Police Grant Report

Lord Hanson of Flint Excerpts

Wednesday 14th July 2010 Commons Chamber

[Nick Herbert]

I do not think it would be appropriate to review the spending reduction that we are asking every force to make on an equitable basis, which we announced some weeks ago subject to the approval of the House. However, there are special arrangements that can apply in relation to unforeseen expenditure by police forces. Northumbria police and its authority are well aware of that, and we will happily discuss the matter with them.

The Government’s view is that more can be done to achieve greater value for money in policing through national procurement, as my hon. Friend the Member for Devizes suggested, and through sharing services, outsourcing and working more efficiently. If 43 forces can buy equipment more cheaply together, we can no longer allow anything to stand in the way of that. If tasks can be performed just as well or better by civilian staff, and so reduce costs and release sworn officers for other duties, ideology should not stand in the way. If some forces can use modern systems to improve business processes, so can others, and if some forces can show that collaborating with each other or with other local agencies delivers savings, others can take the same path. We need to see new solutions, innovation and strong local leadership. The first resort must be to drive out cost and the last resort must be reductions in police numbers.

[Mr David Hanson (Delyn) (Lab)]

Has the right hon. Gentleman read the White Paper that we produced last December, which appears to be basically what he is reading out to the House today?

[Nick Herbert]

Yes, I have had the misfortune to read all the previous Government’s documents. The problem is that despite the suggestion that greater savings could be achieved, for instance through collaboration, it has not always happened. Today we find ourselves in a different environment in which forces and authorities face a new imperative to find those savings. The Government are willing to ensure that those savings will be made, in return for greater local accountability.

The quid pro quo for returning power and enabling far greater local decision making is that we will be tougher about driving savings through central procurement, and about collaboration between forces where it is clear that there is a policing need—for instance in relation to serious crime that crosses force borders—or that by working together, forces can achieve better value for money. We do not support the compulsory merger of forces, as I reaffirmed to my hon. Friend the Member for Crawley (Henry Smith), but a great deal more can and must be done through enhanced collaboration.

The Government have also already announced a full review of remuneration and conditions of service for police officers and staff. We want to ensure that pay and conditions support the delivery of an excellent service and provide value for money, so that they are right for both those who work in the service and the public. Spending on the work force accounts for about 80% of police expenditure. It is therefore right to examine carefully arrangements such as the use of overtime. We will provide more information about the review, including its timing, shortly, but we will expect it to report by January next year.

--- Later in debate ---

[Mr David Hanson (Delyn) (Lab)]

I welcome the Minister to his position. He will know that it is an excellent job to have, and it is one that I certainly enjoyed in government. He has great support in the Home Office from a fine team of officials and staff in doing that job.

Having got the niceties out of the way, I come to the crunch. I am disappointed and unhappy about the approach that the Minister has taken to the in-year funding cuts for allocations to police authorities in England and Wales for 2010-11. There are a number of new Members in their places, and I do not think that they will realise that this debate was held, done and dusted, in the House in February. We had a debate then on the 2010-11 police grant. I stood at the Government Dispatch Box when we debated the third year of a settlement for the police in England and Wales. We had already announced the three-year settlement two years before, and the House was to confirm the third year on 3 February.

At that time, I challenged the Liberal Democrat spokesman, who sat where my hon. Friend the Member for Wansbeck (Ian Lavery) is sitting today, and the hon. Member for Bury St Edmunds (Mr Ruffley), who was sitting where I am now. I asked whether, if they were in government in any way, shape or form—much to my surprise, the Liberals have found themselves in that position—they would reduce or change this year’s grant. The answer was that they would not. In fact, the Liberal Democrats called for more spending on the police—a point that I shall return to later. Our proposals for the third year of the agreed settlement were supported by the Conservatives and Liberal Democrats in opposition but are now opposed and torn up by them in government.

One of the most distressing aspects of the debate is the fact that the third-year settlement has been agreed, is known and has been put to police authorities across England and Wales. Police authorities went into their precept-setting meetings in February, March and April based on that grant and on what they expected their income from Government to be for 2010-11.

[Mr Stewart Jackson]

The right hon. Gentleman is moving to the crux of the issue, despite his engaging and emollient beginning. We would take his protestations slightly more seriously if his own Government had brought forward a comprehensive spending review last autumn, and specifically if the right hon. Member for Kingston upon Hull West and Hessle (Alan Johnson) had ruled out cuts in police numbers during the election campaign. Neither happened, so we have to take the right hon. Gentleman’s protestations with a pinch of salt.

[Mr Hanson]

I look forward to the hon. Gentleman voting today to reduce Cambridgeshire’s policing grant by £1.2 million. That is what he will be doing. He needs to go back to Cambridgeshire and explain to the residents of Peterborough why he is voting to reduce the budget by £1.2 million this year. I and my 257 colleagues on the Labour Benches stood on a manifesto commitment to ensure that policing resources were maintained after the general election. We won our seats on that basis, and we are being consistent in putting forward our arguments today. The hon. Gentleman is voting to remove money from his police force.

[Henry Smith]

Is it not the case that only after the election, when we opened the books, did we realise just how bad the deficit was and that the former Chief Secretary had helpfully left his note on the desk for the incoming Chief Secretary?

[Mr Hanson]

I look forward to the hon. Gentleman going back to Crawley and telling the people how he voted today to remove £2.4 million from West Sussex police’s budget. I look forward to him explaining that, and I am sure that he is looking forward to that discussion.

[Claire Perry]

I have already started to explain to many of my constituents, who have of course been writing and e-mailing, why we have to reduce the police support grant. Most people understand that there is no money, thanks to the Labour party’s disastrous economic policy. Labour Members have been unspecific about where they would cut. This is the sort of ideology that led to the former Cabinet’s conclusion that the Labour Government were “finished”, “futile” and—finally in opposition. People are looking for an engaged and informed discussion about what we can do to get the deficit under control.

[Mr Hanson]

I look forward to the people of Devizes learning that the hon. Lady has voted for £1 million to be cut from their police grant—unless my speech convinces her to vote with Labour Members to oppose those cuts. She asked an important question about what the Labour party would do to reduce the deficit. We went into the election campaign with clear commitments. Conservative, Liberal Democrat and Labour Members did not oppose the settlement that we debated on 3 February; we agreed the grants for this year in February. For future years, we agreed that we would spend money above the rate of inflation on policing, health and education, and make the savings that we needed through a deficit reduction plan for other matters.

[Mr Thomas]

Does my right hon. Friend remember his visit to Harrow police station in January to hear from yet another borough commander about the need for a new police station to help Harrow police do the job that they need to do? Does he share my disappointment that the cuts will reduce the capital available to the Metropolitan police, and are probably yet another excuse for the Mayor of London to continue to refuse to help Harrow police get the equipment and facilities that they need to do their job?

[Mr Hanson]

Today’s cuts not only reduce the capital budget but take some £28 million from London’s budget. I believe that the Mayor is still one Boris Johnson, who has already agreed not to raise the precept this year. That means a real cut not only, through inflation, on the precept, but in the grant.

[Mark Tami]

rose—

[Mr Hanson]

I will happily give way to my constituency neighbour before trying to make progress.

[Mark Tami]

Does my right hon. Friend agree that suggesting that today’s cuts and the huge cuts to come can be achieved by getting rid of backroom staff who apparently do nothing is a cruel deception of the British people? There will be more pressure on front-line police to do the jobs that civilian staff currently undertake.

[Mr Hanson]

My hon. Friend is right. Not only that, but he knows that some 80% to 85% of all policing costs are for police officers and staffing. Today’s reduction, and potential future reductions, will hit staff hard.

Police forces have set their precepts on the basis of the grant agreed in February, so they will now find it difficult to fulfil their strategic commitments this year. Cutting services and police numbers ultimately cuts the ability to reduce crime. I am particularly disappointed, given that Members called for support for the police during their election campaigns, that members of the coalition will go back on their commitments and vote through this unfair cut today.

I pay tribute to the police’s excellent work. They work under extreme pressures, risking their safety to keep us safe. Often, as my hon. Friend the Member for Wansbeck said, they have to deal with severe emergencies. We want to ensure that we give—as we did in government—the police the powers and resources to get on with their job. As a result of investment under the Labour Government, there were record numbers of police on our streets—17,000 more police officers than when we came to power in 1997—cutting crime and making our communities safer. We have some 16,000 police community support officers—positions that did not exist when the Labour Government came to power—engaged with communities and helping reduce crime. Consequently, crime fell by 36%. In the past year alone, car crime, robbery and burglary were down. Even in a recession, firearm offences decreased by 17%, robbery was down 5%, and overall crime reduced by 5% last year. The chances of being a victim were the lowest since records began. Confidence in policing was nearly 60% and rose over the year. Labour Members fought the election on a manifesto commitment to give the police the resources to maintain that record, to ensure that they had funding and to continue that investment for the next three years.

The Minister’s points about efficiencies did not escape the Labour Government. There were real concerns about how to get best value for the Government’s police funding. That is why I referred to the White Paper that we produced last December, which examined cutting police overtime by some £500 million; ensuring support for merging back-office functions properly and effectively, and supporting the voluntary merger of forces. We got burned by the forced merger but wanted to ensure that voluntary mergers went ahead. We accordingly supported voluntary mergers of forces. I allocated £500,000 to Hertfordshire and Bedfordshire to consider how to develop such a merger in due course. I note that the Minister for Housing, the right hon. Member for Welwyn Hatfield (Grant Shapps), opposes such a merger. So much for concerted activity on backroom costs.

We considered national procurement, which the hon. Member for Devizes (Claire Perry) mentioned. I initiated national procurement proposals for the next few years for uniforms, vehicle support and air support. We considered removing resources and saving around £1 billion from that budget while maintaining the provision of more money to support forces’ crime-fighting activities.

[Caroline Flint]

On force mergers, does my right hon. Friend agree that it was a question not only of saving money, but of operational efficiency? We have too many police forces that do not have the capacity to deal with serious organised crime. We face that threat alongside what happens in our neighbourhoods and on our streets. The cut in grant will have an even greater impact on that work, but we must also consider structures that inhibit effective policing on such serious matters.

[Mr Hanson]

My right hon. Friend is right. She knows that serious organised crime often requires a cross-border, regional approach. Crime in my area of north Wales is, sadly, often generated from Manchester and Liverpool, and the forces need to co-operate—and they do—to tackle those problems. Regional co-operation is particularly important for tackling terrorism, and it will be hit not only by spending cuts this year, but by the potential for cuts in future years.

[George Freeman (Mid Norfolk) (Con)]

The right hon. Gentleman said that in the 13 years for which his party was in government, it took waste seriously. Why, therefore, at the end of that time, did we still have separate procurement, the cost of which the Home Office estimates to be more than £400 million a year?

[Mr Hanson]

Again, I refer the hon. Gentleman to the White Paper. We considered a range of things in the 13 years. In the year that I was Police Minister, from last July, I initiated procurement proposals on uniforms, vehicles, air support and other matters. Procurement is one of the subjects about which we are very concerned. There are savings to be made on it; that is a matter of common agreement.

[George Freeman]

You had 13 years.

[Mr Hanson]

I am trying to be helpful to the hon. Gentleman. I agree with him that there are savings to be made on, for example, uniforms, vehicles and air support. We were trying to do that, and I will fully support the Minister’s attempts to get those contracts. However, that does not detract from the fact that the core grant for this year, which we agreed in February—without a vote, with Conservative and Liberal Democrat support—is being cut today. And we face further cuts down the line because of cuts in the Home Office grant.

[Mr Stewart Jackson]

The right hon. Gentleman is being generous in giving way. He was candid earlier when he said that the Labour Government were burned over the mergers. They were burned because there was no consultation and a top-down approach was forced on individual forces. Ten, eight or six years ago, the previous Government could have given police forces a fiscal incentive to share back-office functions, procurement, equipment and so on, but they failed to do that. That is a fair point to make to inform today’s debate on budget reductions.

[Mr Hanson]

Let us revert to the subject before us. I think that there is scope for mergers of police forces. As a Minister, I encouraged the provision of a grant of £500,000 to help move that process on. I agree with the hon. Member for Peterborough (Mr Jackson) that we were burned by forced mergers. I wish the Minister a fair wind if he can continue to encourage forces that, with local support, want to merge. Mergers should not be forced from the centre, but agreed locally. Let us not disagree about that.

Labour supported mergers and procurement measures when in government, and I support the Minister for Police on them in opposition. The key is that we still require resources to undertake policing. This year, resources are being cut in-year, despite an agreed settlement; the 25% that might be cut in future years will also be damaging. That will have a serious impact on crime generally. I do not very often agree with the hon. Member for Shipley (Philip Davies), as I am sure the Minister does not, but he knew what he was talking about on DNA, CCTV, appropriate prison sentences, reducing reoffending and investment in police. He is right on those issues, and the Conservative party will be proved wrong.

All MPs value the increases in police officers in their constituencies in the past 13 years. Today’s cut could result in the loss of about 4,100 officers from our streets this year alone, according, I should tell the Minister, to House of Commons Library figures.

[Claire Perry]

On that specific point, as I read the Labour party manifesto, the right hon. Gentleman was planning 20% cuts in non-ring-fenced Departments. Did the Home Office calculate what his cuts would mean in terms of a reduction in police numbers?

[Mr Hanson]

The hon. Lady should do her homework. The Home Office was one of the Departments that we ring-fenced in the manifesto, and we ring-fenced policing.

[Claire Perry]

indicated dissent.

[Mr Hanson]

With due respect to the hon. Lady, I think I know the Labour party manifesto better than she, so we can stick with that for the moment.

Today’s reduction means a £3.5 million cut for Northumbria police, which will interest my hon. Friends the Members for Wansbeck, for Newcastle upon Tyne North (Catherine McKinnell) and for Sunderland Central (Julie Elliott); a £28 million cut for London; a £3 million cut for Lancashire; and a £5 million cut for West Yorkshire, to name but four police areas. This year will be really difficult.

The Home Secretary, who is no longer in the Chamber, will today vote for a £4.3 million cut for Thames Valley police, and the Prime Minister will vote for a £3.4 million cut for his local force. When he visited west Yorkshire during the general election, he assured residents that the Conservatives were committed to PCSOs and police funding, but he will today vote to make a £4.8 million less available there this year. The Police Minister will today vote to reduce the amount for his force, Sussex police, by £2.4 million, after the previous Labour Government increased the number of officers by more than 100 in their 13 years in power. Those are real issues.

In January, the hon. Member for Wealden (Charles Hendry), now a Minister of State at the Department of Energy and Climate Change, wrote to my right hon. Friend the Member for Kingston upon Hull West and Hessle (Alan Johnson) to complain that the funding in the February settlement was not enough for Sussex forces, but today he will vote to cut £2.4 million from the budget. Let us get some facts straight. The Conservatives should support the grant that they agreed in February and should see it through for the police officers and police forces that knew it had been agreed in the third year of a three-year settlement. They should have seen it through before the precepts were set, so that people knew what their funding would be.

[Mr Graham Stuart (Beverley and Holderness) (Con)]

The right hon. Gentleman said that it is important to get the facts straight. I have not seen the letter sent by the Minister of State, Department of Energy and Climate Change, my hon. Friend the Member for Wealden. Did he ask for a fair share of the funding provided to police forces for Sussex, or did he in fact make the point that Sussex’s needs were not properly recognised compared with other areas? If the latter is the case, will the former Minister apologise for suggesting that my hon. Friend merely called for extra money? Perhaps he did so, but will the right hon. Gentleman spell out precisely what was in that letter?

[Mr Hanson]

The Energy and Climate Change Minister wrote to complain about the level of cash that the grant had given to Sussex police authority, but he will today vote for a £2.4 million cut. Indeed, the hon. Member for Beverley and Holderness (Mr Stuart) will today vote for a £1.8 million cut for Humberside police. I presume that the people of Humberside look forward to that.

I have thrown a lot at the Conservative part of the coalition, but I have saved my ire for the Liberal Democrats. In the debate in February, the Liberal Democrats did not vote against the order before the House, but called for more resources. I asked the then Member for Chesterfield how much more he thought we should give to police this year. Sadly—it is always sad when someone loses their seat, but I am always glad for people who win one—he was replaced by my hon. Friend the Member for Chesterfield (Toby Perkins) at the election. The hon. Gentleman answered by saying:

“The Liberal Democrats have clearly said that we would divert money by abandoning particular…programmes—identity cards have been a long-standing option.”—[Official Report, 3 February 2010; Vol. 505, c. 340.]

He said that the number of extra police resulting from abandoning identity cards would be “about 3,000”. As I recall, the process of abandoning ID cards is coming to an end, so those savings can now be made. I look forward to the Liberal Democrats therefore voting not to cut resources from forces in England in Wales, and to them using their influence so that the money saved from ID cards can be used to save the resources that will be cut today.

[Tom Brake (Carshalton and Wallington) (LD)]

rose—

[Mr Hanson]

I will happily give way to the hon. Gentleman. Will he say how, when he goes back to his constituency in London, he will explain the £28 million that he is to take off the Greater London authority this year, in-year, when his former hon. Friend argued for 3,000 extra police officers in the debate in February?

[Tom Brake]

Will the right hon. Gentleman confirm whether during the February debate he drew to the House’s attention the fact that the Government were understating the structural deficit to the tune of £12 billion? I cannot recall him saying that.

[Mr Hanson]

The hon. Gentleman knows that Labour had a structural deficit reduction plan that involved looking at deficits and tax increases next year, which would have made a difference. We would also have looked at cuts in certain areas of expenditure, but police funding was not one of them.

In the light of the abandonment of ID cards, will the Liberal Democrats vote for the £28 million cut in London and the cuts in other forces this year, and against a measure that they supported earlier in the year? The Deputy Prime Minister campaigned for more funding and officers during the general election, but today he will vote to cut £2.8 million from South Yorkshire’s budget. During a televised election debate on crime on 20 April, the Energy and Climate Change Secretary, who was the Liberal Democrats home affairs spokesman, said that there would be no reduction in police numbers under a Lib Dem Government. He probably never expected to find himself in a Lib Dem Government, but sadly he has got one, and he will go through the Lobby today to take that money off his own force in Hampshire.

On her website, the Minister of State, Department for Education, the hon. Member for Brent Central (Sarah Teather), said:

“A Liberal Democrat Government would recruit 10,000 extra police.”

I look forward to her walking through the Lobby today to cut £28 million from London police. The hon. Member for Manchester, Withington (Mr Leech) said that

“Withington Liberal Democrats are launching a petition to stop any further cuts in Police numbers”.

I look forward to signing that petition and to the hon. Gentleman walking through the Lobby today to cut money from Greater Manchester police.

[George Freeman]

While the right hon. Gentleman is on the subject of misleading election promises, does he agree that there has been a major change in the fiscal reality with which the Government must now deal, as indicated when, after the election, the right hon. Member for Birmingham, Hodge Hill (Mr Byrne), the former Chief Secretary to the Treasury, left a note in his Department to say that there is no money left? If he had said that before the election, we might have had a rather more honest election.

[Mr Hanson]

I cannot be any clearer than to tell the hon. Gentleman that we would have implemented our deficit reduction plan and that police funding was ring-fenced.

Before I leave the subject of the Liberal Democrats, may I tell the House what the hon. Member for Bradford East (Mr Ward) said on ID cards? In March 2009, he said

“West Yorkshire Police Force could get an extra 362 officers if the government scrapped its plans for ID cards and use the money to recruit new front-line officers.”

I look forward to him walking through the Lobby to remove money from West Yorkshire police today.

Chief Constable Peter Fahy of Greater Manchester police was quoted saying recently:

“We’ve got the lowest crime in Manchester for ten years, the lowest gun crime for eight years. We are really determined as a force to make sure we maintain that record”.

However, he added:

“Eighty-six per cent of my budget is spent on people and if we want to make significant savings in policing there is only one way of doing it—which is to reduce the size of the workforce…. It is having a big impact on the morale in the force and the way it is affecting people.”

The chair of Durham police authority has said:

“If you are looking at cuts of this nature so quickly, clearly it will affect jobs”.

Devon and Cornwall police authority has said that these in-year cuts will result in the loss of at least 180 officers.

The cuts undermine the relationship between the Government and the 43 police forces that have already set their precepts. In my constituency in north Wales, we are set to lose £1.1 million this year, putting a real strain on the services provided. I met with the chief constable last week and I know that not only is his force worried about the £1.1 million cut, but it is bracing itself for far worse to come.

My hon. Friend the Member for Harrow West (Mr Thomas), who is no longer in his place, mentioned the cut to the capital grant of £10 million. The cut of £10 million from the counter-terrorism budget is also of concern.

[Mrs Mary Glindon (North Tyneside) (Lab)]

Does my right hon. Friend agree that North Tyneside was fortunate to have its new police headquarters completed under the Labour Government? It is due to open in September. Does he agree that the 27% crime reduction that the people of North Tyneside enjoyed last year will not be improved on if these cuts are implemented?

[Mr Hanson]

My hon. Friend makes an important point, because there is a link between the investment by the Labour Government and the fall in crime. Whatever assessment we make, that investment in police officers on the streets and in other areas, including capital build on new police stations, has had a direct impact in reducing levels of crime—[Interruption.] The Minister is chuntering from a sedentary position to the effect that police buildings do not contribute to crime reduction. A brand new police centre in Newcastle will help to put together some essential savings and help the police to organise effectively to fight crime—[Interruption.] We could go on all day, but my contention is that the resources that the Labour Government put in—and had agreed to put in this year—made a real difference.

[Mark Tami]

Does my right hon. Friend agree that, at a time when we face massive cuts and with more to come, it is bizarre that the Government intend to introduce these directly elected characters, who will end up costing a fortune but do nothing for front-line policing?

[Mr Hanson]

I concur with my hon. Friend. I have not met a single member of the police family who wants directly elected police commissioners. I look forward to having that argument with the Minister when the time comes.

The cuts to the police grant this year, coupled with the potential cuts of up to 25% to the police grant next year, will be really damaging to our crime-fighting capability. Coupled with the scrapping of the national policing pledge and the sustained attack on community policing that is coming, I do not believe that we will be able to sustain the fall in crime that we have seen to date. I hope that I am wrong about that, but I believe that these cuts will be damaging in the long term.

This year’s grant was approved by the House of Commons and should be reaffirmed—

[Nick Herbert]

The right hon. Gentleman mentions the policing pledge, which this Government have rightly scrapped. How many police officers could have been funded by the £6 million advertising spend by his Government on promoting that pledge?

--- Later in debate ---

[Mr Hanson]

Unlike the Minister, I believe that it is important that people know their rights, know what services they can receive, know that the police are on their side, know who to contact in the police, know where their local police officers are situated and know who their local police officer is. I have always believed that the police are a public service. That spending was about ensuring that the public knew those things, so that the public and the police could work in co-operation to reduce crime.

This settlement is wrong and will be damaging—

[Heather Wheeler (South Derbyshire) (Con)]

rose—

[Mr Hanson]

I was going to finish speaking, but I cannot resist the hon. Lady.

[Heather Wheeler]

I am fascinated by the right hon. Gentleman’s latest statement. Surely to goodness we were meant to be seeing the police on the street and going to their police stations. Why on earth did we need £6 million of advertising when £5 million a year was taken from Derbyshire police? If we had had that £5 million, we would have seen the police.

[Mr Hanson]

I look forward to the hon. Lady voting to remove £1.6 million from her police force later. She argues that Derbyshire is underfunded by £5 million, but she is happy to vote through a £1.6 million in-year cut—[Interruption.] That is up to her, but I am sure that the Labour party in her constituency will make that fact known to the residents of the area.

This settlement is wrong and should be opposed. The original settlement was agreed in February, when it was supported by the Liberal Democrats. The House should agree it again today. I will vote against the motion and urge my right hon. and hon. Friends to join me in the Lobby.

--- Later in debate ---

[Mr Jackson]

I know that we could wander the byways and highways of penal policy for ever, Mr Deputy Speaker, so I graciously accept your admonition on that particular point and I shall return to the police grant, before you rule me out of order.

We have to be realistic about what we are being asked to accept today.

[Mr Hanson]

May I refer the hon. Gentleman to the last words of his speech in the grant settlement debate on 3 February? They were:

“I hope that we get a better settlement when we have a Conservative Government in the next few weeks.”—[Official Report, 3 February 2010; Vol. 505, c. 360.]

How does he square that with the cut that he is going to vote through today?