Contents
Report 5 of the 21 September 2006 meeting of the Finance Committee and provides an update on the monitoring of the MPA/MPS 2006/07 efficiency plan.
Warning: This is archived material and may be out of date. The Metropolitan Police Authority has been replaced by the Mayor's Office for Policing and Crime (MOPC).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 first quarter 2006/07
Report: 5
Date: 21 September 2006
By: Treasurer and Commissioner
Summary
This report provides an update on the monitoring of the Metropolitan Police Authority (MPA)/Metropolitan Police Service (MPS) 2006/07 efficiency plan. Overall the forecast indicates an over-achievement against the Home Office’s efficiency target by £33.2m.
A. Recommendations
That members note the position against the efficiency plan as at the end of June.
B. Supporting information
Introduction
1. The purpose of this report is to provide an update on the monitoring of the MPA/MPS 2006/07 Efficiency Plan.
Background
2. As part of the annual Policing Plan for 2006/07, 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 achievements against the plan as at Quarter 1.
4. The MPA/MPS has been set a 3% savings target of £73.5m by the Government. A target of £73.8m was agreed at February Finance Committee, however the availability of more accurate information relating to the level of Net Revenue Expenditure for 2006/07 has meant that the target has been revised to £73.5m. To ensure that this is achieved the Efficiency Plan has been over-programmed setting a total savings target of £110.6m. The efficiency savings forecast to be achieved as at the end of June (quarter 1) is £106.7m a forecast under-achievement of £3.9m - an under-achievement of £10.1m for cash releasing savings and over-achievement of £6.2m on non-cashable savings. This represents an over-achievement against the Government’s 3% savings target of £33.2m.
Cash releasing savings
5. The overall target for cash releasing savings for 2006/07 is £91.1m; 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 forecast variances from the plan.
| Description | Plan £m | Forecast £m | Variance £m | Comment |
|---|---|---|---|---|
| Reduction in police officer posts in Boroughs | 13.5 | 9.5 | -4.0 | The savings expected from the reduction in Borough Police Officers (386 posts) is not now expected to happen, as the forecast shows the Boroughs to be over strength. The transfer of Police Officers to other Business Groups has not occurred at the level that was originally assumed in the deployment plan, however, it is expected that transfers will occur throughout 2006/07. The non-achievement of savings within TP is compensated for by savings in other Business Groups. |
| Restructuring of Counter Terrorism Command | 2.2 | 0.0 | -2.2 | The formation of the CT command will commence at the beginning of October 2006 with the appointment of the SMT and the implementation team. However in overall terms this is behind schedule because the formal plan for the formation of CT Command still awaits approval from Management Board because of the continuing uncertainty surrounding the creation of the Met Intelligence Bureau. As a result it is likely that the bulk of the savings are not likely to be achieved until next financial year. |
| Other | 75.4 | 71.5 | -3.9 | |
| Total | 91.1 | 81.0 | -10.1 |
Non cash releasing savings
6. The original target for 2006/07 non-cash releasing savings was £19.5m. The forecast at the end of the first quarter indicates that £25.6m will be achieved, £6.1m over the original plan. The table below shows the areas where there are major variances from the plan.
| Description | Plan £m | Forecast £m | Variance £m | Comment |
|---|---|---|---|---|
| NSPIS | 0.0 | 2.1 | 2.1 | Savings due to the introduction to the MPS of the national initiative on Custody and Case Preparation that results in time savings in the processing of offenders. |
| C3i | 0.4 | 4.0 | 3.6 | Various additional savings identified following the implementation of the C3i project. |
|
TIB (Telephone Investigation Unit) |
0.0 | 1.4 | 1.4 | Additional savings in Police Officer time due to the introduction of the TIB. |
| Other | 19.1 | 18.1 | -1.0 | |
| Total | 19.5 | 25.6 | 6.1 |
Abbreviations
- CT
- Counter Terrorism
- HMIC
- Her Majesty's Inspectorate of Constabulary
- MPA
- Metropolitan Police Authority
- MPS
- Metropolitan Police Service
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 2006/07
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]
Statement reflects the achievements against the plan as at Quarter 1
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