Contents
Report 6 of the 20 September 2007 meeting of the Finance Committee and provides an update on the monitoring of the MPA/MPS 2007/08 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Warning: This is archived material and may be out of date. The Metropolitan Police Authority has been replaced by the Mayor's Office for Policing and Crime (MOPC).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 2007/08 Quarter 1
Report: 6
Date: 20 September 2007
By: Director of Strategic Finance on behalf of the Commissioner
Summary
This report provides an update on the monitoring of the MPA/MPS 2007/08 efficiency plan. Overall, the forecast indicates an over-achievement against the Home Office’s efficiency target by £51.9m.
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 2007/08 Efficiency Plan. The provisional efficiency plan was presented to Finance Committee on 15 February since when there have been some minor changes. Table 1 on the next page sets out the changes that have been made to the provisional plan.
Background
2. As part of the annual Policing Plan for 2007/08, all Police Forces and Authorities were required to demonstrate efficiency savings equivalent to 3% of their annual net revenue budget whilst maintaining or improving performance. Her Majesty’s Inspectorate of Constabulary (HMIC) monitor police authorities’ achievements through quarterly inspections (although no inspection is planned for the first quarter). The MPA/MPS has been set a 3% savings target of £76.1m by the Government (a minimum of 1.5% must be cashable to recycle to support front line activity). To ensure that this is achieved the Efficiency Plan has been over-programmed setting a total savings target of £125.0m. The efficiency savings forecast to be achieved as at the end of June (quarter 1) is £128.1m, a forecast over-achievement of £52.0m against the Home Office 3% efficiency target.
Table 1 – Comparison of provisional and revised efficiency plan
| Provisional Efficiency Plan
£m |
Revised Efficiency Plan
£m |
Change
£m |
|
|---|---|---|---|
| Cash releasing Savings | |||
| More effective deployment of operational resources to the front line | 19.74 | 0 | 0 |
| Increased efficiency in support services | 12.99 | 12.99 | 0 |
| Savings in running expenses | 23.80 | 29.06 | 5.26 |
| Surplus Cashable savings brought forward from previous year | 39.53 | 35.07 | -4.46 |
| Total Cash releasing savings | 96.06 | 96.86 | 0.8 |
| Non-Cash releasing Savings | |||
| Efficiencies arising from ICT contract with Cap Gemini | 1.90 | 1.90 | 0 |
| C3i Programme - time savings relating to improved technology | 4.05 | 4.05 | 0 |
| Continued planned growth in the number of Special Constables | 3.72 | 3.72 | 0 |
| Savings from activities carried out by Police Cadets | 0.96 | 0.96 | 0 |
| Automatic forms | 0.26 | 0.26 | 0 |
| Procurement savings - more efficient purchasing of goods | 1.39 | 1.39 | 0 |
| Telephone Investigation Bureau - work undertaken by police staff | 1.87 | 1.87 | 0 |
| NSPIS (New computerised custody and case preparation system) | 8.80 | 8.80 | 0 |
| Reduction in officers attending false alarm calls | 1.00 | 1.00 | 0 |
| Video Identification parades | 4.20 | 4.20 | 0 |
| Additional required non-cash savings | 8.90 | 0 | -8.90 |
| Total Non-Cash releasing savings | 37.05 | 28.15 | -8.90 |
| Total Efficiency Savings (Cash and Non-Cash) | 133.11 | 125.01 | -8.10 |
Cash releasing savings
3. The overall internal target for cash releasing savings for 2007/08 is £96.9m; this figure excludes increased income, which does not qualify for efficiency savings plans under current Home Office rules. The forecast for cash releasing savings is £92.9m, which is £4.0m below the internal target of £96.9m. Table 2 below shows the areas where there are major forecast variances from the plan.
Table 2 – Major forecast variances in cash releasing savings
| Description Plan
£m |
Forecast
£m |
Variance
£m |
Comment | |
|---|---|---|---|---|
| Capitalisation of staff salaries | 2.2 | 1.2 | -1.0 | Re-phasing of the capital programme into future years will reduce the opportunity to capitalise staff salaries in 2007/08. |
| Reduction in overtime in Central Operations | 2.1 | 0.8 | -1.3 | Significant increase in firearms incidents has impacted overtime spending within Central Operations. |
| Other savings | 57.5 | 55.8 | -1.7 | |
| Total | 96.9 | 92.9 | -4.0 |
Non cash releasing savings
4. The internal target for 2007/08 non-cash releasing savings is £28.2m. The forecast at the end of the first quarter indicates that £35.2m will be achieved, £7.0m over the original plan. Table 3 below shows the areas where there are major variances from the plan.
Table 3 – Major forecast variances in non-cash releasing savings
| Description Plan
£m |
Forecast
£m |
Variance
£m |
Comment | |
|---|---|---|---|---|
| Police Cadets | 1.0 | 4.9 | 3.9 | Increased savings due to a significant increase in the average monthly hours worked by Cadets (16 hours) compared to the average used when calculating the planned saving (4 hours). |
| Special Constables | 3.7 | 5.0 | 1.3 | Increased savings due to faster recruitment of special constables from that originally planned. |
| Other savings | 23.5 | 25.3 | 1.8 | |
| Total | 28.2 | 35.2 | 7.0 |
Abbreviations
- 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 2007/2008
F. Contact details
Report author: Anne McMeel, Director of Strategic Finance, MPS
For more information contact:
MPA general: 020 7202 0202
Media enquiries: 020 7202 0217/18
Send an e-mail linking to this page
Feedback