Deputy Presiding Officer, on behalf of the Cabinet Secretary for Finance and Local Government, I’m today presenting the Assembly for its approval details of the Welsh Government’s contribution to the core revenue funding for four police and crime commissioners—the PCCs in Wales—for 2017-18. Members will be aware that the core funding for the police in Wales is delivered through a three-way arrangement, involving the Home Office, the Welsh Government and council tax. As policing policy and operational matters are non-devolved, the overall funding picture is determined and driven by the Home Office. The established approach to setting and distributing the Welsh Government component has therefore been based on a principle of ensuring consistency and fairness across England and Wales. As outlined in the final police settlement announcement on 1 February, the total unhypothecated revenue support for the police service in Wales for 2017-18 amounts to £350 million. The Welsh Government’s contribution to this amount, through the revenue support grant and redistributed non-domestic rates, is £139 million and it is this funding that you’re being asked to approve today.

As in previous years, the Home Office has decided to overlay its needs-based formula with a floor mechanism. This means that for 2017-18, police and crime commissioners across England and Wales will all receive the same percentage reduction of 1.4 per cent in their core revenue funding, when compared with 2016-17. The Home Office will also provide a top-up grant, totalling £5.9 million, to ensure that both Dyfed-Powys and North Wales police meet the floor level.

Members may recall that, as part of the 2015 spending review, the UK Government committed to provide for the duration of the spending review period cash-backed funding overall for each PCC, compared to 2015-16. The settlement for 2017-18 maintains the planned level of funding, but assumes that PCCs increase their council tax precept by 2 per cent in 2016-17 and would do so again in 2017-18.

Council tax is a devolved matter and it’s the responsibly of PCCs to set their precepts. Police and crime commissioners in Wales have the freedom to make their own decisions about council tax increases and are not subject to the limits that apply in England. Inserting their element of council tax, the Welsh Government expects each PCC to act in a reasonable manner and to take account of the pressures on hard-pressed households.

We appreciate that difficult decisions are necessary in developing plans for the coming years. The Welsh Government is committed to working with PCCs and chief constables to ensure funding reductions are managed in ways that minimise the impact on community safety in Wales. As part of this, the Welsh Government has made provision for a further year of funding for 500 additional community support officers, recruited under the previous programme for government commitment. A sum of £16.8 million is earmarked in the budget for next year for the continued delivery of this commitment. The full complement of officers has been deployed since October 2013 and they’re making a positive contribution to public safety across Wales. A vital part of their role is actively engaging with partners and community organisations to address antisocial behaviour and related criminal activity, but they make a most important contribution to preventative spend, working in partnership with communities and local authorities. The Welsh Government, working in partnership with the four Welsh police forces and British Transport Police, have also introduced this additional resource and are helping to make a real difference to the lives of people in Wales.

Looking ahead to future funding arrangements, the Home Office has recently restarted a review of the police funding formula, following its suspension in 2015, after the discovery of statistical errors in the consultation material. The Welsh Government is engaged in this process and is working closely with Welsh PCCs to ensure that the review takes full account of the perspectives of the Welsh Government and the arrangements of funding policy and policing in Wales.

Deputy Presiding Officer, returning to the purpose of today’s debate, the motion is to agree the local government finance report for police and crime commissioners, which has been laid before the Assembly. If approved, this will allow the commissioners to confirm their budgets for the next financial year. I therefore ask Assembly Members to support this motion today.