West Midlands Police (Funding)

Andrew Mitchell Excerpts

Wednesday 9th September 2015 Westminster Hall

[Richard Burden]

My hon. Friend is right: West Midlands police really has been hit disproportionately. For example, compare West Midlands police with Surrey police, which has seen its total income fall by 12%. As my hon. Friend said, West Midlands police has already lost 23%, despite recorded crime having risen in the west midlands and fallen in Surrey. The cap on council tax rises, along with the huge costs associated with a referendum to go above that cap, leaves West Midlands police with no ability to mitigate cuts to the central Government grant in the same way that other forces sometimes can.

[Mr Andrew Mitchell (Sutton Coldfield) (Con)]

I congratulate the hon. Gentleman on securing this debate. It is an important issue that he is right to raise. I want to make two points. First, West Midlands police deserves to be congratulated on the 17% reduction in crime that I understand it has achieved. Secondly, will the hon. Gentleman say a little more about the extraordinary position in which we find ourselves, whereby the amount of the subvention from central Government is far higher than for any other force, apart from Northumberland, and the precept is very much lower? Most of our fellow citizens in similar cities—if one can say there are similar cities to Birmingham—are paying much more. That is an established fact, but it would be very helpful if the hon. Gentleman could discuss the options for remedying that.

[Richard Burden]

The right hon. Gentleman is quite right—that is what I touched on earlier. The fact that we start with a lower council tax base means that we are more reliant on the central Government grant, so it is much harder to mitigate or to compensate for the effect of flat-rate cuts. I will come to crime levels, particularly the levels for different kinds of crimes, in a minute.

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[Richard Burden]

My hon. Friend is right on both points. First, the impact of formula damping is a problem. Everyone seems to recognise that, but then nothing is done about it, so I hope that the Minister will reassure us on that. Secondly—I hope that the Minister will say something about this as well—the current consultation is also important, because some of the scenarios could hit the west midlands very hard indeed. I will say something about that in a little while. Suffice it to say that, if the funding was increased by just £10 million to compensate for the formula damping problem, that would still leave West Midlands police hit three times as hard as any other force, but we could recruit 450 additional police officers. Instead, £43 million is given to other forces. I understand the problems when formulae change and the effects have to be smoothed, but the reality is that other forces will get more funding than the Government’s formula says they need and West Midlands police will get less.

At this point, I want to note that in the individual force assessments for handling austerity, Her Majesty’s inspectorate of constabulary rated West Midlands police as outstanding. Credit for that is due first, and most importantly, to the officers and staff of West Midlands police. It is also important to mention the contributions of the late Bob Jones, the former police and crime commissioner, and David Jamieson, the current PCC, as well as that of Chief Constable Chris Sims, who will soon be retiring—we should thank him for his work during his time in the west midlands.

It is important that policy makers listen to people such as those I have just mentioned, because they are not crying wolf; they are raising legitimate concerns about the sustainability of the police service in the west midlands. Were the existing formula regime to continue, the force would expect to lose a further £100 million over the coming years. That would mean that a further 2,500 officers, police community support officers and staff would be set to go. At the end of the decade, West Midlands police would be expected to be smaller than when it was established back in 1974. In a moment, I will give more detail about the demands facing the force, which were mentioned by my right hon. Friend the Member for Warley (Mr Spellar), but for now I will simply say that crime is often more complex and sophisticated now than it was in the ’70s. Will the Minister tell us what the Government are doing to ensure that West Midlands police gets a fair deal to halt the huge drop in officer numbers that it is facing?

Given the categorical unfairness of the existing regime, I think that many colleagues present, from both the Government and the Opposition, were encouraged when the Government finally announced a review of the current formula. That should have been good news. The problem is that the Home Office has refused to publish any detailed exemplifications or impact assessments using its proposed models. We are already seeing the Government’s attempt to have an open discussion, which they say they wanted, starting to unravel. How can anybody offer an informed judgment to the consultation without the full information? As was reported in The Guardian at the weekend, even attempts to get figures via a freedom of information request have been rejected.

Thanks to the revelations published by the same newspaper, forces may still have time to review the implications of the new formula just before the consultation closes next Wednesday. Early analysis of the modelling suggests that there are several serious concerns about the Home Office’s approach that are likely to disadvantage our region even more. Based on modelling of the new funding formula by the Police and Crime Commissioners Treasurers’ Society, West Midlands police could lose more than 25% of its current funding. That is on top of the existing 40% cut, to which my hon. Friend the Member for Birmingham, Selly Oak (Steve McCabe) alluded. Before the end of the decade, that could leave the force with a budget smaller than the fixed costs for the officers it already has.

[Mr Mitchell]

The hon. Gentleman is being most generous in giving way and is making an important speech. May I press him further about the budget and funding? Does he believe that the precept should rise or does he think that the Government should continue to give more of a subvention because we are providing a smaller precept locally? It is important to address that point, so that we have it clear and in the open.

[Richard Burden]

I will say two things in response to the right hon. Gentleman. First, tackling the question of the precept and the relative level of the council tax base is a long-term issue. It raises fundamental questions about how much it is legitimate to raise locally, as opposed to being dependent on central Government grants, when funding local government and other local services. That brings with it issues of how to compensate for particular levels of deprivation and so on, but he is right that it is a vital discussion, which goes beyond police funding.

In relation to this debate, however, we are where we are. We have a lower council tax base and are disproportionately dependent on central Government grants. Unless central Government formulae recognise that and respond to it, we will not be able to move forward.

[Richard Burden]

That is saying perhaps a little more bluntly what I meant when I said that we are where we are. The Government must listen to the implications of their own policies.

My hon. Friend mentioned referendums. Let us say that we in the west midlands decided that, as the Government will not change their mind, despite our low council tax precept and so on, we should have a referendum. Where would that funding come from? It would come from the police budget, and we would lose even more as a consequence.

[Mr Mitchell]

I am stunned at the suggestion that I might have made a spurious point. It would be perfectly fair for the Minister, in seeking to confront the funding difficulties that we all agree exist, to ask whether senior politicians in Birmingham, such as the hon. Gentleman, believe that the Government should continue to give far more as a proportion because the precept in Birmingham is so low or whether senior local politicians believe that that needs to change and that the Government should not immediately assume that the wider taxpayer will provide an extra amount because the precept is so low. I am only trying to ensure that the hon. Gentleman is making a point of principle and is not simply asking the Minister for more money without expressing a view.

[Richard Burden]

I hope that it was clear from what I said at the outset that if a region has higher needs and a lower capacity to meet those needs locally, an important part of which is the level of the council tax precept, the Government should not ignore that problem. The formula should take account of that kind of thing, and the support should reflect the region’s needs and its lower capacity to raise money, which is partly a result of deprivation and the historical level of the council tax precept. As I said, if we decided to try to go for a higher council tax precept, the police force would have to pay for the referendum, which is patently unfair.

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[Julian Knight]

That is a matter for local decision makers—just as it is a matter for them that they have not increased the precept over previous years. The hon. Gentleman used the word “spurious” before, but frankly the only spurious argument put forward so far has been that used by Opposition Members—that the referendum costs would be so prohibitive that one could never actually happen. If the argument is that a precept increase would spark a level of council tax sufficient to require a referendum automatically, I suggest that it would be up to the local decision makers, councillors and politicians to put the strong case for why—which is, in effect, that the West Midlands force is playing catch-up.

[Mr Mitchell]

I have the greatest respect for the hon. Member for Birmingham, Selly Oak (Steve McCabe), but I asked whether the Opposition favoured national subvention or a greater contribution from local resources—merely to flush out Labour’s thinking on funding—so for him to put the same question to my hon. Friend and then look rather askance when he does not answer shows, if I may say so, a bit of brass neck. This is an important point: we are asking those who want to see an increase—we all want to see the West Midlands police properly funded—where they think it should come from and in what proportion. So far we have not had an answer from the Opposition, although I have no doubt at all that my neighbour, the hon. Member for Birmingham, Erdington (Jack Dromey), will give us precisely that answer when he speaks in the debate.

[Julian Knight]

I concur with my right hon. Friend’s thoughts in that respect. The realities are that when we want to discuss financing and to argue a case with Ministers, we have to show a route map towards future decisions. We have to show a way in which we are ultimately going to wean ourselves off the precept. Shouting about it, saying, “Woe is me!” and making party political points will do no good in achieving what we want, which is—this is the bottom line—the best possible funding deal for West Midlands police. I hope everyone in the Chamber would agree with that.

The west midlands should be allowed to show clearly how it will redress the balance between precept and central Government funding for the police. Let me use the example of the BBC, an institution that I have touched on once or twice in recent debates. That organisation’s model of funding is not fit for purpose, but it has been allowed an opportunity, in the charter renewal, to show how it will correct itself. I am asking for the same consideration to be given to West Midlands police. After all, the police are more important to our way of life than whether BBC4 or the BBC website exists. The long-term objective has to be that local decision makers must show a route map away from the existing levels of precept funding. That has to form part of the negotiations, so that we do not end up with any formula that dramatically cuts funding to the police. We need a gradual process of retrenchment by central Government, with more of the burden being put on the local area.