A report of the Chief Finance Officer, OPCC was submitted to notify the Panel of the Commissioner’s proposed Council Tax precept for 2022/23.

The Commissioner referred the Panel to the proposal in the report at paragraph 2 (a).  He recommended that the Panel support a proposed annual increase in the policing element of the Council Tax (the precept) of £10.00 on a Band D property, which was levied to support:

·      The investment in the required infrastructure to ensure all officers are fully supported in their journey into the Force with further planned investment in both accommodation, Central Assessment and Practice Education (CAPE) assessment and tutoring support.

·      Enhancement of the operating model and investment in SYP priorities:

·      Maintaining the current levels of PCSO numbers at 126, and

·      Improving the assets e.g. technology and estates. 

The Commissioner provided the Panel with context to his proposal.  The Home Office police funding settlement for 2022/23 had announced additional funding of £795.8m, for policing areas, with 31% of this expected to come from increased Council Tax (£246m). 

The settlement gave Police and Crime Commissioners in England flexibility to increase the policing element of Council Tax precept locally up to a limit of £10 on a Band D property.  Government allocation calculations had assumed the maximum precept increase. 

The Panel noted that the core grant for South Yorkshire amounted to £233.8m, a cash increase of 5.8%, which covered the current cost of additional police officer uplift, national insurance increase, and contribution towards pay inflation. 

The Commissioner said that, based on the latest tax base estimates from the four Local Authorities in South Yorkshire, after a £10 increase, the Medium Term Resource Strategy (MTRS) included planned savings of £1.7m in 2022/23, with continued savings plans for the whole of the MTRS period.  Despite these savings, the use of £2.3m of reserves in 2022/23 would be required to balance the budget. 

The Commissioner highlighted that South Yorkshire Police also have a number of legacy costs to budget for, which were currently estimated to reach £121m by 2026/27, of which £18m would have to be paid by the Force. 

During 2022/23, the use of £0.2m would be required from reserves to balance the budget, and a combination of savings and use of reserves amounting to £11.3m throughout the CSR MTRS period. 

Referring to the Reserves Movement graph at Appendix B of the report, the Commissioner said that, looking ahead over coming years, there would remain a deficit over those years which would have to be funded from reserves unless the Government grant was more generous.  If no action was taken by the Savings Team, then the Force would run out of reserves by 2026/27. 

An online survey had been undertaken with the public in relation to policing priorities and the Council Tax precept.  A total of 1,042 responses had been received and the results showed that, 46% of respondents (479) were supportive of up to a £10 (Band D property) increase.  54% (563) were not supportive of an increase. 

The Medium Term Resource Strategy (MTRS) was presented at Appendix A to the report.  The overall budget proposal was £310.7m, including investment to support the further increase in police officer posts.  Also included was investment into prioritised growth areas relating to essential core and uplift delivery, enhancement of the operating model and Force priorities.

The report set out a number of key risks and uncertainties, which were noted by Members.

Councillor Garbutt asked if the prudential reserves level took into account the assumed levels of inflation. 

D Carrington confirmed that the prudential reserves level was currently set at 5% of the net revenue budget until the end of 2024/25, and did take account of inflation. 

Councillor Milsom asked if there was an increase in the number of individuals claiming Council Tax relief, would this affect the effectiveness of the policing element of the precept. 

E Eruero replied that an assumption had been built into the Local Authorities council tax base that not all individuals in a Council Tax band would pay their full Council Tax bill.  It was also confirmed that individuals applying for Council Tax relief would be doing so for the whole of their Council Tax bill. 

Councillor Milsom asked if there had been any indication from Government as to how officer salaries would be adequately covered for in future years, especially when considering that the uplift in officer numbers was producing a relatively young workforce who would become more experienced in future years and progress through pay increments. 

The Commissioner replied that Ministers would probably claim that they had taken this into account for future settlements.  However, he suspected that funding would not be adequate.  He was aware that there would be financial implications as officers rose to more senior positions within the Force, together with them receiving future pay increments. 

Councillor Milsom asked if rising fuel costs had been accounted for either in the one-year funding settlement or the three year Spending Review.  She also asked if there was an expectation that Commissioners would have to accommodate higher fuel costs within their budgets.  Additionally, Councillor Milsom asked if the Commissioner was concerned about this.  Furthermore, had there had been any suggestion that there might be emergency Government funding available should fuel costs begin to impinge on other budgetary commitments. 

The Commissioner replied that the Policing Minister had made it very clear that there would be no in-year funding changes or additions to police funding, other than, the possibility of funding around the McCloud and Sargeant pensions issue, which was yet to be resolved. 

The Commissioner confirmed that an assumption had been made in the budget for rising fuel costs. 

Councillor Baum-Dixon referred to the current level of reserves.  He asked if the Commissioner could consider granting relief to those individuals in South Yorkshire who were struggling to pay their Council Tax bill.

The Commissioner replied that he did recognise that there were people in South Yorkshire who were financially struggling, and these are most likely to be the ones who would receive discounts on their Council Tax bill.  Despite the precept increase, the Force would have to use reserves to balance the budget. 

Councillor Lodge asked if the Commissioner was confident that legacy costs would continue to be covered by Government Special Grant funding and if there was any indication that the level of Special Grant funding would increase in future to cover legacy costs. 

In response, the Commissioner said that Special Grant funding was discretionary.  However, along with the Chief Constable, he had written to the Home Secretary to request her to consider and reconsider South Yorkshire’s Special Grant funding. 

The Chair, Councillor Haleem referred to the recommendation in the report which asked the Police and Crime Panel to consider and support a proposed annual increase in the policing element of the Council Tax (the precept) for 2022/23 of £10.00 for a Band D property, which would be an increase of 4.69%.  The Panel noted that most properties in South Yorkshire are in Bands A (57%) and B (17%) and C (12%) where the increase would be A 13p per week, B 15p per week, and C 17p per week. 

A recorded vote was taken and recorded as follows:-

For accepting the proposed increase in the policing element of the Council Tax precept for 2022/23 – (9) Councillors Haleem, Cherryholme, Garbutt, Knowles, Lodge, Milsom, Pickering, Mr W Carratt and Professor A James.

Against the proposed increase (2) Councillors Baum-Dixon and Ransome. 

Abstained (0).

The proposal was approved.

RESOLVED – That Members of the Police and Crime:-

i)          Voted to accept the proposed annual increase in the policing element of the Council Tax (the precept) for 2022/23 of £10 for a Band D property, which would be an increase of 4.69%. 

ii)         Noted that most properties in South Yorkshire are in Bands A (57%) and B (17%) and C (12%) where the increase would be A 13p per week, B 15p per week, and C 17p per week.