Report of the Assistant Director Resources/Treasurer

The ADR/T introduced the report which highlighted the key findings of a high level review undertaken on the Revenue Budget 2020/21 and the 5 year Capital Programme.  Given the current pandemic the ADR/T cautioned that the situation was changing on a weekly basis.  It was noted that there were currently revenue pressures in the region of £800k.  Funding solutions including the use of contingency, general fund reserves, Covid-19 Grant and budget savings had been identified to mitigate the pressures leaving a remaining funding gap of £94k.  Further delays to the Capital Programme, in the region of £1m, were expected due to Covid-19, however, it was too early for a full assessment.  Some expenditure had been reduced as a result of Covid such as fuel, training, travel and subsistence.  Further details on budget pressures were set out in the report.

The ADR/T also highlighted the financial challenges facing the Authority in its planning for 2021/22 which included additional ongoing pressures of £200k in addition to the savings gap identified in Medium Term Financial Plan mid case scenario (£1.2m), a pay award for support staff 0.75% over the 2% budgeted for, a loss of income as a result of reduced council tax and business rate collections due to Covid 19, continued reliance on one–off funding from Government (Pension Grant and Protection Surge Funding) and the impact of recent cases on the Fire Fighter’s Pensions scheme (McCloud / Sargeant and Matthews / O’Brien). 

Discussion was also had over the forthcoming Comprehensive Spending Review (CSR) and the Home Office reform agenda.  The Chief Fire Officer (CFO) informed Members that CSR submissions were being drafted and could be shared with Members.  Briefing sessions for local MPs were also in the process of being arranged.  With regard to the Government review on the role of Police and Crime Commissioners, the CFO added that the National Fire Chiefs Council (NFCC) would be formulating a response to questions posed on fire governance, however, the Fire Authority may want to develop its own submission from a political perspective.  The CFO added that a key aspect to the Home Office reform agenda was for Fire Authorities to show strength in difficult decision making and the ability to instigate appropriate changes.  Members acknowledged the importance of having a robust Integrated Risk Management Plan to ensure that service was in strong position to deal with future challenges and deliver an effective service.  The Panel understood that there would be financial challenges to overcome both locally and for the sector nationwide and that engagement with the Home Office would be key.

RESOLVED: That the Panel noted:

(i)            The one-off and ongoing revenue budget pressures identified

(ii)          the use of contingency to finance one-off pressures

(iii)         the other proposed funding options proposed in the report

(iv)         the slippage identified in the Capital Programme

(v)          the risks to the agreed Savings Programme

(vi)         the correction to the agreed capital financing for 2020/21

(vii)        that officers will identify areas where in year savings can be delivered in 2020/21

(viii)      the emerging scale of the financial challenge for 2021/22 onwards including the impact of Covid 19.