Extra cash for front-line policing diverted to cover pensions shortfall

Published on Sunday 27 January 2008 21:24

HUNDREDS of thousands of pounds given to police to boost security in Scotland's capital has been "eaten up" by a spiralling pensions bill, The Scotsman can reveal.

Police chiefs in Edinburgh last year hailed two new deals that resulted in an extra 600,000 being paid to the local force to provide dedicated officers to meet the heightened terrorist threat at Edinburgh airport and protection for the rising number of royal and VIP visits.

However, The Scotsman has learned the money allocated under the two agreements will instead be diverted to help plug a 3 million pensions hole next year. The move, expected to be rubber-stamped by the joint police board today, effectively means the force will have to keep drawing down front-line officers from communities to provide the extra security.

The situation highlights the mounting pressure on Scotland's police forces from a massive growth in their pensions liability over the next three years.

A huge wave of retirements, totalling some 2,000 officers, will leave police forces having to pay out an extra 107 million in pension costs by 2010-11, with the burden peaking in 2009-10 when the eight forces will have to find an extra 53 million.

The Scottish Government says it has provided for the extra pension costs in its settlement with local authorities. But the fact the funds are no longer ring-fenced has left police leaders fearing that millions of pounds will have to be plundered from operational budgets.

Grampian Joint Police Board has already voted to plunder its front-line budget to meet part of the pension-fund shortfall.

The Lothian and Borders board is today expected to agree to lobby the Scottish Government for extra money to meet its soaring liability. A report to go before members says the increasing pension costs is a "national issue" that has been discussed with the Convention of Scottish Local Authorities (Cosla) and the Association of Chief Police Officers in Scotland (Acpos).

"These discussions have been problematic as there has been a lack of clarity regarding the level of funding provided for police pensions costs within the local government finance settlement," the report states.

"Arising from these discussions, there is a consensus that there is a need to identify local solutions to address pressures in 2008-9. However, the financial pressures peak in 2009-10 and there is a general view that further discussions are required with the Scottish Government regarding funding for police pensions in that year."

In November, Lothian and Borders Police reached a deal with the Edinburgh Airport operator, BAA, for the latter to meet the full 2.5 million annual cost of a dedicated police unit on the site, securing five extra officers over and above the existing 39 on duty, as well as more trained firearms personnel. Previously, the airport operator had been paying about 75 per cent of the cost, leaving the force to draw down front-line officers from other areas.

Meanwhile, Kenny MacAskill, the justice secretary, last month agreed to a plea from David Strang, chief constable of Lothian and Borders Police, for an extra 217,000 a year to fund a unit to co-ordinate protection for the growing number of visits from Royals and other VIPs. At the time, police said the agreements would ensure officers used in the two areas could be returned to front-line duties in the city and surrounding areas.

Reacting to the BAA agreement, a force spokesman said at the time: "An important aspect of this arrangement is that the policing presence in the communities will not be compromised as we will have a dedicated team at the airport."

Councillor Iain Whyte, the Lothian and Borders board's convener, said the extra funds given to police would now be used to plug the pensions gap.

Savings would also be made in overtime, rent costs and from a reorganisation of traffic wardens.

"The money for these things is being eaten up by the increased pension costs. They will still be used by the police, but I would have liked, and I'm sure Kenny MacAskill would have liked, to see that money being used to release more police officers into the community. That will now not happen," he said.