Police Finances - Home Affairs Committee Contents


Memorandum submitted by the Association of Police Authorities

Thank you for your invitation to comment on police funding announcements with the Comprehensive Spending Review 2010 (CSR10).

The APA believes that the financial challenges facing policing are unprecedented and we have concerns about the potential impact of cuts to policing over the next four years. In particular, we think the phasing of the cuts presents significant risks to service resilience in the short and medium term, and could lead to decisions being made in the short term that prejudice longer term strategic and financial stability.

Authorities and forces are committed to doing everything possible to maintaining policing services, particularly at the frontline. The budget announcement, however, merely contributes to a growing sense of inevitability of an unavoidable reduction in officer numbers. Several forces have already taken steps to put police staff, including PCSOs on notice of redundancy. While a reduction in headcount is not necessarily a bad thing, it may impact the flexibility of forces to transition smoothly and effectively to new, more productive operating models. I touch further on this issue below in terms of budget phasing.

We acknowledge the severe pressure upon public finances and the need for policing to shoulder its share of the burden. However, while accepting the inevitability of reduced funding, we believe the cuts present significant risks for forces in terms of their size and timing. The APA especially urges the Government to reconsider the phasing of the funding cuts.

PRIORITY TO POLICING

The Government has a responsibility to prioritise policing, including in terms of funding. We do not believe the current funding settlement recognises this responsibility, nor takes account of broader circumstances. In this regard, the Service will be sandwiched between the twin burdens of increased demand for its services and even less resource.

We anticipate increased demand upon policing as public support services provided by other agencies diminish due to their own funding constraints. In particular, the positive momentum of the last few years on reducing crime and increasing public confidence are at risk, just at the time when communities are likely to be looking more towards the police for help as service of "last resort" when other public services are scaling back.

The prospect of reducing funding from other sources is also likely to have a significant impact on policing resources. In particular, match-funding from local authorities to support neighbourhood policing is under threat. But in the light of reductions in the CLG and other grants, other public services and voluntary groups will also be forced to close off funding streams which have traditionally supported a wide variety of police-led initiatives.

PHASING CUTS

The police service has significantly increased efficiency over the last decade through a variety of initiatives including mixed working, inter-force and private sector collaboration, better resource management and outsourcing. In fact the performance of the Service outstrips most other public sectors.

While there is still scope for further efficiency improvement, existing organisational models offer diminishing opportunities. The next significant wave of savings will be realised through Service restructuring and innovative working models. This takes investment—that is increasingly difficult to find. Steep reductions in capital funding for 2011 and beyond merely exacerbate the problem.

Out of necessity and the quest for continuous improvement, forces will continue to drive out remaining efficiency savings to satisfy short term budgetary pressures. This approach, however, risks stripping out the financial flexibility required to invest in restructuring, at the expense of longer term reform and service resilience. While most, if not all forces should make ends meet in 2011-12, we anticipate 2012-13 to present significant challenges. ACPO analysis affirms this view.

In the APA's view, it makes no sense to frontload the budget cuts when forces require this time to invest in money-saving initiatives for the longer term. It is out belief that the dual challenges of the Olympics and changeover of governance structures in 2012 will only serve to compound the pressures of frontloading. Interestingly, the Government has not applied a similar approach to budget phasing elsewhere. The fire service, for example, faces real budget cuts of 1 and 6% respectively in the first two years of the CSR.

The APA is currently surveying all police authorities for an assessment of the impact of CSR10 arrangements. This includes information about the size of any projected funding shortfalls, the anticipated impact on services and planning arrangements to reduce expenditure. We would be pleased to share the findings of our survey with you.

I look forward to appearing before the Home Affairs Select Committee (HASC) and expanding further upon the issues outlined within this letter. I hope that in the mean time this has given you a clearer sense of the APA's concerns associated with CSR10 and the very real risks it presents to policing. I am confident your representations to the Government will help to increase understanding of the challenges ahead.

Please do not hesitate to contact me should you require any additional information.

December 2010


 
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