Organisational PrioritiesFinance- Revenue Budget Monitoring

Original Estimate 31st March 2014

Forecast Outturn 31st March 2014

Forecast Under-spend 2013/14 Variance (%)

£322.4 £317.1 £5.3m 1.6%

• Forecast underspend for the year on operational activities of £5.3m mainly due to vacancies arising from structural change.

• Chief Officers have agreed to utilise these vacancy savings to support Ambition 4000 throughout the current CSR.

• Under-spend position includes re-organisation costs of £3.4m.

Organisational PrioritiesFinance- Capital Budget

Revised Estimate* Revised Budget 2013/14*

Forecast Outturn 31st March 2014

Underspend

IT/Technical £5.1m £3.2m £1.9m

Estates £12.6m £4.4m £8.2m

Fleet £3.9m £3.1m £0.8m

Total £21.6m £10.7m £10.9m* includes re-phased projects from 2012/13

• The original capital budget of £19.040m contained within the 2013/14 budget report has now been updated to include the re-phasing agreed as part of the 2012/13 closedown process with a resulting budget of £21.6m

• Total capital expenditure to the end of December 2013 was £6.6m with a forecast outturn to the end of March 2014 of £10.7m.

• The largest area of underspend relates to the Estate Strategy which has seen some significant change since the original budget was agreed.

Organisational Priorities Finance - Savings Targets

• SEP savings targets within the 2013/14 MTFS are expected to be exceeded by £5.0m as a result of initiatives originally scheduled for 2014/15 being implemented ahead of plan.

• Overall targeted savings to the end of 2014/15 anticipated as being achievable in full.

• The savings targets for 2015/16 and 2016/17 have now been revised to reflect the October CSR with a shortfalls of £17.3m and £16.9m respectively.

Organisational PrioritiesFinance-– MTFS 2014/15 Budget Report

2014/15 2015/16 2016/17 2017/18 TOTAL

Budget Shortfall £12.7m £17.3m £16.9m £6.8m £53.7m

Savings Identified (£12.7m) - - - (£12.7m)

Savings to be Identified £0.0m £17.3m £16.9m £6.8m £41.0m

• Funding for 2014/15 has now been confirmed and the shortfall in budget has been addressed through the SEP savings programme and use of the PCSO reserve.

• On 26th June 2013 the Government announced plans to make further budget cuts in 2015/16 and 2016/17and indications are that Merseyside Police will be required to save a further £34.2m in 2015/16 and 2016/17.