Contents
Report 6 of the 21 December 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Warning: This is archived material and may be out of date. The Metropolitan Police Authority has been replaced by the Mayor's Office for Policing and Crime (MOPC).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 2nd quarter 2006/07
Report: 6
Date: 21 December 2006
By: Treasurer and Acting Director of Resources on behalf of the 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 £35.8m.
A. Recommendations
That members note 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 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. To ensure that the Government’s 3% savings target of £73.5m is achieved the MPS/MPA have over-programmed the Efficiency Plan and set a target of £110.6m. The total efficiency savings forecast to be achieved as at the end of September (quarter 2) are £109.2m. This shows a forecast over achievement of £35.8m is predicted against the Government’s target of £73.5m.
4. The position against the higher MPA/MPS plan of £110.6m shows that there is a forecast under achievement of £1.4m – an under achievement of £5.5m for cash releasing savings and an over achievement of £4.1m on non-cashable savings.
Cash Releasing Savings
5. The overall MPA/MPS 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 forecast at the end of the second quarter indicates savings of £85.6m, an under- achievement of £5.5m from the plan. The table below shows the areas where there are major forecast variances from the plan.
| Description | Plan £m |
Forecast £m |
Variance £m |
Comment |
|---|---|---|---|---|
| Restructuring of the Counter Terrorism Command | 2.2 | 0.0 | - 2.2 | The new CT command came into existence on 2 October 2006 however, the bulk of the savings will not be achieved until next financial year. |
| Managing service levels at PFI Gravesend | 1.0 | 0.0 | -1.0 | This saving will not be achieved due to greater than expected levels of demand for firearms/public order training. |
| Others | 87.9 | 85.6 | - 2.3 | |
| TOTAL MPS/MPA plan | 91.1 | 85.6 | - 5.5 |
Non Cash Releasing Savings
The overall MPA/MPS target for non-cash releasing savings in 2006/07 is £19.5m. The forecast at the end of the second quarter indicates savings of £23.6m, an over-achievement of £4.1m from the plan. The table below shows the areas where there are major variances from the plan.
| Description | Plan £m |
Forecast £m |
Variance £m |
Comment |
|---|---|---|---|---|
| C3i | 0.4 | 4.0 | 3.6 | Various additional savings identified following the implementation of the C3i project. |
| NSPIS | 0.0 | 1.5 | 1.5 | 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. |
| Special Constables | 4.5 | 5.9 | 1.4 | The recruitment of Special Constables is ahead of schedule and the forecast has been increased to reflect this success. |
| Telephone Investigation Unit (TIB) | 0.0 | 1.2 | 1.2 | Additional savings in Police Officer time due to the introduction of the Telephone Investigation Unit. |
| Penalty Notices for Disorders (PND) | 4.9 | 2.4 | - 2.5 | The forecast for the issue of PNDs as been revised downwards due to the actual level of PNDs issued so far this year being lower than anticipated. |
| Others | 9.7 | 8.6 | - 1.1 | |
| TOTAL | 19.5 | 23.6 | 4.1 |
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 2006/2007
F. Contact details
Report author: Simon Hart, A/Director of Finance Services, MPS.
For more information contact:
MPA general: 020 7202 0202
Media enquiries: 020 7202 0217/18
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