Wednesday 9th February 2011

(13 years, 9 months ago)

Commons Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Lord Herbert of South Downs Portrait Nick Herbert
- Hansard - - - Excerpts

I welcome my hon. Friend’s comments. There are examples throughout the country—and I intend to provide some—of police forces that are making significant efficiency savings, and working in a smarter way that improves the service to the public even when funds have been reduced. It is clearly possible to achieve that.

It has been said that the profile of the cuts is front-loaded so that forces must find the biggest savings at an early stage. The profile reflects the need to make early progress on reducing the deficit, and it is set, but we must view the grant reductions in context. The biggest cut does not fall in the first year. The average cash reduction in grant is 4% in the first year, 5% in the second, 2% in the third, and 1% in the fourth.

It is also important to remember that a 20% reduction in Government funding in real terms does not mean a 20% reduction in force spending power. Forces do not receive all their funding from central Government; on average they receive about a quarter of it from the council tax component of precept, which is determined locally. If police authorities and, thereafter, elected police and crime commissioners choose to increase precept at the level forecast by the Office for Budget Responsibility, the settlement represents a 14% real-terms reduction in overall funding over four years. Of course I recognise that the local contribution to police spending varies considerably between forces, and I shall deal with that aspect shortly.

Helen Jones Portrait Helen Jones (Warrington North) (Lab)
- Hansard - -

Why does the Minister think that a force such as that in Cheshire should lose 200 front-line police officers while the Government are spending money on an unnecessary switch to political police commissioners? My constituents would much prefer that money to be spent on putting officers on the beat.

Lord Herbert of South Downs Portrait Nick Herbert
- Hansard - - - Excerpts

I have explained this to the House before, but I am happy to do so again for the benefit of the hon. Lady. If she looks at the allocations that we have made, she will see that the additional cost of holding an election for police and crime commissioners will not come from force budgets, but has been provided separately by the Chancellor of the Exchequer.

The argument that, because a cost is involved in the holding of an election, that election should not take place is a very foolish one, and a particularly odd one for an elected Member of Parliament to advance. When the Labour party proposed five different referendums in its manifesto, I did not notice its advancing the argument that a cost would be involved. I should also point out that it is now Labour’s policy for police authority chairs to be directly elected, and that the cost of holding those elections would arise every four years. Perhaps the hon. Lady should remonstrate with those on her party’s Front Bench if she considers that that is not money well spent. There is now agreement on both sides that there should be direct elections, and a cost is involved in that policy. If the Opposition did not believe that a cost was involved, they should not have advanced the policy and voted for it, as they did in Committee just a few weeks ago.

Let me return to the real effect of the funding reductions on forces. Humberside’s force raises the average 25% of its revenue through precept. If we assume that it chooses to adopt the freeze in council tax next year, its total funding will then fall by £5.5 million, or 2.9% of its total income of some £190 million. That is challenging, but it is not unmanageable. As Opposition Members have pointed out, the reductions in years three and four will be smaller.

Some forces, and some Members, have argued that the amount that each force raises in precept should be taken into account in the determination of funding reductions. I understand their argument, because forces that raise very little from precept will face a larger cut than those that raise a great deal. After careful consideration, however, I decided that there would be a number of objections to such an adjustment. First, it would be said that we were penalising council tax payers in other areas who already pay far more for their policing services, and who have experienced a big increase in council tax in previous years. That would certainly be unfair. Secondly, by subsidising forces in that way—including large forces with greater capacity—we would be asking others to take a larger cut in central grant than 20%, and that too would have been regarded as unfair. The fair solution, and the one that was expected by forces and authorities, was to treat all forces the same by making equal cuts in grant.