Select Committee on Home Affairs Fourth Report


1  Funding levels and value for money

3. There has been significant investment in the police service in recent years. In 1996-97 total gross police revenue expenditure amounted to £8,578 million. In 2006-07 the equivalent expenditure was £12,015 million, a real terms increase of 40% (£3,437 million) over that period (see figure 1).[2] Police representatives acknowledged and welcomed this additional investment. Chief Constable Dr Timothy Brain, ACPO spokesperson on finance and resources, told us that "as of 31 March this year, if we take a stock-take, police resources, especially when expressed in terms of people, have never been higher".[3]

Figure 1: Police gross revenue expenditure, England and Wales 1996/97-2005/06 (£ million)

Source: CIPFA Police Statistics

Resources

4. Police officer numbers increased by 11% from 1997 to 2006 (14,233 officers) (see figure 2). Police Community Support Officers were introduced in 2003, and by 2006 comprised almost 5% of the total police service strength (6,769 of 148,150 total individuals) (see figure 3).

Figure 2: Police Officer numbers 1997-2006 (total numbers)


Source: Police Service Strength, England and Wales, Various Years

Figure 3: PCSO numbers 1997-2006


Source: Police Service Strength, England and Wales, Various Years

5. We asked police representatives why the 40% increase in funding between 1997 and 2007 had only resulted in an 11% increase in police officers numbers over that same period. Bob Jones, Chair of the Association of Police Authorities (APA), told us that the investment had been deployed to recruit civilian and other staff as well as more police officers. Mr Jones said that the total number of police staff "went up from 180,000 to 227,000" between 1997 and 2007. He said the number of police officers had increased by 14,000, and the number of civilian staff "went up from 53,000 to 86,000".[4] Mr Jones said that the greater use of civilian staff in certain roles had represented good use of additional resources:

    When I first joined the police authority the HR was being done by an Assistant Chief Constable, the IT was being done by a senior police officer, the chauffeur of the Chief Constable and the Assistant Chief Constable was a police officer, and those have all been replaced by specialist civilians who represent much better value for money, much better expertise and have actually freed up an immense number of police officers to be out on the street doing their core job.[5]

6. We asked the same question of ACPO. Dr Brain told us that additional investment had not been "blindly spent on additional officers but has been wisely invested across a range of initiatives so as to maximise the return in relation to service performance".[6] He cited as examples the introduction in PCSOs, support and specialist staff, outsourcing (for example, custody officers), and efficiency improvement through technology (e.g. Airwave radio system). Dr Brain told us that other commitments have attracted some of the additional resources, including "a range of new laws and centrally driven changes in procedures" and "support staff which have been used to police important additional services which the public value e.g. improved contact management support".[7]

7. ACPO and APA described the additional tasks given to the police in recent years:

    police authorities and chief officers have … delivered impressive results. One way in which this can be seen is in the large number of new demands the service has been required to absorb without central funding, or only partial funding, such as the implementation of the recommendations of the Bichard and Lawrence inquiries, over fifty pieces of new legislation, supporting infrastructure for the neighbourhood policing programme and PCSOs, the Victims' Code, the Quality of Service Commitment, chemical, biological and nuclear equipment and training, and numerous other requirements.[8]

8. We challenged the police as to whether the service had simply been slow to modernise, and had therefore wasted resources. For example, police officers still take statements in long hand. Mr Jones of APA rejected this: "I think we have quite a good record of introducing a whole range of technology—Airwave, a £1bn system…at the same time as we are implementing automatic number plate recognition, fingerprints, ID systems, a whole series of improvements in command and control and trying to join up with the rest of the criminal justice system".[9] Dr Brain agreed: "the reality of it is that the police service has been very adept at introducing new technology and new technology in its own right".[10]

9. Police authorities have a statutory role to ensure the efficiency and effectiveness of police forces.[11] We asked the APA what police authorities have done to ensure that the additional funding has been used effectively. Mr Jones told us that the police have "had some extremely impressive outputs in terms of the investment that has been put in both nationally and locally".[12] He said, "we have introduced a whole series of initiatives and clearly the big headline figure, of course, is in terms of the efficiency gain. The efficiency gain since 1999-2000 to date represents 1.76 billion, 4.1% of budgets".[13]

Crime trends

10. Total British Crime Survey-measured crime fell by 34.7% between 1997 and 2005-06 (see figure 4). A recent academic study conducted by the research group 'The Centre for Crime and Justice Studies' (CCJS), Ten Years of Criminal Justice Under Labour: an independent audit, concluded:

However, as the study goes on to indicate, the overall picture is more mixed.

Figure 4: Total BCS incidents of crime (thousands)[15]


Source: British Crime Survey

Figure 5: Volume Crime (thousands) 1995 to 2005-06


Source: British Crime Survey

11. Since 1995 domestic burglary and vehicle thefts have fallen by 59% and 60% respectively (see figure 5). The Home Office Minister for Security, Counter-Terrorism and Policing, Tony McNulty MP, told us that "there have been significant decreases partly for technical reasons…on things like car crime and burglary".[16] The CCJS study concluded that these advances in technology, alongside successful police action, have contributed to these developments:

    In the case of both vehicle crime and burglary, improvements in security—far more than any government action—have probably been a significant contributor to overall falls. As the Home Office's most recent annual report Crime in England and Wales puts it, 'households with no security measures were almost ten times more likely to have been victims of burglary than households where there were simple security measures such as deadlocks on doors and windows'."[17]

12. Excluding successes on burglary and vehicle theft, there has been a more mixed picture in tackling overall crime, particularly given the increase in resources available to the police. For example, between 2002-03 and 2005-06 violent crime as measured by the police recorded crime statistics showed a 21% increase,[18] which contrasts strikingly with the 14% decrease in violent crime shown by the BCS figures.[19] The best that can be said about the police record on combating violent crime over the past ten years is that it is a mixed picture, with contradictory indications from different sets of statistics.

13. The percentage of people worried about these three crime types—car crime, burglary and violent crime—fell by approximately one third between 2000 and 2005-06 according to the BCS (see figure 6). This trend, at least, roughly correlates with the increase in police resources over the same period.

Figure 6: Worry about crime, 1998 to 2005-06 (BCS)


Source: Crime in England and Wales 2005-06, Home Office July 2006

14. The recent CCJS study quotes an internal analysis leaked from the Prime Minister's Strategy Unit (PMSU) which looked at whether increased spending on the police has been well spent. The CCJS study quotes the PMSU analysis as saying that increases in spending on the police "appear unrelated to productivity" and as noting that "there is still little chance that a crime will be detected and result in a caution or conviction".[20] It also quotes the survey as concluding that "80% of the reduction in the official crime rate since 1997 was the result of economic, not criminal justice, factors".[21]

The offences brought to justice target

15. In reference to police achievements over the period of recent investment, ACPO told us that the numbers of offences brought to justice (OBTJ), the key government crime reduction target, "have increased by 20% (from 1998-99 to 2005-06)" and that there has been "an increase of 6% in the number of OBTJ per police officer over the same period".[22] However, Home Office figures for 2005-06 demonstrate that the OBTJ figures include a high number of Cautions and Penalty Notices for Disorder (see figure 7). In the 12 months to March 2006, 5% of offences were official warnings for cannabis possession, 8% were PNDs and 25% were Cautions. These figures demonstrate that the number of convictions is low as a proportion of overall police disposals. Recent Home Office statistics support this conclusion, showing that in 2005 there were only three convictions for every 100 BCS estimated crimes.[23]

16. We discussed with police representatives why, despite a huge increase in resources, such a large number of offences brought to justice seem to be made up of petty offences. Chief Superintendent Ian Johnston, President of the Police Superintendents Association (PSA), criticised the target itself, saying "in terms of offences brought to justice…the performance measurement, quite frankly, is in a mess in some parts of the country as to officers knowing exactly what they should be doing and what counts".[24]

Figure 7: Offences brought to justice (12 months to March 2006)


Source: Home Office (2006), Criminal Statistics 2005, England and Wales. Taken from CCJS study, Ten years of criminal justice under Labour: an independent audit

17. Dr Timothy Brain of ACPO commented that police success in reducing crime overall has reduced the number of offenders who can be "brought to justice":

    After allowing for other methods of addressing their criminality this means a reduction in the potential number of offenders who could be brought before the courts. The fact that the service has maintained the number of offenders brought to the courts, despite the reduced opportunities to do so, means that there is a greater chance of 'being caught' than ever before".[25]

Dr Brain further commented that: "it is important to note that forces are using centrally improved definitions, those approved and owned by the government. As such the force can hardly be criticised [for including PNDs, cannabis and other cautions]".[26] He added that "through a process of 'natural selection' those offenders still active tend to be smarter than their convicted contemporaries and consequently harder to successfully convict".[27]

18. In the last few years the Government has focused on targeting individual offenders who commit multiple offences as well as tackling individual offences. Home Office research published in 2001 concluded that 10% of offenders on the offenders' index in England and Wales were responsible for over half of all crime.[28] The Government has introduced a number of interventions aimed at 'persistent offenders', including the 'Prolific and Priority Offender' programmes which are led locally by Crime and Disorder Reduction Partnerships. In considering the value for money of the police service, the cost-effectiveness of tackling individuals who commit multiple offences should be recognised.

19. Mr McNulty accepted that the question of whether the police have provided value for money "is an entirely fair question", and that, particularly in the context of the upcoming Comprehensive Spending Review, the time was right for a stock-take of how the OBTJ target was working:

    It is my job, with colleagues, to get to a stage where we do take stock of the use of PNDs, fixed penalty notices, et cetera, and how they fit, how the offences brought to justice target fits and how much of what we are doing in terms of targets of performance actually measure what they purport to measure.[29]

The relationship between investment and crime reduction

Figure 8: Percentage change in Police Gross Total Revenue Expenditure 1997-98 to 2006-07


Source: CIPFA Police Statistics

20. It can be seen from figure 4 above that the significant drop in overall BCS-measured crime occurred between 1995 and 2001, with crime levels remaining roughly stable, or only slightly decreasing, between 2001 and 2006. The Home Office Departmental Report 2007 states that "we have more recently seen a slowdown in the rate of crime reduction".[30] In contrast, the bulk of additional police funding has been provided during the second half of the last decade, from 2000-01 to 2004-05 (see figures 1 and 8). Increases in police officer numbers have broadly reflected the increase in overall funding, with numbers rising between 2002 and 2006. So too has the reduction in rates of worry about crime, which declined between 2000 and 2005-06. Nonetheless, it is striking that much of the decrease in overall crime rates over the past ten years occurred before the major increase in investment during that period.

21. Currently there does not seem to be any comprehensive collection or analysis of data at national level to assess police productivity and cost effectiveness. An analysis of police productivity by HM Treasury in 2006 called for "more detailed evidence of what works, and tighter productivity measures". It concluded that "forces are typically short of people with the experience or appetite to ask the most incisive questions about where resource is deployed and what productivity is it delivering".[31] There has been some recent progress towards measuring productivity. Activity-based costing, which calculates the costs of different police activities at BCU level, became a mandatory requirement of the National Policing Plan in 2003-04. In December 2003 Sir Tony Atkinson was asked to conduct a review of the measurement of government output and productivity. Following the reporting of this review in 2004, a paper by the Home Office in 2005 set out a "conceptual framework" for measuring the output and productivity of the criminal justice system.[32] Whilst this initiative is to be welcomed, it has not yet been implemented, nor is it yet clear how the output and productivity of the police will specifically be measured.[33]

Police use of resources

22. A number of recent assessments have concluded that police are not as effective as they might be at utilising resources. A report by HM Treasury in 2006 stated that "the way that police forces manage both budgets and people remains short of best current practice in both private and public sectors. Although there are well-established improvement work streams, progress is slow and patchy". It added "the relationship between value for money and operational performance as two sides of the same coin is too often not understood". [34]

23. The Audit Commission told us that in 2005-06, for the first time, it appointed auditors to assess Police Use of Resources (PURE).[35] Whilst the assessment, published in March 2007, found that "the majority of police authorities and forces are using their resources effectively",[36] it also concluded that "the ability of police authorities and forces to assess and improve value for money at a local and neighbourhood level remains underdeveloped".[37] The Audit Commission identified key areas through which value for money could be improved:

  • better use of activity data, such as information on police officer time, to assess how resources are being applied to activities within local areas;
  • work with partners to improve data and financial performance management systems; to understand value for money at a local level; and to direct resources to priority areas in the best way;
  • use benchmarking and performance data to review resource use and determine the best method for provision of services; and
  • develop mechanisms to assess any savings to be made and to ensure value for money from partnerships and collaborative working.[38]

24. The PURE assessment scored police forces on four levels according to how well they deployed resources. It found that 33% of police forces were performing 'adequately' (Level 2) and 65% were performing 'well' (Level 3). However, no police force scored 'strong performance' (Level 4), and one force's performance was 'inadequate' (Level 1).[39] Dr Brain of ACPO argued that the Audit Commission scale was not strictly reflective of police performance on resource use:

    'good' does not mean average, it is better than average, better than acceptable and as such the service as a whole consistently performed above the minimum requirements.[40]

25. Dr Brain also queried whether a level 4 ('strong performance') would be worthwhile for the police to strive for: "it must be seriously questioned whether the additional practices that would have to be introduced to deliver an excellent rating would actually represent value for money in terms of the public purse".[41]

Conclusions: Funding levels and value for money

26. Despite a headline BCS-measured crime reduction figure of 35% since 1997, the overall picture with regard to crime reduction has been more mixed. Over the last ten years the greatest reductions in crime have been achieved in volume crime, namely burglary and vehicle theft. Meanwhile, similar reductions have not been achieved in other crimes. Whilst the police have been successful in reducing volume crime, other non-police factors have also contributed to the reduction.

27. Crime levels are affected by a range of factors other than police resources, including sentencing policy and the number of individuals in prison at any given time. Notwithstanding this, we would still have expected the recent significant extra investment in the police service to have had a measurable impact on crime levels. It is puzzling to us that the significant decrease in overall BCS-measured crime occurred before any significant increase in police funding or in police officer numbers. Although it is difficult to draw firm conclusions from high-level data on overall crime and funding levels, the reduction in overall crime levels does not seem to have been directly related to additional resources.

28. On the basis of the data currently available, it is difficult to assess how effectively the increased spending on the police in recent years has been deployed. The Home Office, ACPO and APA have not yet developed mechanisms to collect or analyse information in any comprehensive way to assess the productivity and cost-effectiveness of the police service. Although we welcome the work being done to introduce activity-based costing of police activities, there remains no precise or implemented framework of overall productivity, which we consider to be a matter of some concern. It is hard to assess the case made by the service and police authorities for more funding when there is no comprehensive measure of how well they have spent the money they have already received. We recommend that the Government, in partnership with the service and police authorities, should place renewed effort into agreeing a comprehensive framework for assessing police productivity, allowing a clearer link to be drawn between investment and outcomes.

29. It follows that it is equally difficult to assess the implications of any future shortfall in police funding of the kind predicted by police representatives during the forthcoming CSR period. We address the likelihood of such a shortfall in the next section of this report.

30. The Government's key crime reduction target, 'offences brought to justice', is not a good indicator of success in relation to the types of crime which the public fear most. Performance against the target improved by 20% between 1998-99 and 2005-06. However, in the twelve months to March 2006 a large proportion (38%) of offences brought to justice were made up of petty offences in the form of warnings, Cautions and Penalty Notices for Disorder, and only 53% comprised convictions. There is a strong case for excluding summary justice measures from this target. Given that the rate of conviction remains low as a proportion of all estimated BCS crime, it is important that any revision of the target should place an increased emphasis on convictions. We also encourage the Government to maintain a focus on tackling prolific offenders.

31. In drawing up the next round of PSA targets relating to the police, the Government should aim for a better balance between clearly measurable targets and the less easily measurable aspects of police performance which are important to the public—such as reassurance policing. We expect to be consulted in due course about the Home Office's contribution to the new target-setting round in the Comprehensive Spending Review 2007.

32. In considering the use made by the police service of increased resources, we recognise there is some force in the argument made by the Police Superintendents' Association that resources have been diverted to the new tasks the service has been asked to carry out over recent years. However, we have seen no hard evidence to convince us that these additional responsibilities have absorbed all the new resources. We do not therefore believe that new demands alone explain the failure to improve conviction rates.

33. The recent assessments by HM Treasury and the Audit Commission confirm that there is scope for more efficient use of police resources. We acknowledge that progress is being made, and that 42 out of 43 forces performed 'adequately' or 'well' in the Audit Commission's assessment of use of resources, which is to be welcomed. However, the fact that none out of the 43 forces achieved a level 4 'strong performance' rating in the assessment, and the conclusion of HM Treasury that "progress is slow and patchy", indicates that there is room for significant further improvement. It is unacceptable that the significant recent increase in investment in the police is not being used to maximum effect. In this context we find the comment by Dr Brain of ACPO that it might not be "value for money" for police forces to seek to raise their performance to the top level deeply unpersuasive, and we reject his conclusion. The senior leadership of the police must demonstrate that they are making concerted and sustained efforts to target their resources effectively so as to achieve the Audit Commission's 'strong performance' rating.


2   Data adjusted using December 2006 deflator Back

3   Q 39 Back

4   Q 5 Back

5   Q 5 Back

6   Ev 48 Back

7   Ev 48 Back

8   Sustainable Policing-an overview of the APA/ACPO approach to the Comprehensive Spending Review 2007 (November 2006), p5 Back

9   Qq 36-37 Back

10   Q 38 Back

11   See www.apa.police.uk/APA/About+Police+Authorities/ Back

12   Q 5 Back

13   Q 10 Back

14   Ten Years of Criminal Justice under Labour: an independent audit (CCJS 2007), p 10 Back

15   1996, 1998 and 2000 are omitted as there were no surveys conducted in these years. Back

16   Q 73 Back

17   Ten Years of Criminal Justice under Labour: an independent audit (CCJS 2007), p32, citing Walker, A., Kershaw., C., and Nicholas, S (2006) Crime in England and Wales 2005-06, London: Home Office, p 85 Back

18   A major change to the recording practices of police recorded crime occurred in 2002, making it impossible to make comparisons about trends before and after this date. Back

19   According to the British Crime Survey, total incidents of violent crime fell from 2,802 in 2002-03 to 2,420 in 2005-06, a decrease of 14%. Back

20   Ten Years of Criminal Justice under Labour: an independent audit (CCJS 2007), p 23 Back

21   Ten Years of Criminal Justice under Labour: an independent audit (CCJS 2007), p 23, quoting a PMSU leaked document published in the Sunday Times, 26 December 2006 Back

22   Ev 26 Back

23   Home Office (2006) Criminal statistics England and Wales 2005 Table 1.1; Home Office (2006) Crime in England and Wales 2005-06 Table 2.01 Back

24   Q 9 Back

25   Ev 48 Back

26   Ev 48 Back

27   Ev 49 Back

28   http://police.homeoffice.gov.uk/operational-policing/crime-disorder/persistent-offenders.html Back

29   Q 72 Back

30   Home Office Departmental Report 2007, p 22 Back

31   Delivering a Step Change in Police Productivity, HM Treasury 2006, p1-2 Back

32   Measurement of output and productivity for the criminal justice system and wider public order and safety-a conceptual framework for the national accounts, Home Office (2005) Back

33   Ibid., p 23 Back

34   Delivering a Step Change in Police Productivity, HM Treasury 2006, p 6 Back

35   Ev 34 Back

36   Ibid. Back

37   Ev 34 Back

38   Ev 35 Back

39   This was Cambridgeshire Police. Back

40   Ev 47 Back

41   Q 43 Back


 
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