Contents
Report 9 of the 15 February 2007 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Warning: This is archived material and may be out of date. The Metropolitan Police Authority has been replaced by the Mayor's Office for Policing and Crime (MOPC).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 3rd quarter 2006/07
Report: 9
Date: 15 February 2007
By: 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 £38.4m.
A. Recommendations
That members note the position against the efficiency plan as at the end of December.
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 December (quarter 3) are £111.9m. This shows a forecast over-achievement of £38.4m is predicted against the Government target and an over-achievement of £1.3m against the MPS/MPA plan.
Cash Releasing Savings
4. 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 third quarter indicates savings of £91.2m, an over-achievement of £0.1m from the plan. Table 1 shows the areas where there are major forecast variances.
Table 1 – Major forecast variances in cash releasing savings target
| Description | Plan £m | Forecast £m | Variance £m | Comment |
|---|---|---|---|---|
| Structural reconfiguration, development of new staffing models and savings from amalgamation of support functions within Specialist Crime Directorate. | 6.5 | 11.7 | 5.2 | Following implementation of workforce changes, Specialist Crime have been below budgeted workforce totals throughout the year |
| Restructuring of Counter Terrorism Command | 2.2 | 0.0 | - 2.2 | The formation of the CT command commenced at the beginning of October 2006 with the appointment of the SMT and the implementation team. However, in overall terms this is behind schedule. As a result, it is likely that the savings are not likely to be achieved until next financial year. |
| Reduction of (B)OCU additional car parking costs | 1.0 | 0.0 | -1.0 | This is not expected to be achieved as a result of operational demands for parking spaces. |
| Others | 81.4 | 79.5 | - 1.9 | |
| Total | 91.1 | 91.2 | 0.1 |
Non Cash Releasing Savings
5. The overall MPA/MPS target for non-cash releasing savings in 2006/07 is £19.5m. The forecast at the end of the third quarter indicates savings of £20.7m, an over-achievement of £1.2m against the plan. Table 2 shows where there are major variances from the plan.
Table 2 – Major forecast variances in non-cash releasing savings targets Description Plan
| Description | Plan £m | Forecast £m | Variance £m | Comment |
|---|---|---|---|---|
| Penalty Notices for Disorders (PNDs) | 4.9 | 0.7 | -4.2 | The forecast for the issue of PNDs as been revised downwards as several offences expected to have become punishable by PNDs have not yet done so. |
| C3i | 0.4 | 4.0 | 3.6 | Various additional savings identified following the implementation of the C3i project. |
| Special Constables | 4.5 | 6.0 | 1.5 | The recruitment of Special Constables is ahead of schedule and the forecast has been increased to reflect this success. |
| TIB (Telephone Investigation Unit) | 0.0 | 1.1 | 1.1 | Additional savings in Police Officer time due to the introduction of the TIB. |
| NSPIS | 0.0 | 0.3 | 0.3 | Savings due to the introduction of the national initiative on Custody and Case Preparation that results in time savings in the processing of offenders. Delays to the introduction of NSPIS have reduced the forecast savings from £1.5m anticipated at Quarter 2. |
| Others | 9.7 | 8.6 | - 1.1 | |
| Total | 19.5 | 20.7 | 1.2 |
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, Acting Director of Finance Services, MPS.
For more information contact:
MPA general: 020 7202 0202
Media enquiries: 020 7202 0217/18
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