Author and Job Role: Kelvin Menon – Treasurer
Protective Marking: OFFICIAL
Executive Summary:
The Financial Monitoring report for the full year 2024/25 shows an underspend of £0.3m. This is based on an approved budget of £310.3m for the year. Capital was £10.6m underspent due to the timing of various projects, of this £10.5m has been requested as outturn slippage and £12.1m was approved as in-year slippage into 2025/26 which requires approval by the PCC.
Financial Regulations state that all budget virements over £0.5m and write offs over £20k must be approved by the PCC. These are included within this decision notice.
Background
Revenue Outturn
The total budget for Surrey approved by the PCC in in February 2025 was £309.7m this increased by £0.6m to £310.3m during the year due the Home Office agreeing to additional uplift officers being recruited.
| Surrey | Total 2024/25 Budget £m | Total 2024/25 Actual £m | Variance £m |
| Funding | (310.3) | (309.0) | 1.3 |
| PCC Budget | 3.4 | 3.2 | (0.2) |
| Operational Delivery Budget | 306.9 | 305.5 | (1.4) |
| Group Total 2024/25 | 0.0 | (0.3) | (0.3) |
Although the net outturn is only £0.3m increased income and the proactive driving of in-year savings has enabled the Force to use in-year underspends to both offset a series of pressures and also avoid drawing from the cost of change reserve – meaning that the reserve can be used to deliver more technical change projects in future years.
The funding changes of £1.3m results from £2.4m additional pay grant from Government not budgeted for offset by £1.1m no longer required from the cost of change reserve.
More detail in respect of the Operational Delivery expenditure is given in the table below:
Pay incudes the balance of the pay award, some of which was funded, and an overspend on overtime of over £1.8m. Most of the £1.3m underspend on premises is due to utilities that are under a new cheaper contract. The transport overspend is mainly for maintenance costs the underspend in supplies and services is due to the over achievement of savings in the year. Financing is overspend representing the in-year transfer from revenue, due to savings being made and higher investment interest, to fund capital. Finally Grants and Income had the highest positive variance due to Hot Spot policing grant awarded in year (offset with costs), more recharges to regional crime for staff seconded, over achievement of investment interest due to higher balance and additional income from the use of cells and motoring courses.
The transport related expenditure includes a stock write off totalling £254k (Sussex £139k, Surrey £115k) relating to vehicle telemetry. The reason for the write off is due a change in core response vehicles which resulted in the screen integration units not being compatible with the original equipment manufacturer screen. The Financial Regulations require the PCC to approve any amounts written off in excess of £20k.
Capital Outturn
The capital plan was underspent by £10.6m. Most of this was due to delays in the Surrey Estates Project, vehicle delivery delays and change programs being deferred. All of these costs will be incurred in the future rather than being savings.
Revenue Virements
Per financial regulations only virements over £500k need approval from the PCC.
Police and Crime Commissioner Approval
I note the financial performance as at the 31st of March 2025 and approve the virements, capital slippage, write off, and reserve transfers for quarter 4 as set out above in the report.
Signature: PCC Lisa Townsend (wet signed copy held in Office)
Date: 5th August 2025
All decisions must be added to the decision register.
Areas of consideration
Consultation
None
Financial implications
These are set out in the paper
Legal
None
Risks
None
Equality and diversity
None
Risks to human rights
None