1. Business Summit and Statutory Consultation Budgets and Precept 2016/17 Mark Kenyon, Chief Finance Officer 1

2.  In accordance with Section 96 of the Police Act 1996 (as amended)  PCC is required to get the views of representatives of business ratepayers - and the public 2

3.  Funding comes from government grant and council tax precept. In 2015/16 £453m grant and £70m Council Tax  In real term grant reductions from 2010/11 to 2015/16 of 26% or £125m  High exposure to “across the board” reductions in Government Funding  Continues to be a significant ‘loser’ through formula damping (£40m+) –FAIR FUNDING CAMPAIGN 3

4. WestSurrey Midlands Band D Precept£106.55£215.89 Funding Grant* 87% 46% Precept 13% 54% * Across the Board Cuts – has had a greater Impact in West Midlands West Midlands second lowest in the country 4

5.  Recruitment of 450 officers but still a net loser  Supporting the WMP2020 programme  Maximise base budget savings  Prudent use of reserves to support change programme  Precept increase within referendum rules 5

6.  Central Government resource for national funding to police will reduce by 1.3% over 4 years  Remains cash flat only if council tax is increased to the maximum allowed  To maintain police funding the settlement gave the flexibility to the lowest ten preceptors to increase their precept by £5 a year (Band D) as opposed to 1.99%  A West Midlands precept increase of £5 will raise £3.3m in 2016/17, a 1.99% increase will raise £1.4m  Referendum rules still apply 6

7.  Considerable uncertainty over police funding due to national police formula review  Budget pressures that need to be funded  Change programme and use of reserves to balance budget  Committed to completing recruitment of 450 Officers (by 2016/17)  Lifting of the need to use compulsory redundancy for Police Community Support Officers (PCSOs) 7

8. 8 2016/17 £m Base Budget554.3 WMP2020 Programme: Officer Pay savings(19.0) Staff/PCSO Pay savings(5.6) Non-pay savings(8.6) Total Benefits(33.2) Pay Costs0.3 Recurring Non Pay Costs4.4 One Off Project Costs9.4 Total Costs 14.1 WMP2020 Net Benefits (19.1) Total Spend 535.2 Government Grants (450.1) Precept (73.9) Use of Reserves 11.2

9.  Completion of the rationalisation of central Birmingham estate  ICT investment  Vehicle replacement programme  IIP Schemes  Programme funded from capital grant, reserves and capital receipts  Total programme £117.7m up until 2019/20 9

10.  Funding only remains cash flat if council tax precept is raised by £5 for Band D  It will improve the ratio between government grant funding and amounts raised locally  WMP will still be the second lowest in the country  Commissioner is consulting on a precept increased of £5 in 2016/17  Precept increase less than 10p per week for Band D council tax payers 10

11. 11 2016/17 Proposed Precept BandStatutory Proportion 2015/16 Precept £ : p £5 Increase £ : p Change Annual £ : p A6/971.0374.363.33 B7/982.8786.763.89 C8/994.7199.154.44 D9/9106.55111.555.00 E11/9130.23136.346.11 F13/9153.91161.137.22 G15/9177.58185.918.33 H18/9213.10223.1010.00

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