Archived decisions

HAMPSHIRE COUNTY COUNCIL MEETING

28 NOVEMBER, 2002

REPORT OF THE

HAMPSHIRE POLICE AUTHORITY

GOVERNMENT'S FORMULA GRANT DISTRIBUTION PROPOSALS

1. The Authority has been considering the likely effects of the Government's new proposals for formula grant as part of its reform of revenue grant distribution.

2. Early indications are not good, with Shire Police Authorities losing grant support, with the Metropolitan Police and Metropolitan Authorities generally gaining from any redistribution of grant.

3. The worst case option would see the Authority losing revenue grant of up to £10.4m or 4.8% from 1 April, 2003. The very best option would result in a small gain of 0.3%. A loss of grant of £10.4m could result in a council tax rise of about 22% although there are likely to be transitional arrangements to mitigate the grant loss over a number of years.

4. The Authority has been endeavouring to raise awareness of the potential impact on next year's budget as widely as possible including joining the County Council to meet with Hampshire Members of Parliament in early October and meeting with The Rt. Hon. John Denham MP at the end of that month. In addition, it has joined with neighbouring affected authorities in the South East region to voice serious concerns about the potential loss of grant and the significant rise in council tax level needed to maintain a standstill level of policing as currently provided.

5. The Authority believes that the potential council tax increase necessary to maintain the existing level of police service across Hampshire and the Isle of Wight, brought about by changed formula funding arrangements, will not be understood nor accepted by the general public. The Authority feels that a reduction in funding will inevitably jeopardise the important work that is beginning to be put into place to combat anti-social and neighbourhood nuisance crimes.

6. Furthermore, it is concerned that such a result will damage relationships between the Constabulary and the Community it serves.

4IR101102