Skip to main content

Police Funding (2008-09 to 2010-11)

Volume 468: debated on Thursday 6 December 2007

I have today placed in the Library my proposals for allocation of police grant for England and Wales from 2008-09 to 2010-11. I intend to implement the proposals on police grant subject to consideration of any representations and to the approval of the House.

Policing and reducing crime remain top priorities for this Government. The 2006-07 British Crime Survey shows that since peaking in 1995, crime has fallen by 42 per cent. representing over 8 million fewer crimes. The Government have worked very hard to maintain the police grant at a good level for the next three years as well as to provide secure and stable funding across policing, crime and drugs. Police authorities will receive a realistic and affordable increase in grant, backed up by a programme of reform and modernisation and a continuing drive to increase efficiency and productivity and cut bureaucracy. chief constables and police authorities will have maximum flexibility to make the best possible use of resources to maintain the historically high number of police officers and have the right workforce balance they need to deliver local priorities.

I have placed in the Library of the House today copies of the “National Community Safety Plan for England 2008-11”. The plan supports greater partnership working on community safety at national, regional and local level, and is intended to support practitioners in planning and delivering community safety objectives. The plan also includes our strategic policing priorities and key actions for the police service for 2008-09. The “National Community Safety Plan” follows on from, and supports, the objectives in the Government’s crime strategy, published in July this year “Cutting Crime: A New Partnership 2008-11”. The crime strategy sets out how we will continue to build on the achievements of the past ten years, refreshing our approach to meet new challenges. The new “Make Communities Safer” PSA supports the crime strategy and helps to establish a more mature relationship between central Government and local delivery partners for driving improvement priorities.

The settlement builds on considerable investment in the police service over the past decade. On a like for like basis Government grant for the police will have increased by over 60 per cent. or over £3.7 billion between 1997-98 and 2010-11. Our investment in policing, as well as significant extra investment from local taxpayers and the delivery by police forces and authorities of substantial increases in efficiency, has helped to expand local policing successfully, reduce crime and make our communities safer

The police service has responded well to the demands placed on it but we must make sure the service is in the best possible shape to meet them. We are committed to consolidating and building on the significant reforms and achievements to date, to support the police service in meeting these new challenges. In support of these aims, Sir Ronnie Flanagan is currently undertaking an independent review of policing. We also intend to publish a Green Paper in spring 2008 to consult on wider proposals for change.

Excellent progress is being made in the delivery of neighbourhood policing. By April 2008 there will be a neighbourhood policing team in every area and we are ahead of schedule with more than 75 per cent. of England and Wales already covered by neighbourhood policing teams. Some 16,000 police community support officers are now supporting police officers in delivering real changes on the ground, fighting crime and making communities feel safer. Together with CLG, community safety partners and other agencies, the Home Office is working to integrate neighbourhood policing with local neighbourhood management to ensure that we have the greatest number of services working together to tackle the issues identified by our communities.

The Government remain committed to building on the significant progress that have been made to date in increasing efficiency and productivity and reducing unnecessary bureaucracy, to ensure that officers are most effectively focused on their front line duties. We want to empower and equip officers so they can provide the most visible and accessible police presence in the community possible. We intend to support this through a new efficiency and productivity strategy on which we are working with the service. In addition, this will be supported by further improvements to working practices and processes, greater flexibility and streamlining of local performance management requirements and wider access to innovative crime fighting technology that will be supported by a new £50 million capital fund.

The Police Grant Settlement 2008-09 2010-11

Total provision for policing revenue grants in 2008-09 will be £9,227 million, an overall increase of 2.9 per cent. Provision is also made for 2.9 per cent. in 2009-10 and 2.7 per cent. in 2010-11. I propose to distribute the settlement as set out below.

Table 1: Police revenue funding settlement 2008-09 to 2010-11 compared with 2007-08

2007/08

£m

2008/09

£m

2009/10

£m

2010/11

£m

Home Office general grant

4,428

4,543

4,666

4,792

DCLG/WAG general grant

3,397

3,488

3,583

3,680

Welsh Top-Up

13

15

16

16

Total general Formula Grant

7,838

8,046

8,265

8,488

% increase in general grant

2.7%

2.7%

2.7%

Total Specific Grants

1,130

1,181

1,227*

1,263*

Total Government funding for police authorities

8,968

9,227

9,492*

9,751*

% increase in total Government revenue funding

2.9%

2.9%*

2.7%*

*Consultation will take place on how best to use BCU funds to support local delivery of PSA targets and crime strategy.

Police funding proposals within the local government finance system are being announced by my hon. Friend the Member for Wentworth (John Healey) today. On 5 November, the Welsh Assembly Government announced its proposals for Revenue Support Grant.

Provisional general policing grants (that is, Home Office Police Grant, Revenue Support Grant and National Non Domestic Rates) for English and Welsh police authorities in 2008-09, 2009-10 and 2010-11 are set out at tables 2 to 4.

General grant

Within the general grant provision of 2.7 per cent. I have set a funding floor at 2.5 per cent. in each of the CSR years. This means that each police authority in England and Wales is guaranteed an increase of at least this level in each year. This provides for stability while enabling us to move towards fuller implementation of the needs-based funding formula.

The employer pension contribution rate payable by police authorities for police officers will be reduced from 24.6 per cent. of pensionable pay to 24.2 per cent. with effect for three years starting from April 2008. This revaluation does not affect employee contribution rates. We expect that the reduced employer contribution rate will result in a saving to police authorities of approximately £15 million per year.

The settlement recognises the importance of efficiency and productivity increases for police authorities. Compared to 2007-08, police authorities will be expected to deliver 9.3 per cent. cashable increases in efficiency and productivity by the end of 2010-11.

Keeping council tax under control remains a priority for the Government. And my right hon. Friend, the Chancellor of the Exchequer made clear in his statement on the comprehensive spending review that the Government expects the average council tax increase in England in 2008-09 to be substantially below 5 per cent. No decisions have been taken on capping principles in 2008-09 but we have made clear that we will not hesitate to use our capping powers as necessary to protect council tax payers from excessive increases.

Formula Grant Distribution

During the summer we consulted on whether to update the resource base of the formula and whether “rule 2 grants” (former specific grants now allocated with general grant) and the crime fighting fund (CFF) should continue as separate entities or be incorporated into general grant. I have carefully considered all the representations received in response to the consultation.

I have decided to update the resource base of the formula to reflect better the pressures facing the police. I have also decided, in the interest of stability, not to incorporate “rule 2 grants” into general grant. Likewise, the CFF will remain in its present, unhypothecated, form to give maximum flexibility to police authorities and chief constables.

I have decided to move funding for the Initial Police Learning and Development Programme (IPLDP) from ring fenced status to a “rule 2 grant”. It will no longer be ring-fenced and will be distributed on the basis of each force’s allocations in the last two years.

Welsh Police Authorities

In line with previous years I have ensured that Welsh police authorities are treated in line with English police authorities. I have provided additional support of £15.4 million in 2008-09, £15.5 million in 2009-10 and £15.7 million in 2010-11 to ensure that Dyfed-Powys, Gwent and North Wales police authorities receive at least a minimum grant increase of 2.5 per cent. This additional support is also partly funded by reducing police grant to South Wales police authority, so that it too will receive the level of grant it would if it were in England.

Metropolitan Police funding

The settlement provides for the Metropolitan police authority to receive £197 million in 2008-09 (+£5 million over 2007-08) in formula provision to reflect their unique national and international role as well as the functions that fall to them by virtue of London being a capital city. This has been uprated in line with inflation for each year.

Specific Grants for Police Authorities

Police authorities will continue to receive extra funding through a number of specific grants for particular schemes. Details are set out in table 5.

Crime Fighting Fund: £277 million will again be made available to forces in 2008-09.

Neighbourhood Policing: To ensure that neighbourhood policing is fully embedded across England and Wales, I have accepted the recommendation made by Sir Ronnie Flanagan to maintain the ring-fence on this funding in 2008-09. A total of £324 million will be made available in 2008-09. Funding will increase by an average of 2.7 per cent. in each of the CSR years.

Basic Command Units: The basic command unit fund was introduced in 2003-04 for a two-year period, subsequently extended. I will be continuing this funding at the level of £40 million in 2008-09. I will be providing £50 million a year in 2009-10 and 2010-11. During 2008, we will be consulting with the police and other key delivery partners on how this £50 million fund for years after 2008-09 can best be used, and by which partners, to support successful delivery of the new PSA targets and crime strategy.

Counter-Terrorism

Funding for police counter terrorism will be increased from £472 million in 2007-08 to £524 million in 2008-09, £552 million in 2009-10 and £579 million in 2010-11.

Capital

In 2007-08 we were able to make two in-year capital payments of £25 million each to police authorities. That additional funding has been continued for the CSR years and £220 million in capital and supported capital expenditure will be allocated to police authorities in each of the next three years, with each authority receiving the same allocation as in 2007-08.

Other issues

I will shortly be making further announcements about funding for the Olympics and Protective Services.

Table 2: Police Grant Allocations by English and Welsh Police Authority 2007-08 to 2008-09

Police Authority

Adjusted 2007-08

2008-09

Change on 2007-08

Formula Allocation1

Allocation1

Formula Allocation

£m

£m

%

English Shire Forces

Avon & Somerset

167.8

173.7

3.5%

Bedfordshire

66.3

68.5

3.3%

Cambridgeshire

76.4

78.7

3.0%

Cheshire

114.7

117.6

2.5%

Cleveland

93.0

95.3

2.5%

Cumbria

64.0

65.6

2.5%

Derbyshire

105.8

109.2

3.2%

Devon & Cornwall

177.4

181.9

2.5%

Dorset

62.2

63.7

2.5%

Durham

87.0

89.2

2.5%

Essex

168.4

173.0

2.8%

Gloucestershire

56.4

57.8

2.5%

Hampshire

197.2

202.2

2.6%

Hertfordshire

114.4

117.7

2.9%

Humberside

122.0

125.1

2.6%

Kent

182.5

187.2

2.6%

Lancashire

193.6

198.8

2.7%

Leicestershire

111.4

114.7

2.9%

Lincolnshire

60.4

62.3

3.1%

Norfolk

83.4

85.4

2.5%

North Yorkshire

73.0

74.8

2.5%

Northamptonshire

71.7

73.5

2.6%

Nottinghamshire

132.4

136.9

3.4%

Staffordshire

114.2

117.4

2.8%

Suffolk

67.5

69.2

2.5%

Surrey

96.9

99.3

2.5%

Sussex

161.6

165.7

2.5%

Thames Valley

225.8

231.9

2.7%

Warwickshire

51.5

52.8

2.6%

West Mercia

116.0

118.9

2.5%

Wiltshire

62.0

63.6

2.5%

Shires Total

3476.7

3571.3

2.7%

English Metropolitan Forces

Greater Manchester

432.5

445.6

3.0%

Merseyside

253.7

260.6

2.7%

Northumbria

237.9

243.8

2.5%

South Yorkshire

194.2

199.1

2.6%

West Midlands

450.0

468.0

4.0%

West Yorkshire

317.4

328.2

3.4%

Mets Total

1885.6

1945.4

3.2%

London Forces

GLA-Police

1883.0

1930.0

2.5%

City of London

2

22.8

20.2

N/A

 

 

 

 

English Total

7268.0

7466.9

2.7%

 

 

 

 

Welsh forces

Dyfed-Powys

3

51.8

53.1

2.5%

Gwent

3

78.6

80.6

2.5%

North Wales

3

76.3

78.2

2.5%

South Wales

3

172.1

176.7

2.7%

Welsh total

378.8

388.6

2.6%

TOTAL

 

7646.8

7855.5

2.7%

Table 3: Police Grant Allocations by English and Welsh Police Authority 2008-09

Police Authority

2008-09

2009-10

Change on 2008-09

Formula Allocation1

Allocation1

Formula Allocation

£m

£m

%

English Shire forces

Avon & Somerset

173.7

179.7

3.5%

Bedfordshire

68.5

70.8

3.3%

Cambridgeshire

78.7

81.0

3.0%

Cheshire

117.6

120.5

2.5%

Cleveland

95.3

97.7

2.5%

Cumbria

65.6

67.2

2.5%

Derbyshire

109.2

112.6

3.2%

Devon & Cornwall

181.9

186.4

2.5%

Dorset

63.7

65.3

2.5%

Durham

89.2

91.4

2.5%

Essex

173.0

177.9

2.8%

Gloucestershire

57.8

59.3

2.5%

Hampshire

202.2

207.5

2.6%

Hertfordshire

117.7

121.2

2.9%

Humberside

125.1

128.4

2.6%

Kent

187.2

192.1

2.7%

Lancashire

198.8

204.1

2.7%

Leicestershire

114.7

118.0

2.9%

Lincolnshire

62.3

64.3

3.1%

Norfolk

85.4

87.6

2.5%

North Yorkshire

74.8

76.7

2.5%

Northamptonshire

73.5

75.5

2.6%

Nottinghamshire

136.9

141.4

3.3%

Staffordshire

117.4

120.6

2.7%

Suffolk

69.2

71.0

2.5%

Surrey

99.3

101.8

2.5%

Sussex

165.7

169.8

2.5%

Thames Valley

231.9

238.2

2.7%

Warwickshire

52.8

54.1

2.6%

West Mercia

118.9

121.8

2.5%

Wiltshire

63.6

65.2

2.5%

Shires Total

3571.3

3669.0

2.7%

English Metropolitan forces

Greater Manchester

445.6

458.9

3.0%

Merseyside

260.6

267.4

2.6%

Northumbria

243.8

249.9

2.5%

South Yorkshire

199.1

204.1

2.5%

West Midlands

468.0

486.1

3.9%

West Yorkshire

328.2

339.2

3.3%

Mets Total

1945.4

2005.7

3.1%

London Forces

GLA - Police

1930.0

1978.3

2.5%

City of London

2

20.2

21.0

N/A

 

 

 

 

English Total

7466.9

7674.0

2.8%

 

 

 

 

Welsh forces

Dyfed-Powys

3

53.1

54.4

2.5%

Gwent

3

80.6

82.6

2.5%

North Wales

3

78.2

80.1

2.5%

South Wales

3

176.7

181.5

2.7%

Welsh total

388.6

398.6

2.6%

TOTAL

 

7855.5

8072.6

2.8%

Table 4: Police Grant Allocations by English and Welsh Police Authority 2009-10

Police Authority

2009/10

2010/11

Change on 2009-10

Formula Allocation1

Allocation1

Formula Allocation

£m

£m

%

English Shire forces

Avon & Somerset

179.7

186.1

3.5%

Bedfordshire

70.8

73.1

3.3%

Cambridgeshire

81.0

83.5

3.0%

Cheshire

120.5

123.5

2.5%

Cleveland

97.7

100.1

2.5%

Cumbria

67.2

68.9

2.5%

Derbyshire

112.6

116.2

3.1%

Devon & Cornwall

186.4

191.1

2.5%

Dorset

65.3

66.9

2.5%

Durham

91.4

93.7

2.5%

Essex

177.9

183.1

2.9%

Gloucestershire

59.3

60.8

2.5%

Hampshire

207.5

213.0

2.7%

Hertfordshire

121.2

124.9

3.0%

Humberside

128.4

131.8

2.6%

Kent

192.1

197.4

2.7%

Lancashire

204.1

209.7

2.7%

Leicestershire

118.0

121.4

2.9%

Lincolnshire

64.3

66.3

3.2%

Norfolk

87.6

89.8

2.5%

North Yorkshire

76.7

78.6

2.5%

Northamptonshire

75.5

77.5

2.7%

Nottinghamshire

141.4

146.0

3.3%

Staffordshire

120.6

123.8

2.7%

Suffolk

71.0

72.7

2.5%

Surrey

101.8

104.4

2.5%

Sussex

169.8

174.1

2.5%

Thames Valley

238.2

244.7

2.8%

Warwickshire

54.1

55.6

2.7%

West Mercia

121.8

124.9

2.5%

Wiltshire

65.2

66.8

2.5%

Shires Total

3669.0

3770.0

2.8%

English Metropolitan forces

Greater Manchester

458.9

472.5

3.0%

Merseyside

267.4

274.3

2.6%

Northumbria

249.9

256.2

2.5%

South Yorkshire

204.1

209.2

2.5%

West Midlands

486.1

504.3

3.8%

West Yorkshire

339.2

350.5

3.3%

Mets Total

2005.7

2067.1

3.1%

London Forces

GLA - Police

1978.3

2027.7

2.5%

City of London

2

21.0

21.8

N/A

 

 

 

 

English Total

7674.0

7886.6

2.8%

 

 

 

 

Welsh forces

Dyfed-Powys

3

54.4

55.8

2.5%

Gwent

3

82.6

84.7

2.5%

North Wales

3

80.1

82.1

2.5%

South Wales

3

181.5

186.4

2.7%

Welsh total

398.6

409.0

2.6%

TOTAL

 

8072.6

8295.7

2.8%

Notes to tables 2-4

1. Rounded to the nearest £100,000. Grant as calculated under the Local Government Finance Report (England) and Local Government Finance (No.2 – Provisional Settlement Police Authorities) Report (Wales). Table includes the effects of floors and scaling.

2. Figures for the City of London relate to Home Office Grant only as calculated in the Police Grant Report (England and Wales). Revenue Support Grant is allocated to the Common Council of the City of London as a whole in respect of all its functions. The City is grouped with education authorities for the purposes of floors.

3. Welsh figures include Home Office floor funding.

Table 5: Specific Grant Allocation 2008-09 to 2010-11

2007-08

£m

2008-09

£m

2009-10

£m

2010-11

£m

Crime Fighting Fund

277

277

277

277

Neighbourhood Policing Fund & Community Support Officers

315

324

332

341

Police Counter Terrorism

472

524

552

579

Basic Command Units

50

40

50*

50*

Initial Police Learning & Development Programme

16

16

16

16

Grand Total

1,130

1,181

1,227*

1,263*

+4.5%

+3.9%*

+2.9%*

* Consultation will take place on how best to use these funds to support local delivery of PSA targets and crime strategy