Further Detail

Capital funding of £66.1m (including capital receipts and IFRS 16 adjustments) was allocated in the original 2024-25 budget, representing an uplift of £11.7m (22.1%). An additional £7.0m of IFRS16 capital funding has been allocated in-year to cover year-end accounting adjustments and £0.1m for a capital programme initiative.

Similar to previous years, £25.0m has been ring-fenced to support reform and transformation.

The report at Appendix A sets out the provisional net outturn for SPA/ Police Scotland for the year ended 31 March 2025. These figures are still subject to finalisation and external audit.
 
Revenue
• The provisional outturn position for the year ended 31 March 2025 shows core revenue net expenditure of £1,399.2m against total funding of £1,396.9m.
• This indicates an overspend of £2.3m, but when offset by an underspend in Revenue Reform of £2.5m, the overall net revenue position is an underspend of £0.2m which is broadly in line with the forecast breakeven position. 
• Despite the breakeven position, there were some significant variances and financial challenges that had to be closely managed throughout the year.
• Police staff and officers’ numbers ran below budgeted establishment for the majority of the financial year creating an early underspend on the revenue budget. When coupled with a more efficient VR/VER exercise, over-recovery of income and other one-off benefits, this allowed the Authority to fund additional pay award costs of £21m and additional revenue investment in 2024-25.
• Revenue investment bids totalling £13.1m were approved through the Revenue Investment Group to support modernisation of the workforce and police officer overtime, with £6.4m of this expenditure incurred in FY 2024-25.

Capital
• The full year provisional outturn capital spend is £76.5m against funding of £76.5m, resulting in a break-even position.
• With only 55% of available funding spent by the end of quarter three, Capital Investment Group approved an overallocation of investment to be managed across financial years to mitigate the potential risk of slippage.  
• These actions allowed effective management of capital position resulting in the Police Authority now delivering a balanced capital position in line with funding.

Reform
• The full year provisional outturn Revenue Reform spend is £22.5m against funding of £25.0m.

• As part of the Quarter 3 forecast, Reform expenditure was reduced from £25.0m to £22.5m, with the balance of funding £2.5m allocated to support pay award pressures.