Police Funding Formula

David Burrowes Excerpts

Tuesday 1st March 2016 Commons Chamber

[Keith Vaz]

I make no comment on the absence of the shadow Policing Minister. I am sure that he will come in very soon and make up for lost time. I will come to the hon. Gentleman’s first point in my speech. He raises an important issue on the capabilities of the police and the new demands of 21st-century policing.

Mike Creedon, the Derbyshire police chief, said to me that if the current formula was still valid,

“it would be reflecting a reality which is ten years old”.

He is clear, as are many other chief constables, that there is a consensus that we need to restart the process of moving to a fairer funding model. I think that that consensus is reflected throughout the House.

Since the publication of the police grant report in December 2015, concerns have been raised that it represents a real-term cut to grant levels of 1.4% and requires increases to the police element of the council tax precept. Police forces are being required to raise the police precept across the country, including in Cheshire, Northumbria, Humberside and Thames Valley—the area that is partly represented by the Prime Minister and the Home Secretary. Dee Collins of West Yorkshire police estimates that her force has received a 3.2% cut in real terms, even after the PCC agreed to the maximum precept increase.

The Select Committee published its report on 11 December. The Government’s response is now 19 days late. The first question for the Minister is when the response will come.

Last Tuesday, five police and crime commissioners gave evidence to the Home Affairs Committee: Ron Ball from Warwickshire, Alan Charles from Derbyshire, Sir Clive Loader from Leicestershire, Katy Bourne from Sussex and Jane Kennedy from Merseyside. It was clear from their evidence that the police and crime commissioners had not been consulted on the new review. Ian Hopkins, the chief constable of Greater Manchester, has said that he wishes to work collectively and collaboratively with the Home Office, as do many PCCs and chiefs.

It is clear from the concerns that have been raised with me by chief constables before this debate that they have not been consulted. However, in the last debate, which as you know, Madam Deputy Speaker, was only last Wednesday, the Minister alluded to the fact that he had met a number of chief constables. I am sure that he will enlighten us as to his further discussions when he responds to this debate. Chief Constable Neil Rhodes and Deputy Chief Constable Heather Roach of Lincolnshire police have informed me that they met the Policing Minister last Wednesday, 24 February, to discuss the formula. I hope that he will tell us the outcome of that meeting.

When he replies to the debate, will the Minister tell us about his engagement with police forces, and reassure them that he is taking the matter as seriously as he was when he last appeared before the House? One issue that must be clarified is the capability review undertaken by the National Police Chiefs Council under the leadership of Sara Thornton. If the Minister could advise the House about how far those deliberations have reached, that will assist us in knowing something of the timetable that he has in mind.

It is concerning that since last year’s formula changes were abandoned, there have been no further proposals to work on. The Minister wrote to me on 1 February with an update on the formula arrangements, but as I said, he has not given us a date for when that review will commence. Police forces need to know what is going to happen. Ian Drysdale, the director of business services for Kent police, said that the continuing uncertainty is unhelpful, and that a transition to a new arrangement should be made as soon as possible. Following the glaring errors last year, it is self-evident that the Home Office should redouble its efforts to create a fairer funding model, and it is clear that the funding review should be restarted as swiftly as possible.

You will be interested to know, Madam Deputy Speaker, that Stephen Kavanagh, chief constable of Essex police, has stated that any prevarication on the part of the Home Office would be hugely disappointing and regrettable. Many have argued that it would be wrong to change the formula in a period of austerity, but on the contrary, austerity could have been a starting point for an informed reassessment of the formula in order to incentivise the police for reforms and deal with other inefficiencies. The flat rate reduction for all forces continues to penalise those who have already received less. However, following the Chancellor’s announcement in the comprehensive spending review on 25 November, which the Committee welcomed, that is less of a concern. In fact, the Home Office has a renewed opportunity to review the formula.

The three key failings aside from the stand-out mistake of confusing data filenames, were essentially process failures, such as sharing exemplifications at an early stage, which meant that data errors went unnoticed until it was too late, setting out transitional arrangements at an early stage, which meant that losers were even more concerned about the potentially immediate damaging impacts on their budget, and not allowing sufficient period for consultation, particularly with PCCs and chief constables. Does the Minister accept that those serious failings should be addressed in a future review process?

[Mr David Burrowes (Enfield, Southgate) (Con)]

The Minister accepted accountability for the mistake, but as he will know from his experience on the rugby field, he was sold a hospital pass in having to defend his position. A mistake was made at senior level in relation to the management of the process. We need real reassurance that that will not happen again, and there must be accountability in the management of the Home Office, to ensure that such a catastrophic error, which was not picked up and communicated properly to Ministers, does not happen again.

[Keith Vaz]

The hon. Gentleman is right, and he made that point when we took evidence from various chief constables and police and crime commissioners. It is vital to have proper accountability during this process, and I will come on to what the Committee agreed should be the best way forward.

The Home Affairs Committee made a number of recommendations on factors that must be included in the new funding review. We must recognise that although policing has changed fundamentally over the past 10 years, funding has never adjusted to it. PCCs from Leicestershire, Sir Clive Loader, from Hampshire, Simon Hayes, from South Wales, Alun Michael, and from West Yorkshire, Mark Burns-Williamson, are among those who have identified the growing level of non-crime demand on police time. Almost all police forces can point to a range of modern demands on police time, including terrorism, cybercrime, modern slavery and child exploitation. The Committee also considered it inexplicable that diversity is not one of the categories and criteria in the funding formula.

Chief Constable Simon Cole, the national lead on Prevent, highlights factors such as required language skills, translation services and the resources required in emerging communities. In Leicester, we could have the happy added burden of European football next season, subject to the outcome of the match at 7.45 pm today and the 10 other remaining matches. It is quite clear that the additional demands on policing in Leicester will be profound.