Council Tax Increase Expected to Fund Up to £330 Million for Police Services

Police forces across England and Wales are projected to receive up to £17.4 billion in funding for the 2025-26 financial year, marking an increase of £986.9 million, or 3.5%, compared to the preceding year. Nevertheless, approximately one-third of this increase is contingent upon police and crime commissioners (PCCs) implementing a £14 rise in council tax for an average band D property. Home Office Minister Diana Johnson stated in a written declaration that the provisional financial arrangement “strikes the balance between protecting taxpayers and providing funding for police forces”. In contrast, Shadow Home Secretary Chris Philp asserted that the government’s increase in National Insurance for employers had resulted in police forces “facing cuts of 3,500 front-line police officers”. Liberal Democrats’ home affairs spokesperson Lisa Smart commented that the government ought to be “properly funding the officers our communities need – not passing the buck to local police chiefs to put up people’s council tax instead”. Andy Cooke, the chief inspector of constabulary, characterized the existing police funding formula as “an anachronism”. He elaborated that “What it results in, because there is such a reliance on council tax now, (is) the richer police forces get richer, the poorer police forces get poorer.” Cooke further explained, “So those who can’t raise as much on council tax, which is usually but not in totality the inner city areas – Cleveland, Merseyside, Manchester, West Midlands – don’t have that housing stock that pays big money.” He also noted that annual funding settlements complicate long-term planning for police forces. Minister Diana Johnson provided additional details on the funding proposals, indicating that £230.3 million of the supplementary funding for forces is designated to cover recent pay increments and to compensate police for elevated employer taxes, as previously announced in the Budget. In October, Chancellor Rachel Reeves had declared that, effective next April, employers would be required to pay National Insurance at 15% on salaries exceeding £5,000, a change from the current rate of 13.8% on salaries above £9,100. The police funding package additionally allocates £100 million to commence the recruitment of 13,000 extra neighbourhood police officers, a commitment made by the Labour government. The total sum allocated to policing, encompassing funds for local forces, will reach £19.5 billion, representing a 3% real terms increase over the previous year. Johnson also mentioned her intention to modify regulations to increase firearms licensing fees, contingent on when “parliamentary time allows”. Currently, individuals are required to pay a fee to obtain a firearms certificate to possess a firearm or shotgun. Out of the total additional £986.9 million designated for local police forces, £657.1 million originates from an increase in government grants. The remaining £329.8 million is anticipated to be generated through council tax increases. Police and crime commissioners (PCCs) possess the authority to raise council tax by up to £14 for band D properties, with an equivalent proportional amount for other bands, without necessitating a local referendum. PCCs are elected every four years and oversee 39 regions across England and Wales. Earlier in the current year, the then-Conservative government boosted funding for police forces for 2024-25 by £922.2 million. This amount incorporated council tax increases that ministers expected PCCs to implement. During that period, PCCs were permitted to raise up to £13 from council tax on band D properties without triggering a referendum. Last week, police chiefs informed the BBC that a reduction in neighbourhood police officer numbers could occur unless the government absorbed the costs of pay rises and increased employer taxes. While the Home Office had pledged to cover these expenses, some police forces have expressed doubts about whether this funding support will persist in future years. Sir Mark Rowley, head of the Metropolitan Police, has issued a warning that 2,300 officers and 400 other personnel might need to be dismissed in 2025 due to a £450 million deficit in its budget. Paul Gibson, the chief constable in Lincolnshire, highlighted that a 13% population growth in the area over the past two decades has not been matched by a corresponding increase in funding. He indicated a requirement for an additional £57 million over the next three and a half years to sustain current operations.