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A significant investment in police reform to ensure better pay and...
A significant investment in police reform to ensure better pay and

conditions for police officers, more bobbies on the beat, state of

the art communications and funding for community support officers and

civilians, has been confirmed by home secretary David Blunkett.

Policing in England will receive a 6.2% increase in funding for the

year 2003/4 and at least a 4 per cent increase in 2004/5 and in

2005/6, maintaining the investment for forces to provide a modern,

effective and efficient service.

The rise in funding over the next 3-years will enable the police

service in England to raise standards of service, develop specialist

expertise and make the most of modern equipment to help the police do

their job more effectively.

The cash boost will:

- help maintain the current record numbers of police officers and

allow English police forces to increase police officer strength to

contribute to the 132,500 police officers that should be in place

in 2004;

- enable officers to benefit from a pay system that rewards the most

experienced officers who can demonstrate a high level of

professional competence and those in the most difficult and

demanding posts;

- allow English forces to recruit further community support officers

in 2003/4, and their share of the 4,000 the government believes

should be in place by 2005. CSOs will act as the eyes and ears of

the police helping reduce bureaucracy and free up police officers

for operational duties;

- give continued support for police operations against street crime;

- provide money for the new Airwave digital radio system to improve

the safety of officers on the beat with secure transmission putting

an end to criminals listening in to police radios, increased radio

coverage and better clarity of reception.

- enable data on those in custody to be collated by the police and

used across the criminal justice system, as part of the roll-out of

the custody and case preparation system.

- provide capital grant and supplementary credit approvals of

approximately£180m in 2003/04. Within this allocation funds

will be set aside for a second Premises Improvement Fund to which

forces may bid for funds specifically to improve the working

conditions of police officers.

The increase in funding underpins the first National Policing Plan

which is a central plank of police reform, pulling together national

policing priorities in one place for the first time and setting

national objectives to measure how police forces are performing.

This police settlement builds on substantial investment over the

past three years with funding for policing in England and Wales

increasing by nearly 25 per cent in four years or£1.9bn from

2000/1 to 2003/4.

The total provision for policing in England in 2003/4 is£9,243m. This is a cash rise of£543m or 6.2% over the provision for 2002/3.

All forces will receive a minimum unhypothecated grant of 3% and the

average unhypothecated police settlement will be 4.3% with some

forces getting up to 4.9%.

Home secretary David Blunkett said:

'We promised reward for reform and today we delivered on that pledge.

This spending package builds on the substantial cash investment we

are providing for policing. Funding for policing in England and Wales

has increased by nearly 25 per cent in four years, rising by nearly

£1.9bn from 2000/1 to 2003/4.

'The 6.2% rise in funding for 2003/4 means officers will receive more

in their basic pay, better communications and IT systems, more

community support officers and the cash to drive forward the

recruitment of our target of 132,500 officers in 2004 in England and


'The police grant is not the only money government spends on fighting

crime, police authorities also receive additional cash for capital

and specific initiatives; such as the Crime Fighting Fund

specifically for police recruitment, Rural Policing and Airwave.

'This year's funding increase builds on last year's 6.1% increase and

the 10.1% boost the police service in England and Wales received in

2000/01, providing a significant cash injection into the police


'We are providing not only the tools, but the resources for the police

to bring about the reform necessary to provide an efficient and

effective police service.'

In addition to general grant police authorities will receive

additional funding through several specific grants for particular

schemes. They demonstrate the wider range of financial support police

authorities may include in their annual budget provisions:

- Crime Fighting Fund:£252m to cover the costs of Crime

Fighting Fund recruits and the costs of additional CFF officers for

the three years 2003/04 to 2005/06. Police officers recruited

between April 2000 and March 2003 through the CFF will continue to

be funded 100%. Officers recruited in 2003/04 and future years will

be funded at 75%.

- Police Reform: Police Negotiating Board (PNB) : The pay and

conditions package agreed by PNB is fully provided for in the

settlement. The package introduces new elements into police pay

such as payments for the most experienced officers who can

demonstrate a high level of professional competence and extra

rewards for officers in the most difficult and demanding posts. A

separate special grant is available to underpin the PNB proposals

for special priority payments.

- Criminal Justice System IT: funding is being provided for the case

and custody project of the Criminal Justice IT system to enable

data on those in custody to be collated by the police and used

across the Criminal Justice System.

- Street Crime Initiative:£25m of additional funding is

being made available to support continued police operations against

street crime. Of this£18.7m will be allocated between the ten

street crime forces (Avon & Somerset, Greater Manchester,

Lancashire, Merseyside, Metropolitan Police Service, Nottingham,

South Yorkshire, Thames Valley, West Midlands andWest Yorkshire),

with some£6.3m held in reserve.

- Community Support Officers: funding will be available to support

the costs of Community Support Officers who will free up police

officer time, will play a crucial role in providing reassurance and

who will have some powers to deal with low level crime and

anti-social behaviour. The provision will fund in full CSOs

recruited in 2002/03, and at 50% for those recruited in 2003/04.

- Basic Command Unit (BCU) funds:£50m for BCU's,which are at the

forefront of local policing. Grants will be targeted towards forces

with BCU's in high crime areas to help reduce crime in partnership

with Crime and Disorder Reduction Partnerships.

- Rural Policing Fund:£30m is again provided for the

particular needs of forces with the most widespread populations.

There has been no change to the method of allocation. Data changes

have been applied as usual which accounts for the year on year

variations in allocations for authorities.

- Airwave:£99m available for the start-up operational costs

of authorities taking Airwave in 2003/04 and to enable those forces

who have the Airwave service to purchase additional menu services.

The Home Office to meet the core charges for the service provider.

- London and South East Payments and free rail travel:£53m in

total is provided for funding of free train travel for all

Metropolitan Police and City of London officers; funding of 75% of

the cost of London allowance paid to officers in the Metropolitan

and City of London forces who were recruited on or after 1

September 1994 and who are not in receipt of housing emoluments;

and an allowance for other forces in the South East.

- Counter terrorism: up to£59m to ensure the police service

will continue to be effectively resourced in order to meet its

counter terrorist commitments. For that purpose the overall

additional counter terrorist funding for the police service

announced in this year's budget and which complements existing

funding streams for security and counter terrorism will be


- Crime Reduction: Police forces share in and benefit from various

wider programmes for crime reduction. For example, since April

1999, under the Crime Reduction Programme, over£390m has

been invested in the running and evaluation of over 1,450

crime-fighting projects. These will provide an evidence base on

what methods, employed by the police and their crime and disorder

partners, are the most effective in tackling crime and its causes.

Allocation of Police Authority Capital means a provision of capital

grant and supplementary credit approvals for English police forces of

approximately£180m in 2003/04. Within this allocation funds

will be set aside for a second Premises Improvement Fund to which

forces may bid for funds specifically to improve the working

conditions of police officers.

Funding for 2003/4 is based on a revised police funding formula.


1. Around half of all police funding is provided by the Home Office

in the Police Grant.

2. The remainder is provided through the local government finance

system - a combination of revenue support grant, non-domestic rates

and council tax. In all, central government provides approximately

80% with local authority council tax meeting the remainder.

This system is based on the government's assessment of the funding

needed to provide a common standard of service - the Standard

Spending Assessment (SSA).

3. The police funding formula that distributes both Home Office

Police Grant and Revenue Support Grant to police authorities has been

reviewed as part of an overall review of local authority funding


4. Consultation on the proposals was wide ranging and all responses

received have been taken into consideration. The home secretary has

decided that two changes will be made to the police funding formula.

These changes were widely supported by the policing community during

the consultation process and have been taken account of in this

year's funding announcement.

5. Activity analysis data has been updated to make the formula more

responsive to current policing needs. Up to this year, the pattern of

resources across policing functions has been calculated using data

collected in 1995. It is important to bring it up to date to reflect

contemporary pressures on the police service.

6. The home secretary has agreed to reduction of the 'establishment

component' in the formula from 10% to zero. This change finally

removes the old damping mechanism that cushioned police authorities

from the full impact of change when the present formula was

introduced in 1995. The component had been reduced from 50% to 10%

before the moratorium on formula change was introduced in 1999. Other

damping mechanisms in the form of floors and ceilings on grant

change, are now in place. Next year the floor level of grant for

English forces will be 3% Every force will receive an increase in

basic grant of at least 3%.

7. The home secretary has announced that the rural policing fund will

remain unchanged as a separate£30m fund.

8. Further changes to funding formulae that affect all local

authorities, including police authorities are announced today

(through the ODPM). These will change

the area cost adjustment and resource equalisation used. Both impact

on the distribution of police funding.

9. A population-based formula is used to assess police authorities'

relative requirements for funding. The formula uses the

categorisation of police workload into key areas (such as responding

to calls for assistance and investigating crimes) developed by the

Association of Chief Police Officers (ACPO), with the addition of a

separate patrol component. It also includes a small 'rural sparsity'

element in recognition of the special needs of rural forces. Separate

models are then used to predict how much of each type of work each

police force has to do.

10. The available resources are then distributed according to the

relative predicted workload of each force. A further model developed

by the government's Actuary's Department is used to allocate funding

for police pensions.

11. Within the overall budget determined by the police authority, the

allocation of resources is a matter for each chief constable.

12. The Metropolitan Police Service will receive a special payment of

£202m in recognition of its distinct national and capital city

functions. This is above that given through the principal grant

formula. Up to£40m is being made available to support the capital

costs of developing the Metropolitan Police Authority's Command

Control and Communications Information (C3i) System.

13. The settlement continues to take account of the home secretary's

commitment to improve efficiency and effectiveness in the police

service. Future Police Grant allocations will be considered in the

light of police authorities meeting the 2% efficiency improvements.

The PNB agreement includes a service-wide target to secure a 15%

reduction in overtime expenditure over the three years from 2003/04.

Implementation of activity based costing in forces will be another

factor considered when assessing the efficiency target. Future grant

allocations will be considered in the light of police authorities

improving efficiency by 2%, re-prioritising use of resources in

favour of front-line policing.

14. The figures were announced in a ministerial statement by John Denham, minister of state for the police. Interested parties

have until mid January 2003 to submit comments to the government on

the proposed settlement.

15. The statement and draft grant report would cover England and

Wales normally. We have needed to look again at the Welsh figures

before we can consult in full confidence. Welsh figures should be

available for consultation shortly.

The tables which accompany this announcement are available here.

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