Memorandum submitted by Hampshire Police
Authority
Hampshire Constabulary and Hampshire Police
Authority share the concerns expressed by Sir Hugh Orde (and others)
regarding the impact that the financial climate will have on police
funding and hence on the communities that we serve in Hampshire
and the Isle of Wight.
To set the scene for you Hampshire Constabulary
serves a population of estimated at 1.8 million across the
counties of Hampshire and the Isle of Wight. This is a diverse
area ranging, from the two major cities of Southampton and Portsmouth
to other areas such as the New Forest and the Isle of Wight where
the seasonal demands on policing as a result of a large influx
of visitors present very different policing challenges.
The net revenue budget for the current year
is £305 million of which 68% is funded by Government
Formula Grant leaving 32% to be met by local council tax payers.
At £142.11 p.a. for a band D property
the police council tax is 7th lowest of all police authorities
in England and Wales. This represents a 4.8% increase over the
previous year. Total revenue reserves projected for the end of
the current year are £7 million. The Audit Commission
recently gave a score of "3" under its use of resources
assessment. In the last year crime has reduced by 7% overall.
In order to address the Chairman of the Committee's
questions I will cover the following points:
— Council Tax and capping
As he suggests there are historical factors
worthy of mention and I shall cover these, where relevant, under
each of the headings:
STAFFING
The numbers (establishment) requested are a
follows:
| |
|
| At Oct 2009 | At Oct 2004
|
| |
|
| Police officers | 3,748 |
3,719 |
| Police Staff | 2,489 | 1,876
|
| PCSOs | 337 | -
|
| Total | 6,574 | 5,595
|
| |
|
| |
|
Over this period police staff numbers have increased as a
result of a civilianisation programme. Efficiency has improved
whereby subject to value for money being demonstrated, suitably
skilled police staff have been employed in roles previously undertaken
by police officers. This has allowed more police officers to be
available for operational duties.
However with tightening financial constraints this year's
budget required a reduction of 100 police staff posts and
a similar reduction in budgeted police officer numbers. In the
main this was achieved by vacancy management and by removing police
officers from headquarters functions. Our concern for the future
is that budgetary constraints will lead to further reductions
that this time will reduce operational capacity.
Furthermore the need to maintain police officer numbers if
at all possible to protect operational resilience may lead to
"reverse civilianisation" whereby the value for money
gains made in previous years are lost by having to deploy police
officers in roles that are currently performed by police staff.
Police Community Support Officers (PCSOs) present a specific
issue worthy of mention. Hampshire was one of the last police
authorities to apply for funding for PCSOs. The reason for this
was not to do with any doubts over their value, but a concern
that if the specific funding was ever withdrawn by the Government
then either the PCSOs would have to be made redundant or the lost
grant would have to be made up by cutting policing services elsewhere
and/or the council tax police precept increased.
Four years on and our 337 PCSOs now are integrated into
the "policing family" in Hampshire and the Isle of Wight.
They are well regarded by the public, an integral part of safer
neighbourhood teams and they make a significant contribution to
tackling anti social behaviour—a priority for our communities.
Therefore should the £7 million of PCSO grant be removed—directly
or indirectly by absorbing it in the general grant and then reducing
this—the consequences would be severe. Either a highly valued
part of the policing service would be at risk or subject to capping
a 7% increase in the police precept would be needed.
FORMULA GRANT
For many years Hampshire Police Authority has made representations
that this does not address fairly the policing needs of the two
counties. For example housing prices in the North of Hampshire
make it difficult to recruit and retain officers who are attracted
by the allowances that are paid by neighbouring constabularies.
Contrary to the perception of many the two counties contain some
areas of severe deprivation. In the two big cities in particular
the numbers in the population for whom English is not their first
language presents demands on the budget with for example the spend
on interpreters having risen from £579,000 in 2006-07 to
£677,000 projected for this year. High profile ports
and airports, the seasonal influx of visitors and a concentration
of military establishments add to pressures on police finance.
It therefore remains profoundly disappointing that, due to
the operation of "floors and ceilings" the Authority
does not even receive its full share of funding as determined
by the formula. The shortfall amounts to £1.5 million
which equates to 33 police officers.
As the economy recovers the pressures placed on policing
locally by new housing and commercial development will return.
The Authority has argued for policing to receive contributions
from developers and would wish to receive the same treatment as
other local service providers in this respect. The demands made
by the so called night time economy by large licensed premises
or concentrations of smaller premises are self evident throughout
the area.
COUNCIL TAX
AND CAPPING
Hampshire Police Authority and Hampshire Constabulary are
sensitive to the impact that Council Tax has on those who have
a low or fixed income, particularly in the current economic climate.
However independent research that has been commissioned by the
Authority has shown that once they understand that the police
element of their council tax amounts to less than £12 per
month (at Band D) then most people would be content to see a modest
increase in excess of the capping level for either an increase
in policing or to avoid a reduction in policing services. The
Authority has made representations previously to Government that
capping, as currently applied is not appropriate for police authorities.
A quick examination of the council tax amounts set by police
authorities this year, which range from £199-£128, cannot
be explained by differences in efficiency, and illustrates the
part that history, grant formulae, floors and ceilings, and capping
have played.
BUDGET PRESSURES
For next year, on the assumption that the police council
tax can increase by 3.5% we estimate that budget reductions of
£1.6 million will be needed. If the tax increase were
to be only 2.5% the gap rises to £2.6 million.
In addition there are a number of largely unavoidable budget
pressures ranging from £1.3 million to replace body
armour to £51,000 for replacement of CBRN equipment.
Although the latter is a relatively small amount it is a good
example of how a new priority is initially funded by Government
but how it then falls on local budgets to finance its regular
replacement and maintenance. The full list of budget pressures
totalling in excess of £5 million is attached.
RESERVES
Hampshire's reserves represent just 2.3% of net annual revenue
expenditure. To put it more graphically this level of reserve
would fund the Constabulary for just over only eight days. Just
a 1% overspend would reduce the reserve by nearly half.
Historically the Authority has taken the view that good budgetary
control allows it to operate at this level of reserves and it
therefore is not in the best interests of the local taxpayer to
add to reserves. However on occasions demands on the policing
budget are unpredictable with, for example recently the policing
of one local industrial dispute alone costing in excess of £300,000.
BUILDINGS
Hampshire Police Authority owns 63 main operational
and support sites. Of these only 11 are less than 20 years
old. 10 are more than 60 years old. Policing requires
a flexible working environment yet most of these properties are
exactly the opposite. The Constabulary and Police Authority face
a constant dilemma of whether to divert scarce, funds from annual
operational budgets into maintaining buildings or to take the
longer view and invest in modern facilities. Technological developments
eg in accommodating IT and sustainability issues add to this dilemma.
Two examples of how historical decisions are having to be
addressed follow:
The main Southampton Police station transferred to the Authority
under a previous reorganisation is part of the City Council's
Civic Centre. The building is listed, minor changes require permission,
and there is insufficient space, poor facilities, no flexibility
and above all a custody suite that falls far short of modern standards.
As a result the Authority has approved a £38 million
project to build a new police station and custody centre due for
completion in early 2011.
The Constabulary's HQ is a 1960's tower block in a historic
city constrained by planning requirements and with little scope
for expansion. The building is no longer fit for purpose and requires
extensive refurbishment for which planning permission has not
been forthcoming. So the Authority has acquired a site on an industrial
park and is about to consider plans for a new HQ to be provided
there.
Both schemes, effectively will dominate the capital programme
for the next few years and their financing adds to the challenges
facing the revenue budget. It is difficult to see, despite the
effort that the Constabulary is putting into alternative means
of provision eg inside supermarkets, selling surplus assets and
exploring alternative means of financing through partnerships,
how the Authority will be able to address other high priority
improvements needed to the police estate particularly in relation
to custody provision and large police stations still in inappropriate
premises such as converted residential properties.
Whilst acknowledging the difficulty we are concerned that
with the spotlight that the economic climate inevitably puts on
current operational expenditure, the longer term, infrastructure
need is not overlooked. If it is, then those who follow us will
face even greater legacy issues in relation to police estate than
those now facing the Authority.
EFFICIENCY
The Constabulary and Authority, notwithstanding the concerns
expressed above, have been and remain committed to improving productivity
and efficiency. In the seven years ending in 2008-09 £60 million
in independently verified efficiency gains was achieved. To balance
the current year's budget, reductions of a further £9 million
were made including the 200 officer/staff reductions referred
to earlier, a £2m (%) reduction on the overtime budget, and
slimming down of HQ.
A number of strategic approaches and tactics are in use:
— A small central team, reporting to the Deputy Chief
Constable oversees a programme of reviews using LEAN methodology
where appropriate and a network of efficiency liaison officers
operate locally to promote efficiency. This strategy is reviewed
regularly by a committee of the Authority.
— A three year programme whereby a third of the budget
is reviewed annually by chief officers and Police Authority members
is entering its final stage.
— All contracts due for review are scrutinised to challenge
the need for the expenditure and explore alternative sources of
supply or means of provision.
— A programme of financial training for non financial
managers is well underway.
— The management of resources, efficiency and productivity
feature in annual appraisals and promotion decisions.
— A Gold Group is meeting to find more immediate budget
reductions. This includes Authority members, Chief Officers, other
managers and staff side representatives. Benchmarking data produced
within the Constabulary, with other SE region constabularies and
by the HMIC all are being reviewed to establish those (few) areas
where Hampshire appears to be a relatively high spender. These
budgets then are examined in more detail with a view to making
savings. Data quality and therefore comparability are concerns
so the production of a common chart of accounts is being considered
with some other SE region forces.
— A comprehensive programme of collaboration exists
under the leadership of the chiefs and chairs in the region. Early
successes should include, on the operational side Witness Protection
and from a support service perspective the creation with Thames
Valley Police of a joint ICT department.
— For some years an Income Generation and Sponsorship
Board (comprising of a cross section of officers and staff and
a member of the Authority) supported by a dedicated member of
staff have sought to increase activity in these areas, within
an ethical framework. Successes included the partnership referred
to earlier with a supermarket chain and a large number of lower
level, but nevertheless worthwhile individual sponsorships of
equipment etc. The creation of a charitable trust with other partnership
organisations also, is being developed. Inevitably the economic
climate is making it more difficult to secure support under this
heading.
— External consultants have been employed to undertake
a zero based budget review of all non-pay budgets. It is not a
foregone conclusion that this will reveal potential budget savings.
There is a possibility that it will reveal that at a local level,
several years of constrained budgets will have forced managers
to use savings from holding vacancies to fund unavoidable expenditure
on eg utility costs, arguably an unsustainable situation.
In conclusion this Constabulary and Police Authority have
a long and positive record in delivering value for money. Notwithstanding
our concerns expressed earlier regarding formula grant, capping
and budget pressures the fact that performance is good, public
confidence high yet council tax is relatively low must support
the proposition that efficiency has been and continues to be pursued.
Whilst we will continue to strive for even more improvement there
are now serious concerns regarding the financial climate and one
can foresee further job cuts being necessary. It is not possible
to quantify these at this stage. Whilst we will aim to protect
front line policing the scale of cuts being mentioned by some
commentators , that also may impact on our partners within and
outside of the Criminal Justice System, would put current standards
of frontline policing under threat particularly if this impacted
on PCSOs and hence Safer Neighbourhood Teams. All this at a time
when the economic situation itself may increase the demand for
policing service and with the build up to 2012 adding to
the pressures.
I trust that you will find our response helpful and thank
you for giving us the opportunity to comment. You may be aware
that ACPO has decided that chief constables should contribute
to a single joint response. However I can advise you that the
Chief Constable of Hampshire is in agreement with this letter
and his response submitted through ACPO will follow very similar
lines. I will await the conclusions of the Home Affairs Committee
with interest; in the meantime if I can be of any further assistance
please do not hesitate to contact me.
November 2009
APPENDIX
REVENUE BUDGET PRESSURES AND GROWTH SUMMARY 2010-11 ONWARDS
OCU/Dept | Title
| Ref | Time |
Detail—Including any savings | 2010-11
| 2011-12 | 2012-13
| 2013-14 |
Business & Property Services |
Body Armour Replacement Programme | BAPS 2
| One Off | Replace body armour for all officers
| 1,319,900 | |
| |
| Criminal Justice Dept | Digital Interviewing & Transcription
| CJD 1 | One Off | The analogue system currently in use is now obsolete and needs upgrading to a digital system.
| 329,000 | |
| |
| Criminal Justice Dept | Translators
| CJD 2 | Ongoing | The current contract ends this financial year and it is anticipated that costs could increase by as much as 50%.
| 150,000 | 150,000 | 150,000
| 150,000 |
| Crime | Scientific Services, Digital Forensics Strategy
| CRIME 1 | 2010 to 2012 |
To seek funding to complete the five year strategy which commenced in 2007-08
| 163,650 | 115,000 | -114,000
| |
| Crime | New Special Branch application connection
| CRIME 3.1 | One Off | To seek funding for the IT Infrastructure requirements for two new sites.
| 59,500 | | |
|
| | CRIME 3.2
| Ongoinq | Annual BT line rental charqe
| 22,000 | 22,000 | 22,000
| 22,000 |
| Crime | Economic Crime Unit |
CRIME 11 | Ongoing | To create an Economic Crime Unit to improve fraud detection and asset recovery.
| 599,000 | 599,000 | 599,000
| 599,000 |
| Crime | Police National Computer Bureau (PNCB)/Force Intelligence Management Unit(FIMU) Staffing Levels
| CRIME 12 | Ongoing | To ensure that the FIMU is adequately staffed for the increasinq workload and that there is an appropriate supervisory structure within the FIMU/PNCB.
| 376,300 | 376,300 | 376,300
| 376,300 |
| Crime | Extraction of HOLMES Data into the i2 Analysis Platform
| CRIME 13 | One Off | To provide the ability to search and extract intelligence data from the HOLMES database—potential savings of £300k when in place.
| 100,300 | 4,100 | 4,100
| 4,100 |
| Crime | Disclosure Pilot Coordinator
| CRIME 15 | Ongoing | To continue the post of Disclosure Coordinator when Home Office funding ceases in April 2010-Scale 5.
| 27,400 | 27,400 | 27,400
| 27,400 |
| Crime | Public Protection Unit
Det Sgt. Specialist Investigations
| CRIME 16 | Ongoing | To establish the post of Public Protection DS when Home Office funding for the Disclosure Pilot ceases
| 50,000 | 50,000 | 50,000
| 50,000 |
| Crime | Regional Asset Recovery Team
| CRIME 17 | Ongoing | Details to be confirmed
| | | |
|
| HR | HR Modernisation | HR 1
| Ongoing | Replace the HR system with one that can provide information which is accurate and user friendly.
| 80,000 | 80,000 | 80,000
| 80,000 |
| IT & Comms | Additional funding required for IT support of Airwave and AVLS/INCA and ANPR
| IT 1.2
IT 1.3
IT 1.4
IT 1.5 |
Ongoing
Ongoing
Ongoing
Ongoing |
Auto Number Plate Recognition (ANPR)
Overt Airwave
Covert Airwave
Auto Vehicle Location System (AVLS)/INCA car use data
| 359,400
35,200
72,400
15,000
| 461,900
35,200
52,000
15,000
| 404,100
35,200
657,500
507,000
| 249,600
35,200
52,000
51,000
|
| IT & Comms | E-Borders Implementation—IT and Security
| IT 2 | On-Going | E-Borders implementation and ongoing maintenance
| 87,000 | 12,500 | 12,500
| 12,500 |
| IT & Comms | New Force Computer Data Centre
| IT 3.1 | One-Off | Additional costs of relocating data centre
| | | 200,000
| |
| | IT 3.2 |
Ongoing | Additional on-going costs of relocated data centre
| | | | 100,000
|
| IT &Comms | IT Security |
IT 5 | One Off | Implement Identity & Access Management to National Standards
| 250,000 | |
| |
| IT & Comms | Image Storage System
| IT 6 | One Off | Enable storage of large volumes of electronic data to allow capacity for required digital images
| | 273,000 |
| |
| IT & Comms | IT Protective Monitoring
| IT 7 | One Off | Introduce proactive monitoring to identify intrusions to the Force IT Systems.
| 250,000 | |
| |
| Operations | Proposed Counter Terrorism Exercise 2011
| OPS 2 | One Off | Counter Terrorism exercise during late 2011 to be shared with Thames Valley. Grant from the Home Office for £300k maybe available. Will be a requirement for a full-time planning team for the event as well as "live" players. Estimate based on cost of planning team but there will be other expenditure which cannot be quantified at this time.
| 173,200 | 173,200 |
| |
| Operations | 2012 Olympic Games
| OPS 3 | One Off | Olympics 2012—Team GB will have their training camp at Aldershot with a potential 20+ further venues. Exact funding is unknown but likely to need a full time planning team. Thames Valley currently (June '09) have five full time staff.
| | 382,000 | 382,000
| |
| Operations | Covert Technical Equipment Upgrade
| OPS 6 | One Off | Updating the Covert technical surveillance kit within aircraft to the latest version.
| 50,000 | | |
|
| Operations | Chemical, Biological, Radiological and Nuclear (CBRN) Annual Running Costs
| OPS 9 | One Off | Whilst the CBRN kit is initially funded by the Home Office but any replacement of worn out kit must be funded by ourselves. £41.9k allowance for 10% turnover and £10k allowance for kit and equipment maintenance.
| 51,900 | 51,900 | 51,900
| 51,900 |
| Operations | Aircraft Hangar |
OPS 10a | One Off | Provision of hangar for aircraft. Build our own hangar. Home office funding of up to 40% may be available if we build a new hangar. Has been bid for since budget applications for 2007-08.
| 150,000 | |
| |
| | OPS 10b |
One Off | Provision of hangar for aircraft. Move existing hangar. Has been bid for since budget applications for 2007-08.
| 50,000 | | |
|
| | OPS 10c |
Ongoing | Provision of hangar for aircraft. Lease a bay with MCA hanger. £30-40k dependent on negotiations. Has been bid for since budget applications for 2007-08.
| 40,000 | 40,000 | 40,000
| 40,000 |
| Service Delivery Dept | Local confidence surveys: increase for quarterly CDRP level data.
| SDD 2.1
SDD 2.2 | Ongoing
Ongoing
| Extend the existing survey contract.
Additional administrative support officer—Scale 4
| 141,700
24,600 | 141,700
23,500
| 141,700
23,500 | 141,700
23,500
|
| Total | |
| | | 5,027,450
| 3,085,700 | 3,650,200
| 2,066,200 |
| |
| | | |
| | |
|
