DN 01/2022 – Police Precept Proposal 2022/23

28 January 2022

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 delivering a significant increase in Police Officers within North Yorkshire, in line with the Government’s policy’ and the financial needs of the Force, to propose to the Police, Fire and Crime Panel a police precept for 2022/23 of £281.06 for a Band D property within North Yorkshire. This would be an increase of 3.69% or £10 per annum, from the 2021/22 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 1^st March each year. However before doing so the PFCC must notify the relevant Police, Fire and Crime Panel, by the 31^st January, of the precept which they propose to issue for the following financial year.

The Police Settlement for 2022/23 has provided the PFCC with an increase in Government Funding of £3.6m or 4.0%; including a Ring-fenced Grant for increases in Police Officers of £1,341k and the loss of a one-off increase to Local Council Tax Support Grant of £1,155k.

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 £6.0m

This money needs to:

• Deliver 78 additional police officers during 2022/23, with the Force reaching at least 1,645 Officers by March 2023, all of the additional support costs required to enable this to happen and all of the costs to enable these officers to undertake their role.
• Meet forecast pay increases of 3.5%, bearing in mind that there has been a pay freeze within Policing since an increase in September 2020.
• Meet the additional costs of the 1.25% increase in National Insurance Contributions
• Meet the costs of general non-pay inflation that are seeing significant areas of price increases, especially around Utilities.

On a full year basis the above areas alone are expected to add additional costs of over £10m per year to the cost base of the Force.

Precept flexibility of up to £10 was provided for all PFCCs (or equivalents) in 2022-23, which meant that the Band D level of the Police Precept could be increased by up to, and including, £10 before a referendum is required.

Each £1 increase in North Yorkshire provides just under £310k of additional precept income on a recurring basis – so just under £3.1m for a £10 increase.

As such a precept increase of £10 is proposed for 2022/23. This will provide sufficient funding to deliver the increased levels of Police Officers, as required by the Government, the expected increase in Pay, the unavoidable increase in National Insurance contributions whilst also meeting some significant increases in non-pay inflation.

Consultation

The results of consultation with the public of North Yorkshire in relation to the level of precept for 2022/23, which had 2,513 responses, has resulted in nearly two-thirds (65%) supporting an increase in the police precept of at least 1.99%. Around a two-fifths (41%) opted for an increase of £10 or more while almost a fifth (18.5%) opted for an increase of £15

The organisational need for this increase from a financial perspective, aligned with some significant support from the public for a £10 increase, at 41%, has lead me to propose a police precept for 2022/23 of £281.06 for a Band D property within North Yorkshire. This is an increase of £10 per annum, or 3.69%, from the 2021/22 level.

Decision Record

The PFCC has decided, after taking into account the financial needs of the Force to be able to deliver against the North Yorkshire share of the national increase in Police Officers, to be able to meet the unavoidable increases in costs that result from nationally agreed pay awards, to meet the costs of general inflation and cost pressures, and continue the needed investment in Policing and Crime services, to propose to the Police and Crime Panel a police precept for 2022/23 of £281.06 for a Band D property within North Yorkshire. This would be an increase of 3.69%, or £10, from the 2021/22 level.

Zoe 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:

Having read this report and having considered such information as has been provided at the time of being asked to express this view, the Chief Executive & Monitoring Officer is satisfied that this report does not ask the PFCC for North Yorkshire 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 2022/23 to fund the organisation to deliver against the Police and Crime Plan priorities.