SURREY taxpayers could end up footing part of a £2.2million bill for an increase in police officer pay after the Government calculated its costs based on a “deeply flawed” funding formula, Surrey’s Police and Crime Commissioner has warned.
Lisa Townsend says that while the pay rise is “well deserved”, not enough central funding has been provided to cover the cost of the increase.
As a result, the precept – which is the part of council tax that supports policing – could go up to cover the shortfall.
During the summer, it was confirmed that the Government had accepted recommendations from the Police Remuneration Review Body to increase the pay award for all ranks, up to and including Chief Superintendent, by 4.2 per cent.
Funding formula
Last week, Policing and Crime Minister Sarah Jones MP confirmed forces in England and Wales would receive a share of £120million in 2025/26 to support policing with part of the cost of the police officer pay increase.
This is being distributed by a national funding formula, rather than by officer headcount. Surrey receives the lowest settlement of all police forces under the formula.
The £1.3m grant allocated to Surrey Police will cover the first year of the pay rise. After that point, there will be a £2.2m shortfall, with no further funding provided for future years.
This means that the additional £2.2m cost, equivalent to £4.50 on council tax, will need to be found as savings which will be added to Force’s costs in 2026/27 and beyond.
Pay increase
Commissioner Lisa Townsend said: “There is no doubt that this pay increase is well-deserved. Our officers work tirelessly to keep Surrey safe, and I’m delighted that their efforts are being recognised by the Government.
“I’d also like to pay tribute to the brilliant work of police staff including 999 and 101 call-takers, PCSOs and designated detention officers, whose pay increase will not be funded by the Government.
“However, this wage increase for officers, as welcome as it is, exceeds the salary increases budgeted for by many forces, including Surrey.
“As I warned over the summer, the Government grant does not factor in costs like pensions and overtime.
Commissioner’s concern
“I feared that the grant would be allocated by the outdated and deeply-flawed police funding formula, rather than by officer headcount, and I am sad that my concerns were well-founded.
“Surrey receives the lowest settlement of all forces, placing an unacceptably high duty on taxpayers.
“We have been promised reform to the funding formula time and time again by successive governments, and yet it has never happened.
“Root and branch review to make this system fairer is urgently needed.
“It simply must be sustainable”
“Just 45 per cent of Surrey Police’s total budget is covered by the Government.
“The remaining 55 per cent is provided through the precept – the highest burden on taxpayers in the country. Soon I will be asking for their views on how much they’re willing to contribute for 2026/27.
“Once again, I call on the Government to provide further clarity on future funding for the pay rise.
“It simply must be sustainable, or – in both Surrey and across England and Wales – forces could face financial challenges that directly impact the delivery of policing and future planning.”