Agenda item

The Panel considered a report of the PCC which provided an update on the process for setting the Policing precept for 2025/26 and sought the Panel’s support for an increase of £14 per household per year for properties in Band D, and commensurate increases for other properties (for copy see file of minutes).

The PCC noted the Government’s settlement had included an increase in Police Grant of 5.2 percent to £125.1 million.  She explained that while an increase was welcomed, the increase was not sufficient to cover increases in terms of pay awards and NI increases, leaving an approximate £375 million shortfall and highlighted there was no longer a capital grant.

The PCC reminded the Panel that there was a low council tax base in County Durham and Darlington and reiterated that the funding received was less than the national average.

The Chief Financial Officer, OPCC, Rachel Allsop gave a presentation, giving a breakdown of the PCC’s proposed precept, highlighting Police funding was from two main sources, Government grant representing 71 percent and precept around 29 percent.  She reiterated that Government grant had not covered the cost of pay awards and NI increases.  She highlighted challenges included fair funding and Officer numbers and referred the Panel to information relating to other comparable Forces.  She highlighted the areas where the precept had helped deliver in 2024/25 including: additional police officers; delivery of a new state of the art Custody Hub; delivery of new call handling telephone system and additional; resource into the control room; delivery of a Victim’s portal; additional PCSOs into neighbourhoods; and an increase in Special Constables. 

The Chief Constable noted the opening of the new Investigative Hub, and highlighted the improved efficiency in transferring of prisoners, helping to get Officers back on the streets.  She noted the improvements to contact handling, with improvements to 999 and 111 call response times, as well as innovations in technology helping to target resources effectively.  She reiterated she was National Lead in relation to Neighbourhood Policing and her commitment to neighbourhood policing.  She reminded the Panel that Durham was in the top five Forces in terms of value for money in respect of back office.  The Chief Constable noted that the 2025/26 precept would help support: maintaining police officer numbers, increasing visibility on the streets, tackling drink and drug related crime and anti-social behaviour including off road bikes; PCSO numbers maintained in neighbourhoods; safer roads to reduce the number of people killed and seriously injured on our roads; further investment in information technology to move towards a more intelligence led, data driven, problem solving approach; and investment into the estate and fleet.

The Chief Finance Officer, OPCC noted the 2025/26 revenue budget was balanced, with use of reserves, and that there would be deficits in future years.  She reiterated there was no capital grant from Government and 2025/26 capital requirements included: ICT £3 million; Fleet £1.4 million; and Estates £2 million.  The Chief Constable noted she would do as much as possible to maintain Officer and PCSO numbers.

The Clerk to the Panel and Monitoring Officer, Helen Bradley reminded the Panel of their role in terms of the budget proposals.  The Clerk explained that the Panel had been notified of the PCC’s proposed budget and it was a requirement for the Panel to review and respond to the proposals and publish that response. 

She explained that the PCC must have regard to the report made by the Panel including any recommendations.  The Clerk explained the Panel’s right to veto the precept if it considered the precept to be too high or too low.  She explained that to pass, the veto required two thirds of the Panel membership to vote in favour, which would be eight members.  She added that if the Panel decided to veto the budget, the precept would not be issued and the PCC would need to be a respond with a revised budget proposal, with changes based upon whether the Panel felt the budget was too high or too low.  She concluded by noting that the Panel would then need to review any revised budget by 22 February, although at that point while the Panel could make further recommendations it could not veto those amended budget proposals a second time.

Councillor K Robson noted that all could agree as regards the financial constraints of all public services, and noted the low council tax base, with a large number of Band A properties in County Durham and Darlington.  He noted he would therefore support the budget, adding all would want funding to have policing at 2010 levels.

Councillor J Garner asked as regards debt, noting the revenue and capital budgets as set out.  The Chief Finance Officer, OPCC explained Durham had a very low level of debt, with most capital elements being funded via reserves and capital receipts.  Councillor J Garner noted that Local Authorities usually expected three-year settlements to give some ability to then plan for spending.  The Chief Constable noted as regards a spending review in 2025, and that having longer term settlements was an issue that had been highlighted many times.  The PCC noted she was Joint Finance Lead for the Association of PCCs and was feeding into the spending review.  She reiterated the lack of fair funding, highlighting the differences between Forces nationally, and noted that the precept proposed was the maximum without triggering the need for a referendum.

Councillor J Garner asked as regards the impact upon PCSO numbers.  The Chief Constable noted she was not sure, however, in terms of Officer numbers that both herself and the PCC had both wished to get numbers back to pre-austerity levels.

Councillor D Boyes noted the low tax base in County Durham and explained that he had hoped with a change in Government there would have been an improvement in terms of policing grant.  He would therefore propose the Panel accept the proposed precept, representing a £14 per household per year for properties in Band D, noting it was in fact shame in could not be increased more.

The PCC noted that page 51 of her Plan had highlighted the differences in Officer numbers across a number of Forces, noting the disparity between the ‘richer’ and ‘poorer’ Forces.

Councillor L Hovvels noted that it was very clear from the Chief Constable as regards why there was a need for the precept increase, adding she felt the consultation on the precept had been very good.  She agreed with Councillor D Boyes that all Forces were in a difficult position and it would not be very good to not agree the proposed precept.

R Rodiss asked as reserves, deficit on the pay award and as regards any loses in terms of staff.  The Chief Finance Officer, OPCC reiterated as regards the use of reserves, and noted the pay award being covered for 2024/25, with a £3 million deficit for 2025/26.  The Chief Constable noted reductions in staff would not be through redundancy, rather through natural wastage.  R Rodiss asked as regards the hit to Durham Constabulary as a result of the NI increases.  The Chief Constable noted she was grateful that the majority of the increase had been provided for this year, however, she hoped that the spending review in July would look at the core budget and take into account demands on Forces.

Councillor K Robson noted the 2010 Officer numbers across Forces and added that recent Government projections were for an increase in population of 10 percent in the next 10 years, increasing the cost in terms of policing from additional services such as translation services.  The Chief Constable noted that such increases in population were disproportionate across the country, with a low need for translation services in County Durham and Darlington, therefore not representing a strain in that respect at this stage.

Councillor D Nicholls noted that Councillors were very aware of the cost-of-living crisis experienced by our residents and noted the number of responses supporting the proposed increase in precept, with many prepare to pay more, was very telling and important to be taken into account.  The PCC noted that there had been a number of engagement events held, similar to Council budget consultations.  She added when residents were able to the pennies per week increase, and a breakdown of how funding was being utilised, they were happy to support the proposals.  She reiterated that she would wish to see more from the Government grant and for less reliance on council tax increases.  She added that she did not feel funding was fair, nor was the cap imposed, highlighting devolved powers in that regard in Scotland and Wales.

The Chair noted that no one wanted to see redundancies within the Police and equally no one want for council tax increases, however, we would want to maintain quality policing for County Durham and Darlington.  He asked that the Panel be kept informed as regards staffing at future meetings.

Councillor D Boyes moved that the Panel support the proposed budget, he was seconded by Councillor L Hovvels and upon a vote being taken it was;

Resolved:

(i)           That the current position of the consultation and the outcome be noted;

(ii)          That the proposal for a £14 precept increase at Band D be approved;

(iii)         That there be no veto to the proposal; and,

(iv)        That a report be produced.