Contents
Report 11 of the 19 July 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Warning: This is archived material and may be out of date. The Metropolitan Police Authority has been replaced by the Mayor's Office for Policing and Crime (MOPC).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 quarterly monitoring - as at 4th quarter 2006/07
Report: 11
Date: 19 July 2007
By: Director of Strategic Finance 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, we have exceeded the Home Office’s efficiency target by £34.1m.
A. Recommendations
That members note the position against the efficiency plan as at Quarter 4.
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 as at Quarter 4.
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 was achieved the MPS/MPA over-programmed the Efficiency Plan and set a target of £110.6m. The total efficiency savings achieved at the end of the financial year are £107.6m. This shows an over-achievement of £34.1m against the Government target. Under Home Office rules, the MPA/MPS can carry forward the £34.1m over-achievement into 2007/08 in order to assist in meeting the 2007/08 target.
Cash releasing savings
4. The original MPS/MPA internal target for cash releasing savings in 2006/07 was £91.1m. The results at the year end indicate that £91.3m has been achieved, £0.2m more than the target. This figure excluded increased income, which does not qualify for efficiency savings plans under current Home Office rules. Table 1 shows where there were major variances from the target.
Table 1 – Major forecast variances in cash releasing savings target
| Description | Plan
£m |
Actuals
£m |
Variance
£m |
Comment |
|---|---|---|---|---|
| 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. The ongoing development of a combined CT command is an integral part of the national CT policing strategy. The complexity of the national CT strategy has meant that the savings are not expected to be achieved until 2007/08. |
| 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. |
| Structural reconfiguration, within Specialist Crime Directorate | 6.5 | 11.0 | 4.5 | Following implementation of workforce changes, Specialist Crime have been below budgeted workforce totals throughout the year |
| Others | 81.4 | 80.3 | - 1.1 | |
| Total | 91.1 | 91.3 | 0.2 |
Non cash releasing savings
5. The original MPA/MPS internal target for non-cash releasing savings in 2006/07 was £19.5m. The results at the year end indicate that £16.3m has been achieved, £3.2m less than the target. Table 2 shows where there were major variances from the target.
Table 2 – Major forecast variances in non-cash releasing savings targets
| Description | Plan
£m |
Actuals
£m |
Variance
£m |
Comment |
|---|---|---|---|---|
| Increase in the number of Special Constables | 4.5 | 1.9 | - 2.6 | There have been delays in processing applications but the overall efficiency savings are expected be realised by the end of 2007/08. |
| Penalty Notices for Disorders (PND) | 4.9 | 0.6 | -4.3 | Several offences expected to have become punishable by PNDs have not yet reached the statute books resulting in an underachievement of the efficiency target. |
| C3i | 0.4 | 4.0 | 3.6 | Various additional savings have been identified following the implementation of the C3i project. |
| TIB (Telephone Investigation Unit) | 0.0 | 0.7 | 0.7 | Additional savings in Police Officer time due to the introduction of the TIB. |
| NSPIS | 0.0 | 0.4 | 0.4 | 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 actual savings from the original forecast of £1.5m in quarter 2. |
| Others | 9.7 | 8.7 | - 1.0 | |
| Total | 19.5 | 16.3 | - 3.2 |
Abbreviations
- BOCU
- Borough Operational Command Unit
- CT
- Counter Terrorism
- MPA
- Metropolitan Police Authority
- MPS
- Metropolitan Police Service
- PND
- Penalty Notices for Disorders
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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