Report Summary
This report provides members of the Resources Committee with an update on the financial position of the SPA and Police Scotland for quarter three of the financial year 2023/24; the impact of mitigating actions on operational matters; and recommends to the Committee that Members approve a budget revision - £6.3m increase in the revenue budget for costs associated with initiatives/projects which are supported by the Scottish Government and confirmed with additional budget and associated grant in aid allocated to the Scottish Police Authority through the Spring Budget Revision (SBR) process. This was presented for discussion at the meeting on 20 February 2024.
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Background
The Board approved the 2023-24 annual budget on 23 March 2023. This budget sets out the spending plans for Police Scotland, Forensic Services and SPA Corporate regarding revenue, capital, and reform for the coming financial year.
The Authority received a core revenue funding increase of £80m (6.4%) in 2023-24. Although this uplift is not as severe as the flat cash position indicated by the Resource Spending Review, it still represented a real terms reduction in funding when set against the additional cost of 2022/23 pay award (£37.0m), leaving only £43.0m to fund unavoidable pay and non-pay pressures for 2023/24.
In order to live within the budget settlement and deliver a balanced budget, over £50m of savings have been proposed in the 2023/24 budget. Plans included reducing the workforce through a reduction in officer and staff numbers and options to reduce non-pay expenditure.
Pay award budgeting was in line with Public Sector Pay Strategy (PSPS). Pay awards through negotiation at both Police Negotiating Board (PNB) and Trade Unions were agreed in September. As part of the pay negotiations, the additional funding required (£18.3m) to support the process was underwritten by the Scottish Government. A budget adjustment has been approved to reflect this change in the 2023/24 revenue budget.
The Scottish Government (SG) supports the Police Authority in delivering certain initiatives / projects within the Justice Portfolio. These items were not allocated funding by SG in the core grant in aid allocation and was therefore not included as part of the original budget approved on 23 March 2023. SG have now agreed Spring Budget Revisions (SBR) of £6.3m to support these GiA funded initiatives / projects. A budget adjustment has been proposed for approval to reflect this change in the 2023/24 revenue budget- see Appendix B.
A flat capital funding allocation of £53m (including capital receipts) has been confirmed for 2023-24 and reform funding to support change and the transformation has been baselined at £20m, representing a 20% reduction in reform from previous years. As a result, in the reduction of reform funding from £25m to £20m, it was agreed by the Board to contribute £5m of core revenue budget funding to reform to support change and transformation.
