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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 honourable friend the Chancellor of the Exchequer made it clear in his Statement on the Comprehensive Spending Review that the Government expect 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 it clear that we will not hesitate to use our capping powers as necessary to protect council tax payers from excessive increases.
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
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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 past two years.
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.
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 its unique national and international role as well as the functions that fall to it 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 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.6 Dec 2007 : Column WS228
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.
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.
I will shortly be making further announcements about funding for the Olympics and protective services.
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.
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