Contents
Report 8 of the 21 February 2008 meeting of the Finance Committee providing an update on the monitoring of the Metropolitan Police Authority (MPA)/Metropolitan Police Service (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Warning: This is archived material and may be out of date. The Metropolitan Police Authority has been replaced by the Mayor's Office for Policing and Crime (MOPC).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 - as at third quarter 2007/08
Report: 08
Date: 21 February 2008
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) 2007/08 efficiency plan. Overall the forecast indicates an over-achievement against the Home Office’s efficiency target by £47.7m compared to £45.6m at quarter 2.
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 2007/08 Efficiency Plan as at Quarter 3.
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. 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 £125m. The efficiency savings forecast to be achieved at the end of December (quarter 3) is £123.8m, a forecast over-achievement of £47.7m against the Home Office 3% efficiency target.
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 at the end of the second quarter is £93.4m, which is an over-achievement of £55.3m against the minimum Home Office target of £38.1m but £3.5m below the internal target of £96.9m. Table 1 below shows the areas where there are major forecast variances from the internal target, which are only exceptional items. The vast majority of initiatives within all areas of the MPS are delivering the planned efficiency savings.
| Charges for common items – Comparative figures | ||||
|---|---|---|---|---|
| Description | Plan £m | Forecast £m | Variance £m | Comment |
| 2006/07 Cashable surplus carried forward | 35.1 | 35.1 | 0.0 | |
| Climate Change Savings | 0.0 | 2.1 | 2.1 | These are savings that were made in previous years. Energy consumption was reduced by £1.9m and water consumption by £0.2m. |
| Rationalisation in HR Strategic and Business Planning, and Business Support | 0.5 | 1.5 | 1.0 | Rationalisation has resulted in more savings being achieved than were originally planned. |
| Capitalisation of staff salaries | 2.2 | 0.6 | - 1.6 | Re-phasing of the capital programme into future years will reduce the opportunity to capitalise staff salaries in 2007/08. The Service is currently looking at further opportunities for capitalisation to mitigate this variance. |
| Rationalisation of the Criminal Justice Unit function | 2.0 | 0.2 | - 1.8 | The project is on hold until 2008 – savings will not be achieved until project is implemented. |
| Review of Capital City role | 1.8 | 1.3 | - 0.5 | Savings only part achieved due to a range of issues such as increases in veterinary fees for police dogs, ammunition costs and additional clothing costs. |
| Other savings | 55.3 | 52.6 | - 2.7 | |
| TOTAL | 96.9 | 93.4 | - 3.5 | |
Table 1: Major forecast variances in cash releasing savings from the internal target
Non Cash Releasing Savings
5. The internal target for 2007/08 non-cash releasing savings is £28.2m. The forecast at the end of the third quarter indicates that £30.4m will be achieved which is £2.2m in excess of the original plan.
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, MPA
For more information contact:
MPA general: 020 7202 0202
Media enquiries: 020 7202 0217/18
Send an e-mail linking to this page
Feedback