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Financing Local Police Spending in England and Wales: Fiscal Federalism in Practice

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  • Rowena Crawford
  • Richard Disney
  • Polly Simpson

Abstract

Since 1995, police forces in England and Wales have been able to raise revenues locally to supplement grants from central government. We analyse the variation across police force areas in locally raised police revenues over the 2000s, and we find that three‐quarters of the temporal and spatial variation in local revenues per head can be explained by differences in incomes, prices and local preferences. A particularly robust parameter is the effective local community tax price associated with raising revenue. We discuss the police funding model in the wider context of fiscal federalism, and we point to alternative funding structures that could be adopted.

Suggested Citation

  • Rowena Crawford & Richard Disney & Polly Simpson, 2019. "Financing Local Police Spending in England and Wales: Fiscal Federalism in Practice," Fiscal Studies, John Wiley & Sons, vol. 40(4), pages 663-685, December.
    • Handle: RePEc:wly:fistud:v:40:y:2019:i:4:p:663-685
    DOI: 10.1111/1475-5890.12206
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    As found on the RePEc Biblio, the curated bibliography for Economics:
    1. > Law and Economics > Economics of Crime > Crime Prevention > Police Funding

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