Council tax increase by up to £330m for police forces

Police forces in England and Wales could receive up to £17.4 billion in funding in 2025–26, an increase of £986.9 million or 3.5% on the previous year.

However, almost a third of the increase will depend on police and crime commissioners adding £14 to the council tax of the average Band D property.

Home Office Minister Diana Johnson said the provisional agreement “strikes a balance between protecting taxpayers and providing funding for police forces”. In a written statement.

But Lisa Smart, the Liberal Democrats’ home affairs spokeswoman, said the government should “properly fund the officers our communities need – not hand responsibility for charging people’s council tax to local police chiefs”.

Chief Inspector of Constabulary Andy Cook said the current police funding formula was an “anachronism”.

“What the result of this is, because there is now so much reliance on council tax, (is) rich police forces get richer, poor police forces get poorer.

“So people who can’t raise as much on council tax, which is generally not the case overall in inner city areas – Cleveland, Merseyside, Manchester, the West Midlands – they don’t have the housing stock that can command large sums of money. Pays.”

He said the one-year funding settlement made it difficult for police forces to plan ahead.

Giving more details on the funding plans, the minister said £230.3m of additional funding for forces would cover recent pay rises and compensate police for the higher employer taxes announced in the Budget.

In October, Chancellor Rachel Reeves said that from next April, employers will have to pay 15% National Insurance on salaries above £5,000, instead of the current 13.8% on salaries above £9,100.

The police funding deal also includes £100 million to begin recruiting 13,000 additional neighborhood police, which the Labor government had promised.

The total amount going to policing – which also includes funding for local forces – will be £19.5 billion, a real increase of 3% on the previous year.

Johnson also said she would change the rules to increase firearms licensing fees when “parliamentary time permits”. Currently, to possess a firearm or firearm, you must pay a fee to obtain a Firearms Certificate.

Of the additional £986.9 million given to local police forces, £657.1 million is made up of increased government funding.

The remaining £329.8 million is expected to be raised by council tax increases.

Police and Crime Commissioners (PCCs) have the power to increase council tax by up to £14 for Band D properties and the same proportionate amount for other bands, without triggering a local referendum.

PCCs are elected every four years and represent 39 areas in England and Wales.

Earlier this year, the then Conservative government increased funding for police forces by £922.2m for 2024-25, including the council tax increase expected by ministers to be implemented by PCCs.

Over this time period, PCCs can raise up to £13 from council tax on Band D properties without triggering a referendum.

last week, Police chiefs told the BBC the number of neighborhood policing officers could be cut unless the government covers the cost of pay rises and higher employer taxes.,

The Home Office promised to cover the costs; However some police forces have questioned whether the funding increases will continue in future years.

Metropolitan Police chief Sir Mark Rowley has warned that a £450m budget shortfall could lead to the departure of 2,300 officers and 400 other staff in 2025.

Lincolnshire Chief Constable Paul Gibson said the 13% increase in the area’s population over the past 20 years has not been matched by a similar increase in funding.

He said they would need an additional £57m over the next three and a half years to maintain current operations.