Ref: PCC/D/2025/01
EXECUTIVE SUMMARY
The year 2025/26 is expected to require a significant number of management of change processes within West Mercia Police in order to meet financial challenges.
A temporary departure from processes set out in West Mercia’s Corporate Governance Framework (CGF) is proposed in order to support the effective and efficient discharge of necessary business, to the benefit of all parties.
It is proposed that elements of clause 11.3 of the Joint Financial Regulations (Part B) be suspended, with reference to settlements on termination of employment.
This would be replaced with an alternative, temporary governance arrangement for West Mercia Police and the Office of the Police and Crime Commissioner (PCC).
The intent of this is to ensure smooth, dynamic processes, whilst maintaining appropriate governance.
An allocation of £1.8m will be created to support this work, and will be delegated to the Director of Commercial Services / Director of Business Services.
PROPOSAL
It is proposed that the PCC approve the temporary suspension of elements of clause 11.3 of the Part B Joint Financial Regulations within West Mercia’s Corporate Governance Framework as follows:
- There will be no requirement for agreement from the Chief Executive for settlements above £15,000
- There will be no requirement for agreement from the PCC for settlements above £25,000
These decisions will instead be delegated to the force’s Director of Commercial Services (DCS) and / or the Director of Business Services (DBS), who will be required to consult the PCC’s Chief Executive prior to decision making.
The DCS / DBS will be required to secure the best possible value for public money and ensure the most effective and efficient discharge of necessary business, in the interests of the police force and its staff, the PCC and local communities.
This delegation operates on the basis that any decisions made will happen within the confines of an agreed overall financial envelope, set out by the PCC.
It is proposed that the PCC create an allocation of £1.8m in support of this work, which is delegated to the Director of Commercial Services and / or Director of Business Services, with an expectation that this allocation funds the entirety of the programme.
The duration of this suspension will be from the date of this decision notice, until either the 1st of January 2026, or until the agreed financial envelope set by the PCC is exhausted. Whichever of these is the sooner.
After this time, the suspension will be automatically lifted and both West Mercia Police and the OPCC will revert to the substantive terms of the CGF.
APPROVAL OF
West Mercia Police and Crime Commissioner
I hereby approve the above proposal
PART 1 – NON-CONFIDENTIAL/EXEMPT FACTS AND FIGURES
SUPPORTING REPORT
The year 2025/26 is expected to require a significant number of management of change processes within West Mercia Police in order to meet financial challenges. It is projected that volumes of such processes will be significantly higher in 2025/26 than in previous years due to funding shortfalls.
It has been proposed that a temporary departure from processes set out in the West Mercia CGF would be beneficial to all parties concerned, in order to support the effective and efficient discharge of these processes. It is however acknowledged that appropriate governance must be maintained.
The substantive CGF sets out requirements around settlements of termination of employment at clause 11.3 of the Joint Financial Regulations (Part B), as follows:
The following limits apply to agreement of financial settlements as a result of termination of employment are
- below £15k – (that doesn’t meet threshold of novel, contentious or repercussive)
- Above £15k – Agreed by the Chief Executive
- Above £25k – Agreed by PCC
Within this context ‘settlements’, refers to both mandatory payments in accordance with relevant force policy and negotiated settlements.
It is proposed that elements of clause 11.3 of the Joint Financial Regulations (Part B) be suspended, as follows:
- There will be no requirement for agreement from the Chief Executive for settlements above £15,000
- There will be no requirement for agreement from the PCC for settlements above £25,000
These decisions will instead be delegated to the force’s Director of Commercial Services and / or the Director of Business Services, who will be required to consult the PCC’s Chief Executive prior to decision making.
The DCS / DBS will be required to secure the best possible value for public money and ensure the most effective and efficient discharge of necessary business, in the interests of the police force and its staff, the PCC and local communities.
Whilst the suspension of this element of the CGF is in place, the police force will also be required to report details to the PCC as and when each £500,000 of spend is committed, under the temporary delegations.
This delegation operates on the basis that any decisions made will happen within the confines of an agreed overall financial envelope, set out by the PCC.
The PCC will allocate a total of £1.8m for these purposes. This allocation will be delegated to the Director of Commercial Services and / or Director of Business Services with an expectation that it is sufficient to fund the entirety of the programme.
The duration of this suspension will be from the date of this decision notice, until either the 1st of January 2026, or until the agreed financial envelope set by the PCC is exhausted. Whichever of these is the sooner.
After this time, the suspension will be automatically lifted and both West Mercia Police and the OPCC will revert to the substantive terms of the CGF.
Unless expressly set out in this decision notice, all other elements of the substantive CGF remain in place and are unaffected.
STRATEGIC CONSIDERATIONS
This decision supports the following element(s) of the West Mercia Safer Communities Plan:
☐ Cutting Crime
☐ Policing with the Community
☐ Supporting Victims & Survivors
☒ Maximising Resources & Value
The decision supports this/ these objective(s) through the following:
- By providing increased organisational flexibility and dynamism to enable effective, efficient decision making and discharge of business for WMP.
- Maintaining appropriate oversight and governance for the PCC on behalf of the public to ensure best value for money.
- Supporting timely and appropriate processes to achieve savings and support affected individuals.
BENEFITS AND THEIR REALISATION
Delivery of projected savings and balanced budget
AUTHOR
Gareth Boulton
3rd February 2025
FINANCIAL AND TREASURER COMMENTS
A financial envelope will be set by the PCC for the management of change process, based on identification of those employees at risk and an assessment of likely costs to be incurred.
The proposal is that the limit is set at £1,800,000. This is higher than the lowest projected cost set out by the force, but lower than the medium projection.
The funding for this would be from the:
- Balance of capital receipts available as at the 31.03.25 of £1,293,494
- Use of budget equalisation reserve of £506,506
Director of Commercial Services and the Director of Business Services are agreed that achievement of value for money within the agreed management of change policies and regulations is important. The Chief Executive of the PCC will provide oversight of this as part of the requirement to be consulted.
LEGAL CONSIDERATIONS
By virtue of schedule 11, paragraph 14 of the Police Reform and Social Responsibility Act 2011 the Police and Crime Commissioner may do anything which is calculated to facilitate, or is conducive or incidental to, the exercise of the functions of commissioner. That includes: entering into contracts and other agreements (whether legally binding or not) and acquiring and disposing of property (including land).
PUBLIC ACCESS TO INFORMATION
Information in this form is subject to the Freedom of Information Act 2000 (FOI Act) and other legislation. Part 1 of this form will be made available on the West Mercia Commissioner’s website. Any facts and advice that should not be made automatically available on request are not included in Part 1 but instead in a separate Part 2 report.
OFFICER APPROVAL
Chief Executive Office
