FINANCIAL MONITORING

FINANCIAL QUARTERLY PERFORMANCE REPORT
Members considered the report which provided an update on the financial position of the SPA and Police Scotland for quarter two of the financial year 2024-25. James Grey (JGray) highlighted a number of key points as detailed in the paper.

In discussion the following matters were raised:
• Members heard the Resources Committee had discussed the paper in detail and the key issue was confirming the pay settlement for this year and beyond. The Committee also raised concern that some capital spend is reliant on suppliers, so any delays are out with Police Scotland’s control.
• The Chair stated that by asking for more capital in future years, Police Scotland have to spend the current capital with in the financial year. DCCConnors responded that one issue was the impact from previous recruitment freezes however she assured Members that work was being undertaken to progress at pace.
• Members heard the Resources Committee agreed that a balanced budget is dependent on the future pay settlement.

Members noted the report.

FINANCIAL PLANNING – BUDGET PROPOSAL 2025/26
Members considered the report which set out the revenue, capital, and reform budget requirement for policing for financial year 2025-26. JGray highlighted a number of key points as detailed in the paper.

In discussion the following matters were raised:
• LBrown raised an issue relating to the threshold change for National Insurance. Members heard discussions with Scottish Government officials had taken place and there was a guarantee from UK government to meet the change, but the cost was still not clear. LBrown also raised the issue of financial flexibilities.
• Members were assured the budget had accounted for efficiency savings and the level set is a manageable level of risk.
• The Chair detailed the process to develop the budget: CCFarrell and the Chair meeting with the Budget Development Group; the finance teams working through scenarios with budget holders; draft iterations discussed with budget teams; and pre-budget scrutiny at the Scottish Parliament.
• The Chair advised he and the Chief Constable had had a direct meeting with the Cabinet Secretaries for Finance and Justice to set outthe plan for the second phase of public service reform within the police service. The Chair also highlighted the joint advocacy agreement between SPA and Police Scotland in building the case for a budget settlement for 2025-26 to deliver a safe Scotland.

Members noted the report and approved the submission of the updated proposal to Scottish Government.