Meeting documents

To receive and consider the Police and Crime Commissioner’s proposed budget and precept requirement for 2018/19 and to independently scrutinise its content to decide upon its appropriateness.

The Panel considered a report by the PCC’s Chief Finance Officer which set out the proposed precept for the Police and Crime Commissioner for Dorset.

 

Members were advised that the precept decision for 2018/19 needed to consider both the immediate and the medium-term resourcing requirements to enable the delivery of the Police and Crime Plans in the context of the changing and increasing demands on policing.

 

The Commissioner addressed members about the rationale for the proposed precept increase and considerations involved in this process prior to taking any questions and his opening address is attached as an Annexure to these minutes.

 

The Chief Constable highlighted to members that it had been a challenging year and the Force was continuing to see an increase in the demand for services.  The types of crime being reported and investigated were more complex and time consuming, especially the requirement to meet disclosure legislation; she cited the need to review large amounts of digital data in order to secure a robust case for prosecution.  This, along with reductions in services elsewhere continued to be a challenge but added that it was important to keep up with change.  She highlighted the increase of staff referrals to Occupation Health which was now up by 40% on previous years; driven by the fact that for every 10 officers there were 20 issues to be dealt with. Whilst officers prioritised in terms of threat, harm and risk, there was concern that work on low level crime (ie Anti-Social Behaviour etc) was taking too long to be addressed due to a lack of resources.  She went on to explain the detail of Organisational Business Development (OBD) and how this work-stream would bring the necessary relief to operational planning and hence enhanced utilisation of frontline staff; in summary, it was about using existing resources more effectively.  She cited diary cars ‘a triage system’; and the need to build (and understand) capacity and capability as methods already being utilised as part of OBD.  She highlighted the Multi-Agency Safeguarding Hub (MASH) capabilities and how they were now able to offer a better service to people to help them to do their job better.  She also highlighted the work of the Strategic Alliance, which was delivering savings and greater efficiencies.

 

The Chief Constable had formally requested that the PCC follow government guidelines and seek the full £12 precept increase this year, as this would help with the implementation of OBD and lead to greater productivity.  From an operational perspective, whilst she felt it was imperative to continue mainstream change she also stressed the need to deal with the here and now and protection of the public.

 

The Chief Finance Officer, OPCC highlighted the key elements in her report and noted that the precept represented a small amount of whole council tax bill (around10/12% dependent on the council).  Therefore, although this equated to just over a 6% increase on the current Police precept of £194.58 per year (£16.22 /month) –it was likely to increase a total Band D council tax bill by only 0.6% – 0.7%.  The publication of data on reserves was now available online which confirmed Dorset’s reserves were lower than the national average.  As part of the budget preparation work, the Reserves Policy had been updated and this would be considered by the Audit Committee in March. The reserves policy was fully compliant with relevant guidance and met the transparency requirements set out by the Minister.

 

The final 2018/19 Police Settlement was announced recently in a written ministerial statement, and confirmed the proposals announced in the December 2017 Provisional settlement.  The budget presented was stretched and there would be pressure in future years; but with the proposed precept rise, the budget was balanced for 2018/19.  This statement relied on strong budget management,

the achievement of savings, and the requested full increase in the precept.

 

The PCC circulated to members a copy of his consultation information.  The document detailed more responses than last year, although quite similar views.  The result was that 79% of respondents were content to pay an additional £1 per month to support policing in Dorset.

 

Members of the Panel asked the following questions to the Police and Crime Commissioner, who responded accordingly:

 

Question 1: In a nutshell can the Police and Crime Commissioner set out why he has chosen to propose an increase in the police precept of £4.2m which equates to £12 per annum or 6.17% for a Band D property.

 

Although this had been mainly answered during the presentation, the Chief Finance Officer explained that the formal recommendation to the Panel had to meet very clear regulations in terms of council tax and precept setting that focussed on Band D precept, the statement of £12 was a requirement of what had to be set out.

 

The Chair stated that the Demand model for Dorset Police was a useful tool.  He questioned how does the PCC intend to develop the necessary work to understand ‘demand’ cost; and pilot identified estimated ‘demand’ against priorities and budget in order to assist with future budget costings?  Whilst the Panel acknowledged that this was a difficult requirements, the Deputy Chief Constable outlined that National direction from Her Majesty's Inspectorate of Constabulary and Fire & Rescue Services (HMICFRS) for the development of Force Management Statements (FMS) should assist in identifying the cost of demand.  The Chief Constable added that it was important to do this on a national basis, giving the ability to compare with other forces.  The Chair requested that Demand cost issue be added to the Panel’s future work plan, with a short initial briefing note compiled for the Panel’s meeting in June.

 

Question 2: Can the Police and Crime Commissioner outline the alternatives that he considered before coming to the decision to propose a 6.17% increase in the 2018/19 police precept.

 

Again, whilst much of this had been covered by the PCC in his speech, he added there would be consequences if the precept was not agreed; a possible reduction in the service to the public being the most important element.  If there was just a 2% precept rise, it would reduce the contributions to the capital programme, make PRISM unaffordable, potentially reduce the work force and the OBD model would have to be scaled back, thereby defeating any planned efficiency measures.

 

Following a question about where in the accounts the sale of police stations was shown, the Chief Finance Officer advised that for commercial reasons the specific locations associated with capital receipts were not published, but could be seen in the capital receipts reserves movement.

 

In respect of sharing budgets with other agencies, the PCC advised he would like to share more and that MASH were good examples of this.  He explained some of the work undertaken with other local authorities and the Fire Service but noted that, in the current climate it was difficult to look at co-funding with the private sector.

 

Question 3: Is it possible for the Police and Crime Commissioner to outline how he proposes to use the extra £4.2m raised in 2018/19 by the Dorset Police precept.

 

Although this was mostly covered in the PCCs speech, the PCC added that Devon and Cornwall had carried out a similar consultation and were also requesting a £12 precept increase for an equivalent Band D property at their PCP meeting shortly.

 

The Chief Constable stressed the important point that this was not extra funding it was just closing the gap. If there had only been a 2% rise it would have left a £5m gap which would have to be filled by reducing capabilities etc and difficult choices would have had to been made.

 

The Chair asked what the financial value of a 2% rise across the Dorset Police work force equated to.  It was confirmed that it was roughly £2m per annum and therefore some 50% of the proposed precept request would be absorbed through staff pay rises.

 

Question 4: Can the Police and Crime Commissioner outline the steps he is taking to increase productivity and efficiency and improve transparency which appears to be a condition set down by the Secretary of State in allowing the £12 per annum Council Tax flexibility provided to Police and Crime Commissioner for 2018/19. It would also be helpful to clarify the impact these savings are having on the precept as proposed.

 

In addition to the points raised in the PCCs speech, the PCC referred to the inclusion of the proposed merger this represented homegrown productivity and efficiency. In terms of transparency, four scrutiny panels had been set up with members of the public sitting on them. Procurement was a key area in which to seek savings. In terms of borrowing key to this was the approval of strategies and the Prudential Code set out clear indicators which was how thresholds were set.  Borrowing would be for capital purposes and had to be prudent, affordable and sustainable, with an acceptable level of risk.

 

The assumed proposed uplift in 2019/20 was predicted on ‘progress’  as outlined by the Secretary of State’s conditions.  The Chairman asked what guidance had Central Government given in order to confirm that ’clear and substantial progress was made against agreed milestones on productivity and efficiency’ had been achieved? The Chief Constable advised that guidance had been requested but that some of the principles would be outlined in the new Force Management Statement (FMS). The OPCC undertook to provide members with an update on FMS at their June meeting.

 

Question 5: In regards to the stated £850,000 of Budget Challenge efficiencies and the savings from the Strategic Alliance can the Police and Crime Commissioner outline what sensitivity analysis has been undertaken to ensure that the budget assumptions are realistic.

 

The Chief Finance Officer advised that specific target areas had been identified by the Force as achievable but there was some risk. Within that there were fairly well developed ideas as to how those savings would be achieved. Some were obviously more easy to achieve than others, but they were confident that the savings identified were realistic.

 

The PCC added that there were contingency plans if savings were not delivered as expected such as early management intervention. There was a risk assessment within the reserves policy and the General Fund Balance, which would need to be used to cover any undelivered savings.

 

Question 6: Can the Police and Crime Commissioner clarify the impact on frontline policing of the proposed increase in the Police precept.

 

The Chief Constable explained that they were trying to balance all operational requirements, both high harm and volume crime, and OBD would help in that respect.   They were not yet on top of cyber and fraud and more work was needed on this. With the caveat of operational policing and the changing of Chief Constable she gave assurance attendance at shoplifting, for example, would still occur where appropriate.  

 

Following a question about the consultation and the specific questions asked and that in spite of the proposed increase there was still a plan to reduce the Force by 17 officers, the Chief Constable advised that the Force was funded for 1200 officers. In order to recruit it takes about 2 years to have enough officers ready, so predictions of leavers was an important indicator of how many officers were needed to replace those exiting the Service.  Those predictions had overestimated the level of natural wastage recently, and therefore the Force was slightly over the 1200 establishment figure.  This  small, and planned, decrease, sees the Force going down to the predicted establishment figures.

 

In respect of police staff, the PCC advised he was not looking to decrease further other than planned changes either with the Alliance or via workforce changes in OBD. The Chief Constable added that police numbers had been cut over the past few years in respect of back office staff and it was becoming increasingly difficult to look at the numbers in isolation in respect of the Alliance and proposed merger these days, down to ‘hosting’ arrangements in place between the Forces. 

 

In response to a question about the numbers of frontline police in particular areas and the potential harm to the business community, the PCC advised that often this can be about perception, and that given the shift to online crime, he considered officers working in online investigations teams to be frontline.  The Chief Constable made reference to other teams and areas that now made up these frontline teams.  This was one of the issues that OBD would be seeking to achieve; it was about new ways of working.

 

Following a reference to the proposed Centre of Excellence the Deputy Chief Constable confirmed this was not a new quango being set up.  The aim was to drive down the costs of procurement and he felt it was a sensible and prudent way forward.

 

In respect of the Emergency Service Network (ESN), this had been discussed with the minister recently where concerns were voiced. This had been highlighted as a financial risk.

 

Question 7: Can the Police and Crime Commissioner set out why the Police Budget is underpinned by a commitment to being debt free. This is exemplified by the decision to set aside £709,000 as a revenue contribution to capital when other capital resources are potentially available to cover the 2018/19 planned capital expenditure.

 

The Chief Finance Officer highlighted that it was important not to forget that everything was paid for ultimately by the revenue account, it was therefore a matter of timing and that all expenditure had to be matched by incomings.  The circumstances when borrowing was appropriate was highlighted but they were not looking at a need to borrow in this period. In respect of PFI, it was recognised that this was an element of Dorset Police’s longer term financial commitments, but had pre-dated the PCCs term, but was reflected in the Treasury Management Strategy.

 

Following a question about capital projects being unfunded within the MTFS it was noted that ESN and digital speed cameras would pose an impact if not delivered. It was agreed to add an item on the Capital Strategy to the forward work programme.

 

Question 8: Can the Commissioner outline why he feels it is necessary to plan for a further £12 per annum increase (5.8%) in the police precept for 2019/20 and what alternatives he will be pursuing. 

 

The PCC advised that this dependent upon the prevailing circumstances; the requirement to meet the Secretary of State’s guidelines and other issues (e.g. the proposed merger and therefore could not make a decision on this as yet.

 

One member congratulated the PCC on the level of responses with his consultation and noted that a high percentage of the responders were aged 65 and above.  The PCC reported that he had completed a number of face to face consultations which were usually in the daytime at supermarkets etc which could account for the higher age, but noted that online responders were generally younger.  He recognised the importance of targeting the 18-30 section of communities.

 

The Chairman felt it would be helpful to add an item to the work programme in respect of the increase of staff referrals to Occupational Health, in light of the Conef Constable’s statement of a 40% increase.

 

Following a discussion about speed awareness courses and the associated income that this generated, the PCC highlighted the importance of speed cameras becoming digitalised but a business case for this had not yet been completed.  He stressed that revenue was not the driving force for this; the aim was to keep people safer on the roads.

 

Following a vote the Panel:-

 

Resolved

1. That the increase in the precept of £12 per annum on a Band D property for 2018-19 be supported.

2. That for the purposes of issuing a report to the Commissioner on the proposed precept, the Panel endorsed the council tax requirement and the basic amount of council tax for police purposes in Dorset for 2018-19.

 

Reason for Decisions

The Police and Crime Panels (Precepts and Chief Constable Appointments)

regulations 2012 required the Police and Crime Commissioner to notify the panel of their proposed precept for 2018-19 by 1 February 2018. This then needed to be considered by the Police and Crime Panel who could either approve the proposed precept or veto it. A two thirds majority of the Police and Crime Panel was required to veto any precept proposal.