Agenda item

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

Bev Bull, Head of Finance and Treasurer to the Authority, presented the report which informed Members of the likely budget position for 2025/26 and requested that the Fire Authority set general guidelines within which the Finance and Resources Committee will develop a detailed budget proposal for 2025/26.

Commentary within the report included summaries on:

a)  issues impacting on the budget;

b)  the Efficiency Strategy;

c)  Council Tax, including the anticipated local government settlement and potential Council Tax increase for citizens;

d)  The reserves strategy;

e)  Medium Term Financial Plan;

f)  Capital Programme;

g)  Members’ Allowances.

Members were reminded that should they have any questions regarding the Service finances, or require further explanation, that they were free to contact Bev and members of the Finance Team.

Responses to members’ questions included:

a)  whilst the Service is tasked with identifying and implementing its own emergency service communications system, it is a requirement that any such system will be compatible and communicate fully with the national ESMCP. Funding has been earmarked within reserves, but continues to be monitored through risk management;

b)  where the 8% prudential Indicator limit is being removed, this was a long-term target. An annual target for debt charges as a % of net revenue expenditure will remain to be set as part of the prudential code. Other authorities generally don’t have a long-term target but follow the approach of setting the target annually.  In the longer term the level of debt charges needs to be considered in the context of the overall budget position and affordability;

c)  members should be assured that the Service continues to drive the work around the Grenfell Tower report and recommendations, but this work is very complex with multiple streams of activity, including inspections, monitoring of remediation work, revision of elements of both prevention work and operational response approaches, along with the Service linking and interacting with Government consultations. The issue of evacuation plans is being worked on with the National Fire Chiefs Council (NFCC) and national Government consultations are ongoing as it is a concern that residents of such 18m and soon 11m buildings can be vulnerable, including possibly with mobility issues, and that specific measures and evacuation plans should be considered. Completion of the plan within the given timescale is incredibly ambitious, but the Service is working with Mayoral Office to try and achieve additional funding to build capacity for the additional work of the 11m buildings and accelerate the plans. Progress updates will be provided to the Full Authority;

Members commented as follows:

d)  at this point in the year, there still remains much financial uncertainty with many financial assumptions for the Finance and Resources Committee to scrutinise and report back on;

e)  clarity is sought regarding additional Central Government funding to support the response to the Grenfell Tower Inquiry and resulting recommendations, particularly requirements relating to the current 18m building recommendations that are yet to be fully completed, and further requirements relating to 11m buildings that are to be implemented. This, alongside the implementation of the Building Safety Regulator, it’s a concern that only very limited funding is showing as earmarked by the Authority for this work, it is assumed this isn’t the only funding to support this work as it appears insufficient for the extent of work to be completed within the set timescale, but potentially the skills and capacity of the Service. The work with the National Fire Chiefs Council, regulating authorities including the Local Resilience Forum is welcomed, but to ensure consistent monitoring, it is requested that the Full Fire Authority continue to receive regular updates.

Resolved to:

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

2)  approve the Capital Strategy and Flexible Use of Capital Receipts Strategy contained within the MTFS;

3)  approve the capital programme for 2025/26 included in the indicative 10-year capital programme within the MTFS;

4)  approve the Reserves Strategy contained within the MTFS;

5)  approve the proposed minimum level of general fund reserves of £4.25m as set out in the Reserves Strategy;

6)  approve the re-allocation of Earmarked Reserve as detailed in the Reserves strategy and set out in the table below:

7)  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;

8)  approve the Member Allowance increase at 3.37% based on the average pay increase across the NJC pay spine for all staff.