Police Funding Formula

Debate between Lord Beamish and Peter Dowd

Tuesday 1st March 2016 Commons Chamber

[Mr Jones]

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 (Bootle) (Lab)]

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.

[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.

--- Later in debate ---

[Peter Dowd (Bootle) (Lab)]

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.

[Mr Kevan Jones]

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]

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%.

[Mr Jones]

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]

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.