Police Grant Report

Lord Beamish Excerpts

Wednesday 7th February 2018 Commons Chamber

[Mr Kevan Jones (North Durham) (Lab)]

Is it not a fact that between 2010 and 2015, the police budget from central Government was reduced by 5% every single year? The Minister makes the point that this is all taxpayers’ money, but is it not the case that he is continuing to move the burden of taxation away from central Government and on to local ratepayers?

[Mr Hurd]

This is a false argument from the Labour party. The fact remains that when one looks at police funding, on average something like 70% of local police force funding across the system still comes from the centre. The settlement barely changes that. We are responding to calls from many police and crime commissioners for greater flexibility in their local precept. That is what we are delivering but, in the face of continued Labour smoke around police cuts, we cannot get away from the fact that as a result of the settlement, we will invest over £1 billion more in our police system in 2018-19 than we did in 2015-16.

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[Mr Hurd]

On one level, I understand what the hon. Gentleman is saying, but increased funding is going into his police system, and if he actually tells an honest story to his constituents about crime, he will refer them to the national crime survey, which shows that crime, in the experience of his constituents, continues to fall, alongside the national trend.

In terms of the shape of the settlement, I want to be clear that there will be no reductions in the amount of core grant paid to any PCC.

[Mr Kevan Jones]

Yes, there will be.

[Mr Hurd]

No, there won’t. There will be no reduction in the amount of core grant paid to any PCC. This means that PCCs will keep all the benefits of tax-based growth in their area. That is a change, and one that West Midlands police, for example, were particularly keen on. That is a change: there will be no reduction in the amount of core grant paid to any PCC. We are also giving PCCs and Mayors more flexibility on their precepts. The settlement empowers them to ask their local residents to make a bigger contribution to support local policing. We want this to be affordable, at a time when money remains tight, so we have limited increases in local police precepts to an additional £1 a month—or 25p a week—for a typical band D household. If all PCCs use these powers, they will be able to invest, collectively, a further £270 million in 2018-19. Since 2016-17 local force funding has been protected in cash terms, including police precepts, but this settlement goes further. The combination of flat grant and rising precept in 2018-19 means that all PCCs can maintain their funding in real terms next year if they use the new council tax flexibility.

[Mr Kevan Jones]

I am sorry, but the Minister is completely wrong. Flat cash is a cut when inflation and other pressures on PCCs are taken into account. The hon. Member for Gainsborough (Sir Edward Leigh) asked what the Minister could do to help the Lincolnshire force. What the Minister is doing is pushing the increase on to local taxpayers. Why did he not say that to the hon. Gentleman?

[Mr Hurd]

I will make two points to the hon. Member for North Durham (Mr Jones), who, as ever, is thoughtful on these matters. The combination of flat-cash grant from the centre and an increase in precepts means overall net-net “flat real” for local police forces. [Interruption.] That is what I said, and that is what is true. Labour Members continue to ignore the second part of that combination, which is the increase in precepts. [Interruption.] I know that Labour Members have a problem with this, because they continue to pretend that someone else will pay. What we said in response to PCCs who wanted increased flexibility on precepts was that they should go to the people in their locality and say, “I should like to ask for an extra 25p a week as an additional contribution to local policing; would you accept that?” Where surveys have been carried out, PCCs have met with approval rates of between 75% and 80%, which suggests that that was the right question and the right answer.

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[Charlie Elphicke (Dover) (Ind)]

It is a pleasure to speak in this debate.

It goes without saying that the work of the police in keeping us all safe and secure is so incredibly important. They deserve our thanks for all their work. One of the cornerstones of our way of life and our society is that our police forces are independent, professional and do their job in line with their duties. We should all be proud of what they do. I support the work of the police in dealing with the threats that face the nation, including their counter-terrorism work. We should support and praise the work of special branch and MI5. It is important, on occasion, that some of our officers are armed and able to protect us from the most serious and grave threats. I hope that the whole House will unite in thanking all arms of the police for their important work. Having been under attack here ourselves, we know very well the importance of their work.

I will particularly talk about the work of Kent police and Kent’s police and crime commissioner, Matthew Scott. He has been in office since the last police and crime commissioner elections, and has been successful in increasing the number of police officers. Since his election in May 2016, he has worked hard with the funding available to get 80 extra police officers and has protected PCSO numbers at 300, when other police forces have sadly seen fit to reduce them. And he has managed to do this despite having only 12% in reserves.

Now, when I was listening to the discussion about reserves, I thought of a parable. I do not know whether anyone else in this place went to Sunday school, but I did, and that is where I heard the parable of the talents. In that story, the master goes away and leaves his servants with some talents. One of the servants spends the talents wisely and uses them productively to further the important work of the master. Another buries them in the ground and leaves them there to do nothing. The discussion about reserves is a bit like that; reserves do not exist just to sit there for a rainy day, on the off chance that something happens. Reserves are to be used. They ensure that we have the money to spend to help keep us safe and secure. Kent’s PCC has been assiduous in doing that. Kent police only have about 10% in reserves, but he has been spending money to get more officers on the beat and on the frontline to keep our towns, villages and communities safe and secure. Money should be spent on the frontline of policing, not just left to rot in a bank.

It is important that we celebrate the ambitions of the police and crime commissioner of Kent to get a further 200 officers on the beat. He is not unrealistic. He told me that this cannot go on forever, saying, “We can’t keep digging into our reserves because we basically don’t have any left.” He knows that the police will need further funding in the future, but for now the settlement is a good one that he is happy to support. I take his advice because he knows best how to spend money efficiently, wisely and well, he knows how to get the best out of the frontline, and he has ambitions to improve the safety and security of Kent. In our discussions, I have told him how important it is that we have more police on the frontline in Dover and Deal, especially when it comes to these 200 officers who he has the ambition to recruit. I have made a particularly strong case that we should have more police officers in the town of Deal.

At various points in this debate we have heard about the accessibility of the police. We had an unfortunate situation in the past, which came into being under the independent police and crime commissioner that we had for a while in Kent. At that point, there were just two hours of desk time for the residents of Deal to be able to see the police in the local police station. I have been making the case that the funding the commissioner will have should be used to increase the amount of desk time from two hours to four or five hours each day, and ideally for six days a week, rather than five. People would then be able to discuss their concerns with police personnel and would feel that the police were much more in the heart of the community and more accessible— face to face, not just over a telephone. I have been making this case to the commissioner and I hope he will take heed.

I am pleased that Kent has seen an increase in its allocation from £279.3 million to £288 million, which is a £8.7 million increase. And I am pleased that Kent police are not like the wasteful servants that we hear about so much—pleaded for by the Opposition, who like to bury their reserves. Kent’s police and crime commissioner spends his reserves to ensure that we are doing things on the frontline.

[Mr Kevan Jones]

rose—

[Charlie Elphicke]

I will finish in a moment, but I will first give way to the hon. Gentleman. I cannot resist giving way in order to listen to the points he makes.

[Mr Jones]

The recommended level is 5%. The hon. Gentleman has already told us that his own authority has 10%, so what is he doing with his 5% buried away somewhere?

[Charlie Elphicke]

I am, as ever, very tempted by the hon. Gentleman. I think that 10% is pretty much at the bottom of the table. [Hon. Members: “No, it’s not.”] It pretty much is. Places like Gwent, at about 42%, are very high up. Indeed, Durham is at 12%.

[Mr Jones]

rose—

[Charlie Elphicke]

I will not take a further intervention, but I will say that Kent has been dealing with its reserves and is minded to continue to be very efficient in that way.

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[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

It is a pleasure to follow the hon. Member for Dover (Charlie Elphicke), although I found it hard to understand how he could be praising his police authority for not practising what he was preaching.

I will try to take a consensual approach.

[Mr Kevan Jones]

Why?

[Mr Bailey]

Well, in common with other Members on both sides of the House, I have taken part in the police service parliamentary scheme, and, having done that, I would have thought that we would all be united in our admiration for the sheer professionalism, dedication, commitment, skill and expertise of our police forces.

Having started on that consensual note, I will move on. I make no apologies whatsoever for standing up, in line with other west midlands Members of Parliament, to criticise this settlement in the context of what West Midlands police are going to get and what their needs are going to be. My hon. Friend the Member for Birmingham, Selly Oak (Steve McCabe) outlined some of the key statistics, and I will not repeat them. What it amounts to is that, following this cash-plus precept settlement, there will be a £12.5 million gap in what is needed to sustain the current level of service. It could lead to the closure of 18 police stations. West Midlands police force has lost over 2,000 officers, and it is difficult to see how it could go on without losing more.

The key issue is the funding model that the Government are developing for the police in areas such as the west midlands. If there is an annual flat grant, which effectively means that we lose the real value of that grant by a certain percentage every year, allied with a maximum on the precept, then the areas with the lowest-value property profiles—nearly always urban areas with lower-income people and often higher crime rates—will become disproportionately disadvantaged year on year. That is the situation that is developing in the west midlands. A rise in council tax in the west midlands will raise £3.35 per person. In Surrey, it raises £6.42 per person. That is why we see other anomalies such as Hampshire, which, with almost 1 million fewer residents, has a larger increase in its settlement arising from the precept than areas such as the west midlands.

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[Anne Marie Morris (Newton Abbot) (Con)]

I, too, would certainly like to pay tribute to my local force, Devon and Cornwall, which does a fantastic job in very difficult circumstances. Rural constituencies have the extra challenges of distance and a lack of good infrastructure, particularly broadband. If hon. Members looked at the roads there, they would understand why there is a real challenge.

I have talked to my PCC, Alison Hernandez, and she would like me to say thank you to the Government, for two reasons. First, she is pleased that they have listened specifically to a request for flexibility. As a consequence, the police precept will go up by 6.8%—the maximum—but I would take issue with those who say that it is inappropriate that the increase will come out of the taxpayers’ pockets. After all, mainstream tax also comes out of all taxpayers’ pockets. This at least ensures that we know the precept money will be spent on policing.

[Mr Kevan Jones]

I am very interested by that. Will the hon. Lady put out leaflets in her constituency to tell her constituents that tonight she has voted for her local council’s policing precept to go up?

[Anne Marie Morris]

Absolutely, and I shall tell the hon. Gentleman why—although I am not going to put it in a leaflet. The point is that people on the streets are saying that they are prepared to pay for health and social care, education and policing. What they do not like is non-specific tax rises that they think will be spent on things that they do not really value.

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[Mr Kevan Jones (North Durham) (Lab)]

Can we be clear what is being done with this settlement this afternoon? We are seeing a fundamental change in the way our police in this country are funded—moving funding from central Government to local taxpayers. My hon. Friend the Member for Birmingham, Selly Oak (Steve McCabe) quite rightly said that what the Government have announced today is a cut in central Government funding. It is a flat cash settlement, if we look at and take into account inflation and other things.

This is the first time I have ever seen such a parade of Conservative MPs with the duo from Dorset—the hon. Members for South Dorset (Richard Drax) and for North Dorset (Simon Hoare)—saying how they welcomed the settlement, and with the remarkable statement from the hon. Member for Newton Abbot (Anne Marie Morris) that she will say on a leaflet to her constituents that she is voting to put up their taxes. It is the first time I have ever heard a Conservative MP say they were going to put up taxes, but that is what we are actually doing.

My hon. Friend the Member for Birmingham, Erdington (Jack Dromey) is correct that this is not just about what is happening now; it is about what has been happening over the past seven years. The Prime Minister’s crime sheet, when she was Home Secretary, speaks for itself: a 5% reduction in the central Government grant for policing every single year, aided and abetted by the Liberal Democrats. In Durham, that has meant 350 fewer officers and 150 fewer support officers.

[Mike Hill (Hartlepool) (Lab)]

Cleveland police, who share many services with the neighbouring Durham constabulary, have also seen such cuts. Does my hon. Friend agree that 500 fewer police officers—the boots on the ground—over the past seven years is intolerable?

[Mr Jones]

Yes, but that is what is happening on the ground. We hear all this guff and rhetoric from the Government about how they are somehow protecting frontline policing, but it is frontline officers who we are losing, and it is frontline officers who my constituents want to see on the streets.

We are told that local people will be quite happy to have their council tax increased. The proposal is for a flat increase in the precept of £12 a year across band D properties. The Government argue that that is fair, but for Durham it is completely unfair. Durham relies on central Government grant for 75% of its funding, so because of the makeup of council tax bands for properties in Durham, a £1 increase would increase expenditure by £46 per head of population. In Thames Valley, the figure would be £60, and in Surrey, it would be nearly £90. If the system is reliant on local council tax bands, the local precept that the police and crime commissioner can raise in some areas is severely limited. The Minister said that police and crime commissioners are welcoming this. Well, they have to be, because it is the only way they will plug the funding gap that is being created by the Government.

The other thing that is unfair is how this actually falls. In Durham, for example, 55% of properties are in band A, so if the police and crime commissioner increases the precept by the maximum, which he will have to do, that will raise £2 million, £800,000 of which will come from band A properties, and just £62,000 of which will come from band H properties. That is fundamentally unfair. The system means that those who are least able to pay will end up paying more. It is no good the Minister saying that he is protecting funding, because he is pushing that on to local taxpayers and in some cases on to the poorest in our society, who cannot afford to pay.

We have been promised a review of police funding, which clearly has been kicked well into the long grass. What we have tonight is a start, because no doubt next year we will have the same: flat cash again and more being pushed on to local taxpayers, and no doubt we will be told that the police budget is increasing.

A lot of nonsense has been talked about reserves. I thought that this crime had been ditched when George Osborne left this place, because he often criticised local councils for having reserves. He made the fundamental mistake—I learnt this many years ago in local government—of mixing capital and revenue, as this lot on the Government Benches seem to do willy-nilly. The hon. Member for Dover (Charlie Elphicke) used a biblical reference, but I did not quite understand what he was talking about. Let me put the record straight on Durham. Durham has £5.7 million in general reserves, which is about 5% of the budget, so exactly what it should have.

We also have to consider earmarked reserves, which are for things that will increase efficiency. For example, Durham has another £5.6 million that it will be investing in modernising the force. In the recent period, the force has spent £10 million of its reserve paying off its pension liability, saving it some £850,000 a year. It has also had to use some reserves for the £4 million cost of the Medomsley inquiry, which is a very serious investigation that the force is undertaking. If reserves are used, they should be used cleverly and to make efficiencies. As hon. Members have said, when they are gone, they are gone. They cannot just be reinvented. What we are seeing today is a fundamental change. No doubt, the same situation will come back next year.

Let me come to counter-terrorism. It is right to put more money into counter-terrorism, but as hon. Members said, if we cut back on neighbourhood policing, that will have a direct effect on the police’s ability to counter the radicalisation that is taking place in some communities. I welcome the £50 million that is being brought forward, but I hasten to add that the request was for double that—£104 million—and I am interested to know why the Government are not meeting that requirement. I would like to know how the money is being used for regional forces. Durham, for example, has had to use some of its budget to fill the gap on the demand for counter-terrorism work. It would be interesting to hear how the £50 million will be spread across forces.

Although this is a terrible settlement, I think that my Front Benchers have given the Conservative party a great weapon to beat us with by deciding to vote against the entire settlement. The only thing that Conservative Members will use is that we voted against the £50 million for counter-terrorism. A lot of things in the settlement are fundamentally wrong for our communities. Forces such as Durham—one of the few forces that is not only outstanding, but outstanding in terms of efficiencies—have made the efficiencies that they can make and cannot cut back any more. If the settlement process continues, as I suspect it will, and each year the central Government grant is cut and more is put on local forces, places such as Durham will be completely disadvantaged. Promises have been made about reviewing the funding formula, but we are yet to see that. Without it, places such as Durham will find it more difficult to put in place not the policing that someone has arbitrarily decided is needed, but the policing that local people demand of their local police.

I pay tribute to the men and women of our police force. They do an extraordinary job and do things that many of us would not even dream of doing. In Durham, I congratulate the police and crime commissioner Ron Hogg on his leadership, as well as the chief constable, the men and women of the force on their work that they do, and the support staff behind them.

Let us be clear about what is being done: local people are being asked to pay for this increase. The Minister says that we have an increase in police funding. Yes, we have, but people will pay more tax locally. The Conservatives will vote later to increase the taxes of many poor people across the country to pay for policing. That is a fundamental change, and it is about time that the Government were honest about what they have been doing with policing and the cuts—[Interruption.] Does the Minister want to intervene?

[Mr Hurd]

No, no.

[Mr Jones]

Doubled policing revenue—yes, he has, but not at central Government level. The Minister cannot get away from the fact that he is cutting the central Government grant and cutting numbers. I quite like him as an individual, but people are not stupid—they will see through this—and I look forward to him telling his local constituents and others that the Government are voting for a tax rise for them today, because that is exactly what he is doing.

In conclusion, this is a thoroughly bad settlement. We need a fundamental change in police funding, because if we do not have that, this system will lead to more and more cuts at local police level and a very unfair system.

[Several hon. Members rose—]

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[Stephen Twigg (Liverpool, West Derby) (Lab/Co-op)]

It is a pleasure to follow the powerful and passionate speech made by my hon. Friend the Member for Ilford North (Wes Streeting).

I pay tribute to the dedication and professionalism of police officers and staff in my constituency and throughout Merseyside. I also thank our chief constable, Andy Cooke, and our excellent police and crime commissioner, Jane Kennedy, for their leadership during what has been a very challenging period. Since 2011, Merseyside police has been asked to make sizeable cuts to its budget. The force had already slashed £82 million from its annual budget, and it expects to have to make a further £18 million in cuts by 2021. Last year our chief constable warned that Merseyside police was reaching breaking point as budgets were “stretched to the limits”. He also issued a stark warning that further cuts in our police budget could result in some offences not being responded to at all. Merseyside has lost 1,700 police officers and staff since 2010. At the same time, the fire and rescue service in Merseyside has had its budget cut in half by the Government, and Liverpool City Council has faced some of the most savage funding cuts of any local authority.

Merseyside Police Federation tells me that the decreasing number of officers has led to an increase in single crewing, meaning that officers are forced to attend call-outs on their own. It tells me that three quarters of officers are “often or always” single crewed. This has an obvious and significant impact when dealing with certain categories of crime, as it affects the police’s ability to break up gangs or to arrest people in large groups.

The combination of budget cuts and rising crime has serious implications for my constituency. In just six months last year, there had already been more gun-related violence in Liverpool than during the whole of the previous year. Last weekend in my constituency, armed gangs broke into three separate properties and threatened residents with a shotgun, a machete and a hammer. The number of shootings has increased, with nine gun-related murders across Merseyside since 2014. Merseyside police has long been recognised around the country as one of the best police forces for tackling gun crime, but it says that it is stretched to the limit. My right hon. Friend the Leader of the Opposition rightly quoted our chief constable’s comments about this issue at today’s Prime Minister’s questions.

I want to speak briefly about an issue on which the shadow Minister, my hon. Friend the Member for Sheffield, Heeley (Louise Haigh), has truly led: the scourge of scrambler bikes. It affects my constituency and others across Merseyside, and I have been working with our police and crime commissioner and the local force to try to tackle the problem. I welcome what the Minister said about the Home Office review, and I was pleased before Christmas to support the ten-minute rule Bill introduced by the hon. Member for North West Norfolk (Sir Henry Bellingham), which seeks to give greater legal protections to emergency service workers, including police officers, who pursue people on scrambler bikes. I am pleased to report that yesterday Merseyside police crushed 300 confiscated or stolen scrambler bikes. However, the force and Jane Kennedy tell me that they need both the resources and the powers to do more to tackle this appalling scourge.

I want to finish by addressing what I think is a fundamental issue of social justice, and I apologise that in some ways I am repeating points that colleagues have made. Merseyside police relies on central Government to provide 81% of its funding. It raises just 19% of its funding through council tax. That is a major part of the reason why police forces in poorer areas such as Merseyside have been hit the hardest by funding cuts. We have some of the most deprived communities in the country, which not only brings particular policing challenges, but means that it is harder to raise extra money through the local precept.

Like other colleagues, I shall make the contrast with Surrey, because it is so stark. Surrey’s cuts to its central Government grant have been similar to those of Merseyside, but last year Surrey police was the only force in the country that raised more money locally than it received from Government. As it has a more affluent council tax base, Surrey loses less funding, even though it probably faces far fewer complex crimes than we on Merseyside. There is an inherent unfairness about this, as that fundamental issue affects areas with high levels of deprivation.

That brings me to the question of the precept for Merseyside police and the Minister’s announcement in December that Jane Kennedy, our police and crime commissioner, will be able to raise additional funding through the council tax. There will be no additional money from central Government, but money from Merseyside council tax payers. Jane has been consulting on this, and I expect to hear an announcement from her soon. I should make it clear that I support her proposed increase in the council tax.

[Mr Kevan Jones]

Does my hon. Friend agree that his police and crime commissioner, like the PCC in Durham, has no choice in this?

[Stephen Twigg]

My hon. Friend anticipates my point. My PCC has no choice, and of course similar challenges are facing the local authority, so my constituents, if the increase goes ahead, will pay not just 2% for the police, but 4% for the local authority, so there will be a 6% increase in council tax. That is no criticism of either the police and crime commissioner or the local authority, because it is the only way in which they can get the money that they need for policing, social care and other crucial local services.

To return to a point that my hon. Friend the Member for North Durham (Mr Jones) has raised, putting £12 on the council tax of band D properties raises more in some parts of the country than in others. The ability to raise more locally is regressive, as it compounds the existing inequality that I have described. Merseyside police has already had to make huge cuts, and that has undoubtedly affected its operational capability, as the chief constable has told us. I implore the Minister to work with Jane Kennedy and our chief constable to address this fundamental issue of social justice, because my constituents worry about crime and antisocial behaviour, especially when we are sadly seeing the return of significant levels of gun violence across Merseyside. The police desperately need additional resources, so I finish by echoing my hon. Friend the shadow Minister in urging the Minister to think again.