Contents
Report 6 of the 17 November 2005 meeting of the Finance Committee and sets out the forecast position against the MPA)/MPS Efficiency Plan at the end of the second quarter for 2005/2006.
Warning: This is archived material and may be out of date. The Metropolitan Police Authority has been replaced by the Mayor's Office for Policing and Crime (MOPC).
See the MOPC website for further information.
Efficiency Plan monitoring – as at second quarter 2005/06
Report: 06
Date: 17 November 2005
By: Commissioner and Treasurer
Summary
This report sets out the forecast position against the Metropolitan Police Authority (MPA)/Metropolitan Police Service (MPS) Efficiency Plan at the end of the second quarter for 2005/2006. Overall we are forecasting to exceed the Home Office’s efficiency target by £8.7m.
A. Recommendation
- That members not the position against the efficiency plan as at the end of September.
B. Supporting information
Introduction
1. The purpose of this report is to provide an update on the monitoring of the MPA/MPS 2005/06 Efficiency Plan.
Background
2. As part of the annual Policing Plan for 2005/06, all Police Forces and Authorities were required to demonstrate efficiency savings equivalent to 3% of their annual budget whilst maintaining or improving performance. Her Majesty’s Inspectorate of Constabulary (HMIC) monitor police authorities achievements through quarterly inspections.
Overall position
3. The statement attached at Appendix 1 reflects the forecast against the plan as at Quarter 2. The first HMIC inspection of the 2005/06 Efficiency Plan took place on 2 November 2005. An explanation of the current position with regards to the Efficiency Plan was provided. HMIC outlined their new approach to monitoring Efficiency Plans based on self-assessment and no specific issues or concerns were raised at that stage.
4. As at the end of September (quarter 2) we are forecasting to deliver £84.13m of efficiency savings in 2005/06. The position against the original plan shows that there is a forecast under achievement of £7.39m for cash releasing savings and a forecast over achievement of £4.92m on non-cashable savings. This results in a £2.47m under achievement against the MPA/MPS plan target. However as the plan includes a margin for slippage we are forecasting to deliver £8.7m over the Home Office’s 3% savings target.
Cash releasing savings
5. The overall target for cash releasing savings for 2005/06 was £61.75m; this figure excludes increased income, which does not qualify for efficiency savings plans under current Home Office rules. The table below shows the areas where there are major variances from the plan:
| Budget | Plan
£m |
Forecast
£m |
Variance
£m |
Comment |
|---|---|---|---|---|
| Medical retirements | 2.05 | 6.62 | 4.57 | Fewer medical retirements (50) than included in the original plan (reduction from 150 to 119). |
| Officer enquiry posts – staffing efficiencies | 2.50 | 0.00 | -2.50 | The savings associated with staffing efficiencies relating to Officer Enquiry posts will not be achieved. Territorial Policing are currently forecasting an overstrength position for Police Officers. |
| Review of SCD services | 3.00 | 0.70 | -2.30 | The planned contract efficiencies that were anticipated by SCD in the forensics budget and supplies and services (£3.00m) have not been achieved due to the additional work undertaken by Forensics during Operations Bracknell (tsunami) and Theseus (terrorist activity in July). |
| Reduction in police overtime | 1.90 | 0.00 | -1.90. | A major cause of the forecast underachievement in police overtime is due to the dedicated security patrols within Special operations and operational commitments within Territorial Policing. |
| Reduction in Inspector posts | 1.76 | 0.00 | -1.76 | The reduction in Inspector posts (£1.76m) has not been achieved due to the forecast overstrength position in Territorial Policing. |
| C3i centralisation – reduction in staff posts | 1.28 | 0.00 | -1.28 | The planned project rephasing in relation to the C3i project will result in a delay in the achievement of efficiency savings until 2006/07. |
| Other | 49.2 | 47.04 |
-2.22 |
|
| Total | 61.75 | 54.36 | -7.39 |
Non cash releasing savings
6. The original target for 2005/06 non-cash releasing savings was £24.85m. The forecast at the end of the first quarter indicates that £29.77m will be achieved, £4.92m over the original plan. The over achievement is primarily due to an increase in the number of special constables (£3.06m) compared to the original savings plan.
List of abbreviations
- MPA
- Metropolitan Police Authority
- MPS
- Metropolitan Police Service
- HMIC
- Her Majesty’s Inspectorate of Constabulary
C. Race and equality impact
There are no equality and diversity implications arising from this report.
D. Financial implications
The financial implications are those set out in this report.
E. Background papers
- MPA Efficiency Plan 2005/2006
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
Supporting material
- Appendix 1 [PDF]
Position against MPS Efficiency Plan - Quarter 2
Send an e-mail linking to this page
Feedback