Agenda item

44.    The Panelreceiveda report fromthe Commissioner regardingthe medium termfinancialforecast and budgettimetable 2016/17(copyappended to the signed versionof the minutes) whichoutlined thelatest budgetplanning assumptions and

2016/17 andincludedthe MediumTermFinancialForecast(MTFF) up to 2020.The report was introducedbythe Commissioner’s Office andthe Panel wasinformed thata further reportwould be presentedto the PanelinJanuarywith further information and a proposed precept for 2016/17.Currently the Commissioner’s Office was awaitingthe outcome of the Treasury’s spending review and an

announcement on how the Police Fund wouldbe allocatedin the future which would

impactupon future fundinglevels.

45.    The Panelraised the followingissues withthe Commissioner:

•    Further detailregarding the operationalandcorporate riskposed bythe proposedsavings was required. This needed to be providedin accordance withdetailrelatingtothe financial robustness of proposedsavings.The workinggroupof the Panel had beenengagedin the considerationof savings proposals and budget and preceptoptions.

•    The financialmodellingof 25-40% reductions was queried.Theimpactof these levels of reductions would be significant and there was concern regardingthe effecton operationalpolicinginSussex.All unprotected government departments had been askedto model 25-40% reductions as partof budget planning for 2016/17anda 25% reduction hadbeen modelled as part of planningfor the next financialyear.Confirmationwas awaitedin the AutumnFinancialstatementof the grant from the Home Office in

2016/17andchanges to the police fundingformula.Reductions in the Home Office grant were anticipated andit was currently unclear whateffect the changes to the formula would have upon funding but itwas predicted that the changes could resultin anincrease ordecrease in fundingof 5%.The

fundamental nature of policing was changing within aneraof increasingcosts (e.g.cybercrime andhistorical abuse cases) and reducing funding.The Panel requested an update on the developmentof the new policingmodelto the next meetinginJanuary.

•    The lackof clarityfromthe Home Office concerning the police funding formulawas felt to be unhelpful and the impacton reserves ofa decrease in the levelof fundingin2016/17 was queried.Furtherinformationregarding the identifiedrisk, inthe report,that reserves were adequate tomeet unplanned demandwas requested.Beforethe use of reserves was contemplatedclarification regarding funding for 2016/17was required.The

use of reserves was not a preferredsolution to funding reductions butif necessary theycouldbe used.The use ofreserves was a balancing act and there was a need to highlight the risk involvedin the allocationof reserves to meet fundingshortfalls.A recent auditof the reserves hadconcluded that good practice was being followed with regard to the levelof reserves.

Greaterclarity regarding the financialcontext for 2016/17wouldbe available

at the nextmeetingin January.The Commission hadlobbied the Home Secretaryon decreasing budgets and the need for adequate funding to ensure the effective operationof the Force.

•    It was recognised thatlocalpolicingwas under greatstrainwithsignificant savingsidentifiedwithinthis elementof the Police budgetoverthe next three years.It was requested that the report brought to the January meeting provide an assessmentof theimpactof fundingreductions onlocal policing.

It was felt thatinlightof savings and reductionsin localauthorityservices

therewas acontinuing and pressing need forlocalpolicing. The proposed savings outlined in the report were subject to the completionof comprehensive business cases.An updatedsavings table wouldbe presented to the Januarymeeting whichset out finalisedsavings priorities.

•    Concern was expressed regardingtheimpacton morale of the changes includedinthe Target OperatingModel,theproposedsavings and the limitof a 1% pay rise.There was an awareness of the importance of morale in the force and the Commissioner workedclosely with the ChiefConstable to understand the impactof currentcircumstances on the force.

•    An update was requestedon wheninformation regarding the future operating modelwould be published and what the proposedintentions were.The

Target OperatingModel was a five year rolling programme andconsultation was currently takingplace withlocal authorities,CSPs,local residents and departments of the police force.

•    The proposedsavingsresultingfromthe reductionof the numberof PCSOs was asignificantconcern for the Panel.Greater detailon the proposals was required.Work was on-going with the SussexAssociationof LocalCouncils (SALC)on a projectto allow Parish andTownCouncils to ensurethe continuationof acommunity presence in the form ofa wardenor village agent.

46.    Resolved– That the Panelnotes the contentof the report.