PCC/D/2025/03
EXECUTIVE SUMMARY
The Police and Crime Commissioner (PCC) is required to set an annual budget for the financial year 1 April 2025 to 31 March 2026 in compliance with the Police Reform and Social Responsibility Act 2011 and the Police and Crime Panel (Precept and Chief Constable Appointments) Regulations 2013 made thereunder.
The Commissioner has confirmed a 5.05% increase in the precept for 2025/26 (Decision Record PCC/D/2025/02) which had been considered and supported by the West Mercia Police and Crime Panel.
A net revenue expenditure budget for West Mercia of £302.902m is proposed as the opening budget for 2025/26 financial year, based on the available funding and use of £0.228m from reserves.
This decision notice confirms that budget proposal for 2025/26 and sets out how the budget will be allocated to both meet the priorities in the West Mercia Safer Communities Plan, and to meet operational requirements for policing in West Mercia.
PROPOSAL
It is proposed that:
- The PCC approves the 2025/26 Budget Report (appendix A) and set a net revenue expenditure budget of £302.902m including use of reserves of £0.228m.
The PCC notes the statement of the Treasurer, regarding the soundness of the budget and the adequacy of reserves as set out in the attached Budget Report.
APPROVAL OF
West Mercia Police and Crime Commissioner
I hereby approve the above proposal.
PART 1 – NON-CONFIDENTIAL/EXEMPT FACTS AND FIGURES
SUPPORTING REPORT
By virtue of the Police Reform and Social Responsibility Act 2011 and the Police and Crime Panel (Precept and Chief Constable Appointments) Regulations 2013 the PCC is obliged to issue a police and crime precept for the year commencing 1st April 2025 and to then set a balanced budget for the financial year. Decision Notice PCC/D/2025/02 records the decision to increase the precept by £14.00 for a Band D property in the West Mercia region confirming the resources available to fund policing in the 2025/26 financial year. This decision notice confirms budget expenditure for 2025/26, sets out how the PCC intends to deploy all funding resources to fund expenditure on policing West Mercia in 2025/26, and sets out the revised medium term financial strategy (MTFS), incorporating from the Treasurer.
The revenue budget presented at the Police and Crime Panel (PCP) on 5th February 2025 was based on draft budget proposals. At the time of providing the budget report to the PCP, to support the proposed precept increase, there was a recognition that there was a gap between the resources required to continue to deliver services and the funding available.
Since the PCP meeting further changes to the budget have been identified for 2025/26. Costs which were estimated at that point in time have been confirmed. Other cost pressures and opportunities have also been identified. An additional £1.5m of Neighbourhood Policing Grant was announced in the Home Office final funding settlement for 2025/26, which required the police force to submit a proposal of how the grant would be spent. The budget has been updated to reflect the plan agreed with the PCC. As the figures have been amended additional efficiencies and savings were required to ensure that the force is able to deliver a balanced budget.
Whilst the funding available and set out in the budget report represents a significant increase from that available in 2024/25, significant savings have had to be identified within both the police force and the OPCC to deliver a balanced budget for 2025/26. A detailed plan to deliver required savings and efficiencies has been presented to the PCC and agreed at the West Mercia Governance Board in February 2025. The budget report has been updated to reflect the agreed savings to be delivered.
The attached Budget Report 2025/26 prepared by the Treasurer sets out the total funding available and how those resources will be allocated. It includes both revenue and capital spend for the financial year. The savings plan has been reviewed and is not considered to require amendment to the statement from the Treasurer on the robustness of the budget and the adequacy of reserves. Key metrics attached to the budget investment are set out within the budget paper. Some are also set out within the proposal in this notice.
As part of agreeing the budget, the PCC has secured the following commitments to ensure that funding received will result in agreed priorities for this financial year being delivered.
The Chief Constable
- Has committed to recruiting and maintaining a police officer establishment and to ensure compliance with Home Office Police Uplift Programme conditions to receive the specific funding as set out by the Home Office.
- Has committed to delivering the uplift in neighbourhood policing as set out in the delivery plan, agreed by the PCC and submitted to the Home Office, aimed at receiving the specific funding from the Neighbourhood Policing Grant.
- Will ensure that the force operate within the financial limits delegated by the PCC and take action to ensure that any overspends are controlled and do not risk the financial sustainability of West Mercia and the minimum level of general fund reserves required.
- Will communicate details of allocation of staff and officers quarterly as part of the reporting above, including details of vacancies, abstractions and sickness levels in teams.
- Will continue to review all vacant posts which arise during the year to assess whether the post can be removed/reallocated to contribute to bridging the future MTFS budget gap.
- Will provide all appropriate data to demonstrate the performance against the metrics set out in the budget report, supporting the PCC’s timetable for reporting to the Police and Crime Panel.
The Chief Executive of the OPCC
- Has committed to supporting West Mercia Police to rationalise the Police Estate over the medium term, which will realise both capital receipts and revenue savings.
- Will provide regular reporting and reassurance to the PCC around the effective and efficient use of commissioning resources
- Will achieve and maintain savings agreed with the PCC in respect of the running of the OPCC.
Options and/ or Recommendations
The PCC is recommended to approve:
- A net revenue budget for West Mercia of £302.674m as the opening budget for 2025/26 financial year, based on the available funding.
- That the PCC authorises the use of £0.288m of funding from reserves to give a total budget of £302.902m.
- That the police force revenue budget is set at £277.728m.
- That the OPCC revenue budget is set at £25.174m (incorporating estates, commissioning, governance and the West Mercia Youth Justice Service).
- That the budget loaded into the financial ledger will match the service department spend (set out in Appendix Bii of the budget report).
- That the West Mercia Police will deliver the planned service reductions summarised in the budget report as an integral part of setting a balanced revenue budget. Regular updates will be provided through the year on the delivery of the savings plan as part of the Money Matters report.
Any changes to the revenue budget will require a virement through the appropriate governance framework and processes.
STRATEGIC CONSIDERATIONS
This decision supports the following element(s) of the West Mercia Safer Communities Plan:
☒ Cutting Crime
☒ Policing with the Community
☒ Supporting Victims & Survivors
☒ Maximising Resources & Value
The decision supports this/ these objective(s) through the following:
- By setting the precept, and thus raising funds to support policing services
- By setting a budget, and identifying and allocating resources, it supports the delivery of priorities set out in the Safer West Mercia Plan and to ensure the delivery of statutory responsibilities
BENEFITS AND THEIR REALISATION
Monitored through Money Matters, accountability and assurance arrangements, existing governance boards and activity reporting to the Police and Crime Panel.
AUTHOR
Name: Paul Benfield
Date 24th February 2025
FINANCIAL AND TREASURER COMMENTS
All financial comments are included within the Treasurer’s budget report to the Commissioner (Appendix A)
Treasurer
Signature Date 04/03/25
LEGAL CONSIDERATIONS
By virtue of schedule 11, paragraph 14 of the Police Reform and Social Responsibility Act 2011 the Police and Crime Commissioner may do anything which is calculated to facilitate, or is conducive or incidental to, the exercise of the functions of commissioner. That includes: entering into contracts and other agreements (whether legally binding or not) and acquiring and disposing of property (including land).
PUBLIC ACCESS TO INFORMATION
Information in this form is subject to the Freedom of Information Act 2000 (FOI Act) and other legislation. Part 1 of this form will be made available on the West Mercia Commissioner’s website. Any facts and advice that should not be made automatically available on request are not included in Part 1 but instead in a separate Part 2 report.
OFFICER APPROVAL
Chief Executive Officer
Signature
Date 4th March 2025
