West Midlands Police (Funding)

Steve McCabe Excerpts

Wednesday 9th September 2015 Westminster Hall

[Richard Burden]

My right hon. Friend is quite right about that. I will mention some of the specific demands on West Midlands police in a little while, but he is absolutely right to draw attention to counter-terrorism work.

In addition to the issue of council tax, the west midlands is also hit doubly hard by how formula damping works. In brutal terms, such damping prevents the region from receiving the funding allocation that the national formula says we need. This year, West Midlands police will receive £43 million less than the Government’s own formula says is required.

[Steve McCabe (Birmingham, Selly Oak) (Lab)]

As my hon. Friend says, under the existing system we are being robbed of £43 million that we should receive. In the past, the Minister has recognised that that is wrong. The Minister will not want to comment too much on his future plans today because of the ongoing consultation, but does my hon. Friend agree that at the very least we need an assurance that we will not lose, as has been speculated, a further £20 million under the plans that the Minister is going to put into action?

[Richard Burden]

My hon. Friend is right on both points. First, the impact of formula damping is a problem. Everyone seems to recognise that, but then nothing is done about it, so I hope that the Minister will reassure us on that. Secondly—I hope that the Minister will say something about this as well—the current consultation is also important, because some of the scenarios could hit the west midlands very hard indeed. I will say something about that in a little while. Suffice it to say that, if the funding was increased by just £10 million to compensate for the formula damping problem, that would still leave West Midlands police hit three times as hard as any other force, but we could recruit 450 additional police officers. Instead, £43 million is given to other forces. I understand the problems when formulae change and the effects have to be smoothed, but the reality is that other forces will get more funding than the Government’s formula says they need and West Midlands police will get less.

At this point, I want to note that in the individual force assessments for handling austerity, Her Majesty’s inspectorate of constabulary rated West Midlands police as outstanding. Credit for that is due first, and most importantly, to the officers and staff of West Midlands police. It is also important to mention the contributions of the late Bob Jones, the former police and crime commissioner, and David Jamieson, the current PCC, as well as that of Chief Constable Chris Sims, who will soon be retiring—we should thank him for his work during his time in the west midlands.

It is important that policy makers listen to people such as those I have just mentioned, because they are not crying wolf; they are raising legitimate concerns about the sustainability of the police service in the west midlands. Were the existing formula regime to continue, the force would expect to lose a further £100 million over the coming years. That would mean that a further 2,500 officers, police community support officers and staff would be set to go. At the end of the decade, West Midlands police would be expected to be smaller than when it was established back in 1974. In a moment, I will give more detail about the demands facing the force, which were mentioned by my right hon. Friend the Member for Warley (Mr Spellar), but for now I will simply say that crime is often more complex and sophisticated now than it was in the ’70s. Will the Minister tell us what the Government are doing to ensure that West Midlands police gets a fair deal to halt the huge drop in officer numbers that it is facing?

Given the categorical unfairness of the existing regime, I think that many colleagues present, from both the Government and the Opposition, were encouraged when the Government finally announced a review of the current formula. That should have been good news. The problem is that the Home Office has refused to publish any detailed exemplifications or impact assessments using its proposed models. We are already seeing the Government’s attempt to have an open discussion, which they say they wanted, starting to unravel. How can anybody offer an informed judgment to the consultation without the full information? As was reported in The Guardian at the weekend, even attempts to get figures via a freedom of information request have been rejected.

Thanks to the revelations published by the same newspaper, forces may still have time to review the implications of the new formula just before the consultation closes next Wednesday. Early analysis of the modelling suggests that there are several serious concerns about the Home Office’s approach that are likely to disadvantage our region even more. Based on modelling of the new funding formula by the Police and Crime Commissioners Treasurers’ Society, West Midlands police could lose more than 25% of its current funding. That is on top of the existing 40% cut, to which my hon. Friend the Member for Birmingham, Selly Oak (Steve McCabe) alluded. Before the end of the decade, that could leave the force with a budget smaller than the fixed costs for the officers it already has.

[Richard Burden]

I will say two things in response to the right hon. Gentleman. First, tackling the question of the precept and the relative level of the council tax base is a long-term issue. It raises fundamental questions about how much it is legitimate to raise locally, as opposed to being dependent on central Government grants, when funding local government and other local services. That brings with it issues of how to compensate for particular levels of deprivation and so on, but he is right that it is a vital discussion, which goes beyond police funding.

In relation to this debate, however, we are where we are. We have a lower council tax base and are disproportionately dependent on central Government grants. Unless central Government formulae recognise that and respond to it, we will not be able to move forward.

[Steve McCabe]

I am grateful to my hon. Friend for giving way again. It does not really matter whether someone thinks that the precept should rise or not; the reality is that the Government have locked in a system that requires a referendum before it can rise, which is part of their intention to limit the rise. This is surely a spurious argument.

[Richard Burden]

That is saying perhaps a little more bluntly what I meant when I said that we are where we are. The Government must listen to the implications of their own policies.

My hon. Friend mentioned referendums. Let us say that we in the west midlands decided that, as the Government will not change their mind, despite our low council tax precept and so on, we should have a referendum. Where would that funding come from? It would come from the police budget, and we would lose even more as a consequence.

--- Later in debate ---

[Julian Knight (Solihull) (Con)]

I congratulate the hon. Member for Birmingham, Northfield (Richard Burden) on securing the debate and on his contribution to it.

Every area of the UK feels a connection with and a debt of gratitude to its police services. They keep us safe day in, day out, in overt and sometimes covert ways. They are part of the glue that holds our society together. In my constituency I know my local police by first name, where their beats are and even some of their hobbies—I have to reveal that a few are fellow cyclists. I am sure that most, if not all hon. Members can echo such sentiments and experiences.

My latest briefing from the local police found that the level of high-impact crimes such as burglary has been cut dramatically. Officially, as of last spring, the previous three-year period had seen a 10% drop in crime in our area. Police are doing more, sometimes with less, but always, it seems, more efficiently and intelligently. This Government are all about good husbandry of resources—we understand that the money is everyone’s, not ever the Government’s.

We are undergoing a review of the police funding formula. As was the case with schools, we have had to wait a decade or more for a review. The social make-up of our country has changed markedly over that period. However, such reviews always throw up worst-case scenarios, and a lot of stories in the Birmingham media involve the possible direction of the review based on those worst-case scenarios. Understandably, therefore, I have received several letters from constituents concerned about future police funding in the west midlands, and I have held informal discussions with senior local police to gauge their views. The overwhelming response is that we do not want to see the fantastic work done by our police in bringing crime down to be damaged by any misallocation of resources.

We have particular challenges in the west midlands, which should carry extra weight in any funding allocation. We face acute challenges in combating radicalisation, child exploitation and female genital mutilation. On a straight population model, it is easy to see how Ministers might look at West Midlands police funding as a potential area for future efficiencies. However, I am encouraged to read in the Home Office consultation document that basing the funding model on per head of population has in effect been ruled out. In addition, I welcome the part of the document that acknowledges that funding based purely on police activity “may skew the results”.

We are not helped in our cause by the office of the police and crime commissioner, which has overseen the expenditure of some £30 million on its headquarters and holds more than £100 million in reserves according to some estimates. The PCC also employs seven people in a public relations capacity, compared with an average among all the other PCC areas of two. To be fair to the police and crime commissioner, however, he is planning to apportion a substantial slice of those hefty reserves on front-line policing and recruitment in the near future.

The West Midlands force has also been slow in weaning itself off central Government financing. It relies on central Government for some 87% of its financing, and over time the proportion drawn from the precept has not increased by the level that it should have. The socioeconomic challenges that we face, however, should give real pause for thought before any substantial cuts to central Government financing are undertaken; and I am confident that we will be listened to and that no such cuts will be made. Furthermore, West Midlands police should be allowed to show how the force will redress the funding balance between the precept and central Government.

[Steve McCabe]

I realise that this will be a central part of the debate, but will the hon. Gentleman care to tell us how much he thinks the precept should rise by as part of the weaning process?

[Julian Knight]

That is a matter for local decision makers—just as it is a matter for them that they have not increased the precept over previous years. The hon. Gentleman used the word “spurious” before, but frankly the only spurious argument put forward so far has been that used by Opposition Members—that the referendum costs would be so prohibitive that one could never actually happen. If the argument is that a precept increase would spark a level of council tax sufficient to require a referendum automatically, I suggest that it would be up to the local decision makers, councillors and politicians to put the strong case for why—which is, in effect, that the West Midlands force is playing catch-up.