Decision number: 30/202627
Author and Job Role: Kelvin Menon – Treasurer
Protective Marking: OFFICIAL
Executive Summary:
The Financial Monitoring report for the first quarter of the year to July 2025 shows that Surrey Police Group is predicted to be £0.6m over budget by the end of March 2027 based on performance so far. This is based on a budget of £346.8m for the year. Capital is predicted to be £5.9m underspent based on a budget of £101.6m.
Financial Regulations state that all budget virements over £0.5m must be approved by the PCC. These are included within this decision notice.
Background
Revenue Forecast
The total budget for Surrey and the forecast outturn is set out in the table below:
| Total 2026/27 Budget £m | Total 2026/27 Outturn £m | Variance £m | |
| 2025/26 Budget | 346.8 | 347.4 | 0.6 |
| Funding | (346.8) | (346.8) | (0.00) |
| Grand Total | (0.0) | 0.6 | 0.6 |
Given it is early in the year this is only an indication of the financial outturn and depends on the assumptions made as to future financial performance. This will be updated as the year continues. Most of the current projected overspend is being driven by an increase in police officer costs as the decision was taken not to maintain a 1% vacancy margin. It is also predicted that pension costs for ill health retirements could be higher. Conversely the Police staff vacancy rate is just over the budgeted rate of 10% offsetting some of these costs.
Capital Forecast
The capital plan is forecast to underspend by £5.9m against an agreed budget of £101.6m. This budget includes new items for 2026/27 of £52.6m plus slippage of £49m from previous years – almost all of this is related to the estates program. In respect of the predicted slippage this relates to the estates and change program however it can be expected that this slippage will increase over the rest of the year.
Revenue Virements
All the financial virements over £500k for approval from the PCC are set out below:
There are also capital virements relating to slippage in 2025/26
For completeness more detail on the slippage is set out below:
Recommendation:
Police and Crime Commissioner Approval
I note the financial performance as at the 30th June 2026 and approve the virements as listed.
Signature: PCC Lisa Townsend (wet signed copy held in Office)
Date: 18th August 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
There were a number of financial risks which were set out in the budget paper. These will be monitored during the year.
Equality and diversity
None
Risks to human rights
None