Further detail

FURTHER DETAIL ON THE REPORT TOPIC

The annual budget is a plan detailing how the organisation intends to allocate financial resources throughout the year to achieve operational and financial objectives. The budget is based on a number of assumptions which will be ratified with decisions being made through internal and external governance processes.

The proposed revenue budget for 2025-26 is £1,480.6m. Approximately 96.4% of the annual spending is undertaken by Police Scotland, with the remainder incurred by Forensic Services (3.2%) and the SPA Corporate body (0.4%).

Scottish Government confirmed a £56.7m core revenue funding uplift for policing in 2025-26, an increase of 4.1% on the previous year, plus an additional £15.2m to fund 60% of our increased national insurance costs and an additional £10.0m to support reform and modernisation. The remaining national insurance costs will be funded in 2025-26 through reduced pension contributions, however, savings are required to be identified in-year for delivery in 2026-27 to fund these costs on a recurring basis.

National insurance changes have resulted in a £25.3m cost pressure for policing. The annual pay award is a significant year-on-year pressure, with every 1% pay increase costing an additional £12.5m. Other pressures include new technology costs, general inflation and other specific price increases.

The budget includes vacancy management savings and an income challenge to be delivered as part of the overall budget, as well as over £9m of non-pay savings and efficiencies - a highly challenging requirement given that only 14% of the budget relates to non-pay costs.

The 2025-26 budget will allow for around 16,500 officers and an average ~5,900 staff FTE. However, as noted above, savings will be required in 2026-27 to fund the increased national insurance costs on a recurring basis.

Reform has historically been set at £25.0m, however, £4.7m of resource costs and budgets have been transferred between reform and core revenue. The revised Reform budget to support change and transformation in 2025-26 is therefore £20.3m. The budget includes £16.2m of overprogramming to be managed in-year as the work progresses on the prioritisation of change.

The total capital allocation for 2025-26 is £71.0m including capital receipts. This will allow us to commence the delivery of the estates masterplan, support the rolling replacement programme and progress our change and transformation programmes. It is recognised that additional resources are required in key enabling functions to support and deliver an increased capital programme.

The full budget report is attached at appendix A.

The Police and Fire Reform (Scotland) Act 2012 (sections 86 and 87), the Scottish Police Authority (Provision of Goods and Services) Order 2013 and other supporting legislation enables the Scottish Police Authority to both provide and charge for goods and services.

The charge out rates have been increased for 2025-26 in line with the budgeting assumptions outlined in appendix A. Any changes to fees which are set by statue will be applied as they occur. The charges for other non-statutory services are proposed to be uplifted in line with the NPCC guidance and the Consumer Price Index (CPI).

Details of the proposed charges for events and other services are included at appendix B.