Report of Assistant Director Resources/Treasurer

The Assistant Director Resources/Treasurer (ADR/T) introduced the report which detailed the findings of the Month 8 monitoring undertaken on the Revenue and Capital Budget 2022/23 and Capital Programme 2022/23 to 2026/27.

The ADR/T informed the Panel that a net revenue overspend of £208,000 was forecast.  This was due to a number of pressures including staffing over establishment and overtime within Safer Communities, overtime within Training, utilities and fuel due to inflationary pressures, and unachievable savings.  These pressures were partially offset by additional income from business rates and Treasury Management activity, reductions in business rates and underspend in Protection, on call pay and the release of funds from the corporate contingency.  The ADR/T commented that the forecast had reduced by £45,000 since Period 6 (P6) with the cost of the backdated support staff pay award and additional equipment purchased in Engineering offset by additional Treasury Management income and the release of the corporate contingency.  It was highlighted that there were potential pressures in addition to the forecast overspend resulting from pay offers for grey book staff and inflationary pressures on non-pay spend above the 2% budgeted.  With regards to the Capital Budget, the ADR/T informed Members that the slippage had increased since P6, in part due to global supply chain issues which had affected Fleet schemes.

The Panel discussed the additional pressure that may arise from the grey and gold book pay awards.  The Chief Fire Officer (CFO) advised Members that national negotiations regarding pay awards were ongoing and the Chairman informed the Panel that the Chair of the National Joint Council (NJC) was aware of the financial pressures facing the Authority. 

The Panel queried the current savings position compared to the savings requirement.  The ADR/T explained that the primary reason for the underachievement of planned savings was delays in the delivery of projects including IRMP and CRM. 

The Panel also questioned the increased slippage on the Capital Programme.  The ADR/T informed Members that this was primarily due to worldwide supply chain issues and the impact of inflation requiring project plans to be reviewed.  However, the ADR/T highlighted the success of the refurbishment that had taken place at Hove informing Members that phases 1 and 2 had been completed.  The Assistant Director Safer Communities (ADSC) encouraged Members to visit the Station to see the work that had been carried out and informed them that feedback from staff had been positive.

Members questioned the proportion of the overspend attributed to Groups.  The ADSC informed the Panel that this was largely due to wholetime pay and overtime, and pressure caused by IRMP savings which had been delayed but were expected to be delivered by mid-2023.

Members queried the overall projected overspend reported under People Services and sought clarification regarding the use of agency staff and consultants to cover periods of sickness, and whether compulsory redundancies were being considered at this stage.  The Chairman advised that there were currently no plans for compulsory redundancies, and the Deputy Chief Fire Officer (DCFO) informed Members that Vacancy Management was taking place, with consideration being given to whether vacant posts were still required or whether there might be a more effective way to carry out a role.

RESOLVED – That the Panel noted:

       i.          the risks to the Revenue Budget and projected overspend;

      ii.          the risks to the Capital Programme;

     iii.          the reduced net forecast drawdown from reserves;

    iv.          the grants available and spending plans;

      v.          the monitoring of savings taken in 2022/23; and

    vi.          the current year investments and borrowing.