Annual Review of the Schedule of Fees and Charges 2022-23

This report presents the proposed Metropolitan Police Service (MPS) Schedule of Fees and Charges for approval by the Deputy Mayor for Policing and Crime. The report details the results of a review of rates at the end of 2021/22 to reflect current price increases and sets out information on the recommended MPS fees and charges and Special Police Service rates for 2022/23.

This report also summarises the findings of reviews of income generating areas to demonstrate efficiencies and maximise income.

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 (NPCC).

In accordance with Paragraph 9.5 of the Financial Regulations the Schedule of Fees and Charges requires approval of DMPC prior to publication.

The Deputy Mayor for Policing and Crime is recommended to:

1. Approve the 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. Appendix 1 – Table 1 refers. The exception being those which are set by either (a) statute/legislation; (b) at a rate recommended by NPCC or (c) a reduced rate to support safeguarding.

2. Approve the 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 in line with NPCC guidance. This includes increases to pay due to annual pay awards and ERNIC Appendix 2 - Tables 2A - E refer.

3. Approve the implementation of any revised rates set or advised by other agencies, or determined by statute or legislation on or before 31 March 2022.

4. Note the findings of the ongoing financial reviews of income generating areas.

1. Introduction and background

1.1. The aim of this report is for the Deputy Mayor for Policing and Crime (DMPC) to agree the Schedule of Fees and Charges for 2022/23. 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 (SPS) 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 and National Police Chiefs’ 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 2021/22. 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 PartnershipPlus Scheme with local authorities, as allowed by Section 92 of the Police Act 1996 or the specific agreements with Transport for London, the airports or the Palace of Westminster. 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.

1.6. In 2018, approval was gained to fund an additional resource to review existing fees and charges income processes and maximise income. Several reviews have been undertaken over the last two years and a summary is detailed in paragraph 5.1.

2. Issues for consideration

Review of Charges for 2022/23 - 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 November 2021). The review for 2022/23 therefore takes account of the base rates from 2021/22 and the approved salary cost uplift for 2021/22, the estimated increases for 2022/23 (part year effect), and an inflation factor.

2.2. The revised charges will therefore be based on the rates for 2021/22 increased by set percentages to reflect the average pay costs uplift in 2021/22, plus the estimated inflation increase for 2022/23. 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 2.1 above for reviewing fees and charges is entirely consistent with previous years. It should be noted that the NPCC recommendation for CPI increases has been approved and subsequently the current 12 month average CPI (as at November 2021) rate of 5.1% has been applied where appropriate. It is proposed to continue using this basis of CPI average rate for all future years’ inflation.

MPS Calculated Fees and Charges

Charges for Disclosures for Family Proceedings in Civil Cases

2.4. Under Common Law Police Disclosure, forces have an obligation to disclose certain information. Initial disclosure is without charge and sufficient information will always be provided to conduct an adequate risk assessment (i.e. risk posed to children, vulnerable adults, national security and probity and administration of justice). The MPS will always release requested documents to a multi-agency case conference, a Responsible Authority (such as Local Authority, Health Authority, Fire and Rescue Authority, Primary Care Trust, NHS Trust, Probation Committees and Registered Social Landlord) or upon receipt of a court order at no charge.

2.5. Occasionally, the regulatory or governing body or a privately instructed solicitor will request further supporting information to aid their own internal investigations and NPCC have agreed that there should be a charge in respect of this additional information. This fee (see ‘Information Disclosure’ set out in Appendix 1 – Table 1) may be levied even when information cannot be supplied in order to cover costs incurred for research and enquiries.

2.6. The MPS is keen to minimise the financial impact on potentially vulnerable users of the disclosures process. To this end, it is recommending that the annual increase in hourly charges is limited to a maximum of 2.5% which brings the MPS charges for 2022/23 in line with NPCC guidance.

Charges for Special Police Services

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

2.8. The MPS provides policing services on private premises, such as sporting stadia and shopping centres and also in the provision of assistance for activities including film making, community and charitable events and traffic surveys. All of these policing services fall within the remit of SPS.

2.9. NPCC guidance clearly specifies when different rates of charges for SPS should be applied:

• For commercial events such as football matches and other sporting events, SPS charges are made at full economic cost recovery including pay costs, overtime premiums and overheads, in line with NPCC guidance. These events are undertaken on an ad hoc basis using existing police resources;

• For SPS arrangements where organisations such as shopping centres, schools, universities, etc., enter into Agreements to pay for dedicated additionality, income recovery is made at full cost recovery for actual costs incurred;

• For charitable, community events or non-commercial events such as local authority community events, religious parades and wholly charitable events the MPS may consider an abatement of charges when policing requirements are small and are often covered by existing local policing. The trust and confidence of local communities are fundamental to the success of modern policing in terms of neighbourhood policing and building relationships with local communities. However, for those events where substantial policing is required the MPS may charge a reduced rate covering the direct staffing costs only for policing the event; and,

• For Statutory events, such as Remembrance Day parades, Jubilee or constitutional events, police attendance is often part of the normal police annual duties and not chargeable.

2.10. During 2021/22 the MPS has worked closely with Blue Light Commercial and NPCC to review and revise the methodology for calculating SPS charges to ensure that the NPCC methodology is being applied consistently across all forces. This national review has highlighted that in order to make full economic cost recovery there needs to be an average 10% increase in SPS officer rates for the MPS in 2022/23. This 10% increase will only impact SPS services provided for those commercial events such as football matches where we make full economic cost recovery.

2.11. Over the next financial year, NPCC are working towards setting one national SPS charge for all forces to use (allowing for London allowances for the MPS).

2.12. The SPS charges include daily rates and hourly rates for police ranks up to and including Assistant Commissioner Rank. A general administrative overhead charge of 31% is also applied in accordance with NPCC agreed guidance which states that all charging should be based upon full cost recovery. See Appendix 2 – Tables 2A–2E.

2.13. 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

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

2.15. There have been no changes since last year to any of the Fees and Charges that are set by other Agencies. However, the MPS is continuing to work closely with NPCC who are undertaking national reviews of charges and charging methodology to ensure that any changes in rates and methodology in calculating charges are reflective of MPS processes.

2.16. If a rate changes prior to 31/3/22, it is recommended that MOPAC agree that the revised charge can be implemented with effect from 1 April 2022.

Fees and Charges that are determined by Statute or Legislation

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

2.18. If a rate changes prior to 31/3/22, it is recommended that MOPAC agree that the revised charge can be implemented with effect from 1 April 2022.

3. Financial Comments

3.1. The forecast income generated from fees and charges for 2022/23 is £14.244m, an increase of £276,000 on the budget for 2021/22 (including an estimated £60k increase in income from agreed volume increases for cell accommodation). For the items that are not set by statute or legislation the fees and charges are estimated to be 5.1% higher than last year for Section 15 fees and charges (with the exception of disclosures income at 2.5%), and 10% higher for SPS.

3.2. There have been no changes to fees and charges where rates have been advised by other agencies and those determined by statute or legislation. It has been assumed that there will be no significant changes in demand. 2022/23 budgets will be updated accordingly to reflect the recommended changes. The budgets will be amended over the next year as any ongoing impacts of Covid become known.

3.3. 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.

4.3. Section 25 provides the legal power to charge for 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.

4.4. On this basis, the recommendations can be lawfully approved.

5. Commercial Issues

5.1. During 2020/21 Commercial Services undertook a high level review of fees and charges areas to identify potential savings and maximise income through full cost recovery. Initially potential income recovery was set as £1.21m, but during 2021/22 once further work was completed, this target has been revised to £5.373m. This is an ongoing programme of work scheduled to be completed over the current and next financial year.

5.2. During 2021/22, £0.213m additional income has been generated as a result of reviews of processes by Commercial Services including the family disclosures process and the administration of seconded officers and this will continue for future years; an additional £0.906m has been agreed to be realised in 2022/23 in relation to successfully negotiating an increase in charges for the Government Security Zone to reflect full cost recovery, and negotiating a temporary 2 year increase in custody usage by the Home Office. There is the potential to realise a further £4.47m dependent on ministerial approval for an increase in Overseas Visitors Registration charges (£0.527m) which is still awaited, but largely (£3.9m) on ongoing negotiations with British Transport Police (BTP) for payment for use of MPS custody facilities for BTP’s prisoners. Commercial Services are leading on negotiations with BTP to develop a collaboration Agreement.

5.3. Commercial Services are also working in collaboration with NPCC to undertake further work to review National Firearms Licensing costs, charging rates for the use of cell accommodation by third party agencies and charges for traffic collision reports.

6. GDPR and Data Privacy

6.1. MOPAC will adhere to the Data Protection Act (DPA) 2018 and ensure that any organisations who are commissioned to do work with or on behalf of MOPAC are fully compliant with the policy and understand their GDPR responsibilities.

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

7. Equality Comments

7.1. MOPAC is required to comply with the public sector equality duty set out in section 149(1) of the Equality Act 2010. This requires MOPAC to have due regard to the need to eliminate discrimination, advance equality of opportunity and foster good relations by reference to people with protected characteristics. The protected characteristics are: age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex and sexual orientation.

7.2. 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 2022/23.

7.3. The previous Equality Impact Assessment (EIA) has been reviewed in conjunction with the Strategic Diversity and Inclusion Team for expert advice and they have advised, after review, that the existing EIA is still relevant and valid and therefore a new EIA is not considered necessary this year. The MPS is not aware of any cases in which victims or their families have sought to access documentation.

7.4. In private law matters, as the parties requesting disclosure are primarily vulnerable it would be inappropriate to increase charges by the usual CPI levels which could result in these vulnerable groups being disadvantaged.

7.5. 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 https://www.met.police.uk/SysSiteAssets/media/downloads/force-content/m… is included in this guidance. This allows those members of staff to advise the public on specific fees or direct them to the site as appropriate.

7.6. The outcome of this report does not negatively impact the delivery of the London Anchor Institutions’ Charter.

8. Background/supporting papers

8.1. MPS report Annual Review of Schedule of Fees and Charges 2022/23