Rising crime levels are inflicting an annual economic cost of up to £250 billion on the UK, a report reveals, attributing the surge to austerity measures that have weakened policing and the justice system.
The conservative-leaning think tank, Policy Exchange, supported by former Tory chancellor and home secretary Sajid Javid, highlights that extensive cuts to police, prisons, and court funding have exacerbated criminal activities, thereby constraining economic growth.
The think tank describes an “epidemic” of shoplifting among other criminal activities, that is severely impacting businesses, the public sector, and individuals.
The direct financial burden on the economy is around £170 billion annually, approximately 6.5% of the GDP.
Furthermore, the report suggests that the intangible effects, such as fear-driven changes in behaviour like avoiding high streets or postponing investments, could push the total costs to £250 billion, nearly 10% of GDP.
Amid calls for increased public service and defence funding, Policy Exchange advocates an additional annual investment of £5 billion to address the crises in prison capacity, police workforce, and court backlogs.
The think tank also calls for sentencing reforms including automatic harsher penalties for repeat offenders and the deportation of foreign criminals.
The report, also endorsed by former Bank of England chief economist Andy Haldane, advises a significant boost in government spending on the criminal justice system to support economic stability.
Official statistics indicate a steady climb in crime rates, corroborated by major retailers who report a spike in shoplifting, imposing substantial costs on the sector.
Sajid Javid, home secretary from 2018 to 2019 and briefly chancellor until early 2020, commends his governmental tenure for addressing crime but acknowledges the ongoing challenges.
He underscores the correlation between economic prosperity and societal security, emphasizing the importance of protecting businesses and individuals from crime to foster economic confidence and growth.
Labour, led by Keir Starmer, has criticized the Conservative cuts to police budgets and sentencing adjustments, branding them a “Tory shoplifter’s charter” that has fuelled the crime rate across Britain.
With a tight fiscal outlook and forthcoming defence spending hikes, concerns mount that public service funding may face constraints in the upcoming budget review by Chancellor Rachel Reeves.
Policy Exchange suggests reallocating funds from other public sectors to prioritize defence, potentially conflicting with Labour’s commitment to eschew austerity and rejuvenate public services.
Haldane, now CEO of the Royal Society of Arts, warns of a severe upcoming public spending review that could define electoral outcomes, highlighting the profound economic and social repercussions of neglecting crime prevention and public security.
Diana Johnson, the minister for crime and policing, outlines government plans for the next decade to significantly reduce violence against women, girls, and knife crime, and to restore public trust in policing and the criminal justice system.
This includes introducing 13,000 additional community police officers and constructing 14,000 new prison spaces to detain dangerous criminals.
