Report of the Assistant Director Resources/Treasurer

The Panel considered the report of the Assistant Director Resources/Treasurer (ADR/T) on the 2022/23 Revenue Budget and the Capital Programme 2022/23 to 2026/27.  This was the first report to Members for the 2022/23 financial year.  Whilst a full forecast had not been undertaken at P2 this report identified emerging risks and pressures in relation to the 2022/23 revenue and capital budgets.  At this early stage it was difficult to give a definitive forecast but based on current information the Authority could face net unfunded pressures of between £1.005m and £2.473m.  Pressures on both pay and prices were outside of the Authority’s control and the former might not crystalise until later in the year once pay settlements were agreed.  The situation would be regularly monitored and reported to both SLT and the Fire Authority throughout the year. 

The ADR/T explained that there were both risks and opportunities.  The potential impacts of pay awards were being assessed along with the pressures from last year’s budget and inflation.  This assessment also involved considering contingency and unallocated reserves. 

Members queried whether there was money being set aside to deal with the likely future increase in wildfires.  The Chief Fire Officer (CFO) responded that the country had had the hottest and the wettest extremes of weather over the last decade and that this was a matter of national resilience.  Locally the Service had coped with the recent wildfires in its area and had enough additional capacity to offer assistance to neighbouring Services.  The CFO added that there was some concern that this matter had not been referenced at all within the White Paper on Fire Reforms and that the NFCC had suggested that there was a need for early dialogue with the fire minister on this. 

Members queried whether the savings figures set out in the report, or the Capital Programme plans could still be met as planned.  The ADR/T responded that the delivery of savings was being closely monitored, but as the Service had been delivering savings since 2010 it was becoming increasingly challenging.  Savings may have been reprofiled, SLT would manage and monitor these through the Medium Term Financial Plan (MTFP), they would also look for alternative savings.  The Capital Strategy had experienced further delays to Fleet and Estates projects due to the worldwide supply chain issues, and tenders were coming in significantly higher than had been budgeted for.  Future procurement would be adjusted using the lessons learned so far.  There would be delays, but officers were working hard on the delivery timeline.

The Members queried the impacts on the Service of being over establishment with Firefighters.  The ADR/T explained that there were a number of ways in which this was impacting the Service.  It was over-establishment due to a recruitment campaign based on the age profile of the workforce and the anticipated high number of retirements.  These individuals had not retired as expected due to national pension issues.  The Service was working hard to manage this in a positive way, including less overtime etc.  There was a risk that when the national pension issues were resolved all these retirees would leave at the same time, but the situation was constantly under review and being managed as best as possible. 

RESOLVED – The Policy & Resources Panel agreed to:

      i.        note the current assessment of risk facing the Authority in 2022/23; and

     ii.        approve the proposed changes to the Engineering capital programme