HAMPSHIRE Police Authority has challenged John Prescott over a tax capping threat which has forced cuts to an already stretched policing budget. In a straight talking letter Mike Attenborough- Cox, vice-chairman and an independent member of Hampshire Police Authority, told Mr Prescott that members had been concerned by "the straitjacket" approach of central government which had resulted in the authority being unable to act in the best interest of the two counties (Hampshire and the Isle of Wight) it is responsible for. Hampshire Police Authority has set a five per cent increase in its part of the council tax - representing an increase of £5.40 to £113.76 for a Band D property owner. The five per cent increase was set after Nick Raynsford, the Minister of State for Local Government, had made it clear he would cap police authorities setting council tax precept rises above this figure. "The capping threat forced us to accept a budget that will not enable the current levels of policing to be delivered in Hampshire and the Isle of Wight, despite having consistently received below average budget increases in recent years," said Mr Attenborough-Cox. He pointed out that, had the authority been able to increase the precept by six per cent, the additional one per cent would have net an additional £720,000. However, if this figure had subsequently been capped, the cost to Hampshire of rebilling would have been £750,000. "We were not prepared to risk wasting tax payers' money and therefore had no alternative but to agree a precept which would result in reduced funding," he said. According to Mr Attenborough-Cox the police funding settlement from central government for 2005/06 increased nationally by 6.7 per cent or £11,833 million. However, Hampshire Police Authority only received a grant increase of 3.75 per cent which is "the floor rate": the level below which the grant cannot go below. "The floor is to be removed some time in the future which in the case of Hampshire will result in a loss of grant of £5.1million, which will have to be met either by a seven per cent increase in council tax, an equivalent reduction in the policing budget or a combination of the two," said the vice chairman who added: "To continue with the existing level of policing, the authority needed an increase of £13.4 million (5.1 per cent) just to stand still. With a grant increase of £7.2million (3.75 per cent) there is a shortfall of £6.2 million, which if met by the council tax payer would have resulted in an increase in council tax of 7.8 per cent. "Other new spending pressures (especially new IT systems, additional costs of training probationers which is no longer funded centrally and the revenue effect of the capital programme) amount to about £4million which, the authority is hoping can be met by cashable efficiency savings." Mr Attenborough-Cox said that in the five years to 2004/05 Hampshire Police Authority had made £7.9m cashable efficiency gains and £21.7 m non-cashable efficiency gains. The Constabulary had consistently received an A rating for its annual assessment each year from the Inspectorate of Constabulary for the achievement of its efficiency plans. But pressure this year to accept a budget shortfall and to make resulting savings had been government-led and was not, in his opinion, in the best interests of the community the authority was set up to serve. His message to the deputy Prime Minister was clear: "Hampshire Police Authority shares the government's wish to keep the increase in the council tax in 2005/06 as low as possible. However, this should have been considered alongside spending pressures the authority faces, the funding available centrally and the needs of the residents of Hampshire and the Isle of Wight."
