What would it mean if Lincolnshire Police went ‘bankrupt'?

Leaders are warning it is reaching the point where cuts mean it would be unable to carry out its duties in keeping the public safe, such as answering and responding to 999 calls quickly.

Councils who are unable to balance the books issue a Section 114 notice – the equivalent of declaring themselves insolvent – but this will be the first time a police force has ever resorted to this.

Lincolnshire MPs warned this weekend that such a notice “would leave communities in Lincolnshire unpoliced and unsafe.”

An independent review has found that the force needs ‘fundamental change’ in how it’s funded to avoid a Section 114 notice; could have only 1,000 officers for the whole county by 2026/27 and will have ‘very limited flexibility’ as its savings are burned through.

Why is the force so short of money?

Due to the way that the government calculates a police force’s income, Lincolnshire Police receives the lowest amount per person in the country.

The fact the county is so large and rural makes it even more costly to police effectively.

Lincolnshire Police recently commissioned an independent review by the Chartered Institute of Public Finance and Accountancy (CIPFA).

It found that “without additional support or a fundamental change in funding arrangements, the force is at risk of having to issue a Section 114 notice.”

It also exonerated the force of being bad with money, finding it had “clear oversight, disciplined budget control, and a culture of operational cost-consciousness.”

The Home Office previously said it had increased the force’s budget by 6.2 per cent to £174.5m.

Home Secretary Yvette Cooper said: “We recognise the financial and operational challenges that police forces across the country have faced in recent years, and that is why we are providing a significant and much-needed increase in funding to help forces protect the public and keep our streets safe.”

When could a Section 114 notice be issued?

This notice is made by an organisation’s financial officer when there’s no chance of setting a balanced budget for the next spring.

The Police and Crime Commissioner’s office foresees this happening in December or early 2026, if no extra help is received.

The force would have the option of cutting in order to delay the inevitable.

However, it would ultimately reach a point where it doesn’t have enough officers to safely carry out its legal duties of crime-fighting and prevention.

There are two potential sources of salvation before then, with one being the government providing enough emergency funding to balance the books.

The other would be significantly raising the amount of council tax which pays for police services, although this would require public support in a referendum.

If neither of those happen by the end of the year, the force will have to ask whether it can manage on the resources it has.

What is the force doing to avert this scenario?

If no extra money has been provided by October, the force will start to shrink by 190 police officers and 180 police staff.

Police can’t be made redundant, so it would be a case of stopping recruitment, along with waiting for officers to leave and not filling the roles.

The force also is planning to reduce its fleet by five per cent and its buildings by 40 per cent.

The majority of Lincolnshire MPs have warned in an open letter about the dangers of shrinking the force this small.

“It would have a profound impact on the ability to deliver a safe and effective policing service against crimes such as rape, domestic abuse and violence against women and girls,” they say.

“This is not a political issue; it is a matter of public safety.”

Police Commissioner Marc Jones (Con) also said: “In this county we are used to driving efficiencies and innovation and, sadly, are well used to doing all we can to make the books balance, but there comes a point when doing more with less is no longer possible.

“We are at that point.”

Lincolnshire Police has also been contacted for comment.

What would happen when a Section 114 notice is made?

That’s still unclear, given the ground-breaking nature of the problem.

When a council’s in this position, the government will send in commissioners with the power to overrule councillors’ decisions and require it to make urgent cuts.

However, it may not be so simple for the police, as a force must be lead by a warranted officer – currently Chief Constable Paul Gibson.

It’s not even clear whether the force or the police commissioner would need to issue the notice in the first place.

And while councils can be forced to close leisure centres or community centres in order to pay for essential services, the same logic may not apply to the police.

There may come a point where there’s nothing left to cut, and each extra officer, piece of kit or vehicle that is lost will have a direct effect on the public’s safety.

And a Section 114 notice only applies to one financial year – what would happen the following one?

These are questions that the government will need to find answers to – and quick – unless Lincolnshire Police gets urgent help.