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 £1.6m 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 £0.4m under budget due but because of slippage the budget has been revised to £27.2m.
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 | 333.6 | 1.5 |
| Funding | (332.1) | (332.0) | 0.1 |
| Grand Total | 0.0 | 1.6 | 1.6 |
In the last quarter the projected overspend has been reduced by £0.8m. Most of the current projected overspend is being driven by an increase in overtime costs and some of the savings built into the budget not being deliverable in year. Work is being undertaken to identify further tactical savings to reduce the overspend further but it is likely that reserves may be needed to cover the shortfall.
Police Officers numbers were on target and met the Uplift target at the end of the year. The Police Staff vacancy rate was 10.8% just slightly above the 10% budgeted for.
Capital Forecast
The capital plan is forecast to underspend by £0.4m against a revised budget of £27.2m. The original budget was set at £70.9m with slippage brough forward from 2024/25. £43.7m has been taken out of the 2025/26 budget and slipped into 2026/27. £42.4m of this is due to the estates program slipping as a result of delays with planning and contractors. This slippage though has meant that the remaining program can be currently funded without any additional external borrowing.
Revenue and Capital 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: 10th March 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 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