DN 03/2024 – Police Precept Proposal 2024/25
DN 02/2024
Date 27/02/2024
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 2024/25 has provided the PFCC with an increase in Core Government Funding of £7,693k, or 6.6%.
Unfortunately all of this funding increase is either specifically linked to expenditure or linked to decisions already made nationally, as per the below:
- £1,792k more has been provided in additional core grant to cover the costs of last year’s pay award.
- £2,420k more has been provided to ensure Police Officer numbers are not only maintained at last year’s level but increased by a further 20.
- £3,481k more has been provided to pay for higher Employer’s contributions into the Police Officer Pension Scheme.
A precept increase is therefore required to fund all inflationary pressures, including the 2024/25 pay award, across a budget of over £200m.
Precept flexibility of up to £13 was provided for all PFCCs (or equivalents) in 2024-25, which meant that the Band D level of the Police Precept could be increased by up to, and including, £13 before a referendum is required. This would equate to a maximum increase of 4.4% in North Yorkshire.
Each 1% increase in the precept in North Yorkshire provides around £925k of additional precept income on a recurring basis – so nearly £3.7m per year of additional income would be generated if the precept was increased by 3.99%.
In addition to the proposed precept increase, growth in the Tax Base and a higher Collection Fund surplus means that around £5m would then be available, from the Police Precept income, to meet all of the pay and non-pay pressures that are expected to be incurred in 2024/25.
Reserves are currently forecast to reduce by around £17m (from £29m) during the life of the Medium Term Financial. This is predominantly to support the Capital programme, and therefore ultimately the Revenue budget, to focus as much funding on service delivery as possible during 2024/25 and beyond.
Consultation
The results of consultation with the public of North Yorkshire in relation to the level of precept for 2024/25, which had 2,678 responses, has resulted in over 60% supporting an increase in the police precept.
| Total
(n=2,678) |
Telephone (n=995) | Online
(n=1,683) |
|
| No more than I pay now
a precept freeze |
39% | 49% | 33% |
| Up to £10 a year more
(83 pence per month), an increase of 3.4% |
20% | 23% | 19% |
| Up to £15 a year more
(£1.25 per month), an increase of 5.1% |
20% | 18% | 22% |
| Up to £20 a year more
(£1.67 per month), an increase of 6.8% |
20% | 11% | 26% |
| TOTAL who support an increase of at least £10 | 61% | 51% | 67% |
The organisational need for an increase, aligned with support of over 60% for a precept increase, has lead me to propose a police precept for 2024/25 of £306.86 for a Band D property within North Yorkshire. This is an increase of 3.99% or £11.77 per annum, from the 2023/24 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 2024/25 of £306.86 for a Band D property within North Yorkshire. This would be an increase of 3.99% or £11.77 per annum, from the 2023/24 level.
Zoë Metcalfe
Police, Fire and Crime Commissioner for North Yorkshire
Statutory Officer Advice
Legal, Management and Equality Implications
The PCC’s CEO and Monitoring Officer has advised that
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 2024/25 to fund the organisation to deliver against the Police and Crime Plan priorities.
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