Appendix 2 Financial information


Where the money comes from The majority of funding for policing comes through government grants, with around a third coming from council tax. Our total expenditure on police services for 2011/12 is planned to be £338.8m compared with £344.7m in 2010/11. This is a decrease of nearly £6m or 1.7 per cent.


Council tax for 2011/12


In 2011/12 the policing element for council tax band D is £146.25 per year, which is no increase on last year. The council tax remains within the lowest quartile for the 31 shire police authorities.


How the money will be spent


The majority of money received (84 per cent) will be spent on employees, in particular the delivery of excellent frontline policing. In order to meet national requirements and local needs we will need to spend more in a few areas (total £1.3m). National levies on things such as the Police National Computer have increased (£167,000 for this year) and the additional public holiday in April will require financing from within our own budget (£171,000). In order that we are fit for modern policing some of our older databases need replacing (£570,000 for the introduction and commissioning of new software). There is also an additional £700,000 for major purchases such as buildings.


The majority of the reduction in cost in 2011/12 is on pay (£5m less than last year and £15m less than originally planned to take into account historic pay agreements). Our Savings Team has now developed into our Force Change Team and they have identified savings of £16.2m to enable us to balance the budget. Price inflation and lower than anticipated interest on reserves have put additional demand on our finances. However, most areas we have control over see reductions in cost eg IT and Communications (£1.2m), supplies and services (£1.5m). The savings will assist frontline policing improvements despite the challenging financial outlook. We will use some of the efficiency savings made in 2010/11 (over £6m) to support the 2011/12 budget with a contribution from reserves of £4m.


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