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.

15%

7.5%

0.5% 0.5% 6.5% 6%

WHERE THE MONEY GOES

24% 8%

16% 16%

Intelligence

6%

Contact Management

8%

Response

16%

Neighbourhoods

16%

Investigations

24%

Operations

7.5%

Support Services

15%

Estates

6.5%

Commissioning

0.5%

Office of the PCC

0.5%

WHERE DOES THE MONEY COME FROM?

The overall budget of £366.698m is made up of 60% funding from the national Government grant and 40% is from the policing element of your council tax.

In consultation with the Chief Constable, the PCC determines allocation of funding to policing. Within A DAY IN THE LIFE OF HAMPSHIRE CONSTABULARY policing it is up to the Chief Constable to determine how resources are allocated and which incidents Figures run from 01/01/2019 – 31/12/2019 are investigated based on demand and risk.

ADDITIONAL FUNDING

In addition to the police grant and council tax the Commissioner receives a number of specific grants, for example:

Hampshire is one of 18 Police and Crime Commissioners to be allocated funding to set up and run a Violence Reduction Unit (VRU). The VRU is responsible for identifying the drivers of serious violence locally and developing a coordinated response to tackle them. Hampshire’s allocation for 2020/21 is £880,000 Each year the Ministry of Justice provides funding that is ring-fenced for projects and services that support victims; currently this funding contributes towards the Restorative Justice Service, Alongside the budget I allocate to policing, I the Victim Care Service and services that provide specialist domestic and sexual abuse support also invest in over 70 local community projects and grants to community organisations annually that tackle the root causes of crime, including youth diversion initiatives, reducing The Government is providing forces with additional funding for the recruitment of 20,000 new reoffending, and supporting victims and the officers nationally. Hampshire received funding for 156 new officers in the first wave of this vulnerable. These not only help to improve life programme and will be provided with national funding for a further 156 police officers in 2021/22 opportunities but they additionally help to prevent and 2022/23. crime and reduce demand on frontline policing.