The share of funding received by the East Midlands - East Midlands Regional Committee Contents


Examination of Witnesses (Questions 1-38)

JANET BIRKIN AND RICHARD CROMPTON

30 NOVEMBER 2009

  Q1  Chairman: A warm welcome to Janet Birkin, Chair of the East Midlands Police Authorities Joint Committee, and Richard Crompton who, I think, acts as the chief officer of the group but is also the Chief Constable of Lincolnshire. Thanks for coming here. We were originally scheduled to meet in Loughborough, but for a variety of reasons, that wasn't possible. So it's good of you to come here at short notice.

This is perhaps an appropriate meeting, because I know, Richard and Janet, that you and colleagues in the East Midlands have been concerned about the funding levels of police authorities in the East Midlands for a long time. This is our first evidence session for an inquiry that, in broad and basic terms, asks, "Does the East Midlands get its fair share of resources?" So let's start with that. Tell us what the position is with the police in the East Midlands.

  Richard Crompton: Thank you. The basis of our argument here today is really that, no, we don't receive the funding we should receive in the East Midlands in policing terms, despite the fact that we absolutely accept that there has been an increase in police funding right across the UK, and we have seen some of that increase within the East Midlands. The funding formula, which is currently used to decide how the national pot for police funding is apportioned across the 43 forces, is subject to a dampening mechanism. In the East Midlands, all five of the constituent forces lose out as a result of that dampening formula. Were the funding formula to be implemented to its full extent, we would actually receive 6.8% more in our budgets and be able to afford something in the region of 518 additional police officers as a result.

  Q2  Chairman: But you just mentioned all five forces. Tell me about Northamptonshire, because I thought it was in a slightly more advantageous position than the other four.

  Richard Crompton: It is true to say, sir, that Northamptonshire currently does lose out through the dampening to the tune of, I think, £0.6 million, which, in comparison to the other four forces and authorities, is a much smaller amount. It is equally true to say that it has been in and out, either side of the line, so to speak, during the years; but, collectively, of course, we rely upon one another working collaboratively, and Northamptonshire certainly feels the impact of that as well.

  Q3  Chairman: I think I saw last week the provisional allocation for next year—I did not read it as thoroughly as I might—but it is subject to damping again.

  Richard Crompton: That is correct, sir, yes.

  Chairman: Can you just fill that in a bit?

  Richard Crompton: The dampening mechanism was introduced really to ensure that all forces and authorities across the country received as a minimum an increase year on year of 2.5%. So I suppose that from our point of view, in a fairly strange way, a funding formula was decided about six years ago on the basis that national funding was not apportioned according to need and risk, but it was then immediately dampened to ensure stability, which I can understand. However, unlike other public authorities, that stability has been maintained through the dampening mechanism, and the funding formula has not been allowed to be implemented at a staged rate.

  Janet Birkin: Perhaps I could add something to that by saying that we recognise in the East Midlands that although there is the floor of 2.5%, this year we received 3.1%, and next year we will receive 3%. So we recognise that the Government have some recognition of the challenges we face; but clearly when we should be receiving an additional 6.8%, it is not sufficient to address the risks that face the East Midlands. I am sure that you will all remember that in the "Closing the Gap" report by Denis O'Connor, we were seen as the Government region that had the highest risk.

  Q4  Chairman: So, Janet, what's to be done about it?

  Janet Birkin: Well, what would be the best thing to happen is clearly that the funding formula was fully implemented, and as I am sure that you are aware, that was one of the recommendations from Sir Ronnie Flanagan's latest review—that there was some movement towards implementing the funding formula fully. From our perspective, we fully recognise that it would be very difficult to do that in a single sweep. There is some disappointment that the Government have chosen not to show an element of phasing in the funding formula over the three-year CSR period, which, of course, they have done in other key local public services. At this moment in time, we do not see that there has been any recognition to do that, but that for us would be a significant improvement to our current situation and would address much of the gap we already have.

  Q5  Chairman: Why is that? I know that you've been on the case for a long time. What's the Home Office saying to you?

  Janet Birkin: I think the Home Office—I am sure, working in conjunction with the CLG—is saying to us that it recognises the issue. In fact, I can say personally that when we have been to see the Policing Minister, he has been very aware and supportive of the challenges we face.

  Chairman: Supportive, but not giving you the cash.

  Janet Birkin: Exactly, and actions speak louder than words, do they not? However, having said that, I believe they probably feel that they want stability and realise that if the funding formula was implemented in full, it would mean that there would be authorities and forces who would lose out. But equally, it would be fair to say that there are officials who have used the words, "They would want to treat all their children fairly." At the moment, we don't feel we are, because we have been losing out for a number of years.

  Q6  Chairman: Richard, you said at the beginning that you'd had extra resources. The figures we've got are an extra £256 million, or a 27% real-terms increase, between 1997-98 and 2009-10, but you've still got a deficit. What would you use that money for?

  Richard Crompton: First of all, if I may say how the additional money has been used, of course, we've used it to invest in neighbourhood policing. We've used it to invest in protective services across the region. If the funding formula, however, were to be implemented to its full extent and we received the extra £34.2 million that we would receive as a consequence, that, as I said, would give us resources to the tune of 514 extra police officers. Undoubtedly, there would be a considerable call on those additional officers to fill some of the protective services gaps that were identified by Her Majesty's Inspectorate of Constabulary, in the review both in 2005 and 2008. In Derbyshire, for example, there are over 70 organised crime groups that have been recognised and mapped by that force. They are involved in things such as homicide, gun crime, knife crime and the supply of class A drugs. The simple fact is that the force is not in a position to properly address all those organised crime groups because it simply does not have sufficient resource, and the same could be said to a greater or lesser extent for all other forces in the East Midlands.

  Q7  Chairman: If you got up to your funding formula at the appropriate level, would you be happy with that, or would you still be knocking on the door?

  Richard Crompton: It would be a strange chief constable who said they absolutely have enough, but recognising the realities that we all face, it would make a very significant difference. It is true to say, however, that we have identified and costed additional risk within the East Midlands region, to the tune of an additional £22 million. So although the implementation in full of the funding formula would assist greatly and make a very real difference, I still would not be able to put my hand on my heart and tell you that we were absolutely fully funded to meet the risks that we currently face. But, as I say, I think that all chiefs and chairs of authorities recognise the difficult economic situation that everybody is in.

  Q8  Chairman: Let me just ask you a couple of other things and then we will turn to Judy. First of all, Lincolnshire is the lowest funded force?

  Richard Crompton: Yes, we are.

  Q9  Chairman: How has that come about?

  Richard Crompton: I think you have to look back historically. Over the years, Lincolnshire has always been—for as long as people can remember—a low, or the lowest, funded force within the country. That is partly due to the fact that, as I hope we have made clear in our evidence to you, we are funded at the lowest level in terms of the grant that is shared out across all forces.

  It is also true to say that in Lincolnshire, during the years when some authorities were introducing relatively high levels of council tax to raise additional funding, for a range of reasons the police authority in Lincolnshire chose not to do so. However, that situation no longer pertains. You may recall that two years ago, following the authority's seeking a very significant increase in the precept, we were capped but we were capped at 26%, which I think recognised the severe difficulties we were in at that point. So there are a range of historic reasons that have brought us to the position we are in today.

  Q10  Chairman: Both of you have a long-standing and outstanding record of working in the public services and you will read the political runes as well as I do—probably better than I do. Everybody tells me we are about to move into a range of austerity—when it happens, how deep it will be and for how long remains to be seen. However, wouldn't it be better to get you up to a fairer funding formula in a time when there were increased resources rather than in the period we now look as though we're going into, where the rate of increase might be very limited or might even decrease?

  Janet Birkin: Could I start our response with a point of clarity? We do not have an issue with the funding formula. You mentioned a fairer funding formula. We sit quite comfortably with the revised formula. Our real argument is about the fact that it has not been implemented and about the whole of the damping mechanism; it seems to be a little cloudy as to how that mechanism is arrived at.

  Q11  Chairman: It is easier to look after your children, to use your phrase Janet, if you have some money in your pocket than when you haven't any money in your pocket. I suspect that we are moving towards that spectrum.

  Janet Birkin: Yes, and we are very mindful of that. Going back to the point that Richard made, there has been underfunding for many years across the East Midlands. In fact, if I just bring that alive by talking about Derbyshire as an example for one second, when the funding formula was reviewed it gave us an additional £11 million in grant. To date, we lose £5 million year on year of that grant that we have not seen. So we recognise that. It has meant that from an efficiency point of view, the region has had to show considerable efficiencies, which means that when we move into the more austere times it is much more difficult to make the efficiencies that are required. That is particularly challenging for us, because one has to recognise that efficiency is all about maintaining services. We don't want to cut services, which is ultimately where we could be.

  Could you just repeat the question?

  Chairman: If you are going to get to the required level, it is easier to do it in a time of affluence, rather than austerity.

  Janet Birkin: Yes, so the point I wanted to raise there is that we would really agree with that. The point is that we have to balance the setting of our budget with a capping regime that has been brought in by Government. Four of the five force authorities in the East Midlands have suffered through the capping regime in the last five years—Derbyshire being the latest this year. Although we were not capped, we were nominated, and we do feel there is an element of unfairness there, when we are trying to play our part, particularly when we had done so much consultation with the community, who wanted us to be brought up to a level that was equitable with our neighbours and could address the risks, particularly when we had support from cross-party MPs and particularly when, as an authority, we did not want to go into conflict with the Government. The budget and precept we set did fit within the previous capping guidelines. So it gives us additional challenges for all those reasons.

  Q12  Chairman: We've talked a lot about Derbyshire and Lincolnshire, for understandable reasons, but I'll be in big trouble back home if I don't mention Nottinghamshire. They are in the same position, aren't they?

  Richard Crompton: Yes, indeed, they are. You will have to forgive me for referring to my note here. The failure to implement the funding formula to its fullest extent, as I have explained, has lost the region £57 million. In Nottinghamshire, their share of that equates to 211 additional police officers. You have made the point about Northamptonshire, and you are absolutely correct that they are at the balancing point in this debate, but the other four forces in the East Midlands lose considerably from that failure to implement the funding formula.

  Q13  Chairman: Can you give us the Leicestershire figure as well?

  Richard Crompton: Yes, I can.

  Q14  Judy Mallaber: What was the amount they were short in Nottinghamshire, in millions of pounds?

  Richard Crompton: The cash amount?

  Judy Mallaber: I am sure it is in here somewhere. You said the figure for Derbyshire was £11 million. What is the equivalent for Nottinghamshire?

  Richard Crompton: For Nottinghamshire the figure is £7.6 million. In Derbyshire they could have afforded 139 additional officers, and in Leicestershire, 86. In Lincolnshire, my own force, the number is 69, and as I said, in Nottingham it is 211. In Northamptonshire it is nine officers.

  Q15  Judy Mallaber: I'm going to go over some of these questions in a little more detail to make sure, for the purposes of our report, that we are absolutely clear. Going back to the police funding formula itself—though we know the problem is the implementation—I was slightly unsure because you said you would obviously live with that quite happily, but you also said that you had identified an additional £22 million risk. Was that the wish list on top of the current funding formula? I wasn't quite clear whether that was in addition.

  Richard Crompton: I wouldn't describe it as a wish list, but all forces within the region, as you would expect, have done a lot of work to try to assess the risk that the people we serve face in each of those constituent forces. We do that in a number of ways, but one of the most significant ways, of course, is by mapping organised criminals and their activities within the region. These are only estimates, but the estimate within the total East Midlands region is that we would have to spend an additional £22 million on top of that which we currently lose out from in relation to the funding formula to properly meet that risk.

  Janet Birkin: To add to what Richard has said, for forces and authorities it is the case that when that strategic risk assessment has been completed, the genie is out of the bottle. It is about knowing the unfunded risk that we have to balance and that the chief constable has to balance in all his or her decision-making processes.

  Q16  Judy Mallaber: I come back to the funding formula without that £22 million. If we were to get it, do you think that that is fair, as between different regions? Do you have any complaint about the balance between regions?

  Richard Crompton: The balance between regions is frankly quite stark. Our region is in the lower half.

  Q17  Judy Mallaber: I meant on the formula, not on the implementation of the formula. If we had the formula, although obviously everybody would be able to identify more money that we desperately need, would you feel that it was fair as between regions?

  Richard Crompton: As Janet has said, no formula is perfect. We could always argue about some of its manifestations but, yes, in general terms everyone in the East Midlands is content that the formula itself is sound and, were it to be properly implemented, we would feel we were getting a fair share of the nation's resource that is being put to policing.

  Q18  Judy Mallaber: Have you been able to influence the formula when it has been drawn up?

  Janet Birkin: No. Well, let me clarify that, Judy. When we knew that there were to be changes to the formula, there was consultation to which all authorities could contribute. We feel that the decision taken at the time with the actual funding formula that we have now would be seen to be fair. It feels about right for us.

  Even if we had the additional £19 million—which would go some way, as Richard has pointed out—we have to remember that we have a £17 million budget deficit across the East Midlands. We have also the £22 million of unfunded risk, and we would have some difficult decisions to make about where the money would be spent, because we would also want to think about how we could invest in collaboration for some more longer-term savings. We can only spend the money once. As for the point you were alluding to, Judy, when you asked whether we would see that fair across other regions, we have lost out for a significant number of years.

  I shall give you a comparison from region to region. We all see much of it with regard to levels of officers. We have the lowest number of officers. We have 24.6 police officers to deal with 1,000 crimes across the region compared with the North-East that would have 36.3 officers to deal with 1,000 crimes. In police officer measurements, we are significantly disadvantaged.

  Q19  Judy Mallaber: I am trying to identify the particular different aspects involved. Does the funding formula itself adapt? I know that we are not getting it implemented, which is our first problem, but is it adapted to take account of changes? If so, how regularly does it take account of, for example, population changes, which is obviously an issue for us in the East Midlands?

  Richard Crompton: We smile because it does, but only years after the event. For example, our current funding is based on the mid-year population for 2004. As you will all know, the East Midlands is a rapidly growing region. Northamptonshire and Lincolnshire are the number two and three fastest growing counties in the country. We have grown hugely since 2004, but the funding formula is linked to the population estimates that existed at that time. My understanding is that, when we go to the next CSR, it will be based on the population estimates for 2008; none the less there will still be a considerable lag. Our argument is that it would be possible to inject some additional flexibility into the apportionment through the formula based on the annual estimates of population through the Office for National Statistics, but that is not done.

  Janet Birkin: Adding to that point, I am sure that the CLG would say that, even based on the 2004 population statistics, it will make some proportionate changes to it; but clearly, once the CSR has been set, those are the population figures that would be used. If we are talking about the East Midlands where there is a significant increase—plus 11% is expected by 2016—the demands of an ever-growing population are not adjusted for. It continues, and is not dampened like the formula. The demand for policing increases with an increase in population, and the formula, because of damping, stays the same.

  Q20  Judy Mallaber: Are there any other particular features of our region that should be taken into account, but you feel maybe aren't?

  Richard Crompton: Yes, I believe there are, as we've made clear—for example, the policing grant disadvantages in the East Midlands. Of course, there are other sources of funding as well. Specifically, I am thinking of the Crime Fighting Fund, the Neighbourhood Policing Fund and the capital allocations that are made each year. When you look at each of those funds, again, we are significantly disadvantaged. In relation to the Crime Fighting Fund, Lincolnshire police receive the lowest level per capita of any force in the country, and the region is, I think, the fourth most disadvantaged in the country.

  Q21  Judy Mallaber: How is the funding for the Crime Fighting Fund determined? How is that grant determined? What do they take into account?

  Richard Crompton: I am not sure we can answer that question today, if you will forgive me.

  Judy Mallaber: It would be helpful, because for us just to talk about the funding formula and not specific grants, we need to be accurate.

  Richard Crompton: We could certainly supply the Committee with that detail.

  Janet Birkin: It would be fair to say, wouldn't it, Richard, that the Crime Fighting Fund was set up specifically for forces to meet set police officer numbers?

  Richard Crompton: Yes, indeed.

  Janet Birkin: That has only recently been relaxed to a degree to allow an element of work force modernisation and changes in the work force mix, but any further additional information, we can let you have.

  Q22  Judy Mallaber: Richard, which are the other grants again?

  Richard Crompton: If I may, in relation to the Neighbourhood Policing Fund, Derbyshire is the lowest funded force of all, and we are the second-lowest funded region in relation to that. It continues in relation to capital grants—we are the third lowest region.

  Q23  Judy Mallaber: Can I hold you off about the Neighbourhood Policing Fund? To what extent is Derbyshire underfunded because the authority and the chief constable at the time did not want to apply for PCSOs, or is that not relevant?

  Janet Birkin: I think that, in truth, it isn't relevant, and I don't say that in any defensive way at all. At the time, the police authority and the chief constable, because of our very low number of police officers, felt that money was better funded in officers rather than PCSOs. Of course, the Government brought in their 75% funding on PCSOs. Our numbers would be comparable with neighbouring forces, had the final tranche of PCSOs been allowed, but the Government withdrew that, which is one of the reasons why we are the lowest funded.

  Q24  Judy Mallaber: So Derbyshire didn't start at a lower base because of that original decision?

  Janet Birkin: Yes, which we felt was the right decision at the time.

  Q25  Judy Mallaber: And the other fund you were about to go on to?

  Richard Crompton: The final fund is capital allocation. Again, the East Midlands received the third lowest level per capita across the nine regions in the country.

  Q26  Judy Mallaber: It would be helpful to have a few more details about how they determine those, and where we fit in into that. Otherwise we are not doing the full picture.

  You mentioned the CSR. We don't yet know what the arrangements are for the next one. What effect has that delay had in terms of how you are planning to use and allocate resources?

  Janet Birkin: We really welcome the fact that we have a three-year CSR period, because it means that our planning and budgetary decisions are much better informed. However, as we've said earlier, we were disappointed that, at the same time, there wasn't the opportunity, or the Government didn't take the decision, to phase out the damping and the floor. One of the issues caused by having a late response on the new CSR period and if our grant funding is cut back, which is anticipated, as was said earlier by the Chairman, because of the current economic climate—much of our costings will be around staffing at 80%—will be that clearly, police officer numbers will have to reduce. That is the only way that we can make quick changes to our budget, whereas if we had a longer lead-in time, maybe that would not be affected in quite the same way.

  Q27  Judy Mallaber: I don't know much about the police allocation formula working group. Can you tell me what it is, how effective it is, whether we have East Midlands representatives on it and which bits of this process it has a part to play in?

  Janet Birkin: The police allocation funding formula group is part of the CLG. It works closely with the Home Office through Michael Romberg's area. It is a group that is re-looking at the funding formula. We did not know that group existed until we invited Michael Romberg up to the region, together with Karen Sussex who works on that group. We had a constructive and productive conversation with them. We have never been invited to sit on that group. That will be done at a national level, I would imagine through ACPO and the APA. However, we were invited to submit our evidence to that group, which we will do by the end of this year. I believe they anticipate coming to a decision by the middle of next year.

  Q28  Judy Mallaber: Are police forces and authorities consulted on the damping arrangements and their impact, or do they just come out from on high and you have no say until after the event, when you are complaining about it?

  Janet Birkin: To use your words, Judy, it comes from on high. There is no consultation whatsoever. Whereas there is a fairly transparent process with regard to the funding formula, there is none of that with regard to the damping issue.

  Q29  Judy Mallaber: Just a final question about the impact. You have said how many extra police officers we could have. You talked about some elements of risk. You gave Derbyshire as an example and the number of gangs. What are the main areas of potential risk that you would identify as a result of the formula not being implemented?

  Richard Crompton: It is best answered in this way. I have drawn attention, through my comments in relation to organised crime, to one of the more dangerous elements of the risk that we carry, but you will also appreciate that we have, for example, to work in relation to the management of dangerous offenders and sex offenders. We have to work in the area of child exploitation. All of these things are either risks or emerging risks within the East Midlands. Janet has also drawn attention to the ratio of officers per crime. The amount spent in our region compared with other regions does not compare favourably in relation to each crime. At the neighbourhood level, we also see the results of the year-on-year failure to implement the funding formula in fewer officers at that level and a propensity among the forces to remove officers from the neighbourhood level in order to fill some of the gaps at the serious and organised end of the criminality that we have to combat. So it is an across-the-board impact that is felt within the region as a result of our funding difficulties.

  Q30  Sir Peter Soulsby: You tell us that, as a result of the funding that you have, the East Midlands has a lower number of police officers per 1,000 crimes than any other region. That could to some extent be choice in how the money is spent. Is it also the case that the grant per crime and spend per crime are at the bottom of the table, or are they somewhere else?

  Richard Crompton: Yes. Let me give you the specific figures. In the East Midlands, in relation to grant-to-crime ratios, the region receives £1,330 to deal with every crime committed in the area. We compare that with the North-East region, where the amount is £800 more in relation to urban crime. I can give the figures for police officers per crime again if you wish, but it is a similar situation. In relation to the spend per crime, which is the other area that you were interested in, in the East Midlands region, forces spend an average of £1,950 on every crime committed. Again in the North-East region—it feels like we're picking on the North-East region—they actually spend £2,597. That's some £650 over what we spend in the East Midlands.

  Q31  Sir Peter Soulsby: That's very helpful, thank you. You also referred to some of the specific sources of funding that the forces receive. I just wonder whether, if you take all those specific grants together, you could give us a flavour of where the East Midlands comes in terms of funding.

  Richard Crompton: I'm not, at the moment, able to parcel them all together, but in each of those specific areas, we are at the lower end of the apportionment in relation to other regions across the country.

  Q32  Chairman: Could you do the sums for us and let us have a new total?

  Richard Crompton: Absolutely, yes.

  Janet Birkin: Perhaps I could add to that, Richard, for Sir Peter. If you take the Crime Fighting Fund, we're the fourth lowest funding per head of population. If you take the Neighbourhood Policing Fund, we're the second lowest. If you take capital grants, we're the third lowest level of capital grant. We're the fourth lowest for grant funding per head. Clearly, when you put all that together, we are going to come in at around the fourth lowest, I would anticipate.

  Q33  Sir Peter Soulsby: Increasingly, forces are collaborating together in the East Midlands, as elsewhere. Could you give us a flavour of to what extent synergies have been achieved as a result of that collaboration?

  Richard Crompton: Yes—perhaps I could start off, Janet? We are quite proud of what's been achieved in the East Midlands in relation to collaboration. We have been collaborating together for a decade or so now in the East Midlands Special Operations Unit, which you may well be familiar with. It is a specialist resource to which all forces and authorities contribute: some 160 officers and staff are there to help us address serious and organised crime right across the region. It is something which has been identified by the inspectorate as good practice, and indeed has been held up as an example that others might follow.

  Since the debate on force amalgamations from 2005 and since it was decided that forces would not amalgamate but that emphasis would be on collaboration, we have kept a full-time team working on our behalf in Newark, working up ever more opportunities to collaborate. At the moment, we collaborate on round about 67 issues across the East Midlands region. Of those, there are some very significant areas, such as, for example, witness protection, which is looking to share the responsibility for that across the region and actually provides a model, which I anticipate we will see more and more next year and in the years to come, of hubs within the region, if I may describe them as that, to provide each of the five forces with specialist resource. Specialist covert technical support would be another example where we see the benefit of additional collaboration.

  We have made significant savings through collaborating together on procurement. We have also, it has to be said, managed to bring into the region significant sums of money through Government because of our collaborative style. For example, over £8 million was brought in last year and this year to enable us to invest in over 5,000 mobile data devices, which will free up officer time and make them more efficient. It has been, I think, an important element of the way in which we not only manage money but also manage the operational risk that we face, but I would have to say that it is not the panacea, and it will certainly not solve all our problems.

  Q34  Sir Peter Soulsby: I recognise that, and I recognise that it is not just about the money when you collaborate, but I wonder whether you have actually tried to quantify the financial effects of the collaboration.

  Richard Crompton: In terms of—?

  Sir Peter Soulsby: In terms of savings. You mentioned something as you were going through there; I just wondered whether you have tried to put them together.

  Richard Crompton: In terms of the amounts saved and the amount brought into the region, we can certainly give you hard figures. Again, I have to say that the amount saved does not amount to a massive amount of money. We are in a position where collaboration tends to enable us to provide an enhanced operational response and resource in the region, as opposed, at the moment, to making much in the way of hard cash savings, although, going back to procurement, I think it was £1.3 million through procurement. When you add together the total of all our cash savings and the additional money that has been brought into the region, it is just shy of £12 million.

  Q35  Sir Peter Soulsby: If amalgamation were back on the table, would that make a significant difference? Is there the prospect of big savings from amalgamations?

  Richard Crompton: In 2005, I led the team which looked at this in the East Midlands and we costed what it would amount to to bring all five forces together in the East Midlands; the total cost was around £95 million. It would have taken a decade to have recouped that amount of money. To hammer that home, they were not just our figures; they were audited through the Home Office and we agreed on that sort of figure. It is true to say that there are savings to be made, but it requires a very significant injection of cash to get it started and it would take an awful long time to see the benefit in terms of cash.

   Sir Peter Soulsby: Thank you very much.

  Q36  Chairman: Can I just pick up on two or three of those issues for people who follow our proceedings, particularly our good friends in the press? Could you just make it clear, Richard, that this base in Newark, which is very close to me, is at the embryo regional stage?

  Richard Crompton: I am very happy to do that. It is in a unit on an industrial estate. It could hardly be described as a prototype for a new regional headquarters, I assure you.

  Q37  Chairman: I know that, but other people don't. Turning to EMSOU, the East Midlands Special Operations Unit, I know it but I have lost sight of the funding. Initially it was 100% Home Office funded, then it was 50% Home Office funded. What is the position?

  Richard Crompton: You are quite correct and thank you for prompting me. We currently, this year, enjoy £2 million funding for EMSOU, down to £1.5 million next year and then we are told there is no further funding. While we are grateful for what we have received, it does add to our concerns about the future, given all the things that we have discussed this afternoon.

  Q38  Chairman: Just finally, I am not entirely sure what the role of the Department for Communities and Local Government is in this. That is more around the figures and the material that goes into the formula. What I guess I am saying is, who calls the shots? It is a Home Office issue, isn't it?

  Janet Birkin: You raise an interesting question. Certainly, when we were threatened with capping, of course it came from the Minister from the Department for Communities and Local Government. Interestingly, it was a Policing Minister last week who announced what the funding settlement was going to be. I would imagine that there is an element of close working and co-operation between the two Departments with regard to policing.

  Chairman: Well, let's just keep that in our imaginations, shall we? We won't put it higher than that. Can I just thank you for coming? Our interviewing techniques, Richard, may not be up to your standard and that of some of your colleagues. When you are reflecting on the train back home and think, "I should have confessed to this" or "I should have told them that", don't be shy to drop us another note if you want. I am grateful for your coming. We hope to produce the report some time about the middle of February, so the sooner you can let us have the material you promised us the better. Thank you both very much.

  Richard Crompton: Thank you for the opportunity.





 
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