Decision 69/2022 – 2022/23 Year End Reserves Transfers

Author and Job Role: Kelvin Menon – Chief Financial Officer

Protective Marking: OFFICIAL

Executive Summary:

Under statute all reserves are owned and under the control of the PCC. Transfers to or from reserves can only be made with the approval of the PCC by way of a formal decision. It is predicted that there will be an underspend against budget for 2022/23 and so it is requested that this be transferred to reserves to provide resources to meet future risks and fund new initiatives.


2022/23 has been a particularly challenging year given increasing inflation and costs. However, this has been offset by a number of things as follows:

  1. A majority of new officers were recruited later in the year, thereby deferring costs, whereas in the budget it was assumed it would happen evenly across the year.
  2. The tight labour market has meant that the Force has had difficulty recruiting police staff at the rates of pay it can afford. This has meant that there are a large number of posts which have been funded but not filled.
  3. The Force had more income than was budgeted for from national events such as COP and Operation London Bridge

This has meant that at the end of the year it is predicted that there will be an underspend of at least £7.9m. Whilst this is a significant sum in fact it represents only 2.8% of the overall budget. This underspend gives the opportunity to set funds aside to address one off pressures and risks that could arise in 2023/24.

Transfer to Reserves

As a result of the overall budget being underspent PCC is asked to approve the following transfers to reserves:

ReserveReason for TransferAmount £m
Cost of ChangeTo support the transformation program to deliver future savings and efficiencies2.0
CC OperationalTo provide resources for reopened historical investigations0.5
OPCC Operational ReserveTo provide funds for one off OPCC commissioning initiatives which may arise in 2023/240.3
Delegated budget Holder reserveTo provide funds for other potential pressures and risks such as legal fees, maintenance, pay, uplift clawback, vetting etc5.1
Covid19 ReserveTo close reserve as risk has declined(1.7)
Net zero reserveTo provide funds to support Force Commitment to achieve net zero1.7

Once the transfers are approved total reserves will be £29.4m (subject to audit):

 Proposal 2022/23
3% NBR 
Earmarked Reserves 
OPCC Operational Reserve1.5
PCC Estate Strategy Reserve2.0
PCC Cost of Change Reserve5.2
Chief Constable Operational Reserve1.6
COVID 19 Reserve0.0
Insurance Reserve1.9
Police Pension Reserve0.7
Net Zero Reserve1.7
Delegated Budget Holder Reserve5.1
Capital Reserve – Rev Contributions0.5
Total Earmarked Reserves20.1
Total Reserves29.4


It is recommended that the Police and Crime Commissioner approves the transfers to reserves as set out above.

Police and Crime Commissioner Approval

I approve the recommendation(s):

Signature: Lisa Townsend, Police and Crime Commissioner for Surrey (wet signed copy held at PCC Office)

Date: 04 April 2023

All decisions must be added to the decision register.

Areas of consideration:


There is no requirement for Consultation on this matter

Financial implications

These are as set out in the report


The PCC must approve all transfer to reserves


As a result of the External Audit the figures may change. If this is the case then the decision may have to be amended to take account of any change.

Equality and diversity

No implications from this decision

Risks to human rights

No implications from this decision