Monmouth MS: Labour Government Fails to Protect Police Budgets from NI Impact

Member of the Senedd for Monmouth, Peter Fox, has warned that Gwent Police is facing a real-terms funding cut of around £1 million after the Government’s National Insurance rise wiped out this year’s headline increase.

Police forces in Wales are funded through a combination of UK Government funding, Welsh Government support for specific programmes, and the local council tax precept.

On paper, Gwent Police funding rises by 3.9 per cent this year, roughly in line with inflation, which averaged around 3.5 per cent in 2025, but once the Labour Government’s employer National Insurance increase is taken into account, that uplift is entirely wiped out, leaving the force worse off in real terms.

Police budgets are around 80 per cent staff costs, meaning forces like Gwent are disproportionately hit by higher payroll taxes imposed from April 2025 as a result of the NI increase.

Mr Fox spoke out after figures released over Christmas showed a real-terms reduction in the Welsh Government element of police funding, adding further pressure to already stretched budgets.

Local MS for Monmouth, Peter Fox said:

“This amounts to a real-terms cut in funding, around £1 million lost by Gwent Police once higher taxes are taken into account.

“Less money for the police means more opportunities for criminals.

“The Labour Government promised to compensate public services for the impact of increasing National Insurance, but it has failed to do so.

“Ministers will point to headline figures and claim funding is up, but they won’t mention they are clawing large sums back through extra taxes at the same time.

“The only people who benefit from this are criminals, while local communities continue to pay the price of this Labour Government.”