Background and further detail - 28 November 2024

BACKGROUND

The Scottish Government is expected to announce its 2025-26 budget on 4 December 2024, with Parliamentary consideration and approval anticipated by the end of February 2025.

Significant consideration has been given to policing’s requirements for revenue, capital and reform for the financial year 2025-26, and this was set out in detail in the Parliamentary submission to support pre-budget scrutiny at the Criminal Justice Committee held on 30 October 2024.

Since the pre-budget scrutiny session, the UK Budget announced national insurance contribution changes that will result in a significant cost pressure for policing. The 2025-26 budget proposal attached at Appendix A has been updated to reflect these changes which were unknown at the time of the Parliamentary submission.

FURTHER DETAIL ON THE REPORT TOPIC

Policing in Scotland represents major and successful public sector reform. Funding allocations have resulted in approximately £200m being removed from the annual cost base compared to legacy arrangements while improving service to the public.

The next phase of Scottish policing reform will see us re-shape Police Scotland and work to realise our 2030 Vision. Our recently published 3-year business plan is the first of two detailed plans outlining the actions Police Scotland will take to move from our current operating model to our revised model of policing, which is affordable, sustainable and delivers improved service to communities.

Scottish Government committed to the next phase of reform with the revenue budget settlement for 2024-25. We are seeking continued commitment to that journey in response to our 2025-26 budget proposal. This will allow us to deliver improvement and transformation at the pace and scale required to keep people safe across Scotland now and in the future.

The budget requirements for 2025-26 are set out below and in more detail at Appendix A:

£84.4m of additional core revenue funding to fund Public Sector pay assumptions, additional national insurance costs announced as part of the UK budget, specific inflationary pressures and the impact of new legislation, primarily the Domestic Abuse (Protection) (Scotland) Act 2021 and the Police (Ethics, Conduct and Scrutiny) (Scotland) Bill, the impact of which is significantly higher than we are able to absorb within our BAU activity.

Reform funding to be maintained at ~£25m to support Change and Transformation, with no additional ask for VR/VER funding.

An increased capital allocation of £83m to deliver our basic rolling replacement programme including the replacement of fleet, systems and policing equipment; to support delivery of the estates masterplan to maintain and upgrade properties; investment in Change and Transformation, including technology, data, process automation, supporting AI and innovation, and spend to save initiatives.

The proposed budget request is inclusive of Forensic Services and SPA Corporate.