‘Flawed’ police funding reforms delayed as Government admits it got its sums wrong

Mike Penning said the Government “regrets” the mistake and apologised to MPs and the 43 police forces in England and Wales.

He admitted the proposed changes were “never indicative” of police budgets under the formula and the changes for 2016/17 will now be delayed.

The Yorkshire Post revealed last week that a group of police and crime commissioners (PCCs), including North Yorkshire’s, were threatening to take legal action against the Government over funding reforms that could see millions of pounds a year cut from their forces’ budgets.

North Yorkshire PCC Julia Mulligan today welcomed the decision to halt the reforms, describing the consultation over the plans as being “flawed from early on”.

North Yorkshire crime tsar threatens legal action over police funding cuts proposals

Answering an urgent question in the Commons, Mr Penning said: “Within this process I am sad to say there was a statistical error made on the data that has been used.

“While this data does not change the principles of what was consulted on, the allocation provided to the forces was never indicative.

“We recognise this has caused a great deal of concern to police forces around the country. I and the Government regret this mistake and I apologise to the House.

“I also apologise to the 43 authorities that I wrote to during the extended consultation period as part of the funding formula review.”

North Yorkshire police commissioner Julia Mulligan said last week that changes to the way core police funding is calculated would mean North Yorkshire Police will lose a further £16 million on top of the £20 million it has to save over four years.

She joined with other PCCs expected to lose out as part of the new arrangements in writing to Policing Minister Mike Penning, urging him to look again at the criteria used to allocate funds.

On October 8, Mr Penning wrote to all chief constables and PCCs with details of revised plans to the formula used to allocate central government police grants.

At that point, it was thought that 11 forces would lose out on funding under the new arrangements, while four, including Humberside Police, would be unaffected and the remainder would see increases if overall levels of funding remain the same as last year.

On Friday a senior official acknowledged errors in the way forces’ allocations had been calculated, leading to accusations that the reforms were in ‘disarray’.

Shadow policing minister Jack Dromey said 31 of the 43 forces in England and Wales were set to lose out as a result of what he described as the “monumental incompetence” of the Home Office.

Mrs Mulligan said this evening: “The Home Office has done the right thing in calling a halt to this process. The consultation has been flawed from early on, and the Home Office can now take the time to get this right.”

“I welcome the chance to make the case for North Yorkshire again, but also rural forces more generally.

“The most important thing however is to make sure any new process is fair and transparent, and that it looks at police funding in the round instead of looking at the funding formula alone. I am in favour of an independent panel being formed to look at police funding, and hope that a panel can be progressed and implemented quickly.”

The level of core funding for police forces nationwide will be revealed when Chancellor George Osborne makes his spending review announcement at the end of this month. Despite the funding reforms being delayed, forces are still expecting to have to make cuts of either 25 or 40 per cent.

Mr Penning said today that the Government would seek the views of police and crime commissioners (PCCs) and the National Police Chiefs Council before proceeding with the changes.

He insisted it was important to arrive at a fair and transparent formula matched by demand and supported by the police.

Home Affairs Select Committee chairman Keith Vaz, who asked the urgent question, described the situation as a “shambles”.

He said 31 out of 43 police forces would lose money as a result of the error, compared with a third previously.

The Labour MP said: “This entire process has been described by police and crime commissioners and others as unfair, unjust and fundamentally flawed.

“What started off with good intentions is rapidly descending into farce. To call it a shambles would be charitable.”

Mr Vaz said an independent panel should be established to look again at the issue, adding: “More importantly (including people) able to count and understand mathematics - unlike some officials in the Home Office.

“This is a defining moment for policing. Last week you said you were proud to be the minister with responsibility for the best police force in the world. Now is your chance to show it by engaging with the police service.

“This formula will last a long time - if the Penning formula is to last as long as the Barnett formula it must be seen to be fair, just and workable.”

Mr Penning replied: “I wanted to make sure the House was aware of what we were doing. Many of the things you have asked for is exactly what we are going to do.”

Mr Penning confirmed the current formula would be used to establish police force funding for the 2016/17 financial year.

Shadow policing minister Jack Dromey condemned an “omnishambles process”, adding the minister must “get a grip and get it right”.

He said: “When did you know that? What did you know and when did you know it?”

Mr Dromey added: “This would be laughable if it were not so serious.”

Mr Penning replied: “I was informed on Friday. This was the first opportunity I have had to inform the House of the situation.

“We will make sure as we go forward we have a fair process.

“I have apologised, I’ll do it again if necessary, I don’t apologise for your tone because I think you got it wrong as usual.”