Report of the Assistant Director Resources/Treasurer

The Panel received a report from the Assistant Director Resources/Treasurer (ADR/T) which updated Members on the findings of the month 6 monitoring undertaken on the Revenue and Capital Budget 2021/22 and Capital Programme 2021/22 to 2025/26.

With regard to the Revenue Budget, a net revenue underspend to the sum of £1,000 had been identified which was a favourable variation of £81,000 from the position identified in the last report to the Panel.  This was mainly due to vacancies across the service and the identification of savings within Information Technology Governance offset by overspends in relation to overtime, additional staff allowances, ill health retirements and over budgeting on business rates.  It was noted that most in-year pressures could currently be dealt with by use of contingency, use of reserves or service underspends.  The Capital Budget for 2021/22 was approved by the Fire Authority at £6,105,000 and updated to £6,540,000 including slippage of £364,000 brought forward from 2020/21.  A review of capital projects had identified slippage totalling £2,773,000 (£1,828,000 from Estates/Property and £945,000 from Fleet and Equipment).  Current risks to the Revenue and Capital programme included the impact of Covid-19 on both the Business Rate and Council Tax Collection Funds and pressures in resources relating to Capital projects.  Further detail on these risks were set out in section 3 of the report.

The Panel asked for further clarification on the £250,000 underspend on the flexible crewing pool.  The ADR/T explained that funding had been identified for the implementation of the flexible crewing pool as per the agreed Integrated Risk Management Plan, however there had been delays and the flexible crewing pool was not yet fully established.  The underspend had offset staffing overspend elsewhere in the operational establishment.

Members also asked about the increase in earmarked reserves of £1,579,000 due to the re-profiling of projects linked to P21 funded from the mobilising strategy reserve.  The ADR/T explained that this resulted from spend on the P21 project being re-profiled from 2020/21 to 2021/22 after the 2021/22 budget had been set. 

RESOLVED: That the Panel notes:

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

(ii)            the risks to the Capital Programme,

(iii)          the increased net forecast drawdown from reserves,

(iv)          the grants available and spending plans,

(v)           the monitoring of savings taken in 2021/22; and

(vi)          the current year investments and borrowing;

(vii)         SLT approval of a variation to the capital programme to add an £85,000 scheme for the relocation of the High Volume Pump to Seaford with funding of £85,000 from the corporate contingency.