(13 years ago)
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The Minister for Policing and Criminal Justice (Nick Herbert)
I have today placed in the Library my proposals for the aggregate amount of grant to police authorities (referred to in the report as the police core settlement) in England and Wales for 2012-13, for the approval of the House. The indications I gave last year for revenue funding in 2012-13 have remained unchanged and are set out in table 3.
Today the Department for Communities and Local Government also published proposals for the distribution of formula grant to English local authorities for 2012-13. The Welsh Government will shortly be setting out their proposals for the allocation of funding in 2012-13 for the four police authorities in Wales.
Overall police settlement
As set out in the Chancellor’s autumn statement on 29 November, public sector pay awards win average at 1% for the last two years of the spending review period. As a result, the Home Office budget will be adjusted in line with this policy. Subject to any recommendations from the police negotiating board and agreement on staff pay, we expect that this policy should also apply to the police. This revision should not reduce the overall revenue spending power of the police service. I will make decisions on damping levels for these years at a later date.
For 2012-13 I have applied damping as previously announced at the time of the spending review.
The total cash reduction in Government funding to the police remains at 5% this year.
I will continue to provide a specific neighbourhood policing fund for 2012-13. This recognises that neighbourhood policing provides a dedicated, consistent and visible presence in communities. From 2013-14 this funding will be rolled into the police main grant, enabling the new directly elected police and crime commissioners to have full discretion over their funding, recognising their accountability to the communities they serve. In London, the Metropolitan Police Authority received autonomy over this funding from 2011-12, in recognition of the role the Mayor of London and the Deputy Mayor, policing already play. That will continue in 2012-13.
I win also continue to provide specific funding for counter terrorism policing and have provided relative protection to this budget throughout the spending review period to ensure that critical national counter terrorism capabilities are maintained. Authorities and forces will receive their specific counter terrorism allocations in January.
In addition to the police core settlement, the Olympic safety and security budget has been prioritised. These provisions are detailed below.
The introduction of Police and Crime Commissioners
During 2012-13 the public will elect their first police and crime commissioners in England and Wales. It is the will of the House that police authorities will be replaced on the 22 November 2012 with directly elected individuals who will have the statutory duty to deliver an efficient and effective police force, which clearly demonstrates value for money and, above all, delivers policing and community safety services in the local and national interest of the communities within their force area. The precept that police authorities will set for 2012-13, will not be affected by the election of police and crime commissioners in November 2012. Once elected police and crime commissioners will begin to prepare their police and crime plan and budget for 2013-14.
Some £50 million was set aside for 2012-13 to fund the first elections of police and crime commissioners. This £50 million was added to the police settlement for this specific purpose. Additional funding has been set aside now that the 2012 elections are being held in November. The funding of the elections has had no impact on the amount of funding available to forces over the four-year period of PCC office and we expect it to represent no more than 0.15% of annual police funding.
The Police Grant Settlement 2012-13
I have set out below how I propose to allocate the police settlement between the different funding streams in 2012-13.
2012-13 £m | |
|---|---|
Total Formula Funding | |
Comprising: | |
Home Office Police Main Grant | 4,251 |
National, International and Capital City Grant (MPA/MoPC only) | 189 |
DCLG General Grant | 3,213 |
Of which council tax (11-12) freeze grant | 75 |
WAG General Grant | 151 |
Total Home Office Specific Grants | |
Comprising: | |
Welsh Top-up | 13 |
Neighbourhood Policing Fund (NPF) | 338 |
Counter Terrorism Specific Grant | 564 |
PCC Elections | 50* |
PFI Grant | 54 |
Total Government Funding | 8,830** |
% Cash Change in Total Government Funding | -5% |
*Any additional funding required will be provided from outside the police settlement. **This includes a small amount of funding that will form part of a contingency fund, which is not shown in the table above. |
Provisional allocations of these grants (with the exception of counter-terrorism funding) for each force in England and Wales for 2012-13 are set out in table 3.
Neighbourhood Policing Fund
The neighbourhood policing fund specific grant will continue until 2013-14, when directly elected police and crime commissioners will be in place. Funding totalling £338 million in 2012-13 win be made available. Approximately 90% of the grant will be ring-fenced for police and community support officers (PCSOs)— contributing up to 75% of their salary costs. The remaining 25% will need to be match-funded by the police, councils, businesses and other organisations. This does not apply to the Metropolitan Police Authority/Mayor’s Office for Policing and Crime which has had full discretion on the spending of this funding from 2011-12. From 2013-14 this fund will be consolidated into police main grant.
Counter Terrorism
Counter-terrorism has been prioritised to ensure that the police will have the necessary resources to respond to the changing demands posed by the terrorist threat. We have allocated £564 million to support counter terrorism policing in 2012-13.
Forces will be notified of their individual allocations in early January. For security reasons, these allocations will not be available in the public domain.
Private Finance Initiatives Grant
Specific funding will be given to cover the costs of police private finance initiative projects which are currently operational. This funding was added to the police settlement for this specific purpose. The Home Office will also support the two police PFI projects that are currently in procurement, and which are not yet operational.
National, International and Capital City Grant
The national, international and capital city grant will be paid to the Metropolitan Police Authority/Mayor’s Office for Policing and Crime in 2012-13 when the funding will be £189 million.
Council Tax Freeze
The Government announced a council tax freeze in England for 2011-12 which all police authorities in England accepted. As a result, they are all receiving a grant equivalent to a 2.5% increase in their 2010-11 precept. This grant has been baselined and will continue to be paid to all police authorities in each year of this spending review period.
The Government have recently announced help for local authorities in England, including police authorities, to freeze their council tax for a further year. Police authorities which decide to freeze or reduce their council tax in 2012-13 will receive additional one-off funding, equivalent to raising their 2011-12 precept by 3%.
Council tax referendums
The Localism Act 2011 includes powers, already used, to abolish capping in England and to introduce arrangements for council tax referendums. A referendum will take place if an authority, including a police authority, proposes a percentage increase in council tax that exceeds the level agreed by the House of Commons. These provisions will be implemented for 2012-13 and the Secretary of State for Communities and Local Government, in consultation with the Home Secretary, has today given an indication of the principles he is minded to propose for 2012-13. After considering any representations from authorities he will set out the final principles in a report to the House and seek approval for these in parallel with the final report on the local government finance settlement.
In Wales, council tax capping is the responsibility of Welsh Ministers.
Other funding
Police Capital
I am minded to amend the capital allocations for police authorities in order to support the establishment of the National Police Air Service. I will consider carefully any representations on this matter before taking my decision in time for the final settlement debate in February 2012. This change would mean that the proportion of police capital that goes to the NPAS would be increased to £10.8 million in 2012-13—£6 million more than I suggested this time last year. These proposed figures are set out in table 2.
2012-13 £m | 2013-14 £m | 2014-15 £m | |
|---|---|---|---|
Capital Grant | 118 | 106 | 109 |
National Police Air Service | 11 | 13 | 10 |
Special Grant Capital | 1 | 1 | 1 |
Total | 130 | 120 | 120 |
I still intend to allocate the majority of capital funding directly to police authorities and the Metropolitan Police Authority/Mayor’s Office for Policing and Crime, who will all receive the same percentage change in funding. I will also continue to maintain a capital contingency. These proposed allocations are set out at table 4.
Olympic Safety and Security
Delivering a safe and secure games remains a priority for the Government. With eight months to go, the policing and wider security programme is progressing well, with many aspects already operational.
The Government announced last year that £600 million will be available for safety and security during the London Olympics in 2012. However, the Government are confident they can deliver this for around £475 million.
2012-13 | |||||
|---|---|---|---|---|---|
Police Authority | HO Core | NPF | Welsh Top-up | WAG | CLG (including CT freeze) |
£m | £m | £m | £m | £m | |
Avon & Somerset | 112.7 | 7.3 | 0.0 | 0.0 | 62.5 |
Bedfordshire | 40.8 | 2.7 | 0.0 | 0.0 | 28.2 |
Cambridgeshire | 50.0 | 3.6 | 0.0 | 0.0 | 29.0 |
Cheshire | 64.3 | 4.8 | 0.0 | 0.0 | 51.6 |
City of London | 30.2 | 1.3 | 0.0 | 0.0 | 27.3 |
Cleveland | 47.5 | 2.9 | 0.0 | 0.0 | 44.4 |
Cumbria | 30.5 | 2.3 | 0.0 | 0.0 | 34.9 |
Derbyshire | 65.0 | 3.7 | 0.0 | 0.0 | 44.5 |
Devon & Cornwall | 110.5 | 7.5 | 0.0 | 0.0 | 70.3 |
Dorset | 42.4 | 3.2 | 0.0 | 0.0 | 21.3 |
Durham | 44.3 | 3.3 | 0.0 | 0.0 | 42.4 |
Dyfed-Powys | 32.1 | 1.6 | 6.3 | 15.7 | 0.0 |
Essex | 109.5 | 7.2 | 0.0 | 0.0 | 63,6 |
Gloucestershire | 36.2 | 3.2 | 0.0 | 0.0 | 22,2 |
Greater London Authority | 1051.6 | 101.3 | 0.0 | 0.0 | 854.5 |
Greater Manchester | 230.2 | 17.3 | 0.0 | 0.0 | 209.8 |
Gwent | 44.7 | 2.9 | 0.0 | 33.0 | 0.0 |
Hampshire | 128.1 | 7.6 | 0.0 | 0.0 | 72.4 |
Hertfordshire | 73.9 | 5.3 | 0.0 | 0.0 | 43.5 |
Humberside | 69.5 | 4.7 | 0.0 | 0.0 | 53.3 |
Kent | 109.5 | 8.0 | 0.0 | 0.0 | 78.8 |
Lancashire | 105.7 | 8.2 | 0.0 | 0.0 | 89.2 |
Leicestershire | 67.3 | 4.7 | 0.0 | 0.0 | 46.4 |
Lincolnshire | 39.8 | 2.9 | 0.0 | 0.0 | 24.2 |
Merseyside | 127.0 | 9.8 | 0.0 | 0,0 | 127.6 |
Norfolk | 53.7 | 3.9 | 0.0 | 0.0 | 32.4 |
North Wales | 46.2 | 3.3 | 6.5 | 24.8 | 0.0 |
North Yorkshire | 43.9 | 3.4 | 0.0 | 0.0 | 31.3 |
Northamptonshire | 45.2 | 3.0 | 0.0 | 0.0 | 28.1 |
Northumbria | 115.0 | 8.9 | 0.0 | 0.0 | 120.1 |
Nottinghamshire | 80.7 | 5.5 | 0.0 | 0.0 | 54.9 |
South Wales | 92.7 | 6.7 | 0.0 | 77.6 | 0.0 |
South Yorkshire | 102.7 | 6.6 | 0.0 | 0,0 | 90.1 |
Staffordshire | 68.6 | 4.5 | 0.0 | 0,0 | 47.8 |
Suffolk | 42.8 | 3.1 | 0.0 | 0.0 | 26.5 |
Surrey | 65.0 | 4.4 | 0.0 | 0.0 | 35.7 |
Sussex | 101,1 | 7.2 | 0.0 | 0.0 | 64.2 |
Thames Valley | 147.0 | 9.1 | 0.0 | 0.0 | 87.4 |
Warwickshire | 32.7 | 2.8 | 0.0 | 0.0 | 19.8 |
West Mercia | 68.6 | 5.3 | 0.0 | 0.0 | 51.1 |
West Midlands | 252.9 | 15.9 | 0.0 | 0.0 | 213.5 |
West Yorkshire | 179.3 | 14.3 | 0.0 | 0.0 | 143.4 |
Wiltshire | 38.7 | 2.8 | 0.0 | 0.0 | 24.8 |
Total England and Wales | 4440.1 | 338.0 | 12.8 | 151.0 | 3213.2 |
Police Authority | 2012-13 | 2013-14 | 2014-15 |
|---|---|---|---|
£m | £m | £m | |
Avon & Somerset | 2.6 | 2.3 | 2.4 |
Bedfordshire | 1.1 | 1.0 | 1.0 |
Cambridgeshire | 1.3 | 1.2 | 1.2 |
Cheshire | 1.7 | 1.5 | 1.5 |
City of London | 0.9 | 0.8 | 0.9 |
Cleveland | 1.3 | 1.2 | 1.2 |
Cumbria | 0.9 | 0.8 | 0.9 |
Derbyshire | 1.6 | 1.4 | 1.5 |
Devon & Cornwall | 2.8 | 2.5 | 2.6 |
Dorset | 1.1 | 1.0 | 1.0 |
Durham | 1.3 | 1.1 | 1.2 |
Dyfed-Powys | 0.8 | 0.7 | 0.8 |
Essex | 2.4 | 2.2 | 2.2 |
Gloucestershire | 1.0 | 0.9 | 0.9 |
Greater Manchester | 6.0 | 5.4 | 5.5 |
Gwent | 1.2 | 1.0 | 1.1 |
Hampshire | 3.0 | 2.7 | 2.8 |
Hertfordshire | 1.5 | 1.4 | 1.4 |
Humberside | 1.8 | 1.6 | 1.7 |
Kent | 2.8 | 2.5 | 2.5 |
Lancashire | 2.8 | 2.5 | 2.6 |
Leicestershire | 1.8 | 1.6 | 1.6 |
Lincolnshire | 1.0 | 0.9 | 0.9 |
Merseyside | 3.5 | 3.1 | 3.2 |
Metropolitan | 31.3 | 28.1 | 29.0 |
Norfolk | 1.4 | 1.2 | 1.3 |
North Wales | 1.2 | 1.1 | 1.1 |
North Yorkshire | 1.1 | 1.0 | 1.0 |
Northamptonshire | 1.1 | 1.0 | 1.0 |
Northumbria | 3.3 | 2.9 | 3.0 |
Nottinghamshire | 1.9 | 1.7 | 1.8 |
South Wales | 2.5 | 2.3 | 2.3 |
South Yorkshire | 2.8 | 2.5 | 2.6 |
Staffordshire | 1.8 | 1.6 | 1.6 |
Suffolk | 1.1 | 1.0 | 1.0 |
Surrey | 1.6 | 1.4 | 1.5 |
Sussex | 2.3 | 2.1 | 2.2 |
Thames Valley | 3.8 | 3.4 | 3.5 |
Warwickshire | 1.1 | 1.0 | 1.0 |
West Mercia | 1.9 | 1.7 | 1.7 |
West Midlands | 6.3 | 5.7 | 5.9 |
West Yorkshire | 4.6 | 4.2 | 4.3 |
Wiltshire | 1.0 | 0.9 | 1.0 |
Total England and Wales | 118.2 | 106.0 | 109.3 |