Report of the Assistant Director Resources/Treasurer

The Chairman of the Panel invited the Assistant Director Resources/Treasurer (ADR/T) to introduce the report on the findings of the Month 11 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 £427,000 had been identified, with the largest pressure coming from wholetime, overtime and on-call costs within Safer Communities.  The risk around the Grey Book pay rise was also highlighted as a significant pressure of £525,000.

The amount attributed to overtime reflected the continuing issues around long-term absence, and that the pressures on utilities and fuel continued to be influenced by inflationary pressures.  The underspend in external training had offset some of the pressure.

With regards to the Capital Programme, the ADR/T informed Members that this was being monitored against the revised Capital Budget which had been agreed by the Fire Authority in February 2023.  It was highlighted that there had been additional slippage related to Estates.  The Panel were also informed that the refurbishment at Hove was now complete, and that Members would have an opportunity to visit the Station at the Members Seminar to be held in July 2023.

Members discussed the reported overspend of £1.5 million attributed to wholetime pay and overtime, asking how this was being monitored and managed.  The Assistant Chief Fire Officer (ACFO) responded, informing the Panel that the Safer Communities budget had been impacted by ongoing issues with NHS waiting times, and over establishment over the year.  It was highlighted that this over establishment had decreased to 11, down from 22.  The Panel asked how quickly the over establishment figure was likely to be reduced further, and the ACFO advised that this figure was expected to be down by October.

Members were informed that sickness was likely to continue to be an issue.  The ACFO advised that there was a monthly report presented to the Senior Leadership Team (SLT), as the importance of understanding the actual cost impact of overtime costs on the budget was crucial.  In addition, the Chief Fire Officer (CFO) advised Members that there was a need to investigate these costs in greater detail, for example assessing the use of overtime by Station, or by Watch, to ensure that appropriate local control measures were implemented.

The Panel questioned the Capital Programme going forwards and the need to borrow, enquiring as to whether there was capacity to deliver the programme.  The CFO informed Members that there was a need to continue to look in detail at the Capital Programme, including assessing the cost of interest charged on loans, and balancing the cost of improving the Service with the cost of maintaining the core service provision.  It was emphasised that the cost of any investment needed to demonstrate effectiveness in terms of improvements delivered.

The CFO advised the Panel that a review was being undertaken to investigate whether the lifespan of the Fleet is appropriate and continues to reflect the length of time that the vehicles are fit for purpose.  Members were informed that the number of UK based suppliers of appliances had fallen and therefore the risk of availability, and ability to maintain them needed to be considered.  The Assistant Director Operational Support & Resilience (ADOSR) advised that current good practice was to keep appliances for 15 years, however consideration was being given to whether this should be extended to 18 years, whilst acknowledging that there would be risks involved in doing so.  In terms of response cars, the ADOSR emphasised the need to consider the green agenda when looking at how the use of these could be reduced and that this needed to be balanced with the need to mobilise staff between locations.  It was highlighted that the response cars had not returned to the levels of mileage that they had been covering pre-covid, so there may be a possibility to investigate extending their lifespan based on mileage, rather than the age of the vehicle.

RESOLVED – That the Panel noted:

      i.        the risks to Revenue Budget and the 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 years investments and borrowing.