PCC urges government to ensure forces are not ‘unfairly short-changed’ by national insurance rise

Lisa Townsend has written to Home Secretary Yvette Cooper outlining her concerns over how policing will meet the costs of the increase in national insurance contributions announced as part of last month’s Budget amid fears Surrey Police could be left with a “hefty bill to pay”.

The Home Secretary told this week’s annual conference of the National Police Chiefs’ Council and Association of Police and Crime Commissioners that the Treasury will ensure police forces will not lose out as a result of the changes.

While she welcomed that announcement, the PCC fears that if the current “flawed” police funding formula is used to allocate additional money to cover the rise, it could leave Surrey Police with a significant shortfall.

The letter states that 80 per cent of the Surrey Police budget goes on its workforce. Calculations predict the proposed increase in national insurance would add approximately £4.5 million to the force’s costs, which is the equivalent of around 100 police officers.

Earlier this year, the additional grant given to fund the police pay increase over 2.5 per cent was distributed by the Home Office using formula shares. This left Surrey Police with a shortfall of around £1 million, compared with if had it been distributed in line with total budget or headcount, which had to be found through further efficiencies and service reductions, said Ms Townsend.

She fears the same situation will happen again if the additional money to cover the national insurance rise is distributed using the funding formula.

Ms Townsend said Surrey Police has already delivered more £80 million of savings over the past ten years and will need to find a further £23 million of savings over the next four years to just maintain services as they are.

She said: “Surrey Police is making great strides in fighting crime and improving the policing service it provides to our residents.

“I do not want to see that progress hampered by extra challenges to a budget which is already under considerable strain.

“That is why I am urging the Government to ensure the force and the Surrey public are not left unfairly short-changed by the employer’s national insurance rise announced in the budget.

“I will do everything in my power to ensure that frontline policing and the service our residents receive in our local communities is protected. But the ability of the chief constable and I to balance the budget is becoming increasingly difficult and this potential extra burden will only add to that pressure.”

Ms Townsend added: “Later this winter, I will be setting the budget for policing for the next year including the level of council tax contributions the Surrey public pay for policing, which is already the highest in the country.

“It cannot be fair that they are being asked to pay for an national insurance increase that has been imposed on us and uses a system that unfairly penalises individual forces.

“Therefore, I am calling on the Home Office to use a different methodology to divide up the national insurance funding grant, such as total wages and headcount, which more closely reflects the actual costs incurred.

“Otherwise, Surrey Police could be left footing a substantial bill to cover the shortfall, which will inevitably impact the service it can provide to our residents.”