http://www.west-midlands-pa.gov.uk/d...ir_Service.pdf
Finance and Resources Committee 19 January 2012
NATIONAL POLICE AIR SERVICE
Report of the Chief Constable and Treasurer
.
.
.
NPAS FUNDING MODEL
Capital
5. Previous financial models have been based on transferring ownership of the helicopter asset to NPAS, with a complicated ‘capital credit’ and ‘capital contribution’ to reflect the loss of an asset and the cost of funding a replacement.
6. However, this is no longer the preferred option and the latest proposed funding model does not require transfer of ownership. The current proposal is to top slice capital grant at a national level and redirect capital grant directly to NPAS to fund asset purchase and replacement. There is currently £12m of capital grant allocated to NPAS, and this new approach would see an additional £22m of capital grant redirected out of force allocations to NPAS over the remaining three years of the CSR.
7. The impact on West Midlands of this top slice is that capital grant allocations are reduced by £1.15m over three years. This needs to be balanced against the removal of the previous ‘capital contribution’ of £0.95m over the three years. The net position therefore is that the top slice is £0.2m higher than the capital contribution would have been. Whilst not hugely material to the overall capital resources available to the Authority, it is worth noting that for 27 forces the top slice is less than the capital contribution would have been and hence they have gained from the change in approach.
8. As the asset will now not be transferred to NPAS the ‘capital credit’ mechanism will also not apply, however West Midlands Police will receive the proceeds from the disposal of the helicopter at the end of it’s life. This will provide a capital receipt and should not generate any cost.

Revenue
9. The underlying principle of NPAS is that every force will pay less for air support than
they currently do (based on 2009/10 figures). An update of revenue costs is expected in the first week of January and a verbal update will be provided at the meeting. However, the latest information we have is that the revenue cost of NPAS to West Midlands Police will be £1.8m compared to the existing budget of £1.9m, thus resulting in a saving of £0.1m.