Agenda item

The Commissioner introduced his report which set out the proposed budget and precept proposals for the Fire and Rescue Authority for 2024/25.

The Commissioners s151, Chief Finance Officer gave a short presentation which was considered along with the Fire Revenue Budget Report (including the Medium Term Financial Strategy (MTFS) and Precept).

It was explained that the total budget requirement for the service was £50.065m and including part fund the balance from Council Tax funding of £31.746m and a proposed increase of 2.99% (£2.52) per annum (£86.77 pa per Band D property).

The Panel also considered the following documents:

·               The Capital Strategy and Capital Programme Report.

·               The Reserves Strategy

·               The Treasury Management Strategy.

The results of the Commissioners consultation were included in the report.

During the meeting and discussion, the following information was shared in addition to that in the report:

·            The Commissioner informed the Panel that at the present time, no transformation savings were needed.  He felt that the budget was in a healthy and secure place.

·            Investment was needed in essential maintenance such as new vehicles.

·            There was still a level of uncertainty regarding pay costs, inflation, pensions and a further single year settlement which made planning longer term challenging. 

·            The service had delivered savings in 2023/24 and along with the additional s31 grant and a higher rate of interest received on the cash which the service held, had contributed to the need to use less reserves in 2024/25.

·            It was noted that there was an assumption to increase the precept in 2025/26 by a further 2.99% and then revert back to the lower rate of 1.99%.

·            The additional funding which had been announced on 24 January (listed in the executive summary) was noted.

·            Risks were listed as pay awards; cost increases; pensions (employer contributions); and the funding guarantee. 

·            The main points in the Capital Programme and Reserves Strategy were highlighted along with the investment proposals for 2024/25.  These were listed in the report.

·            The Commissioner felt that Industrial relations were very positive locally.

·            The Capital Programme was now on track but had been delayed and faced challenges due to events such as Covid, Brexit and product availability. Delivery of, for example, the ariel ladder platforms and other appliances as part of the Capital programme were due soon and good progress was now being made.  The Commissioner felt that more may need to be done in the technology area in order to maintain service and stability in future years. 

·            The Commissioner sent his condolences to Wayne Browns (West Midlands Chief Fire Officer) family and friends and colleges at the Fire Service.

·            A restructure of the Estates Team had taken place and projects around shared estates would be progressing.

·            The Commissioner was confident that the finances available would enable the pace of change to continue.

·            The budget included assumptions of pay increases of 5%.  An agreement above that would put pressure on future budgets, but there was a reserves strategy to deal with such events if needed.

·            Staff vacancies had been reviewed.  On call staff was an area which always carried vacancies and was always recruiting.

·            Workforce diversity had been discussed at the recent Commissioner/ Chief Fire Officer performance meetings.  COMMISSIONER’S PUBLIC PERFORMANCE MEETING STAFFORDSHIRE FIRE & RESCUE SERVICE - Tuesday 14 November 2023, 1:00pm - Staffordshire County Webcasting (public-i.tv)

·            The Minimum Revenue Provision (MRP) was the provision of debt repayment which had historically been set at 4%.  It was now set on an asset method basis to ensure that the amount was repaid during the life span of the equipment that the amount had been borrowed to purchase.

·            In the Risk assessment of general reserves document, there was a provision of £550k for ‘insurance loss data breach’.  It was felt that if actions were taken to prevent a breach, then the reserve wouldn’t be required.

·            Council tax surpluses for each council, showed considerable differences.  It was explained that this reflected individual councils’ policy and collection rates.  The Commissioner would ask for detail but felt that a consistent approach across the authorities would be fairer for residents.

The Panel adjourned to consider their response to the Commissioners budget and precept proposals.  Upon reconvening, the Panel unanimously agreed:

Resolved: 1

a)     The total 2024/25 net revenue budget requirement of £50.065m, including the council tax requirement for 2024/25 of £31.746m before collection fund surplus/deficits, be noted.

b)     That the funding for 2024/25 is based upon the provisional Local Government Finance Settlement, and includes the estimated business rates information for the nine billing authorities, be noted.

c)      That the proposed budget and Precept increase of 2.99% (£2.52 per annum equivalent to 4.8p per week, increasing the council tax to £86.77 for a Band D property be supported and the Commissioner be notified accordingly.

d)     Council Tax base increase to 365,868 properties equivalent to an increase of 1.5% and the Council Tax collection fund delivering a surplus of £401k be noted.

e)     The MTFS summary financials and MTFS assumptions be noted.

f)      The MTFS balanced position for 2024/25 (£0.1m) and 2025/26 (£0.4m) be noted.

g)     The proposed three year Capital Investment Programme be noted.

h)     The business rates for 2024/25 based on the Provisional Local Government Finance Settlement be noted.  This would be adjusted within the Earmarked Business Rates adjustment reserve when compared to the actual Non-Domestic Rates Income Returns (NNDR returns) from the nine local billing authorities.

i)       That the outcome of the Staffordshire Commissioner’s budget consultation be noted.

j)      The delegation to the S151 Officer for the Staffordshire Commissioner Fire and Rescue Authority, to make any necessary adjustments to the budget as a result of late changes to central government funding (including changes due to the final funding settlement being announced) via an appropriation to or from the general fund reserve be noted.

k)     That the proposed fees and charges for 2023/24 be noted.

l)      That the Statement from the S151 Officer for the Staffordshire Commissioner Fire and Rescue Authority on the robustness of the Budget and adequacy of the proposed financial reserves be noted.

2.  Commented that more data would have been useful to show how the risk assessment and general reserves for 2024/25 (Appendix 3) had been arrived at.  This could have included any mitigating actions.