Addressing CIPFA’s annual police conference today, Paddy Tipping, PCC for Nottinghamshire and chair of the resources, efficiency and strategic finance group for the Association of Police and Crime Commissioners, highlighted the very short consultation period.
He also suggested that an independent body, similar to the Office for Budget Responsibility, might be better placed to oversee funding formula changes.
“I think there is quite a strong argument to say we do need an ombudsman or an independent body to look at this,” he said.
The Home Office issued an eight-week consultation on reforms to the funding formula in July, indicating reforms could be introduced by as soon as next April. It closed on 15 September.
Earlier this week, seven PCCs wrote to police minister Mike Penning branding the changes as “unfair, unjustified and deeply flawed” and threatened legal action.
Forces set to lose out include Cumbria, whose funding would reduce by 15.8% (£9.4m), Lancashire’s who would see a 14% (£25m) loss and the Metropolitan Police who would be landed with a 11.3% (£184m) cut.
Tipping said the Home Office has suggested there could be some flexibility on the precept cap on council tax increases in order to help forces offset formula-related loss – “that’s the only bit I’m encouraged about.”
However, he noted that “swings and roundabouts” in the funding formula paled in comparison to the budget cuts forces were likely to have to grapple with following the 25 November Spending Review.
“The level of cuts we’re being asked to make implies fundamental change,” Tipping told conference delegates.
He suggested more sharing of services and cross-force collaboration would be needed but criticised the lack of strategic direction from central government.
CIPFA also suggested that the tight timescales around the formula changes have been unhelpful.
Chief executive Rob Whiteman said: “It is worrying that any changes to the formula are likely to be implemented soon after further budget reductions – set to be outlined at this month’s Spending Review – giving police forces little time to effectively plan ahead for the future.”
He added that policing requirements were different in each region and so there should be more local discretion over how police forces are funded.
“This could be in the form of financial levers, with further powers, such as raising income from local taxes and charging for some services, devolved to regions.”
Whiteman echoed Tipping’s call for some kind of independent stewardship saying fiscal devolution would require a grants commission to oversee the process.
