Police Pension Liabilities

Andrew Selous Excerpts

Tuesday 6th November 2018 Commons Chamber

[Mr Hurd]

It would have been nice to hear from the Labour Front-Bench spokesperson some commitments or some recognition of the need to keep our public sector pensions properly funded and long-term affordable. I am sure that other Labour MPs will want to take the opportunity to make that clear to their constituents. That was one of the most disgraceful pieces of shroud-waving that I have heard, even from Labour Members. The hon. Lady knows the reality, because I am sure that she has studied Budget 2016 in detail. In it, the Treasury made it quite clear that there were likely to be changes to the discount rate that applies to public pensions.

What has changed is the independent Office for Budget Responsibility’s projection for GDP growth, which changes the discount rate that applies. That is a change, and I fully accept—the hon. Lady has heard me say this publicly—that it has resulted in an unbudgeted cost for the police of around £165 million next year. That is a serious issue—she has heard me say that publicly as well. I set that alongside other serious issues facing the police, such as the significant shift in demand and pressure on them, which we have recognised. We are working extremely hard with the police and the Treasury to find a solution.

What I would say to the hon. Lady is that, as a result of the action that this Government have taken on the economy, we are now in much better shape to resume our investment in policing. That is why, in this year, we have taken steps that have resulted in £460 million-worth of additional public money going into our policing system—the police settlement that Labour MPs voted against. We are on track to invest more as a country in our policing than promised under Labour, so she needs to be very careful about what she says about projections in this context.

Finally, as a London MP, I take offence at the hon. Lady’s statement about complacency on serious violence. She knows, because I know how seriously she takes this job, that we are dealing with one of the most serious challenges that this society faces. We have beaten it before, 10 years ago, but we know that it is not simple. We know that it involves complex, long-term work, which is why, under this Home Secretary, our ambition has been increased so that there will be more money for policing and more powers for the police coming through in the Offensive Weapons Bill. There is almost a quarter of a billion pounds of public money being committed to critical work on prevention and early intervention to ensure that we get the right balance between robust policing and really good prevention and intervention work over time. She knows, or should know, that we cannot police our way out of this system. We are addressing a very serious challenge with the right level of ambition and partnership with the police and the police and crime commissioners.

[Andrew Selous (South West Bedfordshire) (Con)]

Some Members across the House are hoping that December’s police funding settlement may bring good news about dealing with unfair damping, which affects 19 police forces. However, if there is good news about damping, there would be concern that that may be counteracted by pension costs. Is my right hon. Friend able to say anything about that?

[Mr Hurd]

My hon. Friend has been tireless in making the case for more funding for Bedfordshire police, and I am working hard with my colleagues at the Treasury and with officials to look again at the 2019-20 funding settlement as an opportunity to find a solution to the pensions issue. However, the path that we set this time last year has meant that almost every police force in the country is now recruiting additional officers, which is what we and the public we serve want.