The Panel considered the Police and Crime Commissioner’s proposal to increase the precept by 12.75% and the reasoning behind that proposal, was presented by Alison Hernandez the PCC, Fran Hughes the OPCC Chief Executive and Nicky Allen the OPCC Treasurer.

In addition to the report, the Panel received a presentation which set out a detailed budget analysis.

In response to questions, the Panel were advised that –

(a)   There was a budget requirement for 2019/20 of £312m;

(b)  Staffing was the main area of expenditure – 83% of the overall budget;

(c)   £24 increase (Band D) equated to 12.75%;

(d)  Overall increased funding of £22m; 7.5% overall increase;

(e)  There was a Police Officer pension pressure of £7.7m;

(f)    Pay awards and wage growth pressure of £7.5m.

The panel agreed

1.    not to exercise the Panel’s veto in respect of the Police Crime Commissioners (PCC) proposal for a £24 increase in the Band D equivalent for the police element of the council tax for the 2019/20 financial year.

2.    to note:

a.     That the Reserves Strategy, Treasury Management Strategy and the Capital Strategy have been published online to enhance transparency.

b.    That it is intended that the level of General Balances held will be nomore than 5% or no less than 3% of the net annual budget at the end of the financial year.

c.     Police  Officers  and  Police  Staff  will  be  receiving  an  overall  2% increase in pay for the year to August 2019, in accordance with national pay settlements.

3.    that the Chair, on behalf of the panel write to the Government to outline that a Fairer Funding Settlement for Policing, in particular for communities in Devon, Cornwall and the Isles of Scilly must be established through the upcoming Comprehensive Spending Review.

The letter should note the panel’s view that –

a.     Whilst the extra flexibility for Police and Crime Commissioners to raise more funding locally has enabled our local Police and Crime Commissioner to secure growth in policing next year, it has and will continue to have a negative impact on the poorest communities who are most likely to be a victim of crime;

b.    It should be recognised in any future settlement that Devon and Cornwall has an increased population over the summer months which the panel does not believe is captured in base funding formula for policing the peninsula;

c.     Devon and Cornwall with complex rural, urban and coastal policing demands does not receive a fair funding when compared to large metropolitan areas;

d.    Whilst accepting that local taxation will always play a part in police funding, the Panel calls upon the Government to halt the trend of significant increases to local taxation, and to resource the Police Service adequately through a funding settlement.