Labour is unlikely to scrap PCCs, so here's how it can reform them

Police and Crime Commissioners should become 'ministers for the local criminal justice system' with the political power to set the agenda.

Despite all the talk about a lack of policy detail, there is one area where Labour will certainly be doing some pretty hard thinking over the next few months. The party’s Policing Review, led by former Met Commissioner Lord Stevens, might be long delayed but is still expected to be published in the autumn and may provide some much-needed thinking on crime and justice issues.

Taking advantage of front-line police dissatisfaction at the government’s policing agenda, the review is likely to contain various pro-police measures on issues like perks and pay, and is also likely to include promises to reverse certain elements of Theresa May’s wide-ranging reforms.

It is rumoured that it will once again float the idea of mandatory police force mergers and a move towards regional police forces – an idea that is popular with some senior police leaders, but was comprehensively rejected by just about everybody else back in 2006. But as well as looking at structural changes and crowd-pleasing measures, the review will also need to address the party’s position on Police and Crime Commissioners (PCCs), who will mark their one year anniversary in November.

On the face of it, PCCs have made an inauspicious start. Poor turnout at last year’s elections, some early high-profile blunders and a media fixation on expenses and personnel have all helped to create a negative impression. But the reality on the ground will take longer to evaluate and there is emerging evidence that PCCs are bringing real clarity of leadership and proving far more effective than Police Authorities ever were at holding forces to account and improving their crime-fighting performance. Despite this, Labour could decide to make a premature call and scrap PCCs before they’ve really had a chance to get started.

If Labour was to decide to change the model of police governance again, emergency legislation would need to be passed by a new government upon taking office in order to cancel the next set of PCC elections in May 2016. Scrapping PCCs would not only need to be the first priority for Ed Miliband if he makes it into 10 Downing Street, it would also extinguish the progress made by a number of influential former Labour ministers who are thriving as PCCs of large police forces in the north and the midlands. For both of these reasons, the smart money is on PCCs remaining in place and being given the time to demonstrate their significant potential.

The report we have published today is an attempt to look to the future of PCCs, rather than continue to quibble about their introduction. In it, we outline a vision for a deliberate and steady decentralisation of the criminal justice system, with PCCs the recipients of a range of new responsibilities and powers, implemented in a way designed to command the confidence of central government departments.

Our contention is that while PCCs have a valuable suite of powers in the policing realm, they do not yet have the right tools for effecting change in the wider criminal justice system. We set out a series of steps which would see PCCs increasingly assume a role similar to that of a 'minister for the local criminal justice system' – with the political power to set the agenda, hold agencies within his/her purview to account for delivery of that agenda and drive forward reforms to ensure a more efficient and effective system at the local level.

The aim should be to create a system where, instead of local criminal justice leaders looking upwards and inwards to Whitehall for direction and validation, they increasingly look outwards to each other and downwards to the citizens they serve.

The process of decentralisation we envisage starts with giving PCCs the power to influence the people, agendas, performance and coordination of the criminal justice system at both a national and local level. Once they are given the tools to allow them to work effectively within the wider ecosystem and have successfully got to grips with their new powers, the strategy would see them becoming more financially responsible for the wider system – both for holding and commissioning with specific criminal justice budgets, and for the levels of demand created within their local areas.

As PCCs develop, whichever party is in government might also begin to ask questions about their longer-term future. These reforms have created a new set of local politicians with considerable powers (over the police, at least) – representing an entirely new infrastructure for local democracy. In this new report, we argue that policymakers should build on this by deliberately facilitating the expansion of PCCs’ powers and remit in the justice space. But it is not impossible that future governments might decide to go even further. For example, in the wake of the rejection of City Mayors in last year’s referenda, where attempts were made to introduce powerful Mayors in a 'big bang' fashion, it may make sense for PCCs to be reformed more fundamentally over time – gradually accruing powers over other areas of public policy.

The election of Police and Crime Commissioners was a once in a generation opportunity to reform policing and criminal justice, and reverse decades of ineffective policies. And there are now three choices facing policymakers: reverse, stand still or go forward. Going forward, by accelerating the expansion of PCCs’ powers and responsibilities, will give these new figures every chance of being successful in their jobs, maximising reductions in crime and meeting the significant expectations around their role. And that’s the best way of ensuring that the narrative.

Max Chambers is head of crime and justice at Policy Exchange

Labour will need to address the party’s position on Police and Crime Commissioners (PCCs), who will mark their one year anniversary in November. Photograph: Getty Images.
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BHS is Theresa May’s big chance to reform capitalism – she’d better take it

Almost everyone is disgusted by the tale of BHS. 

Back in 2013, Theresa May gave a speech that might yet prove significant. In it, she declared: “Believing in free markets doesn’t mean we believe that anything goes.”

Capitalism wasn’t perfect, she continued: 

“Where it’s manifestly failing, where it’s losing public support, where it’s not helping to provide opportunity for all, we have to reform it.”

Three years on and just days into her premiership, May has the chance to be a reformist, thanks to one hell of an example of failing capitalism – BHS. 

The report from the Work and Pensions select committee was damning. Philip Green, the business tycoon, bought BHS and took more out than he put in. In a difficult environment, and without new investment, it began to bleed money. Green’s prize became a liability, and by 2014 he was desperate to get rid of it. He found a willing buyer, Paul Sutton, but the buyer had previously been convicted of fraud. So he sold it to Sutton’s former driver instead, for a quid. Yes, you read that right. He sold it to a crook’s driver for a quid.

This might all sound like a ludicrous but entertaining deal, if it wasn’t for the thousands of hapless BHS workers involved. One year later, the business collapsed, along with their job prospects. Not only that, but Green’s lack of attention to the pension fund meant their dreams of a comfortable retirement were now in jeopardy. 

The report called BHS “the unacceptable face of capitalism”. It concluded: 

"The truth is that a large proportion of those who have got rich or richer off the back of BHS are to blame. Sir Philip Green, Dominic Chappell and their respective directors, advisers and hangers-on are all culpable. 

“The tragedy is that those who have lost out are the ordinary employees and pensioners.”

May appears to agree. Her spokeswoman told journalists the PM would “look carefully” at policies to tackle “corporate irresponsibility”. 

She should take the opportunity.

Attempts to reshape capitalism are almost always blunted in practice. Corporations can make threats of their own. Think of Google’s sweetheart tax deals, banks’ excessive pay. Each time politicians tried to clamp down, there were threats of moving overseas. If the economy weakens in response to Brexit, the power to call the shots should tip more towards these companies. 

But this time, there will be few defenders of the BHS approach.

Firstly, the report's revelations about corporate governance damage many well-known brands, which are tarnished by association. Financial services firms will be just as keen as the public to avoid another BHS. Simon Walker, director general of the Institute of Directors, said that the circumstances of the collapse of BHS were “a blight on the reputation of British business”.

Secondly, the pensions issue will not go away. Neglected by Green until it was too late, the £571m hole in the BHS pension finances is extreme. But Tom McPhail from pensions firm Hargreaves Lansdown has warned there are thousands of other defined benefit schemes struggling with deficits. In the light of BHS, May has an opportunity to take an otherwise dusty issue – protections for workplace pensions - and place it top of the agenda. 

Thirdly, the BHS scandal is wreathed in the kind of opaque company structures loathed by voters on the left and right alike. The report found the Green family used private, offshore companies to direct the flow of money away from BHS, which made it in turn hard to investigate. The report stated: “These arrangements were designed to reduce tax bills. They have also had the effect of reducing levels of corporate transparency.”

BHS may have failed as a company, but its demise has succeeded in uniting the left and right. Trade unionists want more protection for workers; City boys are worried about their reputation; patriots mourn the death of a proud British company. May has a mandate to clean up capitalism - she should seize it.