Police Funding

Background

The UK does not have a single national police force, but rather a series of 43 forces, loosely based on a county structure.

This reflects the origins of the modern police in the 1800s, when responsibility for civil order rested with local magistrates. Following the establishment of the Metropolitan Police in London in 1829, paid for by a 'Police Rate' levy on people living within its area, the next 30 years saw Borough Councils and County Magistrates copy London's example.

Today, although police forces are subject to considerable control from the Home Secretary and Chief Constables remain responsible for operational matters, Police Authorities have principal responsibility for police funding.

Police Authorities are corporate bodies, which raise revenue to fund the operation of their police forces by levying a precept on Council Tax Collection Authorities - District Councils and Unitary Authorities - which is added to local people's Council Tax bills. Police Authorities include nine Councillors from relevant Local Authorities (upper tier only in two-tier areas), three local Magistrates and five independent co-opted members.

In addition, Police Authorities receive grants from the Home Office, determined on the basis of the specific needs of their areas. The Home Secretary issues an overall police strategy and Police Authorities are provided with funding broadly to pay for meeting the strategy's objectives.

The Police and Magistrates' Courts Act 1994 increased the Home Office's control of Police Authority activity by imposing a statutory requirement to publish a local policing plan, with details of objectives and targets for the coming year, which must be consistent with the Home Secretary's 'Ministerial Priorities'.

Funding is divided into a number of individual categories, including standard spending, capital spending and Special Police Grants and Central Support Services. The Police Resources Unit (PRU) at the Home Office is responsible for police grant funding.


Controversies

Police funding is a controversial matter. Police numbers fell during the 1980s and 1990s, as 'bobbies on the beat' were replaced with vehicle patrols. Despite an increase of 15,000 between 2000 and March 2004 to reach a record level of 138,000, people remained convinced that there were fewer visible police officers on the streets deterring criminals.

Addressing police numbers is a difficult matter. It is a matter for Chief Constables, not the Home Secretary, who can only advise. Recent years have seen a greater reliance on Special Constables and the introduction of Community Support Officers to address the problem, generating concern about a lack of training and experience.

Police Authorities frequently voice concerns about the Total Standard Spending (TSS) figure produced by the Home Office, claiming that it does not cover increasing costs, while the Government maintains that police funding is rising.

Particularly controversial are 'top slicing' by the Home Office - the allocation of funds from the central grant directly to national schemes, such as the Airwave communications project - and the replacement of general grants with specific grants, 'ring fenced' for particular purposes. This sort of complaint, however, is endemic to the centre-local relationship, and is found more widely within local government and the NHS.

The cost of the police pension scheme is another cost for forces, particularly as early retirement is commonplace among police officers and their funded occupational pensions, which increase annually, are a drain on resources.


Statistics

Aggregate amount of grants to be paid to police authorities in England and Wales:
2007/8 - £4,432,973,642; 2008/9 - £4,559,863,930; 2009/10 (provisional) £4,682,677,857; 2010/11 (provisional) £4,808,807,759.

Source: Home Office 2008

Quotes

"The allocation of grant funding to police authorities should be based transparently on objective need in order to better match resources to threat and demand. To achieve this, the Home Office should move towards a fuller application of the funding formula in future Spending Reviews, phasing out the existing damping mechanism of floors and ceilings."

"Chief constables should ensure that they are taking an entrepreneurial approach to policing, not just in ethical income generation through private sector sponsorship and business enterprise, but also through encouraging finance directors to create and exploit ‘business opportunities’."

From Sir Ronnie Flanagan's Final Report of the Review of Policing – February 2008

"Sir Ronnie's final report…..identifies further savings to the equivalent of 2500 to 3500 officers a year; I accept his recommendations to achieve this."

Home Secretary Jacqui Smith responding in a Commons statement to Sir Ronnie's recommendations – 7th February, 2008