Agenda item

Report by Angus Macpherson, Police and Crime Commissioner.

The report attached provides the Panel with information on the draft budget and precept being considered.

The Commissioner gave a detailed presentation on his draft budget settlement.

He explained that in October 2014 the initial Medium Term Financial Strategy (MTFS), attached as an appendix to the report, had been produced and reviewed at the Commissioner’s monitoring board.  The MTFS looked at the estimated financial position of the PCC over the following three years and the impact to commission services.  The Commissioner stressed that the assumptions included were superceded by actual information as it was received.

It was noted that the following Police relevant information was announced in the December settlement;

·                a 5.1% cash reduction in Police Revenue funding for 2015-16

·                Additional top slicing of PCC Funding in 2015-16 of £96m (for the Innovation Fund, IPCC, HMIC, Major Programmes, contingency and other areas). Resulting in a funding reduction of £835,000 for Wiltshire PCC.

·                the provision of additional council tax freeze grants for 2015-16 equivalent to a 1% tax rise for those precepting bodies which decide not to increase council tax.

·                the announcement that any council tax freeze grants will be funded from the original police settlement hence reducing ‘normal funding’ available for distribution to PCC’s in the future.

·                the setting of the council tax referendum threshold level at 2%.

This resulted in the main grants received from central government reducing from £61.652m to £58.502m, a reduction of £3.150m.

The Commissioner went on to explain that he was currently considering two options surrounding the council tax, namely:

·                Option A – To increase council tax by 1.9% (in the knowledge that this would be the maximum allowable before a referendum was called)

·                Option B – To maintain council tax at the 2014-15 level

The Panel noted the estimated funds likely to be available to the Commissioner under each option but he pointed out that additional funds would be allocated centrally to commission victims’ services and support restorative justice.  Provisional funding announced for victims’ services in 2015-16 was £584,000; part of this funding would now finance Wiltshire’s direct contribution to the Victims’ Support Charity.  Provisional funding for restorative justice was £155,000 for 2015-16.

The Commissioner explained that in considering the options, he needed to focus on the long term funding position.  To not increase council tax at this time would have considerable impact on his future ability to commission policing and crime services. The offer of freeze grants would reduce his future base budget and only further deplete funding available nationally for policing. He pointed out that a 1.9% increase in council tax would result in Wiltshire’s Band D council tax increasing from £160.92 to £163.98, representing an increase of £3.06 per annum or 6p per week. An average increase of £3.06 per year, per household would provide the Commissioner with an additional £345,000 of local income for 2015-16.  Whilst much would depend upon the outcome of the forthcoming general election, Commissioners had been advised to plan on further central reductions of 3.2% per annum. 

It was noted that the Commissioner was in the process of widely consulting the public through town and parish councils, area boards and locality meetings, chambers of commerce and the farming community, the public consultation running from Tuesday 6 January to Wednesday 4 February 2015.

In answer to a question as to where savings were likely to be achieved, Clive Barker, Chief Finance Officer explained that it was hoped that some savings could be achieved through a reduction in back office staff.  It was noted that savings had also been achieved by a reduction of 500 officers and also from the fleet and estate.  

The Panel was informed that reported crime had been decreasing although there had been an increase in domestic violence. Furthermore, there appeared to be an increase in IT crime but a certain amount of this was not being reported.  The Commissioner stressed the importance of maintaining neighbourhood policing, a reduction of which could lead to serious problems in his ability to provide for effective policing.    

The Commissioner also considered that savings could be achieved by further collaboration with neighbouring forces in the South West in order to identify services and functions, such as technical services, which could be shared. 

It was noted that the Chief Constable’s Financial Plan included the appointments of a Special Co-ordinator and a Volunteers Co-ordinator, which were required to engage the public in helping to keep Wiltshire and Swindon safe.  Clive Barker confirmed that both posts had been filled. 

The Chairman referred to the restructuring of the Force at the beginning of the current financial year and the identified need for additional Inspectors on a temporary measure.   Clive Barker confirmed that the number of these officers would shortly be reduced in order to achieve the necessary savings.

The Chairman also referred to the review of local policing being carried out by the Chief Constable and the need to save £800,000 from the establishment.  The Commissioner stated that these savings could potentially be made from any section of the Force but recently the superintendents had been requested to identify potential savings from the middle ranks.

The Chief Constable’s MTFS had identified a strategy to close the funding gaps over the following two years if a 1.9% council tax increase was agreed.  However, the Panel appreciated that there were risks that these savings might not be achieved, the biggest risk being potential partnership failure as working with councils and other police forces was expected the deliver large savings.

Resolved:

To note the Commissioner’s report.