Report of the Assistant Director Resources / Treasurer

The Panel received a report from the Assistant Director Resources/Treasurer (ADR/T) which outlined the issues arising from the monitoring of the 2019/20 Revenue Budget and Capital Programme as at 30 November 2019.  It was noted that the Revenue Budget was currently forecast to be £173,000 underspent.  With regards to the Capital Programme, the ADR/T highlighted that it was the most ambitious in Fire Authority history.  There had been a significant amount of slippage in both estates and fleet and as result the in-year spend was now forecast to be £4,232,000 underspent.  The current risks to both budgets were detailed in the report.

The ADR/T offered reassurance over the slippage to the Capital Programme, explaining that there had been a need to engage additional programme support which had caused delays, however, this was now in place.  Engagement with stakeholders regarding station works had taken longer than planned and changes in partner requirements, especially regarding plans for Uckfield and Heathfield Fire Stations, had also impacted.  The Estate Strategy delivery plan had been re-profiled from 6 to 8 years in a more pragmatic approach.  With regard to the fleet, replacements had been made on a like for like basis, however, the Fleet Strategy was being reviewed and time was being taken to ensure that the specification of frontline appliances and specialist equipment was appropriate for both current and future demand.  The Assistant Chief Fire Officer (ACFO) added that the recently completed Operational Response Review needed to inform the fleet strategy.  Consideration of contaminants was also fundamental to both fleet and estates design.  He was confident that pausing was the right thing to do.

The Panel asked further questions on the differentiation between planned and unplanned slippage.  Members welcomed the reassurance given by the ADR/T, however, they stressed the importance of differentiating between being over ambitious, programme management issues and conscious policy changes.  Members asked whether there need to be an improvement in the project management so potential issues were identified at an earlier stage.  The Chairman requested a further briefing note on the Capital Programme slippage and suggested that the matter be brought to the attention of the Scrutiny & Audit Panel.

The ADR/T acknowledged that the programme was ambitious, however this was the first comprehensive Estates Strategy for the Fire Authority and investment in key assets was vital.  Employing additional resources had taken longer than anticipated.  Staff engagement had been a challenge but had been the right course of action and had started a dialogue with staff which exceeded expectations.  The issues with partner projects could not have been foreseen and revised plans for Heathfield and Uckfield Fire Stations were expected to be presented to SLT over the forthcoming months.  The Estates team had grown and a shared service with Sussex Police developed with access to specialist external resources as and when required.  The Estates Strategy Board which was chaired by the ACFO and on which Councillor Peltzer Dunn sat was maintaining an oversight.  Officers were confident that the mechanism was now in place to deliver the Estates Strategy.

The Panel also asked about the apprenticeship levy and expressed their disappointment at the loss of funds.  The Deputy Chief Fire Officer (DCFO) informed Members that a new Workforce Development plan was being produced and apprenticeships would form a core part of plan, for all staff across all levels.  There was a period when the levy was not being utilised enough, however this had now reversed and losses had decreased. 

RESOLVED: That the Panel notes:

(i)            the risks to Revenue Budget and the projected underspend,

(ii)           the risks to the Capital Programme and the projected in year and overall underspends,

(iii)          the use of reserves,

(iv)         the monitoring of savings taken in 2019/20, and

(v)          the current year investments.