Author and Job Role: Kelvin Menon – Treasurer
Protective Marking: OFFICIAL
Executive Summary:
The Financial Monitoring report for the full year 2025/26 shows an underspend of £0.9m. This is based on an approved budget of £331.9m for the year. Capital was £6.2m underspent due to the timing of various projects based on an adjusted budget of £27.6m.
Financial Regulations state that all budget virements and reserve transfers over £0.5m have to 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 £330.6m this increased by £1.3m during the year due the Home Office additional grants received.
| Total 2025/26 Budget £m | Total 2025/26 Outturn £m | Variance £m | |
| OPCC | 3.9 | 3.7 | (0.2) |
| Force | 328.0 | 327.2 | (0.8) |
| Group Expenditure 2024/25 | 331.9 | 330.9 | (1.0) |
| Less: Funding | (331.9) | (331.8) | 0.1 |
| Unadjusted Group Revenue Outturn for year | 0.0 | (0.9) | (0.9) |
Although the net outturn was £0.9m once one-off benefits are considered this reduces to £0.1m. However, in month 8 a deficit of £1.1m was predicted and it is only as a result of the imposition of spending controls, such as recruitment controls, spend suppression, deferral of capital expenditure was it possible to come in on budget.
More detail in respect of the Operational Delivery expenditure is given in the table below:
| Year to 31st March 2026 | |||
| Budget £m | Actual £m | Variance £m | |
| Wages and Salaries | 277.7 | 280.6 | 2.9 |
| Premises | 14.0 | 13.0 | (1.0) |
| Transport | 5.6 | 5.8 | 0.2 |
| Supplies and Services | 36.2 | 37.8 | 1.6 |
| Capital Financing and Reserves | 17.5 | 17.5 | 0.0 |
| Grants and Income | (23.0) | (27.5) | (4.5) |
| TOTAL | 328.0 | 327.2 | 0.8 |
Pay incudes the balance of the pay award, some of which was funded, and an overspend on overtime of over £1.7m. There was also an increase in ill health retirements which has added to costs. The underspend on premises is due to utilities, rent and rates being under budget. Supplies and services are overspent due to £2.2m of in year savings not being achieved offset by savings in IT and telephones costs. Finally Grants and Income had the highest positive variance due to Investment income, secondments, operations and back rental received.
Capital Outturn
The capital plan was underspent by £6.2m. 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.
Year-end reserve transfers
All reserves are held by the PCC, so the PCC is required to authorise any reserve transfers. Those requested at the year-end are set out below and are against revenue:
| In Year Transfers to/from Reserves Q4 | Transfers In | Transfers Out | |
| £’000 | £’000 | ||
| PCC Estate Strategy Reserve | (729) | Transfer of Savings from Central Corporate | |
| PCC Estate Strategy Reserve | 5,236 | Transfer from Estates Strategy Reserve for Capital Financing 2025/26 | |
| Cost of Change Reserve | (1,000) | 1,710 | £1,000k Annual budgeted transfer to reserves and £1,710k budgeted use of reserves to fund COC projects |
| Delegated Budget Holder Reserve | (581) | Airwaves to Reserves | |
| Delegated Budget Holder Reserve | (508) | Provision for Firing Range | |
| Delegated Budget Holder Reserve | (2,259) | Council Surplus to DBHR Reserve | |
| Delegated Budget Holder Reserve | 1,525 | Transfer from DBHR Reserve for Capital Financing | |
| (5,077) | 8,471 | ||
| Approval for Outturn Transfer to Reserves | |||
| Delegated Budget Holder Reserve | (233) | PCC Transfer to Reserves | |
| Delegated Budget Holder Reserve | (239) | Digital Forensics | |
| Delegated Budget Holder Reserve | (16) | RCCP Slippage | |
| Cost of Change Reserve | (477) | Cost of Change Slippage | |
| (965) |
Police and Crime Commissioner Approval
I note the financial performance as at the 31st of March 2026 and approve the virements, and reserve transfers for quarter 4 as set out above in the report.
Signature: PCC Lisa Townsend (wet signed copy held in Office)
Date: 30th June 2026
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