Open Letter to Home Secretary, Yvette Cooper

Dear Home Secretary, 

As Police and Crime Commissioner for Cambridgeshire and Peterborough, I am writing to you following the Chancellor’s announcement at last week’s budget to increase both the rate and threshold for employers’ National Insurance contributions. 

As part of the proposals, it was mentioned that public sector organisations would be protected from this increase however should that not be the case, Cambridgeshire Constabulary would be left with a budget shortfall of approximately £3m.  

If government fully reimburse this additional cost nationally by applying the current funding formula, the Constabulary would still be left with a funding shortfall well in excess of £500k. Additionally, a further funding shortfall of over £600k has arisen for the Constabulary, following the 4.75% pay award for police officers agreed earlier this year. 

Overall, the combination of the employers’ national insurance increases together with the pay award has left the Constabulary's finances underfunded by over £1m for 2025/26. This is the direct impact of an unfair funding formula and the decision by the Home Office to allocate funds using the core grant formula. 

It is fair to say that this is not the first time I have raised this issue. I have previously written to the Home Office regarding the unfairness of a funding formula which uses outdated information and does not reflect the actual demands faced by individual policing areas. Since the formula was set, Cambridgeshire and Peterborough’s population has grown by 11%, and is forecast to grow, much faster than the national average. At the same time, there are areas of the country which have maintained the same level of population, and some areas who have seen their population reduce. Yet the way funding is allocated using the existing formula has not changed. As such, Cambridgeshire remains the fourth lowest funded force in the country. 

Consequently, policing across Cambridgeshire and Peterborough has become ever more reliant upon local people, through the policing precept element of their council tax, to fill the funding gap. I am sure you will agree with me that this does not feel fair to the people we were elected to represent. 

Every community deserves a properly funded and well-equipped police force. In Cambridgeshire, we have made huge strides to adapt and expand our capabilities to improve the way we solve and investigate crime. A substantial proportion of this has come from local taxpayers themselves who have funded improved technology and are helping to sustain and develop the record number of officers who have been recruited over the last three years. Regrettably, by applying the existing funding formula we will be unable to support the force’s work to keep people safe without a significant precept contribution. 

I urge you to reconsider the funding formula and the way in which in-year adjustments to police funding are allocated. We are rapidly reaching a point where any cost savings that are made will have an impact on frontline policing across Cambridgeshire and Peterborough. 

I would be happy to discuss this in more detail with you or your team at your earliest convenience and look forward to your reply.  

Yours sincerely,  

Darryl Preston 

Police and Crime Commissioner