Source · Select Committees · Public Accounts Committee
Recommendation 13
13
Acknowledged
Uncertainty surrounding ESN transition funding could lead to cuts elsewhere
Conclusion
We asked the Department how the transition from Airwave to ESN would be funded. It said it would work with users to make transition affordable, but the only way to do this was through usual ‘fiscal events’.37 Although it said it would try and minimise the financial impact, it acknowledged there would inevitably be some financial impact on police forces, fire services and ambulance services.38 While the Department was confident that HM Treasury would provide the necessary funding at the next spending review it could not rule out having to make cuts elsewhere to pay for ESN.39 The National Police Chiefs’ Council (NPCC) told us that financial pressures had forced some police forces to use funding intended for ESN on other projects.40
Government Response Summary
The government acknowledges the funding challenges for the Airwave to ESN transition, stating that future funding decisions are subject to HM Treasury spending reviews and that the ESMCP is reviewing the business case to incorporate CMA ruling impacts, expecting user savings from reduced Airwave costs.
Government Response
Acknowledged
HM Government
Acknowledged
2.1 The government agrees with the Committee’s recommendation. Target implementation date: end December 2023 2.2 If the CMA decision is upheld following appeal, and the charge control comes into effect, there will be scope to reduce local costs for users of the Airwave service and the department will continue to engage with users to determine how best to support user organisations with transition activities. 2.3 Scope for central support is limited by the way government funds are allocated across departments, policy areas and programmes. This will constrain the ability to pass the charge control savings directly onto users. 2.4 The reduced costs of Airwave will result in an overall government saving, rather than a department or programme gain. Funding decisions beyond the financial year 2024/25 are subject to future HM Treasury spending reviews based on the programme’s approved business case. 2.5 The ESMCP is reviewing the business case to reflect the CMA ruling to impose a charge control and procurement of new suppliers. Users are expected to realise savings from reduced Airwave costs. Delayed spend on ESN devices will offset the cost of new Airwave devices. The programme business case includes agreed principles that govern how costs are allocated centrally or to user groups. These principles can be varied only with agreement from all users and funding sponsor bodies. 2.6 The programme is engaging closely with user organisations to provide support for their transition activities, while operating in accordance with Home Office and HMG governance and funding structures.