to overspend by £52.6m (1.9% of budget), which includes £70.4m of costs related to Operation Theseus. The underlying forecast overspend excluding Operation Theseus and Operation Bracknell costs is £15.6m, which is offset by a forecast underspend on Police Officer Pensions of £28.8m.

The expenditure to date for the Capital Programme as at Period 5 (August) is £96.5m, which is 29.98% of the revised budget of £320.3m.

The Treasurer confirmed that an interim payment in connection with the costs of Operation Theseus had been received. The accompanying letter contained a number of detailed technical points outstanding and an initial meeting with Home Office officials had been held to discuss them.

Resolved - That

1. the year to date and forecast position for revenue budgets and the capital programme be noted.
2. the additional £36.2m capital funding and budget approved by the MPA Full Authority on 28 July 2005 be noted.

6. Business case for growth in Safer Neighbourhoods Phase 3

(Agenda item 6)

This report outlined the growth for the Safer Neighbourhoods programme.

Assistant Commissioner Godwin attended for consideration of this item. He explained that the funding from the proposals would come from a Home Office stream and assurances had been given for the next two years. The Assistant Commissioner said the advice he had received was that there would be sufficient Sergeants in place. The question of Advanced Constables had not been explored sufficiently for this to be relevant.

It was felt that given the uncertainties, the business case could only be noted and not approved as sought in the recommendation.

Several members felt there was a need for a MPA lead member in connection with the further roll out .The Chief Executive and Clerk reminded members that this suggestion had also been made at another forum: there was an away day for all MPA members on 14 October and she would suggest that this matter be resolved then.

Resolved - That the business case be noted.

7. Progress report on the medium Medium Term Financial Plan and budget submission 2006/07-2008-09

(Agenda item 7)

This report provided an update and progress to date in the preparation of the draft budget submission for 2006/07 to 2008/09 and Medium Term Financial Plan (MTFP), and the processes still being undertaken to establish a balanced budget prior to the formal submission to the Mayor.

Richard Barnes said he wished to make the observation that if small changes were made to some of the assumptions shown in the Appendix e.g. the new lower assumption about the level of grant and the provision for inflation and pay pressures this would radically change the current projected shortfall.

The Treasurer said that there were some crucial aspects of the budget submission which had not yet been made available for proper consideration such as the contents of the base budget, the assumptions and details around the growth items and the deliverability of the proposed savings.

Graham Tope stressed that the report before the joint committee was essentially an update on the preparation of the budget and the Finance Committee members should have the usual opportunity to consider and discuss the actual draft submission ahead of its consideration at the Authority meeting on 27 October.

Resolved - That

1. the current financial overview position as set out in Appendix 1 be noted;
2. the prospects for government grant as set out in paragraphs 5 – 7 be noted;
3. reserves be not applied at this stage to help close the budget gap ;and
4. the draft MTFP and budget submission be submitted to the MPA Full Authority meeting on 27 October and that the Finance Committee members also wish to have the opportunity to consider the submission before that meeting.

8. Capital strategy

(Agenda item 8)

The draft capital strategy was submitted. The draft capital spending and borrowing plan for 2006 to 2009 will be based on this strategy.

In reply to a point from a member, the Director of Strategic Finance advised that detailed information on points such as depreciation periods was included in asset management planning rather than the strategy.

Resolved (by the Finance Committee) - That the draft capital strategy be approved.

The joint meeting ended at 4.10 p.m.

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