Police Funding Formula

Jeff Smith Excerpts

Tuesday 1st March 2016 Commons Chamber

[Mr Jones]

My hon. Friend makes a very good point. That was exactly what was designed in the formula. The Government were found out by the PCC for Devon and Cornwall. I accept what my hon. Friend the Member for Birmingham, Selly Oak (Steve McCabe) said about the Minister, but he is just a small cog in the huge machine. The machine is about devolving blame but not resources to local authorities. They devolve the blame to local decision makers and point the finger at them when cuts have to be made. The Chancellor of the Exchequer, who is the real villain of the piece, can stand back and say, “Not me, guv!”

Since 2010, £2.2 billion—22% of the funding—has been taken out of police budgets in this country. I do not accept that an average constituent of mine understands how police funding is arrived at. It is unique in the sense that two-thirds of it—the bulk of it—comes from central Government. Many people feel that what they pay, for example in local rates, pays for local services. We know that that is not the case.

The system is very uneven. Some authorities are able to raise more in local precept than others. Areas such as mine are unable to raise a large amount. In Durham, 55% of properties are band A, so a 2% increase in the budget would raise nothing like the amount that could be raised in Surrey or in other parts of the country. That leads me to one of the issues highlighted by the Chancellor of the Exchequer in the autumn statement: the ability to argue that some of the lower precept local authorities can now not be bound by the 2% limit but by a £5 increase.

Again, all that does is help the wealthier areas. If we were allowed to do that in Durham, it would raise hardly anything compared with some of the more well-off forces such as Essex, Herefordshire and others. Again, that needs to be looked at.

[Jeff Smith (Manchester, Withington) (Lab)]

Does my hon. Friend agree that there is another issue that relates to vulnerable and deprived areas, which is the top-slicing of grants? Next year, there will be a 69% rise in the top-slicing of police grants. In my area of Greater Manchester, that means a reduction of £16.2 million. Does he agree that we need an assurance that top-slicing for national projects, such as the transformation fund, does not come from local police grants?

[Mr Jones]

I agree. That is another sleight of hand by the Chancellor. We have only to look at local government and the new homes bonus, which is trumpeted as a great opportunity for local authorities to raise money. What do the Government do, but top-slice it in exactly the way my hon. Friend describes?

In Durham, the ability to raise extra funds from precept is limited and any future formula needs to take that into account. In the autumn statement, the Chancellor said that policing would be protected and that money would fall from heaven. I am sorry, but that is not going to happen. As my hon. Friend says, there will be top-slicing. It is clear, from what police and crime commissioners have said, that there will still be pressure this year on the police budget. Any type of formula needs to consider the local tax yield and the ability of places such as Durham to raise additional expenditure.

My hon. Friend the Member for Bootle (Peter Dowd) raised the issue of disproportionate cuts. In Durham, since 2010 we have lost 350 officers and another 25 police community support officers. Before anyone says that Durham is a profligate, fat and inefficient police force, let me say that it is the only one in the country to receive three “outstanding” ratings for efficiency from Her Majesty’s inspectorate of constabulary.

As my hon. Friend the Member for Luton South (Mr Shuker) highlighted in his speech, great steps have been taken by police forces, working with local authorities, health services and other police forces, to drive up efficiency. I am not opposed to that—indeed, it is to be welcomed. However, police forces will come to the point where they cannot be any more efficient. At the end of the day, local people want police on the streets. They want police who are responsive and they want localised policing. That cannot be done. There comes a point in the process where the service that local people desire cannot be delivered.

We have seen the same happen in local government, where many local authorities are being pared back to delivering statutory services alone. Are we going to see a similar situation in policing? If a drive to a small state Conservative Britain is the Government’s ultimate aim, they need to be honest about that, rather than hide behind this type of funding formula.

The police community, local politicians and police and crime commissioners have lost all faith that the Home Office can conduct this review properly and fairly. I support what the Select Committee has suggested—taking it out of the hands of the Home Office. Otherwise, it will lead to a suspicion that the Chancellor is in the background and wants to use this as a way of driving out not efficiency but cash from the police service.

It is possibly a terrible thing to say, but I think it is true that if it had not been for the tragic events in Paris, we would have faced even deeper cuts to police forces. With the greatest respect, it was not down to my right hon. Friend the Member for Islington North (Jeremy Corbyn) or the Labour party that this U-turn took place; it was because of the Government’s fear that after the tragic events in Paris, there would be an outcry if they persisted with the cuts they intended to put through.

There is a drive for simplicity in the formula. I have always been in favour of making things as simple as possible in public policy. If making things simpler makes them less accurate and less transparent, however, I would be against it. Clearly, the interaction with other budgets is important—I mentioned mental health earlier—and it needs to be looked at. A policing element is needed. We cannot say to mental health trusts, “You will have to pay for part of your local area’s policing”. It is important that the interconnections are taken into account.

Deprivation is another crucial issue. Durham is a rural county, but under these proposals it is obviously not rural enough—or perhaps I should say that it is not blue enough—to get much money out of making representations about the formula. Rural areas such as Durham are unique. I describe parts of County Durham and parts of my own constituency as being very rural yet having urban problems. The problems would be recognised in any urban area—drug and alcohol-related crime and even organised crime, along with deprivation and the high level of crime associated with it. That is why we need to take into account not only rurality, but the realities of what is happening on the ground.

The argument about using licensed premises as an indicator of alcohol problems is, I think, complete nonsense. The public image that comes through from many of our national newspapers is that the real crime problems arise as people spill out of wine bars after a happy hour. No, they do not. People should speak to the police locally. One of the biggest issues is alcohol in the home, but how to reflect that in a formula is going to be difficult. Reflecting alcohol disturbance in an area according to the number of bars in it will not provide an answer to the problem.

Let me finish by paying tribute to the men and women of Durham constabulary, who have had a tough last six years. There are 350 former colleagues who no longer pound the beat in Durham, yet it has met the challenges when it comes to driving efficiency and interacting with the community, which has been reflected in the HMRC report that rates the force as outstanding. I pay tribute to Chief Constable Mike Barton and to the Labour police and crime commissioner, Ron Hogg. They have worked closely together not only to drive innovation and efficiency in the delivery of service, but to look at innovative ways of providing alternative justice, for example. They are making a real impact locally: when initiatives are launched, they are not always popular, but they are having a real impact on the ground.

Finally, let me touch on the relationship with other forces. I am in favour of reducing costs, and if Durham police can work with those on Teesside to form a joint firearms or dog handling unit that is great, but I have a problem with some of the proposals to merge other blue-light services that the Government are driving through. Obviously some efficiency savings can be made through the merging of back-office functions in, for instance, the fire and rescue services, but we must be careful not to repeat the imposition of cuts on those services on the grounds that their job can somehow be merged with, or massaged into, a policing role. If sensible things can be done in back offices, I am all for that, but blurring the edges when it comes to the front-line delivery of fire services, and other services, is a different matter altogether.

I hope that we have a proper look at the funding formula, and the sooner we do it, the better. Any review must be independent, because the Home Office thinks that credibility has been shredded. The one thing that I do not trust at all is an arrangement whereby the Conservative Government and the Chancellor are behind this, driving forward not a fairer funding formula but a formula that will divert resources from areas like mine and into leafy Tory suburbs.