Employer National Insurance Contributions: Police Forces

Adam Jogee Excerpts

Tuesday 11th February 2025 Westminster Hall

[Esther McVey]

I am afraid I will not.

I understand that the Government say that they will pick up the £230 million tab, but that still means that the Government will be paying a tax bill rather than having money to spend on frontline police. Last month, we heard the Home Secretary announce a £200 million boost to neighbourhood policing to fund the recruitment of 13,000 new neighbourhood police officers, as the Government said before the election, although they had been very quiet on that for a long period of time.

I wonder whether the Government can do that. The numbers are very similar: £200 million for 13,000 new neighbourhood police officers, yet they have given themselves a £230 million a year tax bill. Will those 13,000 neighbourhood police officers ever materialise? In her summing up, will the Minister say what will happen, particularly in light of the national insurance contribution black hole, as those national insurance contributions are to be paid year in, year out? Will the Government pay for those police officers, year in, year out? If so, what will be the amount paid during a whole Parliament? Where will that money come from?

I urge the Government and the Chancellor, through the Minister, to stop this ill-thought-through, ham-fisted Budget change to employer national insurance contributions. The only solution to the problem—

[Adam Jogee (Newcastle-under-Lyme) (Lab)]

On that point, will the right hon. Lady give way?

[Esther McVey]

Can I finish my sentence? There is only one solution to the problem that will have the correct consequences: scrap the diabolical tax on our police forces.

[Adam Jogee]

I am grateful to the right hon. Lady for giving way. I want to say two quick things. First, my grandmother was born and raised in Birkenhead, so we have some common heritage. Secondly, the right hon. Lady just said that certain Labour Members are driven by ideology, but I want it to be noted that I am driven by a love of country and, in this context, by being tough on crime and on the causes of crime. I thought it was important to provide that clarification for the House.

[Esther McVey]

I thank the hon. Member for saying that. I hope he too shares my delight that Liverpool is top of the football division as well. We all should share a love of this country, and we should all want the best for this country. I too want a safe country, so it is vital that the money goes to the police and the police forces to ensure that happens, and not on increased tax bills. That is why I am asking for this ham-fisted tax increase to be reversed.

--- Later in debate ---

[Matt Vickers (Stockton West) (Con)]

Thank you, Dr Allin-Khan, for chairing this debate. I also thank my right hon. Friend the Member for Tatton (Esther McVey) for securing this important debate, and for all her work in raising awareness of this issue and its consequences.

The last Government recruited 20,000 more police officers, ensuring that there were more police officers on our streets than ever before. Why would anyone think that the solution to any problem would be a tax raid on our police forces? Any MP who has engaged with their PCC or chief constable knows that the funding settlement put forward for local police forces by this Government is entirely inadequate. Just the other week, when questioned by Nick Robinson about the absurd tax raid on local police forces and the fact that the police funding settlement will cut the number of police on our streets, the Minister conceded that she was not going to pretend that it is not challenging for police forces.

Since then, the Government have painted a different picture, understating the impact that this could have on our police forces and on police numbers. At first glance, the settlement may appear generous in cash terms. However, there is a sleight of hand. The Government are claiming to have increased police funding by £1.09 billion, masking their tax raid on our police forces and their failure to build police pay awards into the baseline. The previous Conservative Government provided in-year funding for PCCs to cover the police pay award, adding this to the baseline for subsequent years. By contrast, the in-year adjustment for this year’s pay settlement was not added to the baseline, so about £200 million of the apparent increase this year simply makes up for that omission.

Furthermore, as hon. Members have said, some £230 million of this apparently generous settlement will go straight back to the Treasury to pay for the Government’s national insurance tax raid on our local police forces. The Government are literally taxing the police off our streets. Therefore, about £430 million of this apparently generous increase just makes up for the Government’s choices. Adjusting for that, the increase in funding for policing next year is not £1.09 billion, but more like £660 million, or nearly £300 million less than the last increase under the previous Government. Make no mistake: this tax raid on local police forces, created by our own Government, will have real consequences for communities across England and Wales.

There are estimates that the shortfall in police funding could see 1,800 fewer police on our streets. My force, Cleveland police, has already been placed under special measures, with a recent report from His Majesty’s inspectorate of constabulary and fire and rescue services giving it an inadequate rating for responding to children at risk of harm and for investigating child abuse, neglect and exploitation. It is deeply concerning and entirely unacceptable that vulnerable young people are being let down in such a way. Protecting children should be a priority for the Labour Government and for Cleveland’s Labour police and crime commissioner. These children deserve better. Does the Minister agree that creating a shortfall in funding for a force could lead to more failures in responding to and investigating child abuse, neglect and exploitation in Cleveland?

[Adam Jogee]

The shadow Minister knows I am a reasonable man, and I am not going to engage in partisan games for the fun of it—not all the time, anyway—but I want to draw him back to his use of the word “inadequate” to describe the settlement. Will he confirm that, if he had been the Policing Minister, the settlement would have been higher, and if so, how would that have been paid for?

[Matt Vickers]

As the hon. Member will have seen, in previous years, we were increasing the funding by more. In fact, last year we increased by £300 million more than what Labour is doing this year. We were not raiding our police forces with national insurance tax raids; we were putting the pay award into the baseline. I would be wasting less money on GB Energy. I would not be looking to give train drivers on £55,000 a year a bumper pay rise of almost £10,000, with no efforts to increase productivity. It is about priorities. Policing was a priority for the Conservative Government. That is why 20,000 more police officers were put on the streets, reaching record numbers.

The Government have pointed to their promise to recruit 13,000 new neighbourhood police officers, but we all know that a relatively small number—just 3,000—are new officers. Most of the claimed 13,000 are either reassigned or redeployed, are part-time volunteers or are police community support officers with no powers of arrest. That redeployment is concerning for many. Will the Minister assure MPs that when their constituents ring 999, they will not have to wait longer for an emergency response because response officers have been redeployed to neighbourhoods? Will she guarantee that police numbers will not fall any lower than the current level as a result of her funding settlement?

Given the nature of modern policing and overtime, to what extent did the Government consider the impact of overtime on the increased national insurance cost, and could there be a further shortfall as a result? We owe a huge debt of gratitude to our brave, hard-working police officers, PCSOs and police staff. They deserve resources and support, not tax raids and funding shortfalls.