PARLIAMENTARY DEBATE
Police Funding Settlement - 13 December 2018 (Commons/Commons Chamber)
Debate Detail
Last year, Parliament approved a funding settlement that resulted in £460 million of additional public investment in policing, including £50 million more for counter-terrorism and £280 million more for local forces from the precept. That meant that every force’s funding was protected in real terms this year, and overall public investment in policing this year is more than £1 billion higher than three years ago. As a result of last year’s settlement, most police and crime commissioners set out plans to either protect or enhance frontline policing. I also indicated last year that our intention was to provide a similar settlement in 2019-20, subject to improved efficiency, productivity and financial transparency. I am pleased to confirm that the police have met those conditions, and there is an agreed plan to deliver £120 million in commercial and back-office savings by 2020-21. Forces are developing digital plans, including deploying mobile technology more ambitiously to use police time more productively, and every police and crime commissioner has published a financial reserves strategy.
However, the Government recognise that two things have changed since I stood at the Dispatch Box one year ago. First, cost pressures have risen, public sector inflation has increased and the police are facing challenges in meeting new costs such as in forensics and increased employer contributions to safeguard public pensions. More significantly, demand pressures have risen. There has been a major increase in the reporting of high-harm, previously hidden crimes such as child sexual exploitation. The challenge from serious and organised crime networks is growing. Through the serious violence strategy we are bearing down on the worst spike in serious violence and knife crime that we have seen in this country in a decade. Digitally enabled and online crime remains a major challenge for our police, and meanwhile, as we are all aware, the threat from terrorism has escalated and evolved.
The first role of Government is to protect the public, and as crime changes, so must the police. We are determined to ensure that the police have the powers and resources they need to respond to changing demand. Therefore, the Home Secretary and I would like to go further than I indicated last year. As the Home Secretary has signalled over the course of the year, police funding is his No. 1 priority, and he and I have been working closely with our colleagues across Government to agree a comprehensive settlement. Today we are proposing a settlement that could see public investment in policing rise by up to £970 million in 2019-20, depending on the actions of police and crime commissioners.
Let me break that very large number down for the House. First, instead of the flat cash grant that I indicated last year, we want to increase Government grants to police and crime commissioners by £161 million. Every police and crime commissioner will have their Government grant funding protected in real terms, and the package includes £14 million to recognise the specific extra costs and financial challenges of policing London. On top of that, we will allocate additional grant funding of more than £150 million specifically to help the police manage what, since the 2016 Budget, have been unexpected increases in their contribution to public sector pensions.
We have also listened to requests from police and crime commissioners for more flexibility around levels of police precept. This settlement empowers police and crime commissioners to raise council tax contributions for local policing by £2 a month for a typical household, which is £24 a year. If that flexibility is fully utilised, the result will be just over £500 million of additional local investment in local policing. We do not take that decision lightly, because we know money is tight for many people. The decision to raise local tax will be up to locally elected police and crime commissioners, and they will have to make a case to their electorate and be accountable for delivery of a return on that public investment.
On top of the proposed increase in core grant and a doubling of local precept flexibility, we propose investing more in the fight to protect our constituents against terrorism and serious organised crime. As my right hon. Friend the Chancellor announced at the Budget, funding for counter-terrorism policing will increase by £59 million next year to £816 million, which is £160 million more than we planned at the last spending review. We also intend to match the new serious and organised crime strategy with £90 million of much-needed resources to tackle threats including economic crime, child sexual exploitation, fraud and cyber-crime.
This settlement combines increased central funding with increased local contributions to local policing. It enables the biggest investment in frontline policing since 2010, and the start of the journey to get this country back to living within our means. It will allow PCCs to manage their costs while maintaining their plans to recruit and fill capability gaps, not least when it comes to detectives. It will strengthen our capabilities in the fight against serious and organised crime and terrorism.
Alongside that increased investment in the frontline against crime, we will also maintain our existing level of public investment in building national police capabilities and upgrading police technology for the benefit of local forces. We will invest £175 million in the police transformation fund next year. A major priority for us is supporting the police to make the most of the digital opportunity to improve contact with the public and manage police time more effectively. We are also developing the first national programme to support the wellbeing of stretched frontline officers. We support Police Now, which is attracting fresh talent into neighbourhood policing and supporting the role of detectives.
Alongside the police transformation fund we will invest £495 million in technology programmes that will upgrade critical infrastructure such as police databases and the emergency service communications network. Taking everything together, the settlement means that as a country we will be investing up to £14 billion in our police system next year, if all police and crime commissioners use full precept flexibility. That would represent increased public investment of £2 billion compared with 2015-16.
With increased public investment comes an increased responsibility to improve efficiency and effectiveness, and to show the public what difference their investment is making in terms of greater deterrence for criminals, better outcomes for victims and safer communities. To make the most of the new investment we are announcing today, we will work with the police on ensuring the delivery of the efficiency savings we have identified. We want greater ambition in the use of digital mobile working to improve productivity. We also want to ensure that the major capability gaps that the independent inspectorate identified, on detectives and investigations, are filled, and that there is greater co-ordination of important work to tackle serious and organised crime.
Of course, support for our police is not all about spending taxpayers’ money, and we are also supporting them through new powers. We are working on a cross-party basis to strengthen legislation on offensive weapons, just as we worked on a cross-party basis to strengthen protections for emergency services workers. Let me be clear: our commitment to supporting the police to deliver for the public is for the long term. Come the forthcoming comprehensive spending review, the Government will be prepared to invest appropriately in police capacity, capability and professional confidence, but that must come with greater local accountability of directly elected police and crime commissioners, and a commitment to accelerate the pace of change to ensure that British policing remains the best in the world.
As we have indicated, this settlement is the last before the next spending review, which will set long-term police budgets and address how resources are allocated fairly across police forces—I know that is of great interest to many Members across the House. This Government’s priority is the safety of the public. We understand that our police face increased demands, and we are determined to respond to the threats from terrorism, organised crime and serious violence. We are today announcing a major investment in the capabilities that the police need to respond, and we are rightly challenging them to spend that money well and continue on the path of reform and modernisation. I conclude by expressing my gratitude and that of the Government to police forces around the country for their exceptional attitude, hard work and bravery, and I commend this statement to the House.
It is important that we set today’s statement in the context it deserves. The Conservative party has created a crisis in public safety. There is simply no precedent in post-war history for a Government to have undermined the police in the way that this Government have. No Government in post-war history have ever slashed the resources available to the police by as much as 30% and cut officers in every year they have been in office. Never, since records began, has violent crime been as high as it is today. Never has knife crime been as high as it is today. Arrests have halved in a decade. Unsolved crimes stand at over 2 million cases, and 93% of domestic violence offences go unprosecuted. Today’s settlement has to stand in that context.
If we are honest—if we are not to mislead the public, as the Office for National Statistics has asked the Government not to do on police funding—today’s settlement represents a ninth consecutive year of real-terms central Government cuts to the police. In September, the Government announced that changes to the police pension valuation would mean an additional £165 million cost to forces in 2019-20, increasing to £417 million in 2021. Why, then, does today’s settlement cover only £150 million of that cost, and why does it provide no certainty for the following year? That cost was dropped on forces at the last minute. Some police and crime commissioners had already started drafting emergency budgets. It was a completely inappropriate way to handle an event that must take place every four years. The Government need to get real. They cannot keep expecting forces to wait until the last minute, with disaster at the door, for the Government to get their act together. Will the Minister commit today to funding the complete pension bill for 2019-20 and 2020-21?
Funding for counter-terrorism and serious organised crime, although welcome, is not seen by local forces, and the funding to tackle fraud and cyber-crime is significantly below the amount requested by police last year.
The Government are once again confirming today their intention to pass the vast majority of the increase in the police funding settlement on to local ratepayers. That is perverse. It will not meet need and is fundamentally unfair. Despite the fact that every band D household or above will be asked to pay the exact same amount in additional tax, different force areas will be able to raise hugely different amounts. The forces that have already been cut the most will be able to raise the least. Can the Minister confirm that today’s settlement will mean that Surrey can raise 44% of the cash it has lost since 2010, whereas the west midlands will be able to raise just 11% of what it has lost; and that Suffolk can raise 30% while Northumbria can raise only 12%? How can the Minister possibly justify a postcode lottery that means the communities that are already seeing higher crime, to which reserves have been allocated, will receive so much less funding?
Can the Minister further confirm that the National Police Chiefs’ Council has calculated the cost of inflation at £435 million this year, wiping out the grant from central Government and almost wiping out the amount the precept will raise, forcing council tax payers to pay the price for their local service to stand still? The simple truth is that because the Home Secretary cannot make the case within the Government for extra resources for the police, he is passing his own political failure on to local ratepayers. He knows that this perverse way of raising income for the police will not and cannot meet the needs of local communities. Instead of a calculation based on demand, rising crime, population and vulnerability, the only determination this is based on is local house prices. Once again, the Minister is at the Dispatch Box announcing cuts from central Government funding and trying to dress them up as good news. I am afraid no one is falling for it.
The hon. Lady tries to claim that the Government are cutting funding to the police in real terms, but I stated very clearly that in this settlement we have moved from flat-cash Home Office grant to police forces to the first real increase in the grant since 2010. That is the reality.
The hon. Lady talks about pension costs, which have been a very real issue. The Treasury has done exactly what it said it would do. I am very clear that through a combination of the special pension grant, the increase in the Home Office grant, the room for efficiencies and the levels of reserves, every single police and crime commissioner should be able to go to their public and talk about local taxes for their local police service.
Finally, for the Labour party to present itself as the champion of the council tax payer, when it doubled council tax when it was in power, is hypocrisy of the worst order. The hon. Lady talks about the council tax payer being weighed down by this, but in reality the average amount of funding that comes from the precept has moved from 32% to 34% across the police system. The reality is that most of the funding for our police system comes from the taxpayer through central funding.
My challenge to the shadow Minister is this. She and her boss led their colleagues through the No Lobby this time last year, so the Labour party effectively voted against a police settlement that put an additional £460 million into our police. This settlement has the potential to put an additional £970 million into our police system so that we as taxpayers are investing over £2 billion more than we were in 2015-16. This might, therefore, be the moment to put tribal politics and games aside and recognise the fundamental truth that Members on both sides of the House recognise the pressure on the police and want to see increased resources for policing. That is exactly what this settlement delivers.
In my area we have significant extra housing and population arriving, both in the form of the Battersea power station development and because of demand related to the new US and Dutch embassies. Will the Minister set out briefly how we can ensure that additional demands do not squeeze funding for the broader community in Wandsworth?
I listened closely to the Minister. Will he categorically confirm that, of the £161 million increase in grants to the police, almost all—£152 million—will be eaten up by higher pensions? That will mean that inflation and pay increase costs will have to be met by council tax payers—it is about £24 a year, which we are not guaranteed to raise. That means that Merseyside police will just stand still. How on earth is that an acceptable state of affairs?
The right hon. Gentleman’s second point on the demands placed on the police system by the need to support people in crisis or who are suffering from mental health issues is an extremely important one. The recommendations of the review of the Mental Health Act 1983 were extremely valuable not only on what needs to change to reduce the demand on the police system, but on ensuring that people in crisis who are suffering from mental health issues are supported by the right people—the people qualified to help them, which in many cases is not the police. One dividend I want from the additional investment in local mental health services announced in the Budget is a reduction in the demand on policing. I hope he will support me in that.
The settlement helps police and crime commissioners to manage cost pressures—the pension issue was a serious concern—in a way that will allow Jane to go to the people of Merseyside and say clearly that any increase in the local precept will go into local policing. That is one objective of the settlement.
I hope my hon. Friend welcomes the settlement, which builds on last year’s, which resulted in an additional £4 million-worth of investment in Humberside policing this year. This year’s settlement enables an increase of up to £11 million of further investment. It is obviously up to the local police and crime commissioner, operating and working with local MPs and colleagues, to decide how those resources are allocated, but I am sure my hon. Friend will be a powerful advocate for exactly what he describes.
The hon. Lady made an important point about what will happen beyond 2019-20. We have made it very clear that the conversation about ongoing management of the need for increased employer contributions to public pensions is wrapped up in the conversations about the comprehensive spending review that is expected next year, which are now live.
The Minister said that Opposition Members who raised this issue were doing so for tribal reasons. Will he withdraw that comment, and recognise that Opposition Members are exercising their democratic duty in reporting the legitimate fears of the people whom they represent? Will he also tell me whether, in one year’s time, any of the negative statistics that we have seen in the West Midlands will be reversed as a result of this settlement?
If the Mayor uses his maximum flexibility, which he has indicated that he will, there will be an additional £172 million of public investment in the Met, on top of the extra £100 million this year. That is a serious amount of money. My hon. Friend and I, together with other colleagues, will be holding the Mayor and the Commissioner to account for the way in which that money is spent, and, in particular, for ensuring that we see continued progress in driving down the serious violence that is so deeply unsettling for Londoners.
Does the Minister agree with me on two points? First, does he agree that this must be a first step towards a strong settlement in next year’s spending review, with a fair funding formula attached to it? Secondly, will he confirm that the new programme to look after officers’ welfare will especially help officers who have been victims of violence in the course of their duty? All of us in the House want to see stiffer sentences for those who attack police officers, and we are all very proud of the Bill introduced by the hon. Member for Rhondda (Chris Bryant) to do just that, but must we not also look after the welfare of those poor officers who have been attacked while protecting all the rest of us?
My hon. Friend has also raised a very important point. One of the unacceptable features of the modern landscape and the circumstances that the police have to manage is the increased number of assaults and abuse of members of the police and emergency services. It was entirely right that, on a cross-party basis, led by the hon. Member for Rhondda (Chris Bryant), the House came together to take that Bill through Parliament to send the strongest possible signal that we find such actions absolutely unacceptable.
Yes, I can confirm that as part of the settlement and part of the investment through the police transformation fund, we are working with the police to build the first national welfare programme to support the wellbeing of officers who are having to work in very challenging circumstances, often feeling very stretched. Their welfare and wellbeing is of huge importance to us, and we are investing public money to support it.
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