PCC urges Prime Minister to urgently review police funding arrangements

Police and Crime Commissioner Rupert Matthews has taken his fight for a fairer funding deal directly to Prime Minister Sir Keir Starmer, calling for an urgent overhaul of the way forces are financed to better match demand.

The Leicester, Leicestershire and Rutland PCC has relentlessly lobbied ministers to revise the current funding formula to provide under-resourced forces like Leicestershire Police with an equitable share of central funding to protect their communities from threat.

Mr. Matthews recently met Policing Minister Dame Diana Johnson to explain the challenges posed by this year’s settlement which he said had not fully accounted for rising inflation, National Insurance increases, pay awards and new legislation including the ban on XL Bully dogs.

He put forward the need for a multi-year settlement and stressed the importance of recognising the value of the whole workforce - including police staff as well as officers - when allocating extra neighbourhood policing funding.

Mr Matthews has now written to Prime Minister Sir Keir Starmer in a further call for action against the “systemic issues” facing police forces across the county

Although he said he welcomed the 5.7% increase in the government grant for 2025-26, he said it was still not enough and exposed a £9.3m funding hole this year that had been closed to £1m through the support of local taxpayers and an ongoing efficiency drive. This, he said, was on top of the £8.6m deficit closed during 2024-25.

In his letter, Mr. Matthews said: “This ever-growing gap between the grant provided by the Government and the cost of the service we need to deliver for the people of Leicester, Leicestershire and Rutland, I’m sure you will agree, is not sustainable.

“Your Government also stated that ‘all costs arising from changes to National Insurance Contributions’ would be included as part of the funding for police. Here in Leicestershire, this is not the case, where in fact the funding from government has fallen £0.3m short of the actual cost to Leicestershire Police. I hope that the Government has taken note of instances such as this and intend on repaying the full cost to Leicestershire Police in due course?”

Mr Mathews spoke of his gratitude to local people for being willing to pay the maximum £14 increase in the policing precept of their Council Tax bill this year – and the previous five years.

But he added: “I should not have to rely on the goodwill of the hard-working, law-abiding taxpayers of Leicester, Leicestershire and Rutland to fill a funding gap that is created by an archaic funding formula. The Government should also not take that generosity for granted.”

The PCC praised the Government’s ‘Plan for Change’ mission, including its commitment to deliver 13,000 extra neighbourhood police officers on the streets of England and Wales and a named, contactable officer in every community.

But he called on the Prime Minister to conduct a ‘root and stem review’ of the police funding formula this year to ensure that forces are fairly funded for the demand in their area from 2026-27 onwards – and are fully reimbursed for National Insurance contributions as previously promised.

“The decisions PCCs, PFCCs and Chief Constables across England and Wales have had to make to settle the books this year have been some of the hardest we have seen in local government for a generation,” he said.

“I urge your Ministers and Ministerial offices to work together and deliver what is clearly a beneficial move for all parties involved and will help to deliver your Governments Safer Streets mission.”

In a further rallying call for support, Mr. Matthews wrote a follow up letter to Dame Diana Johnson to welcome news that her office is looking at a multi-year spending review to enable forces to improve financial planning. However, he noted with disappointment that this would be dependent on a decision of the Treasury.

In highlighting the vital role police staff play in the delivery of effective neighbourhood policing, Mr. Matthews asked the Minister to consider the need for a ‘mixed workforce of officers, PCSOs and Staff’ when setting the rules for the Neighbourhood Policing Grant and any further Government-driven initiatives.

And he also reiterated his suggestion of a review of the way national organisations such as National Police Chiefs Council and the College of Policing are funded to look to financing these nationally going forward, rather than allow the burden to fall on the local taxpayer.

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Posted on Wednesday 2nd April 2025