1. Financial Context Carolyn Williamson, PCC Chief Finance Officer Richard Croucher, Force Chief Finance Officer

2. Contents Current use of budget and sources of funding Savings already delivered since 2010 Forecast of future financial position Value for money

3. Expenditure by function

4. Expenditure by type

5. Funding

6. Past reductions in Govt funding (General and Specific Grant excluding council tax) Govt Grant Reduction 11/1212/1313/1414/1515/16 Cash cut %6% 2%5%4% Cash cut £m14.114.43.2*10.1 Cash cut cumulative £m 14.128.531.741.952.0 Cash cut cumulative % 6%12%13%18%22% *CSF £1.5m added in 13/14 as new specific grant but with existing commitment

7. Savings delivered Savings £m11/1212/1313/1414/1515/1616/17 Annual savings already delivered or included within future plans 162061213 Cumulative163642546780 Savings are required to bridge the funding gap created by reductions in funding and increases in costs, primarily inflation, but also unavoidable new costs

8. Staffing establishment changes Budgeted full time equivalents 10/1116/17Change fte Change % Police officers3,7462,890-856-23% PCSOs333336+3+1% Police staff2,4841,772-712-29% Total6,5634,998-1,565-24%

9. Government position for 16/17 onwards Chancellor of Exchequer Autumn Statement 25 Nov 2015 “no cuts in the police budget at all. There will be real terms protection for police funding.” Home Secretary letter 25 Nov 2015 – “ Police spending protected in real terms over the Spending Review period, when local precept income is taken into account”. “You should plan on the basis that the overall referendum limit for police precept will be maintained at 2% over the Spending Review period”. Govt grant reduced by 1.3% over the period. Policing Minister funding settlement 17 Dec 2015 included expected precept increases within the calculation of PCC’s “spending power” for the first time Home Secretary Police Reform Summit speech 8 Dec 2015 reminded police forces that they must continue to reform and must make annual savings

10. Precept proposal Increase of 1.99% which for a Band D council tax payer is an extra: –£3.13 pa –or 26p per month –or 6p per week 1% increase = £1m 2% increase = £2m

11. Funding gap Funding15/1616/1717/1818/19 Forecast income (assuming 1.99% precept increase pa) (303)(299) Current policies expenditure 303300302305 Funding shortfall0136 This funding gap is after saving £80m in 2011/17 and based on a precept increase of 1.99%pa

12. Impact of council tax decisions – number of police officer posts protected Annual increase in council tax 16/1717/1818/1919/20 0%0000 1%21436587 2%4387131177 3%64130198269 Officer numbers will have to reduce due to grant reductions. The table shows the equivalent number of police officers that would be protected by increases in council tax. So an annual increase of 3% in council tax for 4 years protects 269 officers more than a 0% increase.

13. HMIC Value For Money – 5 th lowest cost per head of population

14. Band D Precept 2015/16 – England

15. Formula Damping – loss of £10m 2013/14

16. Value for Money Summary 5 th lowest total cost per head of population out of 43 forces nationally – source HMIC HMIC ‘outlier’ for low staffing numbers, low supplies & services cost, low cost of all other support functions and low cost of Office of PCC lowest quartile 15/16 council tax precept BandD £157.33 average English Band D rate 15/16 £170.59 Hants & IoW council taxpayers pay £9m less than avg damping ‘losses’ now equivalent to £9m HMIC says total cost £40m lower than average

17. Next Steps Consultation event – 9 th & 16 th January Online consultation – closes 18 January Police & Crime Panel meeting – 22 January Additional Police & Crime Panel meeting if precept not supported at the meeting above – February (tbc if required) Police & Crime Commissioner sets precept – by 28 th February