MPA clarification of police budget current shortfall

73/06
30 November 2006

An initial budget shortfall of £116m for 2007/08 was identified in June 2006, which the Metropolitan Police has worked hard to reduce. As a result, the budget gap is now predicted to be £16m.

There are additional financial pressures from the counter-terrorism operations Overt and Overamp, presently running at around £22m.

The threat of terrorism has a major impact on the police budget, and we will be talking to the government and other agencies to work out the best way forward in managing these growing pressures, which will continue for the foreseeable future.

For many years the amount the Met receives annually from central government grants to pay for national, international and capital city functions carried out by the Metropolitan Police, has fallen short of what they cost. A review has been carried out, which has been shared with the government and we hope will help to achieve a more equitable settlement to deal with continuing concerns.

These are still early days for the budget process and figures will not be finalised until early next year. However, we are determined to maintain momentum on improved performance despite these considerable pressures, based on a track record of delivering £269m efficiency savings in the last three years (2004/05 to 2006/07), with crime going down by 8.9% and detections up by 30.4% over the same period. And despite making around £65m efficiency savings in next year’s budget, we expect to increase police numbers by 270, and the Safer Neighbourhoods programme, with 630 teams across London, is still going ahead.

There still may be difficult choices to be made in the allocation of resources, but both the MPA and MPS are determined that the service to Londoners will go from strength to strength.

Notes to editors

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