Residents to potentially face a council tax increase to fund police force

Derbyshire residents could face a maximum council tax increase to fund a “stark” £8.5 million police force budget gap, which has skyrocketed due to recent Government decisions.

Rachael Swann, Derbyshire’s police chief constable, in a letter to Nicolle Ndiweni-Roberts, Derbyshire’s police and crime commissioner, has laid out the “substantial” financial pressures facing the force.

Chief constable Swann has asked Ms Ndiweni-Roberts to hike the force’s council tax precept by the maximum of £14 for a Band D property – five per cent.

This would take the police’s overall share of a Band D council tax bill from £279.60 to £293.60.

The vast majority of your annual council tax bill is set and goes towards Derbyshire County Council or Derby City Council – depending on if you live in the county or the city.

Remaining parts of your overall bill go to district or borough councils, the fire service, and in some areas town and parish councils.

Last year, the force had said it had a budget gap of £666,000 and that this was set to increase to £5.4 million by 2028.

Chief constable Swann says the force had predicted a budget gap of £1.5 million for the coming year – more than double the previous year’s gap.

However, she writes that the new Labour Government’s Autumn budget increased this to a £5.4 million budget gap and the Home Office’s grant settlement increased it to £8.5 million.

She details that the settlement from Government, which represents one of only two major ways the police can bring in cash to fund itself, does not cover the current cost – even without inflation factored in.

As a result, the force has effectively not received any increase in funding to cover its services and has been left with £3.4 million less than it needs, alongside existing pressures – leaving the overall £8.5 million budget gap.

Chief constable Swann makes it clear that even with a maximum council tax precept increase the force cannot lever enough money to plug this gap, and details that asking the public to cover this gap is not a palatable solution.

The letter will be discussed at a police and crime panel meeting next week. She writes: “The proportion of grant to council tax has changed significantly during the past seven years, resulting in a greater proportion of funding through council tax. 

“40 per cent of our budget is funded through council tax compared to 30 per cent in 2014/15. 

“Without any real terms increase in grant funding, the outcome of this constrained funding mechanism will almost certainly result in the force presenting a strong case to you as the police and crime commissioner for greater than inflationary council tax increases, with implications for the ongoing cost-of-living crisis for many households. 

“I fully recognise that the communities of Derbyshire are already feeling the incredible financial impact because of the cost-of-living crisis, but my primary consideration must be how I can best deliver policing within the county, utilising the options provided by a precept increase.

“I do not expect the people of Derbyshire to solely fund the improvements required. The force will continue, as it has over the past few years, to generate efficiencies to contribute towards the funding needed. 

“However, the majority of the increase in costs are from issues outside of our control and are beyond the level of Home Office Grant given to Derbyshire Constabulary. 

“It therefore falls to force efficiencies and the precept to both bridge this gap and support our continuous improvement.

“Although annual budget savings of over £4m have already been removed from the budget requirement, it is acknowledged that even with a maximum £14 council tax increase, further significant budget reductions and savings are necessary to enable a balanced budget to be set.

“Policing can no longer rely upon precept increases alone to bridge the funding gap, and with much greater unexpected cost pressures, there is a risk that the funding gap will worsen considerably over the next spending review period.

“The financial pressures are stark. This is combined with a policing context of ever-increasing demand and complexity. The force continues to work hard to improve our services to the public and improve trust and confidence in us, as well as contribute to meeting our own financial pressures. I am acutely aware of the financial challenges to our communities in the face of the cost-of-living crisis when recommending the maximum precept increase available.

“Even with this maximum precept, difficult decisions will need to be made and some aspects of the force reduced.

“I have no option but to make the recommendation for the full £14 precept increase to you. I make this in the full knowledge that Derbyshire Constabulary is asking you to approach the communities of Derbyshire to ask for more funding, which I know will be extremely difficult for many.”