Police finance

Police forces in England and Wales are each given funding from three main sources.

These sources are the Home Office, the Department for Communities and Local Government OR the Welsh Assembly Government, and the police precept component of local council tax.  However in 2013/14 and 2014/15 the funding to the police that in previous years was paid via the Local Government Finance Report issued by the Department for Communities and Local Government will now be paid via the Home Office Police Grant Report. This has changed because the police are outside the Business Rates Retention Scheme.

In addition to government grants and police precept, Police and Crime Commissioners also generate income from charging for policing commercial events (this includes sporting and entertainment but excludes charity and some small community events) and from investments (both interest and dividends).

Here is:

  • details of how much money government has given to police forces since 1995
  • an explanation of how the Home Office allocates funding between forces

Historical police revenue funding

Police allocation formula

The government uses the police allocation formula to distribute the main police grant.  

Provisional police allocations 2013-14

Financial management code of practice

On 16 January 2012, the financial management code of practice (for police and crime commissioners and chief constables) was laid in parliament. The Code provides clarity around the financial governance arrangements within the police service in England and Wales and builds on the Policing Protocol issued by means of the Policing Protocol Order 2011.

The written ministerial statement was issued to accompany the guidance.

The financial management code of practice (for police authorities and chief constables), published in 2000 remains useable until November 2012.

Police value for money

A high-level working group communication on police value for money was sent to forces and authorities on 21 April 2011 from Nick Herbert, the minister for policing and criminal justice.

This communication contains information covering the new policing value for money unit, as well as updates on procurement, the information systems improvement strategy (ISIS), support services and transformational change. 

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