Keeping Scotland Safe and Strong - A Consultation on Reforming Police and Fire and Rescue Services in Scotland: Analysis of Consultation Responses

5. FUNDING

Question 7: What are your views on the proposed new funding and financial accountability arrangements set out?

Summary of the proposal in the consultation document:

• Consolidate all of the funding currently provided for policing through a variety of different routes into a single funding stream which the Scottish Government will provide to the SPA.

5.1 79 respondents from the following respondent categories addressed this question.

Note: Abbreviations used in the above table are described in Table 1.

5.2 24 respondents (largely from sectors other than local authorities) expressed their clear support for the proposals which some described as simplifying the current arrangements, bringing a transparency and accountable framework to funding. However, 5 respondents were clear that they disagreed with the proposals, one commenting:

"100% police funding controlled and allocated by central government is not welcome" (Pol Force).

Other respondents provided recommendations, requests for clarity on aspects of the proposals, or other relevant commentary reported below.

Role of local authorities in budget setting

5.3 The topic attracting most comment was what many perceived to be the absence of information on the establishment of local budgets, and specifically the role of local authorities in the scrutiny of budgets. A dominant theme was that centralisation of funding risked the dilution of local accountability and local prioritisation of resources. One respondent summed up this view:

"…the centralisation of all funding for the new Scottish Police Service severely limits local accountability. If local government have no financial responsibilities at all, then it is difficult to see how local accountability can meaningfully occur" (Ind).

5.4 20 respondents highlighted that local authorities are currently able to raise additional funding for local priorities, including extra officers. It was commonly felt that this supplementary funding should be acknowledged and the practice of securing additional monies by local authorities for local policing priorities allowed to continue under reform.

Distribution of funds by the Chief Constable

5.5 16 respondents from a variety of sectors called for transparency in the way funds are allocated by the Chief Constable for the delivery of local policing plans. 3 requested an outline framework setting out how decisions will be taken. One (Oth) commented that apportioning sizeable public monies will require expertise. Another (Ind) urged that a "bun fight" between local councils should be avoided. 2 respondents called for formal reporting to councils on local authority budgets and actual spend.

5.6 7 respondents comprising police bodies and local authorities recommended that centralisation of funding should not dilute rural communities' ability to influence resource allocation, emphasising that a drift of funds to the central belt is not desirable.

5.7 3 respondents expressed concern that funds should not be directed to poorly performing areas at the expense of supporting high standards in other locations.

Legal status of the SPA

5.8 A common request was for clarity on the legal status of the new police national authority in order to establish the future arrangements for VAT and powers to carry forward and/or borrow funds. One typical comment is below:

"An important issue is the status of the new body ie. NDPB, Executive Agency, etc. Since an NDPB seems more consistent with the necessary separation from potential political direction, the mechanisms through which the NDPB will be established are key. Both the Financial Memorandum and Framework Document need to ensure that issues such as borrowing capability, carry-forward mechanisms and VAT liability are dealt with effectively to ensure the strengths of the current force arrangements are not lost in transition to the new structure" (Oth).

5.9 7 respondents requested clarity on the arrangements for transfer of financial reserves and capital assets under the single service and how these will be re-distributed.

5.10 Summary

• A significant body of respondents addressing this question supported the proposals for funding and financial accountability, viewing them as simplifying the current arrangements and aiding transparency.
• There was a common perception amongst those responding that information was lacking on the establishment of local budgets, and in particular, local authorities' role in scrutinising these.
• Clarity on the legal status of the new police body was requested in relation to determining VAT implications and other financial arrangements.