2008-11 Draft budget submission (Corporate Business Plan)

Report: 5
Date: 19 November 2007
By: Director of Strategic Finance, Director of Strategy, Modernisation and Performance for the Commissioner and the Treasurer.

Summary

This report sets out the MPA/MPS draft business plan and budget submission for 2008-11 in line with the Mayor of London’s guidance. The Committees are asked to approve the draft corporate business plan, prior to consideration by the Full Authority, as suitable for submission to the GLA on 27 November 2007.

A. Recommendations

Members are invited to:

Joint-PPR Committee and Finance Committee
1. To consider the attached report and recommend to the Full Authority on 22 November 2007 that the draft 2008-11 corporate business plan and budget submission be submitted to the GLA on 27 November 2007;

2. To agree, subject to consultation with the Treasurer, editing and other minor amendments be made by the Director of Strategic Finance as appropriate prior to submission to the GLA

Full Authority
1. To consider any representations or comments by Joint PPR Committee and Finance Committee and agree the submission of the corporate business plan and budget submission to the GLA

2. Agree the Prudential Indicators in Annex 4 of Appendix 2

3. Agree the MPS-wide objectives as set out in section one of the Policing London 2008-11 Business Plan

B. Supporting information

1. The purpose of this report is to seek approval for the draft Business Plan and related budget submission for 2008-11, and the priorities proposed for the MPS for the period of the plan. The draft submission will be considered by the Full Authority on 22 November 2007.

2. The Business Plan will be amended following final decisions by the Mayor on the MPA budget for 2008/09, Government announcements on performance measures and the MPS/MPA’s own performance process.

The Corporate Business Plan

3. The Corporate Business Plan has three main purposes:

• To set out the strategic priorities contained within the corporate strategy, how they will be delivered over the next three years, and how the Business Groups will contribute to their achievement.
• To ensure that the content of the plan meets the requirements of the Mayor of London’s guidance for the 2008/09 budget.
• To present to the MPA, the public and other stakeholders how the corporate strategy will improve service delivery to Londoners, meet their needs and demonstrates that tax-payers’ money is being appropriately spent.

Budget Guidance Requirement

4. Appendices 1 and 2 fulfil the requirement of the GLA Group Budget Guidance for 2008-09, that requires the MPS/MPA to produce a business and supporting budget plan that:

• Covers at least the period to 2010 – 11
• Sets out what is planned to be achieved in high level terms over the period, specifying profiled deliverables and defining measures to assess progress and impact
• Highlights in high-level terms plans to mitigate and adapt to climate change, and to deliver other environmental improvements
• Demonstrates how the budgets and business plans will improve social inclusion and diversity and address health inequalities
• Includes budget estimates and borrowing and capital spending plans covering the plan period
• Includes an assessment and explanation of the quantified financial benefits expected to be secured by collaborative working with other members of the GLA group

5. This information is provided as appendices to this report as follows:

• Appendix 1: MPS Corporate Business Plan 2008-11.
• Appendix 2: MPS Corporate Business Plan 2008-11 - Supporting Financial Submission.

Key points regarding the content of the business plan:

• Section 1. The GLA ask for a business plan and related budget plans, including objectives and priorities. This section provides the context for the MPS-wide objectives and an overview of the budget.
• Section 2. This outlines a rationale for the inclusion of each of the MPS-wide objectives within the plan. The GLA also request information on any significant initiatives as well as equalities, sustainable development and health information. These have all been included under the heading of ‘continuous improvement’.
• Section 3. The revenue budget information has been presented in accordance with the GLA guidelines. A separate paper accompanies the business plan to fulfil all the budget requirements of the GLA.
• Section 4. The GLA requires analysis of the budget by service division, as well as ‘robust budgets which match planned outcomes’. For the MPS, this means business groups. In order to align delivery of the objectives to the budget, it is therefore necessary to present the information by business group accompanied by their contribution to the objectives with measures of success.
• Section 5. The capital budget information is also required by the GLA and this has been presented in accordance with those guidelines.
• Appendix A. The GLA request performance information on key deliverables. This appendix outlines the delivery plans including top-level measures.
• Appendix B. This appendix outlines the work on improving efficiency, including planned savings, as requested by the GLA.

2008/09 Performance Challenge

6. The MPS/MPA’s 2008/09 performance development process is complicated by the emerging assessment framework that the Government is in the process of implementing for the 2008/11 planning session. This includes APACS, Public Service Agreements (PSAs) and LAAs that will be agreed with Local Strategic Partnerships (LSPs). This is a shift in emphasis from central Government, from targets set at a corporate level to locally agreed priorities and targets with some associated funding.

7. The draft national indicators for LAAs are currently out to consultation and the release of draft APACS indicators for consultation, expected on 12 November, has now been delayed once again, to 20 November.

8. Within this environment, the MPS and MPA must proceed with the identification and negotiation of targets, in order to ensure that the statutory requirement to publish a policing plan by 31 March 2008, including all Statutory Performance Indicators (which will come from APACS) is fulfilled. However, the timing of this process means that the majority of our measures will not be included within the attached draft business plan submission to the Mayor.

9. Following a meeting held on 19 September between the MPS and all external stakeholders involved in developing and implementing the APACS/LAA process, a process was agreed with the MPA for to manage the development of our performance challenge for 2008/09.

10. It is recognised though that APACS/LAAs are not the only drivers of our targets and performance. The MPS/MPA must ensure that the MPS-wide objectives are monitored to delivery. This is in addition to fulfilling the external performance requirements, whilst also trying to minimise the number of targets that business groups and OCUs are required to deliver.

11. Financial implications will arise as a result of the development of LAAs and the funding intended to be associated with these, the detail of which has not yet been released by GOL or the Home Office.

12. In order to ensure that the MPS/MPA manages this process, work is being undertaken between SMPD, Finance Directorate and TP to support Boroughs and other OCUs in understanding their responsibilities and developing/negotiating their performance framework as appropriate.

13. A report will be taken to the PPR Committee on 13 December that will provide more detail regarding the LAA/APACS, critical performance areas and associated financial issues.
Consultation

14. Public consultation forms a critical part of the MPS planning cycle and enables the MPS and MPA to ensure that public concerns are being addressed by the MPS-wide objectives. During 2007/08 public consultation has involved two major elements:

• Consultation with Safer Neighbourhood Panels
• Based on previous years’ consultation results, consultation was focused on the 10 issues

 that have proved to be of most concern to the people of London

15. Consultation with major stakeholders and partners is also carried out on individual strategies and policies.

16. The MPA is also responsible for carrying out consultation on the 2008/09 budget and the process was undertaken in October 2007. The responses are shown in Annex 7 to the supporting financial submission.

Strategic Implications

17. The Corporate Business Plan is a fundamental element of the framework established for the delivery of the MPS policies and strategies. It also supports the delivery of the MPA’s statutory functions.

Risk Management

18. The MPS-wide objectives are set against the outcome of a refreshed Corporate Strategic Assessment (CSA) process that analysed the performance and intelligence picture for the MPS, including business risks, emerging external issues and an assessment of the internal capabilities of the Service. The requirements of external stakeholders have also been taken into consideration.

19. Risk issues have been identified during the corporate planning process and will be managed in line with the MPS risk management framework. In addition, specific risks which impact on the medium term financial plan have been highlighted within the summary financial submission.

Environmental and health implications

20. Environmental and health implications are integral to the MPA/MPS business planning process. Environmental and health objectives are summarised in the draft corporate business plan and more detail on MPS activity is included in Appendix 2 (section 21).

C. Race and equality impact

Equality and diversity implications are integral to the MPA/MPS business planning process and work is underway to ensure that equalities impact assessments are undertaken as appropriate throughout the business planning process. Diversity objectives are summarised in the draft corporate business plan and more detail on MPS activity is included in Appendix 2 (section 20).

D. Financial implications

1. Financial implications are wholly contained within the 2008/09 budget submission.

2. Officers are currently considering a letter received on 9 November 2007 from the Mayor consulting the Authority before he prepares a draft component budget for the MPA in accordance with the provisions of paragraph 2 of schedule 6 of the Greater London Act 1999. A copy of the letter and the Authority's proposed response will be available to the joint meeting on 19 November 2007.

E. Background papers

Mayor’s Budget Guidance
Interim Budget Response

F. Contact details

Report authors: Anne McMeel – Director of Strategic Finance and Stephen Rimmer – Director of Strategy, Modernisation and Performance

For more information contact:

MPA general: 020 7202 0202
Media enquiries: 020 7202 0217/18

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