DN 02/2023 – Police Precept Proposal 2023/24
Police Precept Proposal 2023/24
The PFCC has decided, after consultation with the public, after taking into account the impact of the financial settlement, the challenge in meeting the costs of significant increased pay and non-pay inflation pressures and the financial needs of the Force, to propose to the Police, Fire and Crime Panel a police precept for 2023/24 of £295.09 for a Band D property within North Yorkshire. This would be an increase of 4.99% or £14.03 per annum, from the 2022/23 level.
Background
Legislation requires that the Police, Fire and Crime Commissioner (PFCC) agrees their budget and associated precept and basic council tax for the forthcoming year before 1st March each year. However before doing so the PFCC must notify the relevant Police, Fire and Crime Panel, by the 31st January, of the precept which they propose to issue for the following financial year.
The Police Settlement for 2023/24 has provided the PFCC with an increase in Government Funding of £1.7m or 1.8%; including an increase to a Ring-fenced Grant for maintaining Police Officers of £1.4m.
Taking into account all other projected changes in income, other than from a Precept increase, then the overall forecast increase in income is expected to be £5.4m.
Precept flexibility of up to £15 was provided for all PFCCs (or equivalents) in 2023-24, which meant that the Band D level of the Police Precept could be increased by up to, and including, £15 before a referendum is required.
Each 1% increase in the precept in North Yorkshire provides £875k of additional precept income on a recurring basis – so nearly £4.4m per year of additional income would be generated from the proposed precept increase of 4.99% (or £14.03)
In total therefore income will increase by £9.8m between 2022/23 and 2023/24 based on a 4.99% increase in Precept.
This money needs to cover pay increases, non-pay inflation pressures and some areas of needed investment which total £18m, of which the main areas are:
- Maintain an average of 25 additional police officers during 2023/24, with the Force maintaining an average of 1,645 Officers during 2023/24. Estimated cost £1.5m
- Increase investment in the Force Control Room to improve 999 and 101 performance – estimated cost £1.9m.
- Meet forecast pay increases which are estimated to cost £8.5m more than in 2022/23.
- Meet the costs of general non-pay inflation with significant areas of price increases, especially around Utilities. Estimated cost £4.1m
The £8.2m gap between expenditure and income will be covered as follows:
- Use of £1.2m from Reserves/Underspends
- Reduction in Contributions to Capital – £3.8m
- Increased Staff and PCSO vacancies – £3.2m
Reducing the contributions into the Capital Programme results in drawing on reserves to fund more of the Capital expenditure in 2023/24.
Reserves are currently forecast to reduce by around £5m during 2023/24 to support the Capital programme, and therefore ultimately the Revenue budget, to focus as much funding on service delivery as possible during 2023/24.
Consultation
The results of consultation with the public of North Yorkshire in relation to the level of precept for 2023/24, which had 2,343 responses, has resulted in over 70% supporting an increase in the police precept, with around 44% opting for an increase of £10 or more.
| Total
(n=2,339) |
Telephone (n=1,000) | Online
(n=1,339) |
|
| No more than I pay now
a precept freeze |
37% | 42% | 34% |
| Up to £5.60 a year more
(47 pence per month), an increase of 1.99% |
18% | 23% | 15% |
| Up to £10 a year more
(83 pence per month), an increase of 3.6% |
18% | 18% | 18% |
| Up to £18 a year more
(£1.50 per month), an increase of 6.4% |
26% | 17% | 33% |
| TOTAL who support an increase of at least £10 | 44% | 35% | 51% |
The organisational need for this increase from a financial perspective, aligned with some significant support from the public for an increase of £10, or above, at 44%, has lead me to propose a police precept for 2023/24 of £295.09 for a Band D property within North Yorkshire. This is an increase of 4.99% or £14.03 per annum, from the 2022/23 level.
Decision Record
The PFCC has decided, after consultation with the public, after taking into account the impact of the financial settlement, the challenge in meeting the costs of significant increased pay and non-pay inflation pressures and the financial needs of the Force, to propose to the Police, Fire and Crime Panel a police precept for 2023/24 of £295.09 for a Band D property within North Yorkshire. This would be an increase of 4.99% or £14.03 per annum, from the 2022/23 level.
Zoe Metcalfe
Police, Fire and Crime Commissioner for North Yorkshire
3 February 2023
Statutory Officer Advice
Legal, Management and Equality Implications
The Commissioner’s Chief Executive and Monitoring Officer, having read this report and having considered such information as has been provided at the time of being asked to express this view, is satisfied that this report does not ask the Commissioner to make a decision which would (or would be likely to) give rise to a contravention of the law.
Financial and Commercial
The PFCC’s Chief Finance Officer and S151 Officer has advised that the financial implications of this Decision are set out in the Executive Summary and/or the attached report that is proposed to be sent to the Police, Fire and Crime Panel. The decision will ensure that the PFCC meets her legislative requirements in relation with the Police element of the precept and will also ensure that there is sufficient funding available in 2023/24 to fund the organisation to deliver against the Police and Crime Plan priorities.
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