Police investment could unlock billions for businesses

Police chiefs say the research shows policing is the “foundation of thriving communities”, and a lack of funding in the service could see billions lost for local economies.

The report, commissioned by the Office of the Police Chief Scientific Adviser, shows that the cost of crime is far-reaching. Businesses in areas of high crime have a 19 percent chance of surviving a decade, compared with 45 percent for those in the lowest crime areas.

The impact of crime to businesses goes beyond the direct loss attributed to theft and vandalism. Local criminality also contributes to a reduction in investment, discourages entrepreneurs to start businesses in high crime areas and significantly reduces productivity and economic growth for communities.

Policing was widely found to be a critical driver of economic growth that can benefit local communities and households. The report found:

• Every £1 invested in policing generates around £10.70 in economic value for businesses
• A 10 percent increase in neighbourhood crime is associated with approximately a 1 percent reduction in business output
• A 10 percent increase in community policing could generate approximately £13 billion in net economic benefits for businesses over three years

The report builds on a 2025 study into the value of policing for households and communities, which showed that if the proportion of crime in an area increases by one percentage point, house prices are expected to drop by 1.5 percent.

Taken together, the two studies present the most comprehensive picture to date of how policing contributes to the UK economy. They demonstrate that the costs of crime are far reaching, affecting community stability, economic confidence, house prices and levels of poverty, and ultimately limiting economic growth.

Chief Constable Gavin Stephens, chair of the NPCC, said: “Policing has impact beyond catching criminals, it's the foundation of thriving communities. When crime falls, businesses grow, investment follows and local economies prosper.  

“At a time when government is focused on growth, this report shows that with the right investment and modernisation of policing, we can create the conditions for businesses, households and communities to succeed.”

Paul Taylor CBE, Police Chief Scientific Adviser, said: Paul Taylor CBE, Police Chief Scientific Adviser, said: “Economists have long understood that effective policing and strong local economies go hand in hand. This new research from the University of Birmingham demonstrates the scale of the relationship between public safety and economic prosperity.

“The findings provide robust evidence that sustained investment in policing, including the Neighbourhood Policing Guarantee, is critical to supporting local communities and delivering the UK's broader economic growth agenda.”