Police Funding

Ed Balls Excerpts

Wednesday 8th December 2010 Commons Chamber

[The Minister for Policing and Criminal Justice (Nick Herbert)]

I welcome the opportunity to join in this debate, and I welcome the introduction to it by the Chair of the Home Affairs Committee, the right hon. Member for Leicester East (Keith Vaz), and the report that his Committee has just published. I am sorry that he is not here to listen to these final contributions, but I understand why he has had to leave. The Committee’s report was very helpful, and we look forward to its further reports.

There have been a number of important and useful contributions to the debate, and I hope to address them during the course of my remarks. I am afraid I did not think that the shadow Minister’s response did justice to a number of the serious points that were raised by Labour Members as well as by coalition Members about the importance of police deployment, how savings are to be driven in the police and the value of leadership. My hon. Friend the Member for Carshalton and Wallington (Tom Brake) particularly mentioned the important role that police authorities will have in the next few months in driving value for money and helping police forces deliver leadership.

Let us begin by discussing what we agree about. We all agree about the importance of the police and of valuing them. The hon. Member for Gedling (Vernon Coaker) was absolutely right to take the opportunity, as I always try to do, to thank the police for what they do. I am sure that they are in action once again just outside the House in relation to the protest that is being run again today. Every day, police officers act to keep us safe and many of them take risks in doing so, and we should thank them for their work. They are an immensely important public service.

I apologise to Members of all parties, because I am afraid I will not be able to indicate the provisional grants for individual forces today. We will announce them before Christmas, and there will be the usual parliamentary debate on them next year. As all Members will understand, I cannot therefore comment on individual forces’ specific grant issues. I can say that I am paying the closest attention to hon. Members’ representations, including those from the West Midlands force area. I will continue to do so after the provisional allocations are announced.

The backdrop to the debate is the spending review. Given the contributions of most right hon. and hon. Members, I do not think it appropriate to rehearse at great length why the Government have to take the action we are taking. I would just point out that we believe it necessary to deal with the largest deficit in our peacetime history, and that debt interest payments alone this year, at more than £40 billion, are far greater than the combined spend of the Home Office and the Ministry of Justice.

We announced a reduction in police spending in the review because we believe that dealing with the deficit is essential, and that the police can and must pay their share—

[Ed Balls (Morley and Outwood) (Lab/Co-op)]

Share?

[Nick Herbert]

The police must pay their share in reducing the deficit. Contrary to what the Opposition suggest—that a poor deal was secured for the police—the deal was rather better than expected in relation to non-protected Departments.

It is important to point out that the fact that the reduction in central Government spending on the police is 20% over four years—that is clear from the settlement—does not mean a 20% reduction in the amount of money that forces will have over the period. That is an immensely important point, but I am not sure that the Opposition have fully grasped it. There is a straightforward reason: forces do not raise all their money from central Government—on average, they raise getting on for a third of their money from central Government, or nearly £1 in every £3—and the money that they raise locally is not being cut.

As has been pointed out, that means that if we assume both the OBR forecast of reasonable rises in the precept based on—[Interruption.] The OBR forecast is based on the historic trend and the precept freeze, which the Government are funding next year. That reduces the cut in police force funding over the four-year period to 14% in real terms. The Opposition must explain why they believe that the 12% cut that they concede they would have made to policing, based on HMIC advice, would leave forces strong and secure—I assume that they would not otherwise have proposed that—but that a 14% cut is Armageddon, with all the consequences that the hon. Member for Gedling says will flow?

The difference between a 12% cut in real terms and a 14% cut at the end of the four-year period is £200 million, and the Government are making specific additional proposals, to which my hon. Friends referred, including the review of pay and conditions, which is being set up by Tom Winsor. We also expect the police to take part in the two-year pay freeze, subject to the agreement of the police negotiating board, which will close that £200 million gap. Labour Members simply have not answered the question. Why do they feel able to go around campaigning on, and scaremongering about, the impact of the spending reductions that forces are being asked to make? They are clearly and simply seeking to make political capital out of the situation, yet they would have cut the police budget themselves, in precisely the same order of magnitude as that which the Government have announced—the availability of resources to the police would have been precisely the same. They are perpetrating on the public a great fraud about their position.

--- Later in debate ---

[Nick Herbert]

I will make a bit of progress because I am short of time, and then I will give way.

We are confident that these savings can be made because, in part, of the evidence of Her Majesty’s inspectorate of constabulary, backed up the Audit Commission. HMIC has said that it is possible for forces to make savings of more than £1 billion a year—12% of the annual budget—through things such as improving productivity, cutting costs, sharing services and addressing savings in the back and middle offices of police forces. In addition, further savings can be realised through areas such as better procurement, although some of those savings were included in the HMIC report.

It is significant that the hon. Member for Gedling and the right hon. Member for Morley and Outwood (Ed Balls) never refer to those issues. They never talk about the savings that could be made by forces, and they are simply unwilling to engage in the necessary debate about how to increase and improve deployment, given the fiscal constraints that confront us.

[Ed Balls]

To avoid any further inadvertent misleading of the House, will the right hon. Gentleman confirm, first, that the HMIC report that refers to 12% deliverable cuts refers to cuts over four years and, secondly, that it refers to cuts in central Government grant? The HMIC report referred to 12% cuts in central Government grant; the Government are proposing a 20% cut in central Government grant. Will he confirm the difference in those figures and that that was what HMIC recommended?

[Nick Herbert]

I would have thought that the right hon. Gentleman understood this. The HMIC report was not referring to grant; it was referring to the savings that can be made by police forces. I strongly advise him to read the report again. It is important to understand the savings that could be made by police forces. Hon. Members could then work together sensibly and constructively, as urged by the Chairman of the Select Committee, the right hon. Member for Leicester East, to support forces in delivering savings.

Police forces and authorities spend about £2.8 billion every year on equipment, goods and services. Ending the practice of procuring things in 43 different ways could drive down the costs of goods, services and equipment by £200 million annually by the end of the spending review period. Furthermore, there is the issue of IT. I wonder whether the right hon. Gentleman knows how many different IT systems there are across our 43 forces. There are 2,000 different systems and 5,000 staff involved with them. The information systems improvement strategy programme on savings in IT could save another £180 million annually by transforming how police information systems are developed, procured and implemented. We are convinced that further savings could be made.

It is important for hon. Members to reflect on the fact that half of all spend by police forces is on the middle and back office. The people in those offices are not involved directly in crime fighting activity—although they do important things, such as providing direct support for the front line or keeping the organisation running. Not only is half of all spend made in those areas, but a quarter of all police officers—I am talking about sworn officers—are employed there. HMIC believes that significant savings can be made in the middle and back office by better management while, at the same time, protecting the front line.

[Nick Herbert]

I cannot pre-announce the grant determination. I met the hon. Gentleman this morning, and I will of course pay attention to the particular circumstances of West Midlands police if they are receiving less funding from local government. However, I would also like to draw his attention to what the chief constable of West Midlands has said:

“I remain absolutely confident that we will continue to protect and serve people in the West Midlands in the way they expect.”

That is a familiar message, because it is also the one being sent out by chief constables up and down the country, who are rising to the challenge of delivering services.

While the shadow Home Secretary, the right hon. Member for Morley and Outwood is here, I wonder whether he will take this opportunity to apologise for what he said on Monday, when he described the figure of 11% of force strength being visible and available to the public as a “smear” and a “corrupt and erroneous statistic”. That was a reference to the report by Her Majesty’s inspectorate of constabulary. I find it difficult to believe how the right hon. Gentleman could describe something in such a report as a “corrupt and erroneous statistic” or say that Her Majesty’s inspectorate of constabulary was seeking to “smear” police forces.

There is an issue about the visibility and availability of police officers, and we have to address it. The report said that

“general availability, in which we include neighbourhood policing and response, is relatively low. Several factors have combined to produce this ‘thin blue line’ of which shift patterns, risk management, bureaucracy and specialisation are the most significant”—

bureaucracy being one of the factors that needs to be addressed. The real question for this House is why, at a time when we had achieved record resourcing for policing, a record number of police officers and a record size of the police work force, we had visibility and availability at only about 11% of force strength. I agree with the inspectorate of constabulary that that figure is too low. We need to have a sensible debate about how we can address shift patterns, bureaucracy and the drift of officers into specialist units, so that we can protect that visibility and availability, which all my hon. Friends—indeed, all Members of the House—want to improve.

[Ed Balls]

I will happily take this opportunity to say that I wrote to Sir Denis O’Connor yesterday on the matter, and I copied the letter to the Policing Minister. In that letter I say that I have not criticised—and will not criticise—the 11% statistic, which was drawn up by HMIC. What I have consistently criticised is the way in which that statistic has been used, in a misleading and smearing way, by Ministers—the Home Secretary, the Prime Minister and the Policing Minister—to do down the important work of the police. The Minister says that 11% of the time is spent on visible policing, with the other 89% wasted on bureaucracy. That excludes people working on organised crime, in CID, on domestic violence, or on child abuse. That is the smear.

Also, Madam Deputy Speaker, may I just read out the HMIC report, which says:

“A re-design of the system…has the potential”—

[Madam Deputy Speaker (Dawn Primarolo)]

Order. I am sorry to have to say to the right hon. Gentleman that he was making an intervention. I think that he has made his point, and the intervention was getting a little long. It would be very helpful if when putting forcefully the arguments on either side of the House, all Members could avoid casting any aspersions on the correctness of another person’s view.

[Nick Herbert]

Thank you, Madam Deputy Speaker. I strongly agree with that. I am afraid that the right hon. Gentleman has been caught out—

[Ed Balls]

indicated dissent.

[Nick Herbert]

He has been caught out. I note that, in his letter to the chief inspector of constabulary, the right hon. Gentleman did not apologise for describing the chief inspector’s report as a “smear” or “corrupt and erroneous”, but that is what he said on Monday. I hesitate, after Monday, to advise hon. Members about using their words carefully, but the right hon. Gentleman should learn that he needs to choose his words more carefully when talking about the inspector’s report. I am sure that he will do so in future.

It is essential that we address the bureaucracy—