Police

Robert Halfon Excerpts

Wednesday 9th February 2011 Commons Chamber

[Nick Herbert]

I absolutely understand the hon. Gentleman’s observation that different forces raise different amounts from local taxpayers, and I shall deal with it shortly. I remain open-minded about the issue, given that the report relates to allocations for the next two years.

[Robert Halfon (Harlow) (Con)]

Is my right hon. Friend aware that over the past few years Essex police have made efficiency savings of 25%? Helicopter, payroll and legal services are now being shared, but Harlow police station remains open 24 hours a day, and our front-line services have been protected.

[Nick Herbert]

I welcome my hon. Friend’s comments. There are examples throughout the country—and I intend to provide some—of police forces that are making significant efficiency savings, and working in a smarter way that improves the service to the public even when funds have been reduced. It is clearly possible to achieve that.

It has been said that the profile of the cuts is front-loaded so that forces must find the biggest savings at an early stage. The profile reflects the need to make early progress on reducing the deficit, and it is set, but we must view the grant reductions in context. The biggest cut does not fall in the first year. The average cash reduction in grant is 4% in the first year, 5% in the second, 2% in the third, and 1% in the fourth.

It is also important to remember that a 20% reduction in Government funding in real terms does not mean a 20% reduction in force spending power. Forces do not receive all their funding from central Government; on average they receive about a quarter of it from the council tax component of precept, which is determined locally. If police authorities and, thereafter, elected police and crime commissioners choose to increase precept at the level forecast by the Office for Budget Responsibility, the settlement represents a 14% real-terms reduction in overall funding over four years. Of course I recognise that the local contribution to police spending varies considerably between forces, and I shall deal with that aspect shortly.

--- Later in debate ---

[Nick Herbert]

I agree with my hon. Friend that making these efficiencies and improvements in business processes is about not just saving money, but improving the quality of the service. Those two things are not incompatible, and it is time we stopped talking as though they were.

[Robert Halfon]

Will my right hon. Friend give way?

[Nick Herbert]

I want to make a little more progress, if my hon. Friend will forgive me.

The inspectorate’s report focuses on reducing police force costs to average levels, but why should forces not be able to go further by matching the performance of the best, rather than merely the average? If forces improve productivity and adjust to the level of spend typical of the more efficient forces, that could add another £350 million to the savings calculated in HMIC’s report.

Pay, too, was outside the scope of the report. It accounts for the bulk of total police spending—some £11 billion last year. Any organisation in which the majority of the cost is pay, and which is facing tough times, has to look at its pay bill. The Government have announced a policy for a two-year pay freeze across the public sector. Subject to any recommendations from the police negotiating board and agreement on staff pay, this might save some £350 million. We have asked Tom Winsor to review the remuneration and conditions of service of police officers and staff. The Government have asked the review to make recommendations that are fair to, and reasonable for, both the taxpayer and police officers and staff. I want to emphasise the importance of fairness to police officers, who cannot strike and who often do a difficult and dangerous job on the public’s behalf. Tom Winsor’s first report is due to be published in February, with the second part due in June. Taken together, we believe there are potential savings of some £2.2 billion a year by 2014-15, which is greater than the real reduction in central grant.

These changes require a fundamental redesign of policing, with far greater collaboration, shared services and the potential use of outsourcing. However, this does not mean a worse service to the public. Savings must be driven in the back and middle-offices of police forces—areas where functions are important, even if invisible to the public, but could be done more efficiently. These functions have grown disproportionately as the money rolled in and bureaucracy predominated. As Peter Fahy, chief constable of Greater Manchester police, told the Home Affairs Committee earlier this month,

“some of our headquarters operations had got too big.”

--- Later in debate ---

[Nick Herbert]

I simply do not accept the right hon. Lady’s contention that it is somehow not possible for services to work together because they are receiving less money; that is a strong incentive for them to work together and to save resources.

[Robert Halfon]

I thank my right hon. Friend for giving way to me for a second time. Given what I said earlier about Essex police collaborating successfully with police forces in the south-east, such as Kent, on payroll services and on procuring helicopters and other vehicles, and given what he said about passing regulation for those who do not collaborate, will he look favourably on forces that are collaborating in future funding formulas?

[Nick Herbert]

Of course we will continue to look at all these issues, and I welcome the collaboration that has taken place in my hon. Friend’s force. HMIC was clear that collaboration has to proceed at a faster pace, and we will look at all the potential incentives to ensure that that is the case.