Question to the Home Office:

To ask the Secretary of State for the Home Department, with reference to the recent case of fraud committed at the Reading branch of HBOS, what plans she has to establish a (a) National Fraud Investigation Service and (b) central fund to reimburse local police forces for the costs of investigating such cases.

In response to part (a) of the question, City of London Police (CoLP) is the National Lead Force for Fraud, who also oversee the Action Fraud and National Fraud Intelligence Bureau (NFIB) Services. Action Fraud is the national reporting centre for all frauds and cyber crimes, whilst the NFIB performs analysis to link crimes, to then create crime packages, which are then sent to the most appropriate local police force to consider for investigation, where viable lines of inquiry exist. As part of CoLP’s role as national lead force, they also take on, or assist forces, in investigating the most serious and complex frauds. The National Crime Agency and Serious Fraud Office also play a vital role in investigating the most high-end, cross border economic crimes.

One of the priorities of the Joint Fraud Taskforce (a collaborative response to fraud which brings together Government, law enforcement and the financial sector) is to improve the law enforcement response at the local, regional and national levels. This work is focused on improving the end-to-end policing system for fraud.

In response to part (b) of the question, Special Grant Funding is available if a Police Force faces a significant and unexpected event which could threaten the financial stability of the Force. Police and Crime Commissioners can apply for Special Grant funding when the additional costs incurred are greater than one per cent of the PCC’s budget.

The Thames Valley PCC has made an application for Special Grant for the costs of Operation Hornet (the investigation into large scale fraud perpetrated from within Halifax and Bank of Scotland). This has been referred to HMIC for their views, after which Ministers will take a decision on whether to provide Special Grant funding.