Agenda item

Prior to consideration of this item, representatives of the Fire Brigades Union (FBU) were invited to ask their question of the Authority.

In summary, the question referred to concerns around the need for the Authority to save £1.1m, and sought assurances that crewing policies will not be changed and result in appliance crews being reduced from 5 to 4 firefighters.

The Chair responded with a summary of the work undertaken to date to identify money-saving measures and referred to the current public consultation and the Chief Fire Officer’s preference to maintain appliance ridership at five firefighters, but stated that it is not possible to provide any reassurances that this position would not change.

Becky Smeathers, Head of Finance, presented the joint report of the Chief Fire Officer and Interim Treasurer which provides members with an updated Medium Term Financial Strategy and requests approval and the setting of general guidelines by which the Finance and Resources Committee can develop a detailed budget proposal for 2018/19.

It is noted that reserves have been, and will continue to be, used but that the current minimum level of general reserves has been set at £4.4 million, but may be subject to change. This results in available general reserves of £2.7m.

Whilst external funding has been cut by almost 21% up to 2019/20, it is anticipated that funding for future years will continue to be restrained. The referendum limit for Council tax currently stands at 2%, but there may be potential for this to be relaxed but clarification is yet to be received.

Growth is currently at 1.5% and the Office for Budget Responsibility has cut annual growth rates below 1.5% until 2020.

The higher than anticipated pay award of 2%, when only 1% has been budgeted for, is predicted to cost in the region of an additional £320,000 with additional cost regarding pensions and national insurance.

Business rates have increased substantially and require an additional £230,000 to be budgeted for.

The Finance and Resources Committee is requested to consider:

(i)  the options for Council tax to be recommended to the Fire Authority in February, as set out within the report;

(ii)  the options for eliminating any budget deficit to enable the Fire Authority to approve a balanced budget, as required by law, which may include tasking the Chief Fire Officer with identifying further savings, the potential further use of reserves.

Members questions were responded to as follows:

(a)  officers are working hard examining all budgets to find further savings and build resilience;

(b)  the cost implications of proposing a Council Tax precept higher than the 2% referendum limit has been considered in the past, but the cost of a referendum, if successful, would take approximately 3 years to recoup so is not considered feasible.

Councillor Malcolm Wood, Chair of the Finance and Resources Committee, paid tribute to the continuing hard work of finance officers in producing the budget following a loss of £13m of funding.

RESOLVED

(1)  to approve the Medium Term Financial Strategy as set out at Appendix A to the report;

(2)  to task the Finance and Resources Committee with providing guidance to the Fire Authority in February in respect of:

(a)  the options for Council Tax limited to either a Council Tax freeze or an increase in Council Tax within the referendum limit;

(b)  the options for addressing any budget deficit to enable the Fire Authority to approve a balanced budget, as required by law.