Annual Review of The Schedule of Fees and Charges 2020/21

This decision seeks approval of the proposed Metropolitan Police Service Schedule of Fees and Charges 2020/21. The report details the results of a review of rates at the end of 2019/20 to reflect current price increases and sets out information on the recommended MPS fees and charges and special policing service rates for 2020/21. It is important to note that some fees and charges are determined by statute or legislation and backed up by recommended charging guidelines published by National Police Chiefs’ Council.

The Deputy Mayor for Policing and Crime is recommended to approve the:

1. attached Schedule of Fees and Charges levied pursuant to Section 15 of the Police Reform and Social Responsibility Act 2011 (Supply of Goods and Services) by set percentages to reflect the average CPI inflation uplift. The exception being those which are set by either (a) statute/legislation or (b) at a higher rate recommended by National Police Chiefs’ Council.

2. revised charges for Special Police Services under section 25 of the Police Act 1996, which are based on full cost recovery, and recalculated to reflect the current cost of policing. This includes increases to pay due to annual pay awards, Earnings Related National Insurance Contributions, and the increase to employer’s pension contribution.

3. implementation of any revised rates set or advised by other agencies, or determined by statute or legislation on or before 31 March 2020 to take effect from 1 April 2020.

1. Introduction and background

1.1. The aim of this report is to provide details of the proposed review and for Deputy Mayor for Policing and Crime (DMPC) to agree the Schedule of Fees and Charges for 2020/21. The income from the fees and charges is recovered under the provisions of existing legislation, as outlined below, and can be classified under a number of specific categories, namely:

• MPS calculated fees and charges which generally will be increased by either a set percentage or in the case of Special Policing Services increased by pay and other inflationary costs;

• Fees and charges where the rates are either set or advised by other Agencies including: Legal Aid Agency, Home Office Immigration Enforcement, National Police Chief Council (NPCC); and,

• Fees and charges that are determined by statute or legislation.

The paper is therefore presented under the above three categories.

1.2. Section 15 of the Police Reform and Social Responsibility Act 2011 (the 2011 Act) provides the Mayor’s Office for Policing and Crime (MOPAC) with the legislative powers to charge for the supply of goods and services to a third party and make a charge to recover the full cost of providing those goods and services. These charges are based upon ‘what the market can bear’ as they must be at least full cost recovery, reasonable and able to withstand external challenge.

1.3. Section 25 of the Police Act 1996, as amended by Schedule 16, paragraph 24 of the 2011 Act, (Provision of Special Services) with reference to MOPAC, allows Forces to charge for special police services which they may provide in respect of the provision of police officers and staff at the request of a third party.

1.4. There are a number of fees and charges that are set within statute or legislation. This includes items such as the removal, storage and disposal of vehicles, firearms certificates, pedlar certificates and overseas visitors’ registration.

1.5. The review has been limited to fees and charges that are levied upon the public and other bodies based on rates that are normally reviewed and updated on an annual basis. The Schedule of Fees and Charges was last reviewed in 2018/19. The recent review does not cover contractual arrangements negotiated by the MPS, on behalf of MOPAC, on an individual basis. For example, the special arrangements regarding the Partnership Plus Scheme with local authorities, as allowed by Section 92 of the Police Act 1996 or the specific agreements with the airports. As part of the financial strategy to optimise sources of income, the MPS will continue to review the options concerning charging for MPS services wherever feasible.

2. Issues for consideration

Review of Charges for 2020/21 - Methodology

2.1. Revisions to the different categories of fees and charges are mostly based on increases by either set percentages to reflect average pay costs movements over the period or, where appropriate, the 12 month average CPI rate (as at October 2019). The review for 2020/21 therefore takes account of the base rates from 2019/20 and the approved salary cost uplift for 2019/20, the estimated increases for 2020/21 (part year effect), the increase in employer’s pension contribution for 2020/21 and an inflation factor.

2.2. The revised charges will therefore be based on the rates for 2019/20 increased by set percentages to reflect the average pay costs uplift in 2019/20, plus the estimated inflation increase for 2020/21. In particular, the MPS approach is for the uplift to the base cost to reflect the increase in pay awards or inflation, whichever is the more appropriate.

2.3. The methodology set out in paragraph 7 above for reviewing fees and charges is entirely consistent with previous years. However, it should be noted that the NPCC recommendation for CPI increases has not yet been issued and subsequently, with NPCC approval, the current 12 month average CPI (as at October 2019) rate of 1.5% has been applied. It is proposed to use this basis of CPI average rate for all future years’ inflation. The estimated date for issue of the NPCC CPI rate is January 2020 and if this rate is significantly different to the proposed rate, the NPCC rate will be applied.

MPS Calculated Fees and charges

2.4. Section 25 provides the legal power to charge for Special Police Services (SPS). MPS charges are reflective of NPCC National Policing Guidelines in that they are based upon full cost recovery but recognise that it is not permissible to make a profit within the confines of the legislation.

2.5. On many occasions, the MPS provides policing services on private premises, such as sporting stadia and also in the provision of assistance for activities including film making and traffic surveys. These policing services fall within the remit of SPS.

2.6. The charges include daily rates and hourly rates for police ranks up to and including Assistant Commissioner Rank. A general administrative overhead charge of 30% is also applied in accordance with NPCC guidance which states that all charging should be based upon full cost recovery. See Appendix 2 – Tables 2A – 2E.

2.7. In compliance with relevant legislation and applicable case law, the MPS will only charge the London Football Clubs SPS for the policing provided on land owned, leased or controlled by the Club. This involves the deployment inside the ground and Club properties outside, such as concourses; but in keeping with the Ipswich ruling, excludes any areas under the temporary control of the Club as a result of the application for a traffic management order.

Fees and Charges where the Rates are set or advised by other Agencies

2.8. Depending on the Agency, the individual fee and charge to be levied can relate to either a set rate or an agreed calculation methodology.

2.9. There has been only one change since last year to any of the rates or agreed calculation methodologies for any Fees and Charges that are set by other Agencies. NPCC Security Systems Group has approved an increase to the charge for alarms monitoring and this is reflected in our proposed charges for 2020/21.

2.10. Directorate of Legal Services (DLS) has identified that the NPCC charging methodology for disclosures is not being implemented consistently across all forces as the associated guidance is unclear. A working party is being set up in the first quarter of 2020 with DLS, Finance, Commercial Services and Safeguarding Unit representation to review the NPCC pricing structure and how it can be best implemented by the MPS with minimal bureaucracy whilst ensuring the judiciary's requirements are met.

Fees and Charges that are determined by Statute or Legislation

2.11. There have been no changes since last year to any of the Fees and Charges that are set by statute or legislation.

2.12. If a rate changes prior to 31/3/20, it is recommended that MOPAC agree that the revised charge can be implemented with effect from 1 April 2020.

3. Financial Comments

3.1. The forecast income generated from fees and charges for 2020/21 for the items that are not set by statute or legislation is estimated to be 1.5% higher than last year for Section 15 fees and charges and 5% higher for SPS. There has been only one change to fees and charges where rates have been advised by other agencies and those determined by statute or legislation, and it is estimated that income will increase by approximately £5,000 per annum. It has been assumed that there will be no significant changes in demand. A comparison cannot be made to the 19/20 budgets as at that time fees and charges income for the specific activities in this report were not allocated separately from other forms of general income. There is an intention to create detailed subjective codes for each individual income type raised through fees and charges to assist budgeting and monitoring in the future. The intention is to introduce these from the start of the 2020/21 financial year. 2020/21 income budgets will be updated accordingly to reflect the changes.

3.2. VAT will be accounted for at the appropriate rate according to the tax point date and in line with the HM Revenue and Customs guidance on the VAT treatment of charges made by the police (VAT: Government and Public Bodies).

4. Legal Comments

4.1. MOPAC has the legal power to charge third parties for goods and services under section 15 of the Police Reform and Social Responsibility Act 2011 and to charge for the provision of special police services under section 25 of the Police Act 1996.

4.2. The legislation referred to above does not specify how the charges should be calculated but the case law and NPCC guidance referred to in this report allows the MOPAC to increase its charges to reflect its increased costs caused by inflation.

5. GDPR and Data Privacy

5.1. The proposal to uplift the fees and charges does not use personally identifiable data therefore there are no GDPR issues to be considered.

6. Equality Comments

6.1. Under the current system of charging, it has been established that no vulnerable group or individual has reported an inability to access required documents or information. It is not expected that any issues will be experienced as a result of either the continuation of the existing methodology for charging or the proposed inflationary uplift for 2020/21.

6.2. The working group being led by DLS to review charges will also address equalities issues to ensure that, going forward, no vulnerable group or individual requiring documents or information is disadvantaged.

6.3. In line with the MPS Communication Strategy and with the agreement of the Deputy Mayor of Policing and Crime, the fees and charges are now available electronically via the MPS Website. Finance and Commercial Services have taken steps to ensure that the information on fees and charges, including the location on the MPS Website is made available to members of staff who would be the normal first point of contact with the public. This group of staff, employed at front counters and first contact staff on the MPS Switchboard, are provided with guidance on subject matters where they will deal with queries from the public. This ensures that these fees and charges can be communicated to members of the public who may not have access to the internet. The schedule of fees and charges and the schedules location on the MPS Website at http://content.met.police.uk/Site/generalfeesandcharges/ is included in this guidance. This allows said staff to advise the public on specific fees or direct them to the site as appropriate.

7. Background/supporting papers

7.1. Appendix 1 – List of Fees and Charges.

7.2. MPS report.