CANDIDATE PACK 2020
THEME 5: BUDGET AND FINANCE Funding for policing is made up of a national grant from Government, which accounts 60% of the total, and council tax – which accounts for 40%. In financial year 2020/2021 the overall budget is £366.667m.
NATIONAL FUNDING The allocation of national funding for each policing area is worked out using a formula. At present Hampshire is disadvantaged by this formula. The current formula has never actually been fully applied as ‘floors and ceilings’ have been used to damp any changes to individual forces. The damping process exacerbates the position for Hampshire as it has the effect of reducing the amount of funding that should be received according to the current agreed funding formula. Successive ministers have made commitments to address the inequality of the allocation of police funding and two reviews have been undertaken but no new formula has been put in place.
COUNCIL TAX The Police and Crime Commissioner sets how much local residents contribute towards the cost of policing via the council tax. The Police and Crime Commissioner has a duty to consult on the precept (level of council tax) to be levied. This has previously been undertaken through an online survey and focus groups, to ensure that responses were representative of views across the Hampshire Constabulary policing area. Before the Commissioner sets the precept, the Police and Crime Panel must be briefed on the proposals. The Panel has the power to veto the amount of any proposed increase in the council tax if they consider it too high or low. The Police and Crime Commissioner will then consider the outcome of the Police and Crime Panel’s discussion before setting the policing element of the council tax. There are also limits around the flexibility the Police and Crime Commissioner has to increase the council tax precept. The Government sets a cap and if the PCC seeks to set a precept above this then the PCC must hold a public referendum.
ALLOCATING THE FUNDING The Commissioner determines how the funding received is allocated between policing and wider prevention and intervention work that supports victims, reduces offending and protects the vulnerable.
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