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Cutting Crime (Justice Reinvestment)

I am pleased, Mrs Main, to serve under your chairmanship, and to have the opportunity of debating this report, which has been around for some time. It is from the 2009-10 session, and represents the culmination of an extensive inquiry that took place over two years. It was a unanimous report, and I pay tribute to the members of the Select Committee who took part in it. I particularly single out the right hon. Member for Cardiff South and Penarth (Alun Michael), who is here this afternoon and looking ready to take part in our proceedings. He has a lot of experience in this area, and made a major contribution to our deliberations, as did many then members of the Committee. I also pay tribute to the Committee's staff, who gave us such excellent support in producing the report, and to the many organisations and individuals who were witnesses in person, who submitted memorandums, or who took part in e-consultation. We received a lot of evidence, and we gave it a great deal of attention. The report was extremely well received by many organisations working in the field. I shall remind hon. Members of the context. The previous Government had announced that their solution to prison overcrowding, likely further demand, and the use of police cells was to increase capacity to 96,000 prison places by 2014. The Committee was worried that a predict-and-provide approach to the problems was not sustainable in the long term. That was the approach that Lord Carter had recommended in his December 2007 review of the use of custody, but we thought it was short-sighted and could not be maintained. We wanted to consider whether committing further resources to prison building represented the best possible way to improve public safety, and to reduce reoffending in the context of a fall in recorded crime rates and under-resourced probation services. Interestingly, there has been another fall in the recorded crime rate today—an 8% fall and a 4% fall in the British crime survey figure. I am not claiming that that is success for the coalition Government, any more than I supported the claims that the previous Government sometimes made about the fall in crime. Movements in crime statistics respond to all sorts of things, and have a curious way of being similar throughout neighbouring countries, and indeed throughout much of Europe. We are sometimes in danger of exaggerating our impact on total crime figures, although the system, through the good work of good people, is having a significant impact on the lives of many people who become involved in crime. I pay tribute to those who work in the criminal justice system and whose efforts have turned people away from crime, thereby saving other people from becoming victims of crime. The fundamental issue is that the first duty of the state is to protect its citizens and keep them safe. We spend well over £5 billion on the criminal justice system in England and Wales, and billions more on policing and the social, health and business costs of crime. We owe it to taxpayers to calculate whether we are spending all that money in the way most likely to prevent them from suffering the effects of crime, but the reoffending rate of ex-prisoners is so high—two thirds of prisoners go on to reoffend—that it seems that we are not. Some offenders are so dangerous that they must be kept in prison or in secure mental institutions for very long periods, but for many, custody is an expensive way of not solving the problems that they present. A number of things have happened since we produced our report. The previous Government published their response, which accepted much of our analysis, but did not accept or were rather lukewarm about the route that we had identified to deal with the problems. That might be attributed in part to the pre-election atmosphere, but it also reflected the strongly held views of the previous Lord Chancellor. The situation has changed dramatically for several reasons. First, we have a different Government with a Lord Chancellor who holds different views from those of his predecessor, and is never slow to express them. Secondly, there is a very serious financial crisis which both Government parties and the Opposition recognise requires substantial cuts in public spending. They may disagree about precisely how much and precisely where, but there is common ground between the parties. That has caused the coalition Government to shelve plans that the Committee criticised for a 1,500-place prison, and to make deep cuts in the departmental budget of the Ministry of Justice, which will affect spending on probation and other services that provide alternatives to custody. The Committee was not unaware of the difficult financial situation. In the report's summary—we are talking about December 2009—we said:"““Public expenditure generally is under pressure in all areas in the worst economic climate since the Second World War. The Ministry of Justice is no exception, being tasked with finding £1.3 billion worth of cost savings over the next three years.””" The situation was bad then, and cuts had to be made, but it is recognised that the position is worse now and even more demanding. There are two differences: the change of Government and an even more serious financial situation. The third is that the Government are developing ideas such as payment by results and social impact bonds, which we did not examine and which were not part of our report. They are new elements in the discussion. In our report, we concluded that after the election the Government would face a choice of risks: to muddle through with the previous plans to build more prisons in the hope that commitments made under the predict-and-provide model would prove to be affordable and not merely to be a self-fulfilling prophecy; or to make more radical decisions and investments, putting the system on a sustainable footing in the longer term by shifting resources away from incarceration towards rehabilitation and measures that prevent people from becoming criminals in the first place. It is far better to spend our taxes on preventing suffering from crime than on housing and feeding more and more people who have committed crimes and caused great suffering and distress in the process. The report highlighted the fact that, although the prison population has increased as a direct result of the introduction of longer sentences and better enforcement, rather than an increase in crime, there were other contributory factors. They include the press, perceived public opinion and political rhetoric. Paragraph 36 states:"““Wider factors, such as the media, public opinion and political rhetoric, contribute to risk averse court, probation and parole decisions and hence play a role in unnecessary system expansion. … A good deal of media comment assumes that sentencing is below the level that the public expect, whereas the evidence suggests that the public—when asked to make a judgment—set out expectations that are close to the levels that are actually being set by the courts… The Government should lead a public debate on the aims of criminal justice policy, and seek to influence, as well as to be influenced by, the public response…In basing arguments for reform on the best use of taxpayers' money, the political argument could be shifted away from notions about which party is 'harder' or 'softer' on crime and criminals to questions about the most effective use of scarce resources…It is time for an objective consideration of what is in the best interests of society””." I welcome the fact that the Lord Chancellor has recognised the importance of rational political debate and has tried to stimulate it. That is precisely what he did in his speech at King's college at the end of June, and I hope that we will see a move away from the numbers game that he said characterised the penal policy of the past 25 years. The key messages in the Committee's report were reflected in the Lord Chancellor's inaugural speech and those of other Ministry of Justice and Home Office Ministers. They have moved on from the previous assumption that a high and rising prison population is inevitable. Even without a deliberate policy shift, yesterday's spending review made it clear that the financial situation made change unavoidable. In its report, the Committee drew attention to clear precedents that proved that it was possible to reduce the prison population and public spending without compromising public safety. Finland successfully reduced its prison population over two periods in recent history when it decided that it could not afford to build more prisons. When we were in Finland some time ago, we questioned officials on why and how they had embarked on a substantial reduction in the number of prison places and people in custody. We expected a deep philosophical answer from the thoughtful Finns, but they said, ““Well, the Ministry of Finance told us that we couldn't have any more money for prisons.”” It is remarkable how economic circumstances can sometimes create policy changes. Those changes did not result in any increase in crime in Finland, as some in this country might fear such a policy. Some American states have become more sophisticated than England and Wales in their thinking about whether prison represents the most appropriate use of taxpayers' money, and they recognise that the expansion of imprisonment can come at the expense of new hospitals and schools. Those states faced the same choices as we do now against a background of historically high rates of incarceration. Several US states have adopted ““justice reinvestment”” approaches. That term refers to criminal justice policy reforms that are designed to reduce prison spending by redirecting resources from inside and outside the criminal justice system towards more productive, locally-based initiatives to tackle the underlying problems that give rise to certain kinds of criminal behaviour. Hon. Members know the sorts of problems involved, such as unemployment, mental ill health or drug and alcohol dependency. Such initiatives are targeted at the populations that are most at risk of offending and reoffending.