Wednesday 8th February 2012

(12 years, 3 months ago)

Commons Chamber
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Lord Herbert of South Downs Portrait Nick Herbert
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I can reassure the right hon. Gentleman that that is effectively what we are doing. We are passing new regulations—we have just introduced the latest raft—which require forces to buy certain goods and items of equipment together. The savings that they are making are accumulating, and, as I have said, will eventually reach £200 million a year. I shall be happy to provide the Home Affairs Committee with an update on that, because I think it is a good story which shows that forces can make savings by working more effectively together. I note that the Opposition have conceded that savings can be made in that area. Those savings, too, are in addition to the savings identified by HMIC.

The third way in which the police can find savings beyond those originally identified by HMIC is through transformation of the way forces work. HMIC said that savings of £1 billion a year could be found if the high-spending forces simply reduced their costs in a range of functions to the average of that spent by a similar force. However, if all forces achieved the efficiency levels of the best forces nationally, that would save a further £350 million a year. Why should not all forces be as efficient as the best?

Outsourcing can also play a major role in effecting this transformation. The Government have been supporting Surrey and West Midlands forces and authorities in a joint programme exploring the value of business partnering. Broad areas of service can be covered, including a range of activities in, or supporting, front-line policing such as dealing with incidents, supporting victims, protecting individuals at risk and providing specialist services. This is not about traditional outsourcing; rather, it is about building a new strategic relationship between forces and the private sector. By harnessing private-sector innovation, specialist skills and economies of scale, forces can transform the way they deliver services and improve outcomes for the public. Every police authority in England and Wales bar one could join in, should they choose to do so. Under its own steam, Lincolnshire is about to sign a £200 million contract over 10 years with G4S. That contract for support services is available to the other forces named on the procurement notice.

These are highly significant developments that open up the possibility of new savings across policing. The published potential value of the Surrey and West Midlands contract is between £300 million and £3.5 billion. I look forward to hearing whether the Opposition believe that such business partnering is the right way forward for policing.

Andrew Gwynne Portrait Andrew Gwynne (Denton and Reddish) (Lab)
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May I take the Minister back to my right hon. Friend the shadow Home Secretary’s point that HMIC has calculated that police numbers will fall by 16,000? Has the Home Office estimated how many of the posts that will be lost will be from the back office, because we know that 4,000 jobs have been lost from the front line in the first year of the Minister’s cuts alone?

Lord Herbert of South Downs Portrait Nick Herbert
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The HMIC report said there had been a 2% reduction in the number of front-line officers. Judging by the hon. Gentleman’s face, he has not read that report, and I suggest he does so.

Taken together, these reforms will result in far in excess of a 12% real-terms reduction in central Government funding. They will save over £2 billion a year. In fact, they will save more than the reduction in central Government grant of 20% in real terms. Let me repeat the following, therefore: the savings identified by HMIC are over £1 billion; the savings from pay are £0.5 billion; the savings from collective procurement and IT are £380 million; and the savings from bringing every force’s performance up to the level of the best are £350 million. The total savings, therefore, amount to over £2.3 billion, exceeding the reductions in police funding while protecting front-line services.