Police (Surrey)

Debate between Jonathan Lord and Lord Herbert of South Downs

Tuesday 3rd July 2012 Westminster Hall

[Nick Herbert]

I hear what my hon. Friend says, but I disagree that the formula is not fit for purpose. It allocates funding according to need. The Government’s position is that we wish to move towards a full application of the formula. The question is not whether we do that, but at what rate and how. It would have been a great deal easier for the previous Government to move to full application of the formula and away from the distorting effects of damping when there were increases in funding for all forces. It is a great deal harder to do that when funding for forces is declining. Had we done so, some forces that benefit from damping, including Surrey—to the extent of an additional £3.2 million in the current financial year, as my hon. Friend the Member for Esher and Walton pointed out—would have seen a greater reduction in central Government funding.

For the reasons that I have set out, we felt that the equitable approach was not to move away from damping towards full application of the formula in the first two years of the spending review. However, we reserved our position in relation to years three and four. I have just consulted police authorities about what we should do regarding damping in those years. That consultation has just closed, and we will analyse the responses carefully. I will not prejudge our decision, but the points expressed by my hon. Friends the Members for Esher and Walton and for Mole Valley (Sir Paul Beresford) are well made.

[Jonathan Lord]

If the current funding formula truly reflects need, why do Surrey taxpayers, in addition to all the taxes that they pay nationally, have to pay the highest precept in the country? The Minister has already accepted that we have an excellent and efficient force.

[Nick Herbert]

The formula takes into account the need in an area. Taking a step back, if we look at the other end of the spectrum, towards a force in an urban area, where there is particular social deprivation, much higher levels of crime and all the complexities that arise because of that, it is obvious that the need is higher, and the formula reflects that. I accept that there has been a greater call on local taxpayers as a result of the amount provided to Surrey by central Government, but my point is that our decisions on spending reductions for all forces in years one and two, far from disadvantaging Surrey, treated all forces evenly, because those that raise much less from their council tax would have seen a much greater reduction in funding.

I should point out that Surrey has increased its precept in the current financial year. It has chosen not to freeze the precept, despite the Government’s offer. That increases the funding for the force. If Surrey were to increase its precept again in the last two years of the spending review, assuming the increases suggested by the Office for Budget Responsibility and no change in the current damping arrangements, the real terms reduction in funding over the whole spending review period would be just over 10%, which does not approach the 20% suggested for other forces. That is a 1.4% reduction in cash terms. Surrey is therefore in a relatively advantageous position, enabling it, for instance, to increase its officer numbers. Even if Surrey does not increase the precept in the last two years, the real-terms reduction in overall funding will be about 13%, or less than 5% in cash terms.

I am just stating the factual position that, as local taxpayers have been forced to contribute more, which I accept, Surrey has been relatively protected from central Government funding reductions over the past two years. The consequence is that it has not had the reductions in police officer numbers that other forces have had to make. Nevertheless, my hon. Friends have made strong points about the application of damping, and I will take those into careful consideration when I decide what to do in years three and four of the spending review. Their points about damping and the application of the formula were well made, and I assure them that they will be noted.