a) Budget Report 2022/23 including MTFS
b) Treasury Management Strategy 2022/23
c) Reserves strategy update
d) Capital Strategy and Capital Programme
Minutes:
The Commissioner introduced his report which set out the proposed budget and precept proposals for the Police and Crime element of his portfolio for 2022/23. He reported that the proposed budget/precept showed a total net revenue budget requirement of £233.072million (an increase of 10,997million) for 2022/23. The report also included details of the Home Office Police Grant for Staffordshire which had been set at £129.410 million, an increase of £6.993 million on the previous year. Other sources of funding were from the Police Pension Grant £1.825million; uplift ring-fenced grant £2.035 million; Council Tax freeze grant £3.541million; and Revenue Support Grant of £8.423million.
The use of £1.262 million of reserves to support the capital programme and the use of the reserves over a four year planning period to support the budget totalling £2.611m was explained.
The Commissioner was proposing to part fund the balance from Council Tax funding of £88.265,871 with an increase of 4.19% per annum (an increase of £10 per annum) increasing the Council tax to £248.57 p.a. per Band D property.
The Commissioner stated that he was confident that the proposed budget was adequate to deliver the services Staffordshire needs and would meet the services intended and his Police Fire and Crime Plan. He acknowledged that the increase was the maximum this year it was hoped that there would be smaller increases in future years.
It was noted that there had been a longer term (3 year) commitment from Central Government this year enabling better planning. However, there was a concern over inflation and the economy which led to financial uncertainty in some areas.
It was explained that headline investments which would be made during the course of the Medium-Term Financial Strategy (MTFS) were above those provided for by Central Government. These included an Increasing Technology and Digital Capabilities; a modern and fit for purpose Policing Estate; a modern fit for purpose Police fleet; increased contact services capacity; IT capacity; and a change and transformation programme.
The Panel received a presentation from the Chief Finance Officer, which was considered along with the report which included the following:
1. Budget Report 2022/23 including MTFS
2. Treasury Management Strategy 2022/23
3. Reserves Strategy update
4. Capital Strategy and Capital Programme
The Treasury Management Strategy for 2022/23 set out proposals for the management of the Commissioner’s cash flows, borrowing and investments and their associated risks.
The Reserves Strategy update paper considered the overall level of reserves held at 31 March 2021 and the forecast position at 31 March 2022.
The Commissioner presented his four-year Capital Strategy and Capital Programme 2022/23 to 2025/26 (Including Minimum Revenue Provision Policy) set out the long-term capital investment and investment decisions.
Members asked for the rationale behind the decision to increase by the maximum allowed this year even though there had been a favourable government settlement and an increase in Council tax collection which should have increased funding. In response, the Commissioner explained that some of the funding would be used on service improvement, and he was looking to invest early in his term of office and to also support the new Chief Constable with his plans to change services. The plan was to keep Council Tax precept increases to less than inflation in the future, if possible.
Following a question on police numbers and officer visibility, the Commissioner confirmed that he appreciated that some people found a visible police presence reassuring. There would be more officers by 2023 and the majority of them would be going into community policing and response. However, officers had to be deployed in areas where they were needed. It was explained that the third year of the Governments uplift programme would see an additional 120 FTE officers in Staffordshire by 31 March 2023.
Traffic management and monitoring of speeding/drink driving etc. was being developed by the Commissioner and the specialist unit would be retained as would working arrangements with the West Midlands Region. Voluntary speed watch operations would be developed which should release more officer capacity and should see more volunteers working to address local issues under the control of local policing commanders.
It was explained that the Firing Range needed to be a fit for purpose training facility. There was still a need for a more complete business case which would consider all options including exploring shared facilities with other organisations.
The following information was also gained through questioning:
When asked how success would be monitored, it was explained that over the following few months the Commissioner would be setting targets and arranging public performance meetings with the Chief Constable, where performance would be monitored regularly. These updates would be available on the Commissioners public website and would include both local and national performance measures. The Panel were concerned that delivery of improvements should be visible and requested sight of the performance data, including risks and mitigation at the end of the first quarter.
The Panel adjourned to consider their response to the Commissioners budget and precept proposals. Upon reconvening the Panel:
RESOLVED:
a) That the proposed budget and Precept increase of 4.19% (£10.00 per annum, per household (Band D)) be supported and the Commissioner be notified accordingly.
b) That the Council Tax base increased to 355,100 band D equivalent properties, equivalent to an increase of 1.83% be noted.
c) That the Budget and MTFS fully support and include the investment required to deliver the Officer Uplift of 120 by 31 March 2023 in line with the Ring-Fenced Grant of £2.035m. This takes officer numbers to 1,942.5fte be noted.
d) Note the use of £1.262m of revenue reserves to support the capital programme in 2022/23 and a net use of reserves over the four year planning period to support the revenue budget totalling £2.611m be noted.
e) That the MTFS summary financials and MTFS assumptions as contained in the report be noted.
That the overall balanced budget position for 2022/23 as presented and that the MTFS is balanced over each year of the 4-year planning period be noted.
f) That the Support the delegation to the Director of Finance for the Staffordshire Commissioners Office and the Chief Finance Officer of Staffordshire Police to make any necessary adjustments to the budget as a result of late changes to central government funding (including changes due to the final funding settlement being announced) via an appropriation to or from the general fund reserve be noted.
g) That the proposed four-year Capital Investment Programme totalling £63.254m and the Capital Strategy and Capital Programme Paper be noted.
h) That the outcome of the Staffordshire Commissioner’s budget consultation within the Commissioners foreword which included a survey regarding the proposed level of precept for 2022/23 be noted.
i) That the Panel be provided with a written first quarter performance paper outlining the performance against targets. The paper should include risks and any variations. This would be considered at a future Panel meeting if the Panel feel appropriate.
Supporting documents: