Contents
Report 7 of the 19 June 2008 Finance Committee meeting, 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Warning: This is archived material and may be out of date. The Metropolitan Police Authority has been replaced by the Mayor's Office for Policing and Crime (MOPC).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 – as at fourth quarter 2007/08
Report: 07
Date: 19 June 2008
By: the Director of Resources 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 there has been an over-achievement against the Home Office’s efficiency target by £47.3m.
A. Recommendations
That members note the position against the efficiency plan as at Quarter 4.
B. Supporting information
Introduction
1. The MPS has a successful track record of delivering savings and has implemented a number of programmes and reviews to drive forward efficiency in the organisation. In the period 2001/02 to 2007/08, the organisation identified and delivered savings of more than £569m. A new three-year efficiency plan has now been developed to ensure that the organisation meets the Home Office target of more than £300m in cashable savings, to be achieved in the period 2008/09 to 2010/11. The purpose of this report is to provide an update on the monitoring of the MPA/MPS 2007/08 Efficiency Plan as at Quarter 4.
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.
Overall Position
3. To ensure that the Government’s 3% savings target of £76.1m was achieved (a minimum of 1.5% must be cashable to recycle to support front line activity) the MPS/MPA over-programmed the Efficiency Plan and set a target of £125m. The total efficiency savings achieved at the end of the financial year were £123.4m. This shows an over-achievement of £47.3m against the Government target.
Cash Releasing Savings
4. The overall internal target for cash releasing savings for 2007/08 was £96.8m; this figure excludes increased income, which does not qualify for efficiency savings plans under current Home Office rules. The results at the end of the fourth quarter indicate that £92.9m has been achieved, an over-achievement of £54.9m against the minimum Home Office target of £38.0m but £3.9m below the internal target of £96.8m. It should be noted that the cashable efficiency savings that have been achieved, have been reflected as budget reductions within the Business Plan and Budget. Table 1 below shows the areas where there are major variances from the internal target.
Table 1 – Major forecast variances in cash releasing savings from the internal target
| Description | Plan £m | Actual £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 | Savings made in previous years but not claimed. Energy consumption was reduced by £1.9m and water consumption by £0.2m. |
| Capitalisation of staff salaries | 2.2 | 0.3 | - 1.9 | Re-phasing of the capital programme into future years reduced the opportunity to capitalise staff salaries in 2007/08. |
| Rationalisation of the Criminal Justice Unit function | 2.0 | 0.2 | - 1.8 | The project has been delayed until 2008 – Full savings will not be achieved until the 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 | 55.7 | 53.9 | -1.8 | |
| TOTAL | 96.8 | 92.9 | - 3.9 |
6. In terms of the “Other savings” identified in the table above, these include reductions in ICT costs, reduced advertising costs, reduced consultancy costs and reductions in the growth of utilities costs.
Non Cash Releasing Savings
7. The overall internal target for non-cash releasing savings for 2007/08 was £28.2m. The results at the end of the fourth quarter indicate that £30.5m has been achieved which is £2.3m 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(s): Anne McMeel, Director of Resources
For more information contact:
MPA general: 020 7202 0202
Media enquiries: 020 7202 0217/18
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