Minutes

Minutes of the meeting of the special joint meeting of the Finance Committee and Planning Performance and Review Committee held on 11 December 2007 at 10 Dean Farrar Street, London, SW1H 0NY.

Present

Members

• Graham Tope (Chair)
• Richard Barnes
• Faith Boardman
• Dee Doocey
• Elizabeth Howlett
• Aneeta Prem

MPA officers

• Catherine Crawford (Chief Executive)
• Ken Hunt (Treasurer)
• John Crompton (Committee Services)

MPS officers

• Anne McMeel (Director of Strategic Finance),
• Simon Hart (Acting Director of Finance Services),
• Karim Mahamdallie (Director of Business Support),
• Ailsa Beaton (Director of Information)
• Diana Marchant (Director, Business Development, Territorial Policing),
• Jane Bond (Director, Asset Management, Property Services),
• Peter Ross (Divisional Director Construction, Property Services)
• Brita Sread (Divisional Director Commercial Operations –Property Services).
• Chief Superintendent Charles Griggs,
• Borough Commander for Bromley attended for consideration of agenda item 17.

87. Apologies for absence

(Agenda item 1)

Apologies for absence were received from Richard Sumray, Reshard Auladin, Damian Hockney and Rachel Whittaker.

88. Declarations of interests

(Agenda item 2)

There were none.

89. Minutes of the meeting held on 19 November 2007

(Agenda item 3)

RESOLVED - That the minutes of the meeting held on 19 November 2007 be agreed and signed as a correct record.

90. Equality objectives for the Finance Committee

(Agenda item 4)

The report sets out the equality objective relevant to the work of the Finance Committee. The specific objective as detailed in this report will in conjunction with the objectives and workings of other MPA committees solidify the MPA’s commitment to equality. The objectives are intended to demonstrate that the MPA as a whole is fulfilling its statutory and policy obligations in this area and will assist the MPA to move through the levels of the Equality Standard for Local Government.

Faith Boardman, MPA link member for procurement said she welcomed the proposal.

RESOLVED – That the equality objective for the Finance Committee is to monitor progress in implementing the Responsible Procurement Policy especially:

• Embedding the policy throughout the MPS
• Increasing the number of diverse suppliers we procure goods and services from
• Implementation of the London Living Wage

91. Revenue and capital budget monitoring 2007/09 - period 7

(Agenda item 5)

This report provided an update on the revenue and capital budget monitoring position for 2007/08 at period 7 (to the end of October). The revenue budget is forecast to underspend by £15.6m (0.5% of budget), which includes £5.7m of estimated additional costs related to Operation Seagram. The capital programme shows year to date total expenditure of £65.9m. This total represents 36.6% of the revised annual budget. The forecast for the year of £177.4m is £2.4m below the revised budget of £179.8m. The report sought authority to make transfer to reserves.

Responding to points raised by member the Chair agreed that with the exception of the Kickz project there did not appear to be a pressing need to make the transfers. He would suggest that the Committee agree the transfer in connection with Kickz and defer making a decision on the other requested transfers.

RESOLVED – That -

1. the year to date and forecast position for revenue and capital budgets be noted;

2. approval be given to the transfer to reserves relating to an increase to the Kickz reserve (£1.5m); and

3. decisions be deferred to a future meeting in respect of the transfers relating to CAD room refurbishment (£1.2m) and MSC Minibuses (£0.2m).

92. 2008/09 Preliminary budget funding settlement

(Agenda item 6)

The Treasurer provided an oral report and advised that further details would be included in a written report to be submitted to the Authority at its meeting on 20 December. The key points of the report were

• The Authority’s grant increase is 2.5% in 2008/09 to a figure of £1,930M and a further 2.5% for both 2009/10 and 2010/11. This is at the higher end of expectations.
•  The average national increase in formula grant is 2.7% in 2008/09 and increases by 2.8% in each of the two following years.
• The grant floor has been set at an increase of 2.5% in each of the three years.
• The MPA/MPS Special Payment, which is included within the overall formula grant figure in paragraph 2 above, increases from £192m to £197m, an increase of £5m or 2.6%. Further increases to £202.5m and £208m occur subsequently in the following two years. This is an inflationary uprating.
• The government decided to update the funding formula with the new weightings from the most up to date, reliable, Activity Based Costing (ABC) data.
• The Neighbourhood Policing Fund has now been consolidated with the original Police Community Support Officer grant. This has then been subject to an increase of 2.6% in 2008/09 to a new total of £96.6m, an additional £2.5m with similar increases in 2009/10 and 2010/11.
• The detailed allocation of the counter terrorism grant to authorities will be determined on the advice of ACPO TAM at a later date. Announcements were expected on the Olympics, shortly.
• Unexpectedly, the government reduced the employers’ police officer contribution rate from 24.6% to 24.2% with effect from April 2008. This will save the MPA/MPS an annual sum of £4.3m.
• Announced on the same day as the provisional settlement, though separately, was the police pay award of 2.5%. The award announced a commencement for the award of 1 December. This rephasing will release £10.4m in the Authority’s 2007/08 budget as a ‘one-off’ saving.
• The Authority’s share of the national capital allocation is £58.077m in 2008/09 and subsequent years, the same as in 2007/08 having account for restoration of previously withdrawn amounts.

In reply to a question, the Treasurer said he did not expect the Treasury to claw back the saving resulting from the reduction of the employers’ police officer contribution rate from 24.6% to 24.2%. Consideration would be given to the impact of the various aspects of the announcements on the medium term financial plan.

RESOLVED – That the oral report be noted.

93. Efficiency plan monitoring - 2nd quarter

(Agenda item 7)

A report was submitted which provided an update on the monitoring of the 2007/08 efficiency plan which forecast an over-achievement against the Home Office efficiency target by £45.6M

RESOLVED - that the position against the efficiency plan as at the end of September be noted.

94. Local authority business growth incentive (LABGI) scheme - consultation

(Agenda item 8)

A report was submitted which advised the Committee that the Department of Communities and Local Government and HM Treasury have issued an ‘issues paper’ about reforms to LABGI. The report proposed that police authorities be part of the arrangements to share in the future distribution of any future income from the scheme.

Members commented that further attention would be needed on the distribution mechanism at a pan-London and borough basis and to ensure that the mechanism was equitable as the Authority did not wish to see itself as being in competition with London borough councils for the direct allocation of scarce LAGBI resources. However, the Authority would wish to be a full part of the developing Local Area Agreement process and would expect its achievements and contributions to business growth to be recognised when the allocation of LAA partnerships resources is being considered.

Subject thereto, it was

RESOLVED –That the report be noted and the points above be included in the response to the DCLG consultation.

95. Proceeds of Crime Act

(Agenda item 9)

The fifth quarterly report of the Payback Programme Board (PPB) was submitted. The PPB aims to reduce crime by mainstreaming the use of powers under the Proceeds of Crime Act 2002 (POCA). The report includes an update on progress of the POCA plan, proposals for a payback scheme for communities and a proposal to lobby the Asset Recovery Board to change the ARIS rules.

The Committee requested clarification on certain aspects of the proposals for a payback scheme and agreed that a decision on recommendation 2 be deferred pending receipt of further information. (The further report was submitted to the 24 January meeting of the Finance Committee)

RESOLVED – That

1. the report be noted;

2. the Committee supports the MPS position on the January 2008 review of ARIS:

• to lobby through the Asset Recovery Board to change the current three-way split of ARIS funding of confiscation money to 28% Police, 14% Crown Prosecution Service (CPS), 8% Her Majesty’s Court Service (HMCS) to more accurately reflect cost; and

3. recommendation 2 be deferred.

96. Personal insurance indemnity policy - progress report

(Agenda item 10)

The Finance Committee ratified informal approval of the Personal Insurance Indemnity Policy (PIIP) in November 2004. This followed agreement in principle by MPS Management Board that MPS personnel should be indemnified by the MPA in certain tightly defined situations where their own personal life and accident insurances do not provide an indemnity. The Finance Committee required that the PIIP be made annually renewable with an annual progress report being provided summarising key developments since implementation of the policy. A 2007 progress report was submitted.

RESOLVED – That

1 approval be given to the renewal of the policy for a further 12 months;

2. the activity in year in respect of enquiries about the policy and the volume of claims and/or payments be noted; and

3. progress on the proposal to approach the Home Office for a Central Government indemnity be noted.

97. Territorial Policing Central London training facility

(Agenda item 11)

A report was submitted which requested authority to extend the existing occupational arrangements at the Central London Training Centre until November 2008 to accommodate the ongoing accommodation needs of Territorial Policing, providing time to finalise operational needs and develop a longer term solution for MPA consideration.

RESOLVED – That

1. the current and ongoing position in regard to Territorial Policing training requirements and the demand for accommodation within the Central London Training Centre be noted;

3. agree the extension of existing occupational arrangements until November 2008, pending a longer term solution ;

4. it be noted that funding for the facility until November 2008 can be met from existing Territorial Policing revenue budgets and planned use of an earmarked reserve; and

5. it be noted that a further report will be presented to MPS Investment Board and subsequently the Finance Committee in 2008, regarding future training accommodation proposals which will include those of Territorial Policing and other business groups.

98. Transforming HR business case

(Agenda item 12)

No report submitted. It was noted that a special meeting might need to be convened.

99. Stage 2 of the Safer Neighbourhoods property programme - contract award

(Agenda item 13)

A report was submitted which sought authority to award contracts for the delivery of the 2nd stage of the Safer Neighbourhoods Property Programme. The Director of Strategic Finance requested that the third recommendation be amended to reflect that further consideration needed to be given to the governance and reporting processes for the management of these contracts.

RESOLVED – That

1. approval be given to the process used to invite tenders for the 3 separate contracts and the results of this process;

2. approval be given to the award of contracts to the recommended bidders; and

3. it be noted that the governance and reporting process proposed for the management of these contracts are subject to further discussion between the MPS and MPA.

100. Exclusion of press and public

(Agenda item 14)

RESOLVED - That under section 100A(4) of the Local Government Act 1972 the press and public be excluded from the meeting for the following items of business on the grounds that they involved disclosure of exempt information as detailed in paragraphs 3 and 7 of Schedule 12A to the above Act.

Summary of decisions made on exempt items

Minute 101 agenda item 15 – Exempt Appendix to Transforming HR business case

No report submitted.

Minute 102 agenda item 16– exempt Appendices to stage 2 of the safer neighbourhoods property programme – contract award

Information noted.

Minute 103 agenda item 17 – request for authority to dispose of Beckenham police station

Agreed to the unconditional sale of the police station.

Minute 104 agenda item 18 - replacement contract for command and control support

Recommendations relating to a replacement contract were adopted.

Minute 105 agenda item 19 - exempt minutes of the meeting held on 19 November 2007

Agreed and signed as a correct record.

The meeting closed at 11.40 a.m.

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