Employer National Insurance Contributions: Police Forces

Debate between Diana Johnson and Esther McVey
Tuesday 11th February 2025

(2 weeks, 6 days ago)

Westminster Hall
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Diana Johnson Portrait Dame Diana Johnson
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My hon. Friend makes an important point. I am also conscious of the loss of experienced officers in that 20,000. We know that the service is now very young; I think about 40% of officers have under five years of service. That presents all sorts of challenges for policing.

I want to make it clear that we have increased the funding available for neighbourhood policing by an additional £100 million. That is compared with the provisional settlement that was announced at the end of last year. We in this Chamber can all agree that neighbourhood policing is so important to our constituents, and the figure for that will now be at £200 million. That investment is to kick-start the delivery of the 13,000 neighbourhood police officers, PCSOs and specials that the Labour Government promised in their manifesto. It will also ensure that public confidence in policing is restored. As I said when opening the debate on the police grant report last week in the main Chamber, the settlement underlines the Government’s commitment to working with the police to deliver the safer streets that all our constituents deserve.

It is worth saying that I spoke to the PCC in Cheshire last week about the funding settlement. He was positive about the settlement that had been announced for his force. He did not raise any specific issues on national insurance, and the force did not raise any concerns in the consultation on the provisional settlement after it was published in December.

Esther McVey Portrait Esther McVey
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Did the Minister receive a further letter from the chief constable, expressing serious concerns about the rising number of serious sexual assaults going on in Cheshire?

Diana Johnson Portrait Dame Diana Johnson
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As I have just said, the PCC I spoke to last week did not raise any concerns about the financial settlement. Obviously, the PCC and the chief constable use that money in the way that they decide for Cheshire. I have certainly had conversations with the chief constable of Cheshire, and the right hon. Lady is right that I have received a letter from the chief constable that was copied to a number of Members of Parliament in Cheshire.

I accept and recognise that the changes to national insurance contributions will have an impact on public sector budgets, including policing. Although the decision to increase national insurance was made to ensure the sustainability of essential public services, I recognise that the changes create additional cost pressures for police forces. It is useful to note that in 2003, and in 2011 under the coalition Government, there was an increase in employer national insurance to fund the national health service and wider national priorities. So this is not unusual; Governments of both complexions have taken forward changes to national insurance.

It is also worth noting that the changes introduced in the Budget last year broadly return national insurance contributions revenue as a proportion of GDP to the level that they were before the previous Government’s cuts to employee and self-employed national insurance contributions. That sets the context, and this has been done in a way that does not result in higher taxes in people’s payslips.