Author and Job Role: Kelvin Menon – Treasurer
Protective Marking: OFFICIAL
Executive Summary:
The Financial Monitoring report for the first half of the year to 30th September 2025 shows that Surrey Police Group is predicted to be £2.4m over budget by the end of March 2026 based on performance so far. This is based on a revised budget of £332.1m for the year. Capital is predicted to be £24.6m underspent due to slippage based on a revised budget of £51.1m.
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:
| Surrey Group | 2025/26 Annual Budget £m | 2025/26 Forecast Outturn £m | Variance £m |
| Total 2025/26 Budget | 332.1 | 334.2 | 2.1 |
| Funding | (332.1) | (331.8) | 0.3 |
| Grand Total | 0.0 | 2.4 | 2.4 |
Now that half of the year has passed it is becoming less certain that this overspend can be recovered in its entirety. Most of the current projected overspend is being driven by an increase in overtime costs and some of the savings built in to the budget nit being deliverable in year. Work is being undertaken to identify further tactical savings to reduce the overspend but it is likely that reserves may be needed to over the shortfall.
Police Officers numbers were on target and met the Uplift target at the end of September. The Police Staff vacancy rate was 9.9% just slightly under the 10% budgeted for.
Capital Forecast
The capital plan is forecast to underspend by £21m against an agreed budget of £39.6m. Most of this is due to slippage in the estates program and will be spent in future years.
Revenue Virements
Per financial regulations only virements over £500k need approval from the PCC. These, for the second quarter of the year, are set out below:
Recommendation:
Police and Crime Commissioner Approval
I note the financial performance as at the 30th September 2025 and approve the virements as listed.
Signature: PCC Lisa Townsend (wet signed copy held in Office)
Date: 12th November 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
There is a risk the budget will be overspent. Action is being taken to address this and it will be monitored during the year.
Equality and diversity
None
Risks to human rights
None