Dear Sir,
I am conscious that today is the deadline for responding to the above consultation. As you will be aware my office has previously submitted two responses in respect of the consultation. The first response set out my overall views regarding to proposed changes to the funding formula and my second response specifically focussed on the alcohol element of the proposed model. A common theme in both of my responses was the quality of the underpinning data which is palpably important given the resulting financial impact that it can have at individual Force level.
It has come to my attention within the last hour from colleagues in Devon and Cornwall Police and Crime Commissioner Office that an error has been identified in the explifications that have been provided to Forces. This error, as I understand it, relates to urban adversity and stems from the use of wrong data. Given that this element of the funding formula accounts for 31% of the total funding allocated, it is clearly a significant issue at both a national level and local level.
The net effect of this error, based on information received from Devon and Cornwall, is a loss of £12.7m per year for Durham once the funding formula has been introduced. Given that Durham only receives approximately £80m in grant funding I am sure that you will agree that this represents a huge sum of money to take out of my budget which is of course in addition to expected reductions within the forthcoming comprehensive spending review. As the peoples democratically elected representative, I am fully committed to ensuring the highest possible levels of service delivery but feel that this is being completely undermined by such large swings in funding. I have to admit to being at a complete and utter loss as to how an error of this magnitude could have been made by your officials and how I will explain this to the public.
Given the impact of the funding formula on Durham, not to mention other Forces, I would advise that the current process be abandoned. I feel that this is a fair and proportionate proposal given the problems that have beset this whole consultation exercise. I would also propose that we take this opportunity to consider how best to proceed in future with identifying a new funding model as the current process appears now to have lost all credibility.
Ron Hogg
Police and Crime Commissioner