Item 8

FINANCIAL PERFORMANCE QUARTERLY REPORT

Members considered the report which provided an update on the financial position of the SPA and Police Scotland for quarter 1 of the financial year 2023/24. JGray summarised a number of key points as detailed in the paper, specifically highlighting the mitigation actions.

In discussion the following matters were raised:

• Grant Macrae (GMacrae), Resource Committee Chair, commented that individual ownership was key to ensuring delivery, as well as approving overtime in advance rather than after it has been incurred. He stated more detailed financial management by Police Scotland was key as well effective communication with the Resources Committee. GMacrae confirmed the Resource Committee was keen to work with senior management to ensure the organisation returned to a balanced position. DCCDTaylor confirmed there were named individuals who had responsibilities for each mitigation action, and they are held to account by the Senior Leadership Team. DCCDTaylor also confirmed overtime is authorised in advance, but this is not always possible due to the nature of policing.
• DCCGraham summarised some of the strategic and tactical workstreams ongoing. Members heard there had been internal engagement activity with focus on the recruitment pause and the potential consequences. The impact of all decisions and proposals has been risk assessed with areas of high risk, high harm and vulnerable people being prioritised. Reducing levels of policing is the last resort. Members heard significant work in recurring savings during police reform had brought benefits, but opportunities to make further efficiencies are limited, so service levels are now being considered. This includes reviewing force executive structure, senior command structures, and support structures and services to ensure making best use of changes in technology. Reviews of C3 in terms of its operating model and service demand, and investigation policy in terms of proportionality will be undertaken, with options presented. Other considerations include work on rank rationalisation and accelerating change which benefits frontline operations. DCCGraham advised there was a recognition that people can’t do more with less and whilst service levels will have to reduce, there is a requirement to ensure staff welfare and wellbeing. DCCGraham confirmed the recruitment pause does not impact high risk areas such as C3 and resource deployment.
• Members questioned why the management overview was not in place when the budget was set, and if the new interventions would remain a permanent fixture. Members heard that income generation is being realistically reported and there was confidence that the mitigation steps would be achievable. DCCDTaylor added that the mitigation steps may remain in future years.
• Members shared Police Scotland’s concern on the impact to transformational change of reducing revenue contribution, and noted the importance of medium to long term plans being considered during budget setting.
• LBrown stated assurances were sought and received in March 2023 that Police Scotland could police safely within the budget, as risks were clearly set out and suitable options were provided. Operational work determines spend, however assurances have again been provided that a balanced budget can be maintained. LBrown highlighted the importance of financial credibility as the driver for inviting additional investment.
• The Chair emphasised that the Authority will continue to look at capacity, capability and resource to ensure that the organisation can work effectively and maintain a balanced budget.

The Authority RESOLVED to:

• NOTE the report