Humberside Police needs to save £7.5m in next five years
Inflation is pushing the force's costs up
Humberside Police will have to find £7.5m in savings in the next five years as inflation pushes up the force’s costs, a report has warned.
A report to the Humberside Police and Crime Panel said £1.5m will need to be saved every financial year until 2027 because of pay and other inflationary pressures.
Kevin Wilson, chief financial officer for the Officer of Police and Crime Commissioner (OPCC), said inflation made for a challenging situation with gas and electricity alone costing an extra £2m.
The warning comes as inflation reached 11.1 per cent in October, according to the latest figures from the Office of National Statistics (ONS).
It also comes as schools and other public sector bodies have seen their costs rocket because of surging inflation which has also eaten away at their reserves.
Mr Wilson’s report stated efficiencies would have to be found in the force’s Corporate Programme, through non-pay savings, procurement and by getting more income.
It added around £1.3m had been saved this financial year up to Friday, September 30, through corporate efficiency reviews, more income and non-pay savings.
Pressures on this year’s budgets include non-pay ones of around £1.87m and overtime spending totalling about £899,000.
Savings of almost £3.95m have been made so far, with the force forecast to spend around £1.8m less on its budget this year which is almost £219m.
But the report stated the total cost of this year’s pay award would be around £3.2m on top of a Home Office grant, as well as the £2m extra for energy.
It stated the force’s reserves, forecast to stand at almost £30.46m by the end of the current financial year, would come under significant pressure in the coming years.
The report stated: “In order to sustain the investment in policing and to continue to support local policing services, in the face of a challenging financial situation, efficiencies will be delivered wherever possible.
“Reserves will come under significant pressure in the next two to three years as pay and non-pay inflation pressures feed through.”
It comes after the precept for Humberside Police rose to £243.21 for a Band D property in the 2021-22 financial year, an increase of £14.99.