Police raid on the ‘rainy day’ reserve

Evesham Journal: Police raid on the ‘rainy day’ reserve Police raid on the ‘rainy day’ reserve

POLICE chiefs are to raid the reserves by £10 million to help plug gaping holes in the budget – leading to fears they are taking a risk.

Bill Longmore, the police and crime commissioner for West Mercia, wants to use cash from the ‘rainy day’ pot to balance his books between now and 2015.

Pressure to cut budgets from central government, as well as a decision to freeze the police portion of the council tax bill, has left a gaping black hole in the force’s finances.

The reserves pot, which has £22 million in it at the moment, will be raided by £3.5 million in April, £2.4 million next year and £4.3 million in 2015/16.

The reserves fund is designed to be used in emergencies, as a last resort to solve financial problems.

The move was debated during a meeting of the police and crime panel at County Hall, at which some politicians backed it while others said it was a risk.

Councillor Roger Hollingworth said: “Looking at this budget we are spending reserves that were built up over a long period despite admitting it is a risk.

“I don’t believe we should be using our reserves to help fund areas of the plan for the next three years.”

Others said it was the right move as the force is already cutting £21 million from the budget by 2015/16 and without using the reserves even more would need to be slashed. Councillor Adrian Hardman said: “I think he’s doing the entirely right thing here – the ratio of reserves we have is perfectly adequate and while I do see how some members think he’s taking a risk, this is existing taxpayers money that is sitting in reserves for entirely this purpose. It is the right strategy to take.”

Dave Clarke, chief finance officer said: “There are always additional risks that come along and use of the reserves is always sensitive.

“But at this point the reserves are very healthy, so the question is do we use it to help policing or keep it in reserves for perpetuity.”

He said it was a “prudent” approach and would still leave enough in the pot to cover for other emergency costs as they emerge.

Comments (2)

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10:11am Wed 13 Feb 13

brooksider says...

22 million pounds in reserve?

The figure was 32 million in March 2011, so what happened to 'missing' £10 million?
22 million pounds in reserve? The figure was 32 million in March 2011, so what happened to 'missing' £10 million? brooksider
  • Score: 0

11:26am Wed 13 Feb 13

THE FACTS says...

This is money from the tax payers anyway ... it just means we paid too much in the years the reserve were built up.

About a third of the outgoing are for pensions for people who retire at or before 50!
This is money from the tax payers anyway ... it just means we paid too much in the years the reserve were built up. About a third of the outgoing are for pensions for people who retire at or before 50! THE FACTS
  • Score: 0
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