Police Grant Report

Debate between Lord Beamish and Marcus Jones

Tuesday 5th February 2019 Commons Chamber

[Mr Marcus Jones (Nuneaton) (Con)]

It is good to see my right hon. Friend the Policing Minister on the Front Bench. I have pursued him with vigour for some months on the issue of police funding, including for Warwickshire. I thank him for the efforts he has made, the case he has put to the Treasury and what has been achieved so far, with additional police funding this year of up to £970 million. My constituents will be pleased because we face some significant issues in my constituency at the moment. We suffer a lot of cross-border crime that comes from the larger cities in the west midlands— particularly crimes such as car key burglary, car jackings and burglary—and that has weighed heavily on my constituency in the last two years or so. I am therefore extremely grateful that extra resources will go to Warwickshire police, which it can use to bolster not only its response, but the prevention of those crimes.

Before I talk more about funding, I want to thank the police officers of Warwickshire for their determination and for the hard work they do for the people of Warwickshire. They do not always get it right, but they get it right in the vast majority of situations, which the public appreciate. The public in my area want to work with the police. We have a neighbourhood watch Facebook group made up of 15,000 residents, who provide the police with information about issues across my constituency.

For example, around Christmas time, there was a massive spate of car crime, including car key burglaries. Because of the work of the community and the police together, the person committing those crimes was apprehended. Unfortunately they only admitted to 15 of those crimes and, despite perpetrating a spate of crimes across the area and being a repeat offender, they received a measly three-month sentence. That is not a matter for my right hon. Friend the Minister, but it is certainly one for the Justice Secretary. We must support police in our communities, but our courts and judicial system must also support our police to ensure that when they do their job, they are backed up.

Warwickshire is one of the smallest forces in the country, as the Minister knows. Our police and crime commissioner has been very happy with the last two settlements. He ran a significant consultation with local people on the precept to which 2,400 people responded, the vast majority of whom confirmed that they would be willing to spend an extra £2 per month—£24 a year—to see more police on the streets. As a result of last year’s changes, we see 50 more officers on the streets in Warwickshire. As a result of this year’s changes, we will see another 85 officers and another 15 police staff, including a number of investigators, who are extremely important in bringing offenders to book.

There is a balance to be struck with council tax. The public in my area have been quite content to pay some extra on their council tax in the last two years, but I am not sure that that is a good long-term strategy. Opposition Front Benchers seem to say that council tax takes money from local taxpayers and Government money is not taxpayers’ money, but of course it is all taxpayers’ money, so we need to strike a balance. Any money that the Government or police forces spend is taxpayers’ money.

[Mr Kevan Jones]

Will the hon. Gentleman give way?

[Mr Marcus Jones]

I will not give way because of the time limit that Mr Deputy Speaker said we should observe. We have to get the balance right between the money we collect in national taxes and give to our police service and the money we collect locally.

Finally, I want to mention another local issue that I hope will be picked up in the spending review, which is what I call “Warwexit”. Unfortunately, as the Minister will be aware, the strategic alliance between West Mercia police and Warwickshire police, through which each force has saved £35 million, has been abruptly brought to an end by West Mercia. I hope that in the spending review, the Minister and the Treasury will look carefully at the impact on Warwickshire, bearing in mind that it was not part of bringing the arrangement to an end.

I welcome the settlement. It is a good step in the right direction, but we still need to do more to make sure that our police have the right resources to keep our local population safe.

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[Mr Jones]

I totally agree. The police should be the last resort, not the first, as they are in many cases. The Government cannot cut services and expect the people who use them just to go away.

The right hon. Member for Kingston and Surbiton (Sir Edward Davey) is right. The motion refers to the

“Police Grant Report (England and Wales)”;

it does not say “Police Grant Report (England and Wales) and the ability to raise council tax”. The Government are spinning this as an increase in funding, but it is not. The hon. Member for Nuneaton (Mr Jones) said that we must get the right balance between national and local funding, so I hope that his leaflets will include the fact that he is going to vote for an increase in taxes locally, but I am unsure that they will.

[Mr Marcus Jones]

Will the right hon. Gentleman give way?

[Mr Kevan Jones]

I will not.

Let me turn to what the motion is actually about. Durham police’s budget will not change. In extra core funding and the contribution towards pensions, which has already been mentioned, the force will receive £2.9 million, but all that money will be used to cover pensions, which were until recently the Government’s responsibility. The precept will raise £4 million, but after taking account of inflation, pay increases and increases in fees levied by the Government, there is no extra cash at all.

Somebody referred to the precept as a magic money tree, but that is not the case for forces such as Durham, which gets 75% of its funding from core funding and 25% from the precept. Surrey, for example, receives 55% from the precept and 45% from core funding. The Home Secretary said that police and crime commissioners’ flexibility to increase costs for band D properties will generate £24 per household, but the average in Durham will be £16. Some 55% of properties in Durham are in band A, and only 9% are in band D. We have fewer than 200 band H properties, which the PCC told me raised the great sum of £68,000 last year. That puts authorities such as Durham’s at a disadvantage.

The move away from national funding to an increased reliance on the precept, putting the onus on local tax payers, is not only unfair, but will not raise the same amount of money. Whereas Surrey will benefit from a large increase, deprived communities such as Durham will not be able to raise the same amount. Chief Constable Mike Barton and Police and Crime Commissioner Ron Hogg have raised the matter with the Policing Minister, but we have seen no movement, and it needs to be addressed, particularly if this movement away from national funding for our police forces happens next year as well. As we will see in the following debate on local government funding, under this Government the trend has been to move money away from the most deprived communities to some of the most affluent areas.

We are being asked to vote for an increase in taxation, and I hope that every Conservative Member who votes for the motion will tell their local electorate that. It is not down to the PCCs to make the decision, because they frankly have no choice but to increase the precept. The Home Secretary used the word “flexibility”, but that is complete nonsense, because if PCCs do not raise the precept, they will, in most cases, have to make even deeper cuts, leading to parts of certain areas not being policed at all, which is unacceptable.

As I said, we are being asked to vote for a tax this afternoon, so I will not be supporting the motion. It is unfair regarding how core funding is being distributed under the same formula. If that continues, forces such as Durham, which is high-performing, will be hampered in their ability to deliver such performance, because of the reliance on the council tax precept. The Minister must address that if it is how we are to fund policing in this country. The consensus over many years has been that policing is a national responsibility, and that needs to continue, not be eroded, although that is what the motion will do.

Local Government Funding: North-East

Debate between Lord Beamish and Marcus Jones

Tuesday 1st March 2016 Westminster Hall

[The Parliamentary Under-Secretary of State for Communities and Local Government (Mr Marcus Jones)]

As always, it is a pleasure to serve under your chairmanship, Sir David. I congratulate the hon. Member for Darlington (Jenny Chapman) on securing the debate. It is my pleasure to be able to respond and I thank hon. Members for their valuable contributions.

I recognise that councils throughout the country have been fully dedicated to improving local services in a very challenging environment. It was absolutely right that we listened to local authorities and to Members of this House during the local government finance settlement consultation. We have done our utmost to ensure that the settlement is right and fair for all. The distribution of funding has recently been discussed at length in this House, alongside the overall level of resources available to local government. The hon. Lady called today’s debate to discuss local government funding for the north-east, but it is important to place that in the national context of what the Government are working to achieve.

Local authorities account for a quarter of all public spending, so it has always been clear that they would have to play their part in reducing what was the largest deficit in post-war history. Last autumn, the Government’s spending review set out clearly how savings must be made over this Parliament to ensure that we finish the job of eliminating the remaining deficit and what that will mean in terms of overall council funding. In real terms, councils will be required to save 6.7% over the spending review period. At the 2010 spending review, a reduction of 14% was announced, so the pace of spending reductions has slowed significantly for this Parliament, as the Institute for Fiscal Studies has acknowledged.

In cash terms, when we look at the overall core resources available to local government in the finance settlement, core spending power is virtually unchanged over the spending review period. Councils will receive £44.5 billion in 2015-16 and £44.3 billion in 2019-20. Furthermore, we have tried to be as fair in regard to distribution as possible, making reasonable assumptions that understate the maximum resources available to councils. For example, in line with the Office for Budget Responsibility, we assume that council tax will increase with inflation, not by the referendum threshold of 2%. If we had assumed the maximum figure, more than a quarter of a billion pounds extra in resources would have been available. We have been clear: yes, further savings are required, and councils have recognised that, but we have taken important steps to help councils make those savings.

[Mr Kevan Jones]

I do not know what colour the sky is in the Minister’s world. What is fair about north-east councils—Durham, Newcastle and others in the figures I read out—having 4% cuts in their budgets this year when Surrey has less than a 1% cut and Wokingham’s cut is even less than that? How can that be fair, given the demands on services faced by Durham compared with places such as Surrey? Is it just a coincidence that 85% of the councils who gain from his transitional arrangements happen to have Tory MPs?

[Mr Marcus Jones]

The average spending power per dwelling for the 10% most deprived authorities is about 23% more than for the 10% least deprived authorities in this coming year. Opposition Members have mentioned several times an assertion about the transitional grant. The grant was based firmly on the local government finance settlement, the consultation we undertook and the responses from the consultation. There were a significant number of responses and a call for some sort of transitional grant to support those areas that had lost the most central Government grant compared with the amount expected based on the old redistribution formula.

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[Mr Marcus Jones]

That is why generally, as I said, the areas that have been referred to in the debate that are receiving transitional grant had a higher reduction in revenue support grant than areas such as that represented by the hon. Gentleman. He and a number of his colleagues have taken a dim view of the north-east in relation to its ability to move forward as an economy and create business rate revenue and additional council tax.

To take the constituency of the hon. Member for Hartlepool (Mr Wright), for example, thanks to the business rate retention scheme during 2014-15 there was a 14.6% increase in revenue. To pick up on a point he made, we will move to full business rate retention in 2020, but before that there will be a consultation on how we deal with redistribution. We understand and accept that in some places significantly more business rates are collected than in others.

The approach we have taken in this historic settlement is aimed at supporting those areas with the greatest pressures and providing councils with the certainty they need as we move towards a system of greater devolution. The settlement allocates funding on the basis of the core resources available to local authorities, taking into account councils’ business rates and council tax as well as their revenue support grant. It ensures that councils that deliver the same set of services will receive the same changes in core funding for those services.

[Mr Kevan Jones]

Will the Minister give way?

[Mr Marcus Jones]

I will in a moment. That is fair and that fact was recognised by Middlesbrough Council in its response to the consultation on the settlement.

We have also provided councils with unprecedented levels of certainty. Our historic offer of a four-year settlement answers calls from councils to allow them to plan over the long term, giving them the certainty required to create greater efficiencies. That has been welcomed by councils across the country, including those in the north-east such as Durham County Council and Newcastle City Council.

[Mr Kevan Jones]

Will the Minister give way?

[Mr Marcus Jones]

I have already given way; I am going to make some progress.

Councils now have the opportunity to smooth their path over four years, using reserves where necessary and if they so wish. Even so, we have not made any assumptions that councils will use reserves in any published figures. Despite giving this opportunity, we have made no assumptions that councils will use their reserves in any published figures.

The settlement also responds to the clear call from all tiers of local Government and from many of my colleagues in the House to recognise the priority and increasing cost of caring for our elderly population. As such, we have made up to £3.5 billion available by 2019-20 for adult social care through a dedicated social care precept of up to 2% a year and the improved better care fund. That is significantly more than the amount asked for by the Local Government Association and the Association of Directors of Adult Social Services. We have proposed that the additional better care fund money should be distributed to complement the new council tax flexibility, so more will go councils that can raise the least from that flexibility. We will, however, consult colleagues in local government on that in due course.

We have also prioritised housing. The new homes bonus was due to come to an end, but it has been a useful contributor to the increase in planning permissions being granted. Payments since its introduction in 2011 total just under £3.4 billion, reflecting more than 700,000 new homes and conversions and more than 100,000 empty properties brought back into use.