Police Funding Formula Debate

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Department: Ministry of Justice

Police Funding Formula

Lord Beamish Excerpts
Tuesday 1st March 2016

(8 years, 9 months ago)

Commons Chamber
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James Berry Portrait James Berry (Kingston and Surbiton) (Con)
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I welcome this report, and let me start by saying that the Minister was brave to tackle the issue of police funding, for two reasons. The first is that it is always going to be difficult to resolve a funding formula without acrimony unless one has at one’s disposal sufficient resources to fund every force to the level of the best funded; clearly, those resources were not going to be available to him. The second reason is that funding a police force across the whole UK—or certainly in England and Wales—is always going to be intensely difficult, given the great diversity in policing needs across the counties of those countries. But it is right that taxpayer funds for an essential service such as the police are allocated fairly and transparently.

I agree with the Chair of the Home Affairs Committee, the right hon. Member for Leicester East (Keith Vaz), that the police need to provide evidence of the work that they actually do. Often that work will go well beyond what we understand to be traditional policing work in the office of constable. The police pick up a large amount of slack that is not picked up by other public services or private sector organisations, and they do a huge amount more than many people appreciate.

The National Audit Office published a report showing that a significant number of police forces were not aware of the demand on their own services. It is incumbent on police forces to ensure that they are aware of that demand, whether for classic policing or wider functions. They must make their demands clear to the Home Office, and, as the right hon. Member for Leicester East said, the Home Office must then make it clear to those forces what services they are actually funded to perform.

Lord Beamish Portrait Mr Kevan Jones (North Durham) (Lab)
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I am grateful to the hon. Gentleman for giving way. Does he recognise that cuts being made in other public services—in the area of mental health, for example, where there are problems in accessing beds—is putting pressure on police forces up and down the country, as in extreme circumstances they have to use cells to house people with mental health problems?

James Berry Portrait James Berry
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In fact, there is more mental health funding for front-line policing than there has ever been. It is very important that the police work in tandem with clinical commissioning groups to ensure, for example, that there are nurses who can go out on patrol with them to tackle mental health issues, rather than bringing in those people to police cells—often the very worst place for someone suffering from a mental ill health episode. In my neighbouring borough of Richmond, I know that the police are already doing that in conjunction with the CCG.

There was a pause in the review of the funding formula, the financial implications of which were worked out by one police and crime commissioner. I did pause before signing up to the suggestion in our report that the likely figures should be revealed before the end of the consultation. The aim is to arrive at a sound set of principles, but it is difficult to obtain a balanced response from people who stand to lose out from an allocation based on a principle, however sound it might be, because their elected responsibility as police and crime commissioners is to maximise the amount of funding available to them to perform their statutory functions.

The funding formula needs to recognise the diversity of policing in the UK, which is very difficult when we are trying to reach a formula at a national level. Our report references the need for additional funding in areas where policing of minority communities is a prevalent issue. In my constituency of Kingston, we have the largest Korean population in Europe. We have an excellent Korean liaison officer provided by the police, which would not be needed elsewhere in the country, and they provide a vital function in ensuring a link between the police and the Korean community.

The hon. Member for Harrow West (Mr Thomas) made it clear that there are many other issues in London that provide a positive case for ensuring that the capital grant in London is protected and that the special position of the Metropolitan police is respected. The issue of diverse communities was raised by the right hon. Member for Leicester East, and the issue of policing pubs and bars was raised by my hon. Friend the Member for South Dorset (Richard Drax). That is plainly volume policing.

We need more police officers on the streets at kicking-out times for the pubs and clubs, which are more numerous in London than anywhere else in the country. The same applies to the threat of terrorism, which is most significant in London. I am pleased that the Metropolitan police have responded to that matter in the light of the Paris atrocities by significantly increasing the number of armed response vehicles and armed officers keeping us safe.

The same applies to the various types of crime tackled centrally on behalf of other police forces, such as online fraud. We have seen a massive explosion in such fraud over the past four or five years and although much more needs to be done and much more funding needs to be made available to deal with it anything like comprehensively enough, a large part of it is tackled by the Metropolitan police’s very impressive Operation FALCON and the City of London police’s Action Fraud. Such crime is perpetrated across the country, but is largely dealt with by the police in our two capital police forces. There is a need to protect the special status of London in any new funding formula.

Where I depart from the comments made by the hon. Member for Harrow West is where he painted a rather less than rosy picture of the state of policing in London. Although there has been a reduction in officer numbers, a less rigid approach to neighbourhood policing has allowed a more nimble model that certainly works well in my borough of Kingston and elsewhere across London. Of course, crime has dropped dramatically over the past five years and we have the police to thank for that. Even if they have lower overall numbers, they have a significantly larger proportion on the frontline and do a fantastic job that has resulted in a massive reduction in crime.

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Steve McCabe Portrait Steve McCabe
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It is certainly true that the Minister gave me a glimpse of some of the figures and I am extremely grateful to him for that, but let me reiterate my point: the Conservative PCC said that he had been tipped off that there would be a transfer of funds from urban to rural forces. My constituents want to know why more money is needed to police Surrey and Northamptonshire than to police the west midlands. Why do we get less while they get more?

Lord Beamish Portrait Mr Kevan Jones
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We could ask the same question about the local government formula, which gives more money to Surrey than to deprived areas such as Durham and my hon. Friend’s area. The suspicion is that this funding formula will also be used to divert money away from Labour areas to Conservative areas.

Steve McCabe Portrait Steve McCabe
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If we look at past form, we will see that that is certainly the implication. I was interested to hear the hon. Member for South Dorset (Richard Drax) implore the Minister to think again about fair funding, on the basis that a fairer funding arrangement would give the force in Dorset an extra £1.9 million a year. I remind the Minister that, under the same fairer funding formula, the west midlands would get an extra £40 million year. When it comes to the transfer of resources, I hope he will bear that in mind.

The reality is that, far from getting extra funding, over the past five years our force has had to contend with £180 million of cuts—the highest in the country. The workforce has been reduced by 3,000 and the incoming chief constable has been clear that the force will need to reorganise to “cope with the gaps”—those are his words—that it now has to carry. The mistakes in the formula mean that forces are now planning against a one-year rather than four-year profile, which will be a much more difficult challenge. I would like to hear the Minister explain how he thinks the chief constable of West Midlands police is meant to plug those gaps.

I want to be clear that I do not deride the Home Secretary for saying that volunteers with specialist skills in IT or accountancy might be useful in helping to tackle cybercrime. I am curious to know why it is necessary to create a new position of police support volunteer, rather than simply recruiting more special constables with particular skills and expertise. Is that part of a wider volunteer plan?

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Patricia Gibson Portrait Patricia Gibson (North Ayrshire and Arran) (SNP)
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We know that the UK Government have consulted on the funding formula for police forces in England and Wales, as they seek to simplify funding arrangements for the service. We also know that any changes in the funding arrangements have been delayed until 2016-17. Indeed, that was set out very eloquently by the right hon. Member for Leicester East (Keith Vaz). Because of Barnett consequentials, which are so important for funding services across the UK, I want to say a few words about policing in Scotland.

As many in the House will be aware, the SNP Scottish Government have carried out a reorganisation of policing in Scotland, with eight area forces merged into a unitary force in 2013. The Scottish Government now fund policing directly through the Scottish Police Authority. It is worth pointing out that that had cross-party support, although—perhaps this is in their nature—the Lib Dems subsequently withdrew their support. I would point out, if I may, that in Scotland, despite the major reform implemented by the Scottish Government, which has delivered significant savings, the Scottish Government have continued to protect their commitment to 1,000 additional police officers, all in the teeth of harsh Westminster cuts.

There is no doubt that we are having to make some very hard decisions in Scotland about the police budget, but, under the recent budget, the police revenue budget will be protected in real terms in every year of the next Parliament, with a boost of £100 million between 2016 and 2021. However, it must be said that some of the hard decisions the Scottish Government have to make are a direct consequence of the UK Government’s refusal to give Police Scotland the same VAT status as every other police authority in the United Kingdom. The same applies to the Scottish Fire and Rescue Service.

Lord Beamish Portrait Mr Kevan Jones
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It is your own doing.

Patricia Gibson Portrait Patricia Gibson
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I can hear somebody chuntering from a sedentary position. If the hon. Gentleman wants to intervene, I would be delighted to hear what he has to say.

Lord Beamish Portrait Mr Jones
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The fact is that the Scottish Government agreed to the VAT proposals.

Patricia Gibson Portrait Patricia Gibson
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For the avoidance of any doubt, I want to point out that although the Scottish Government were aware of that, it does not make it right.

Patricia Gibson Portrait Patricia Gibson
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No. Perhaps the Minister will let me finish my point before he starts chuntering. The Scottish Government agreed to that because they had no choice. They are working within the constraints imposed on them by Westminster. I should say—I am moving forward now—that like so many other deals in Scotland, it was imposed by a UK Government who are detached from Scotland and neither understand nor care about Scotland’s public services. I shall leave the matter there.

Lord Beamish Portrait Mr Jones
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rose

Patricia Gibson Portrait Patricia Gibson
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If you do not like giving fair funding formulae to Scotland, you had your chance last September, when you kicked and screamed to hold on to us. In the light of that decision last September, all we ask for is fairness. We are of course a valued and equal partner—well, let us be so.

Lord Beamish Portrait Mr Jones
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rose

Patricia Gibson Portrait Patricia Gibson
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I have dealt with that point comprehensively.

Lord Beamish Portrait Mr Jones
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No you haven’t. You’ve just ignored it.

Patricia Gibson Portrait Patricia Gibson
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I have not ignored it.

Lord Beamish Portrait Mr Jones
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Yes you have.

Lindsay Hoyle Portrait Mr Deputy Speaker (Mr Lindsay Hoyle)
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Order. If the hon. Lady wishes to give way, she will give way. If she does not want to give way, we all have to respect that.

Patricia Gibson Portrait Patricia Gibson
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I would simply add that holding an axe over someone’s head because they do not—

Lord Beamish Portrait Mr Jones
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On a point of order, Mr Deputy Speaker. We are used to the breathtaking arrogance of the SNP in this place, but it is completely wrong if an hon. Member raises a point that is clearly wrong and does not allow other hon. Members to question it.

Lindsay Hoyle Portrait Mr Deputy Speaker
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As you well know from the numerous—[Interruption.] I will deal with it, Mr Arkless. It will be easier if I do. As you well know, Mr Jones, that is not a point of order. If we were to rely on something that we believed not to be correct, we would never—[Interruption.] We would never, ever get through a debate. You and other Members in this House will continue to have different views. We will not always agree. On this occasion, it is not a point of order for the Chair.

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Patricia Gibson Portrait Patricia Gibson
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No, thank you. I want to progress beyond this point.

Uniquely and therefore unfairly, the Scottish Police Authority is the only police authority in the United Kingdom that cannot recover VAT. It is therefore liable for an annual cost of £25 million, which is equivalent to almost the entire forecast savings gap. Importantly, it seems that the Treasury based its decision on the fact that single services will be funded by central Government. However, the Treasury introduced a new section in the Value Added Tax Act 1994 to ensure that central Government-funded academy schools in England could recover VAT. Why is there not the same provision for the Scottish police and Scottish fire and rescue services?

Lord Beamish Portrait Mr Kevan Jones
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Because you didn’t ask for it!

Patricia Gibson Portrait Patricia Gibson
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Well, I’m asking for it now. Why do I mention all this, apart from the fact that it is about fairness?

Lord Beamish Portrait Mr Jones
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Because you’re a victim.

Lindsay Hoyle Portrait Mr Deputy Speaker (Mr Lindsay Hoyle)
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Order. Mr Jones, it will be easier if I can hear what is being said. I was hoping that you would speak next. We do not want to spoil that, because I want to hear from you.

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Lord Beamish Portrait Mr Kevan Jones (North Durham) (Lab)
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The hon. Member for North Ayrshire and Arran (Patricia Gibson) prayed for your indulgence, Mr Deputy Speaker—but indulgence was not what I was praying for. What we have just seen is what we usually get from the SNP when they turn on something that they agreed to with the victim mentality that, as I have said on numerous occasions, it has raised to a new art form in this House. We end up with the idea that somehow this measure is everybody else’s fault, but the hon. Lady’s Government agreed to it so I do not think that she can try to delude electors in Scotland that it is somehow the fault of English Members and the Government at Westminster. Apart from the sense of grievance, which we have heard on many occasions from the Scottish National party in the House in recent weeks and months, the hon. Lady did not cover anything that was relevant to the debate.

I congratulate the Home Affairs Committee on its report on reform of the funding formula, and I pay tribute to its Chair for his opening speech. It has been said numerous times that this issue needs to be considered for years and in a logical way. I do not disagree with that, because we must consider in detail how we fund our police, as that is an important issue for our constituents. I do not believe that how the Government went about that had anything to do with having a serious hard look at putting forward a fair funding formula.

One of the Committee’s criticisms—it was made not only by chief constables but by many PCCs—was that the consultation was rushed. It started on 21 July 2015 and closed on 15 September, a period of eight weeks. The Minister then wrote to PCCs and chief constables on 8 October, three weeks after the consultation closed, providing detailed refinements, setting out for the first time indicative force levels and inviting further comment.

James Berry Portrait James Berry
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I asked the permanent secretary why the consultation was over such a short period when he gave evidence. He said that the Government could have gone for a much longer period or tried to have the funding formula arranged before the spending review. The Department made that decision. Whether or not it was the right decision is a matter for debate, but the decision was to have the formula in place before the spending review.

Lord Beamish Portrait Mr Jones
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I totally agree with the hon. Gentleman. That is exactly what was going on. We were to have the formula wrapped up going into the spending review, but what we are in store for is exactly what has happened in local government funding. We did not get a fair local government funding formula: we have a skewed formula that moves resources from the most deprived communities in this country to—lo and behold!—the more wealthy parts, which are represented by Conservatives.

In local government funding, just by chance—hon. Members should not ask me how this has happened— 85% of the gainers happened to be in Conservative seats. I suspect that that is what was going on with the police funding formula. The Government had not reckoned with the PCC for Devon and Cornwall, who questioned the process.

We must also put the formula against the other things that the Government and their previous incarnation, the coalition, have done to policing in this country.

Steve McCabe Portrait Steve McCabe
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Like me, I am sure my hon. Friend recognises that the Minister is a pretty straightforward guy. Given that we have ended up in this situation and that we have been unable to resolve it—it will be four years before police forces can plan a long-term budget—would not the fair thing be to remove any doubt or suspicion and subject the formula to independent scrutiny? In that way, we could all be absolutely certain that it was fair.

Lord Beamish Portrait Mr Jones
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I agree with my hon. Friend—I will come back to that in a minute—but the real issue is that what was envisaged is exactly what we have seen in local government. Under the new formula, the resources would not have been devolved to the areas that needed them, but the blame for the cuts would have been. The Government have used that formula for many years now.

Peter Dowd Portrait Peter Dowd (Bootle) (Lab)
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The hon. Member for South Dorset (Richard Drax) is not in the Chamber, which is regrettable. He complained about the formula and the distribution. In my local authority over the past five years, we have had five times the amount of cuts that South Dorset has had. I am fearful that the police funding formula will do the same to policing as the Government did to local government.

Lord Beamish Portrait Mr Jones
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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 Portrait Jeff Smith (Manchester, Withington) (Lab)
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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?

Lord Beamish Portrait Mr Jones
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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.

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Gerald Jones Portrait Gerald Jones
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That was not the situation that the shadow Home Secretary described, and I think the hon. Gentleman knows that. He is trying to misrepresent what was said. The Conservatives were talking about cuts of 20%-plus at that point, so let us get this into perspective.

Lord Beamish Portrait Mr Kevan Jones
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Non-ring-fenced Departments were asked by the Chancellor to find cuts of up to 40%. If such cuts had gone through in the Home Office, policing budgets would certainly have been cut by more than 10%.

Gerald Jones Portrait Gerald Jones
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I thank my hon. Friend for that intervention. I think we are seeing a lot of smoke and mirrors from the Conservative party. In closing, I urge the Government to address the concerns that I have outlined, and to provide the fair funding formula that the police need to do the job that we ask them to do.

Peter Dowd Portrait Peter Dowd (Bootle) (Lab)
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I took part in the debate last week, and I will repeat something that I said at the time. I want to put on record again a big thank you to the staff and officers of Merseyside police. My right hon. Friend the Member for Leicester East (Keith Vaz) has today given the House a measured and generous analysis and exposition of the funding formula debacle. I am not of a mind to be as generous as him, however, because the tensions that that created right across the police service are still being felt. There is a fear that we shall find ourselves in a similar situation again and that it will be just as unfair and just as much of a debacle.

I should like to apologise in advance to either the Home Secretary or the Home Affairs Committee. I say that because one or other of them is trying to sell the House a very large pup. Last week, the Home Secretary led the House to believe that the police service was awash with money, regardless of the review. She said that in any event it is the quality of police officers, not the quantity, that counts—I particularly remember that one. She said, in response to my right hon. Friend the Member for Leigh (Andy Burnham):

“When the right hon. Gentleman calls on the Government to provide real-terms protection for the policing budget, I can happily tell Members that we have done just that.”—[Official Report, 24 February 2016; Vol. 606, c. 389.]

Of course, I heaved a sigh of relief at that reassurance—after all, she has the responsibility for keeping the Queen’s peace, and I am sure she would not want to let Her Majesty down in that regard. However, the Home Affairs Committee report appears to take a different view from that of the Home Secretary, saying:

“The real terms reductions in central grant to police forces as a whole has only varied between 24% and 26% since 2010/11…However, the range for real terms reductions for individual forces was from 12% for Surrey to 23% for Northumbria and West Midlands, the two forces most reliant on government grant.”

The Home Secretary is therefore being proactively selective, with the air of an amnesiac about her, and it is a disingenuous approach if ever there was one.

The Minister for Policing, Crime and Criminal Justice told us that the West Midlands police and crime commissioner—this, to some extent, reinforces the point my hon. Friend the Member for Birmingham, Selly Oak (Steve McCabe) made—had

“not spent part of the £153 million reserve in the West Midlands”—[Official Report, 24 February 2016; Vol. 606, c. 412.]

Again, my relief was palpable, as the Minister had pulled the Home Secretary’s chestnut out of the fire. Clearly, the implication was that police services right across the country had secret stashes of cash, gleaned from the ill-gotten gains of chief constables.

Lord Beamish Portrait Mr Kevan Jones
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Does what my hon. Friend is suggesting not reiterate that we are seeing something that is happening across government? The same arguments are being used by those in the Department for Communities and Local Government when they attack councils for having large reserves, even though a reserve can be spent only once and in cases such as Durham’s a lot of those reserves are already earmarked?

Peter Dowd Portrait Peter Dowd
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My hon. Friend is absolutely right about that, but I am too much of a gentleman to call what the Government are doing claptrap. Clearly, the implication being given was that all this money has been stashed away: serving officers have, with malice aforethought, picked the pockets of the poor, unsuspecting council taxpayers, with the nefarious intention of protecting them from—wait for it—crime! Of course, what the Minister, mimicking the amnesia of the Home Secretary, forgot to mention was that a comprehensive public report brought before the West Midlands police and crime panel on 15 October last year by the PCC’s chief finance officer clearly set out that:

“This report details by 2020 it is forecast over 80% of the WMPCC’s reserves will be used to support the MTFP—

medium-term financial plan—

“transformation programmes or other initiatives.”

Therefore, out of a turnover of two thirds of a billion pounds, the West Midlands PCC will, by 2020, have reserves of about £27 million, or just 4.5%.

Lord Beamish Portrait Mr Jones
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My hon. Friend comes from a local government background, so does he also find it remarkable that, in respect of not just the Home Office, but local government, the Government seem to mix revenue and capital willy-nilly? Like me, he knows from his time in local government that one of the cardinal sins was using capital for revenue purposes, unless it was for investment to save—

Peter Dowd Portrait Peter Dowd
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My hon. Friend just set out clearly the jiggery-pokery finances of this Government. That is what it is—it is hocus-pocus. By 2020, this Minister, or his successor, will no doubt be accusing the West Midland police of flying by the seat of its pants for having such small reserves. In any event, the West Midlands PCC was already doing what the Minister was, post-hoc, suggesting that he should do. Evidently, there is a contagion of disingenuity in the Home Office.

More shocking were the contents of the Home Affairs Committee report of December 2015. In last week’s Opposition day debate on police funding, we had this Minister refusing to take interventions, with the exception of those from one or two of his own Members, in full obsequious mode. I am afraid that his insouciant and dismissive attitude towards Members of this House has antecedents—in other words, he has form.

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Lord Beamish Portrait Mr Kevan Jones
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What nonsense.

Richard Arkless Portrait Richard Arkless
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I know that in Scotland the distinction between blue and red is becoming increasingly blurred, but that was ridiculous.

Last week we had a debate in the Chamber on the police, and there was a difference of opinion between the two sides. The debate was predicated on the words of the Chancellor in the autumn spending review on 25 November:

“there will be no cuts in the police budget at all. There will be real-terms protection for police funding.”—[Official Report, 25 November 2015; Vol. 602, c. 1373.]

The Opposition say that that was not true and that there was a real-terms reduction. The Government say that there is a real-terms reduction of 1.4%, but that will be offset by the ability of local authorities to raise the council tax precept portion that can go towards police funding. It seems to me that it is not this place that is protecting the real-terms allocation for police funding, but the poor council tax payers across England and Wales who are doing so.

From a Scottish point of view, unless I have got this dramatically wrong, we in Scotland will not get Barnett consequentials from an increase in council tax spending. Perhaps the situation was not made as clear by the Chancellor on 25 November as it ought to have been. In terms of democracy, millions of people watch the autumn statement. The public and Members of this House should be able to rely on every word that comes out of the Chancellor’s mouth at the Dispatch Box. Clearly, whether by omission or by misunderstanding, it has turned out that his words were not 100% accurate. That is plain wrong.

I have nothing further to add—I know that the Policing Minister will be absolutely devastated at that assertion—other than to request that whatever the House agrees in relation to police funding, it should please be protected it in real terms. Cybercrime, terrorism and a new range of challenges make that essential. Scotland will then have more money to spend on police. It will keep our streets and our children safe, and that is one of the core responsibilities of all Members.

Sarah Champion Portrait Sarah Champion (Rotherham) (Lab)
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I thank all those who have spoken in the debate. My hon. Friends have detailed the impact of cuts to police funding on their constituents and their police forces. I thank my hon. Friend the Member for Bootle (Peter Dowd) and the hon. Member for Dumfries and Galloway (Richard Arkless) for reminding us that the police are trying to do an incredibly difficult job despite the cuts and pressures that they face. The whole House thanks them for that.

My right hon. Friend the Member for Leicester East (Keith Vaz) was extremely helpful in setting the broader context for the debate, which could not take place at a more important time. Any debate about police funding must be put in the context of the crucial role that the police play, protecting children and vulnerable groups, getting justice for victims and keeping communities safe. As the Home Affairs Committee report says,

“The demands on the police are many and various”.

To give just one example, through my own campaigning work I have found out more and more about the scale of child abuse in the UK. It is truly shocking. The most recent data from the NSPCC estimate that half a million children are being abused. Reports of domestic and sexual violence are increasing across the country.

Lord Beamish Portrait Mr Kevan Jones
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I commend my hon. Friend for her work in that area. Does she agree that that puts pressure on regional forces such as Durham’s, which is involved in Operation Seabrook, investigating abuse at the Medomsley detention centre—an operation that has cost more than £2 million?

Sarah Champion Portrait Sarah Champion
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My hon. Friend is absolutely right to raise that issue, which I have tried to raise in this Chamber. Such cases are incredibly expensive and incredibly important, and that work needs to be done, but there is no additional money, so the money is coming from the existing pot. The Government really need to look seriously at funding those cases.

The numbers of serious and violent crimes are soaring. In the last year alone there has been a major increase in knife crime, which is up 9%, and a 27% rise in violent crime, including a 14% rise in murder. Devastatingly, 50% of those cases close without a single suspect ever being identified.

Central Government funding for police forces was cut by a quarter in the last Parliament, resulting in the loss of 18,000 police officers—12,000 of them operational front-line officers. Thousands of PCSOs and civilian staff have also been cut. We have ever fewer police officers trying to do ever more.

The value of local neighbourhood policing, with officers working in partnership with local authorities and other agencies to tackle the challenges we face, cannot be overestimated. However, neighbourhood policing teams—a proud legacy of the Labour Government—are being eroded. Serious crimes are up, but victims are being let down.

Despite all that, and after cutting the police by 25% in the last Parliament, the Government were threatening to cut at least a further 22% right up until the night before the comprehensive spending review. We were on the brink of catastrophe, but the Chancellor U-turned under pressure from Labour, the public and the police [Interruption.] And London MPs.

The Chancellor then made a promise:

“I am today announcing that there will be no cuts in the police budget at all. There will be real-terms protection for police funding. The police protect us, and we are going to protect the police.”—[Official Report, 25 November 2015; Vol. 602, c. 1373.]

That promise to the public and the police has been broken. The Chancellor said he would protect the police, but police budgets are still being cut. Police force funding for 2016-17 has not been protected in real terms. Budgets are being cut again—for the sixth year in a row—at a time when the country faces increased risks.

Figures from the House of Commons Library show that the overall Home Office grant to the police next year will not be protected in real terms or even in cash terms. The Library’s analysis shows that forces in England and Wales will receive £30 million less in cash—a cut worth £160 million in real terms. Even the extra council tax that Tories expect local people to pay to make up for the cuts will not compensate for that.

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Mike Penning Portrait Mike Penning
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I will come on to the report’s recommendations. Whether we use the organisations referred to by the Home Affairs Committee or others, it is crucial that we have the confidence to say, “This is where we are, this is what we think is right and the chief constables are with us.” I reiterate, however, that whenever the contents of a pot of gold are dispersed, there are winners and losers. At the end of the day, though, we must make sure that it is fairer.

Lord Beamish Portrait Mr Kevan Jones
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The Minister is right to raise the important issue of the pressures put on police forces by historic abuse cases. Durham faces a £2 million-plus bill for Operation Seabrook. Is it right that such a complex investigation, which is clearly needed, should fall on Durham? Should there not be a central pot to refund it for such operations?

Mike Penning Portrait Mike Penning
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The hon. Gentleman raises an important point. Some forces have much larger percentage costs for historical cases and they have an opportunity to apply to the Home Office for assistance. It is right and proper that the investigations are done by the forces. Some investigations were not done correctly early on, which is even more reason why we should address them. I know about the inquiry referred to by the hon. Gentleman and I am more than happy to look into it. A piece of paper will probably be passed around my back while I am speaking, but I do not think I have had a request from Durham.

On the subject of Durham, it has done fantastically well, hasn’t it? If someone from the moon had landed here this afternoon and listened to this debate—some people probably wish they had travelled in the other direction—they would have thought that Durham had really struggled, so let us say from the outset that it has done fantastically well. It has even done really well in the latest independent reports on police effectiveness, efficiency and legitimacy. It has been rated outstanding on nine of the 12 points, good on another two, and the other one, which relates to a serious error on stop and search and the use of a Taser, requires improvement.

The force has done all that with a reduced workforce and a higher percentage of officers on the front line. It has experienced a substantial reduction in numbers, from 1,705 to 1,057, but it has massively reduced crime, including during this year. When the hon. Gentleman gets to his feet, I am sure that he will praise the police in Durham, as I have done.

Lord Beamish Portrait Mr Jones
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The Minister cannot have been listening to my speech, in which I praised the great leadership of the chief constable, Mike Barton, and the Labour PCC, Ron Hogg—and, more importantly, the men and women of Durham police. That is no reason why the force should not be fairly funded, however. It has done things well, but that has not been achieved easily. Clearly, it would not have got a fairer funding formula under the Government’s proposals.

Mike Penning Portrait Mike Penning
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Durham has done more with less, and it has done so excellently. I agree with the hon. Gentleman completely, as I have said at the Dispatch Box on more than one occasion, that we need a way of funding our police that is fairer than the existing formula. He has said on more than one occasion today how difficult things have been for Durham. He is quite right to say so, and things have been difficult for other forces as well. I believe in giving praise where praise is due, and Durham has done fantastically well. It has reduced crime with fewer police but a higher percentage of officers on the front line than in 2010, and that is great.

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Mike Penning Portrait Mike Penning
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I hope I did not say that because that is not what I intended to say. I intended to say that forces that have already collaborated should not be worse off by anything that we bring forward. The chiefs are doing their own capability review across policing—the collaboration with other services is a slightly different thing. Once I know where that delivery point will be and, in other words, where they think the services will be—they could be in ROCUs or local collaboration, as in my hon. Friend’s part of the country, or within the NCA, or within a force—we will have a basis for coming forward with a fairer formula.

Lord Beamish Portrait Mr Kevan Jones
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I want to ask a question about what the Minister is trying to achieve. If he is doing that now, why was it possible in the previous review to think that he could come up with a fair funding formula in eight weeks? What is the role of the Treasury? Is it still sitting on his shoulder trying to get savings, or are we starting with an entirely new process? One key thing that has been raised in the debate—I think the Minister realises it—is that he has to get the confidence back of chief constables, PCCs and the police family.

Mike Penning Portrait Mike Penning
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I have broad shoulders, but they are not broad enough to take on the whole Treasury. However, the Treasury’s influence is only that it is a flat cash terms agreement for four years, not one year. That is the agreement we have. All the chiefs and PCCs know it. They did not know—they do now.

It would be wrong if I did not mention Scotland, not least because we heard a very interesting contribution from the hon. Member for North Ayrshire and Arran (Patricia Gibson) and another one. I did not allow myself to get involved in the spat between the Labour party and the Scottish National party. All I can say is that I thought the SNP position was—I am almost lost for words—ridiculous. That is being polite. Suppose someone goes to their bank manager and asks for a loan of £10,000, £100,000 or even £1 million and he agrees it after looking at the business plan. If, as they walk out after presenting their business plan, they say to the bank manager who is giving them the money, “By the way, I want another 20%,” he will laugh. I laughed when I first read that that is exactly what the Scottish National party has done.