London, UK — Council tax bills in England and Wales are set to rise as part of a £329.8 million increase in funding for police forces in the upcoming year. The rise is designed to cover a 3.5% real-terms increase in the police budget, which was announced by Policing Minister Dame Diana Johnson in a written statement to MPs.
This funding boost will bring the total police force settlement for 2025-26 to £17.4 billion, an increase of up to £986.9 million from the current year. To meet the additional cost, police and crime commissioners will be encouraged to raise the council tax precept, which will add £14 to the average annual council tax bill for a Band D property.
The Purpose of the Funding Increase
The increase in funding aims to cover several key areas:
- Pay Rises: The additional money will cover the pay increases for police officers, which were awarded earlier this year.
- National Insurance Contributions: The rise in employers’ national insurance contributions, which increased from 13.8% to 15% as part of the October 2024 Budget, will also be compensated.
- Recruitment: The funding will support the recruitment of additional officers as part of the government’s commitment to bolster neighbourhood policing.
Dame Diana Johnson explained that increasing council tax was necessary to “strike the balance between protecting taxpayers and providing adequate funding for police forces.”
Funding Breakdown
Out of the £986.9 million increase, £657.1 million will come from government grants, including:
- £339 million in core grants to ensure police forces are equipped to meet the government’s “safer streets” mission.
- £230.3 million to compensate territorial forces for the increase in employers’ national insurance contributions.
- £100 million to support the first phase of the 13,000 additional police officers, PCSOs, and special constables recruited for neighbourhood policing roles.
The total police funding, including the £1 billion boost to £19.5 billion, represents an overall 3% real-term increase in funding for policing in the next fiscal year.
Reactions and Political Implications
The decision to raise council tax to fund the increase has sparked debate. Sir Keir Starmer, leader of the Labour Party, suggested that it should be up to local councils to decide whether or not to increase taxes.
The additional funding is part of the government’s broader strategy to address concerns about police staffing levels and crime rates. Metropolitan Police Commissioner Sir Mark Rowley has warned that the UK’s largest police force is heading for its lowest staffing levels in a decade due to inadequate funding and low recruitment.
Home Secretary Yvette Cooper had earlier confirmed that police forces would be compensated for the national insurance hikes, announcing an extra £500 million in funding specifically for neighbourhood policing.
The rise in council tax, while unpopular with some, is positioned by the government as a necessary measure to ensure that the police have the resources needed to tackle crime and improve public safety across the country.