Police Reform and Social Responsibility Bill

Debate between Lord Stevens of Kirkwhelpington and Lord Shipley

Tuesday 24th May 2011 Lords Chamber

[Lord Shipley]

What seems to be missing in this debate and in the Bill as a whole is a clear indication of the net cost of these proposals. There are existing costs both within a police force and within a police authority, but everything I hear and read suggests that the cost of police commissioners, with their offices and staff, will be significantly higher than the costs that we currently meet. There will be 41 full-time police and crime commissioners. They will have an undefined number of staff, with buildings to house them in, and they will have their running costs. Given that the police commissioner will work full time and, I understand, be paid a low six-figure sum of money, the implication is that the cost of a police and crime commissioner’s office is likely to run into several million pounds a year. The figure is very hard to estimate and it is not clear from the Bill documentation what it is likely to be. It seems to suggest that the net cost will not be significantly different from current spending. We will see, but I have come to the conclusion that the total net cost of police and crime commissioners, with the structures that will underpin them, is likely to be somewhere between £100 million and £200 million. I could be out and it could be higher than that.

It goes back to the nub of the issue about duplication, on which we have had a very good debate and I hesitate to repeat things. I have not understood who will be making exactly what decision on spending. I understand that there is operational and there is strategic, but there is also the challenge from the commissioner’s office on day-to-day spending on the basis of the police and crime plan and the challenge from the finance staff of their colleagues on the operational side of finance about what money is being spent. The Bill says that a chief constable will have a chief finance officer. Words matter because a chief implies that there will be others as well. A chief constable will have a chief finance officer for the police force’s financial affairs and the commissioner will have a chief finance officer for the commissioner’s financial affairs.

These are not different things. The commissioner is responsible for constructing the police and crime plan. That plan implies a budget as a budget is a statement of policy. The statement of policy is therefore the plan. There is the budget, the heads of expenditure and the precept. I find it hard to understand how you will not end up with conflict if you run two separate staffing structures on finance. There will be conflict and difficulty because there will have to be an assessment of whether the police and crime commissioner’s plan, which is the budget, is being carried out operationally. That requires the staff to work very closely together. I think there is great cause for concern about how the structure is being put in place. At the moment the costs on the police authority side are comparatively low, and certainly a great deal lower than the costs on the force side.

We are about to put up the overall costs of a public service at a time when there are major reductions in the numbers of police officers on the beat. The priority needs to be to keep neighbourhood policing at a high level rather than increase the costs of accountability. It is in that accountability between the two parts—the police force and the police commissioner’s office—that we will end up with it not being clear who is in charge of what. That will cost money because people will be challenging it. There will be more meetings, more reports, more audits, more explanations, and so on.

I am very concerned about this. Amendments 43 and 44 are probing amendments to see whether there is clarity on who would be responsible for what. I feel that some work now needs to be done to get these issues clear. That would start with a clear costing of the overall cost of this. That then would produce a definition of what the policy really is.

[Lord Stevens of Kirkwhelpington]

My Lords, the noble Lord, Lord Carlile, talked about the office of chief constable and the business of corporation sole. I shall not take up the Committee’s time longer than to say that it needs to be looked at in terms of where the office of chief constable and corporation sole stand in a legal context.

It is one of the principles of policing in this country to be apolitical and independent in terms of delivery. A little bit of work could be done to ensure that your Lordships’ House is more satisfied that there is no conflict between the two. The area in which I would ask for caution to be used is finance. The Metropolitan Police historically had two commissioners: one to deliver on the operational side; and the other who then became the received person to deal with the financial side. With a budget of more than £3 billion, which it was when I was commissioner, I had a delightful relationship with the noble Lord, Lord Harris. Being a pussycat we always got on together; I was the pussycat and he was the other. It was essential for delivery on the financial side that there was an expert on financing in the Metropolitan Police. More importantly, there had to be political accountability outside that for creating contracts, sometimes for hundreds of millions of pounds, which could have got in the way of delivering what we were doing over a period of time in the Metropolitan Police, namely driving down crime and keeping the terrorists away.