Agenda item

Joint report of the Chief Fire Officer and Treasurer to the Fire Authority

Becky Smeathers, Head of Finance and Treasurer to the Authority, introduced the report which presents the proposals for Revenue and Capital Budgets for 2021/22 to 2024/25 to support members in determining the level of council tax for 2021/22. The report also seeks approval for fees and charges for 2021/22 (in line with inflation), and the continued payment of members allowances for 2021/22, in accordance with the approved scheme. The following points were discussed:

(a)  since the report was last presented to the Finance and Resources Committee in January, (where a 1.95 percentage increase in council tax was recommended) there has been a small amendment to the capital budget, the council tax and business rate projections have been received from the Billing Authorities, with council tax payments exceeding the predicted income and providing a small surplus. However, it is anticipated that business rate collection will drop further, so there is no overall gain and there is still expected to be a shortfall from pre-pandemic collection rates. Support from Central Government is still required;

(b)  it is anticipated that the additional financial pressures due to the pandemic will result in reduced income from both Council Tax and Business Rates, which may drop by 5%. Movement here, along with Central Government funding, provides a significant area of risk;

(c)  savings of £640,000 have been identified in the budget and re-invested in services;

(d)  1% pay awards for fire fighters and support staff are yet to be approved by respective independent pay bodies, but any change from 1% will impact on the budget by £330,000 per 1% variation; 

(e)  Section 31 grants continue to be relied upon significantly, such as the pension grant, business rates and Council Tax support funds; there is a risk that they will not be ongoing so this has been reflected in the budget;

(f)  the report sets out the predicted income streams up to and including the year 2024/25, but these may still be impacted by the national economy. The Chair and Treasurer to the Authority will monitor the situation closely, but the Authority does have the opportunity to use reserves to cover short-term financial gaps. Members will be informed if this occurs;

(g)  Table 5 of the report sets out the impacts of a 1.95% increase in council tax for property bands A-H.

Members of the Authority commented as follows:

(h)  whilst this is a positive budget, and this Service is in a good position, particularly compared to some others, there are still multiple potential unknown elements, including those resulting from the ongoing pandemic, the national economy and Brexit;

(i)  the potential for a 2021 pay increase for those who have worked so hard during the pandemic is welcomed;

(j)  it’s pleasing that this budget has received cross-party agreement and that members of all parties have raised points and feed into the budget process;

(k)  although there is to be a rise in council tax, it is very much still to the benefit of citizens not only in the respect of Fire and Rescue, but also with prevention and protection work and the excellent community support work taking place throughout the pandemic;

(l)  the collaboration systems are working well between the Local Authorities the Police and Fire and Rescue Service to support communities. It is hoped that Central Government will recognise this valuable work;

(m)the budget and associated reports are very thorough pieces of work for which members are thankful to Becky Smeathers and the Finance Team;

(n)  many members would prefer not to impose a council tax increase, but this is only a small increase and essential to the Service, so it is hoped that citizens will understand and accept it.

Members unanimously voted in favour of implementing a 1.95% increase of Council Tax precept and are named as:

Councillor Michael Payne (Chair)

Councillor Toby Neal (Vice-Chair)

Councillor Andrew Brown

Councillor John Clarke

Councillor Sybil Fielding

Councillor Stephen Garner

Councillor Vaughan Hopewell

Councillor Gul Nawaz Khan

Councillor Jawaid Khalil

Councillor John Longdon

Councillor Salma Mumtaz

Councillor Mike Quigley MBE

Councillor Shuguftah Quddoos

Councillor Nick Raine

Councillor Sue Saddington

Councillor Parry Tsimbiridis

Councillor Jonathan Wheeler

Councillor Jason Zadrozny

Resolved to:

(1)  agree the recommendation of the Finance and Resources Committee to the Fire Authority that there is a 1.95% Council Tax increase;

(2)  approve the 2021/22 precept level to be notified to the Billing Authorities based on the information set out in Section 2 and Appendix C to the report, as required by statute;

(3)  approve the fees and charges for 2021/22, as set out in Appendix D to the report.

(4)  approve the payment of Members’ Allowances for 2021/22 in accordance with the approved scheme.