APPENDIX 1
APPENDIX 2
Lancashire Combined Fire Authority
Resources Committee
Meeting to be held on 29 November 2023
(Appendices 1 and 2 refer)
Contact for further information: Steven Brown - Director of Corporate Services
Tel: 01772 866804
Executive Summary
The report sets out the current budget position in respect of the 2023/24 revenue and capital budgets.
Recommendation
The Committee is requested to: · note and endorse the financial position; and · approve additional slippage in the capital programme of £1.566m to 2024/25. |
Revenue Budget
Lancashire Fire and Rescue Service’s 2023/24 revenue budget has been set at £68.493m. The forecast outturn position is £68.888m, an overspend of £0.395m; an overspend of £0.594m on non-pay activities and an underspend of (£0.199m) on pay.
The year-to-date and forecast positions within all departmental budgets are set out in Appendix 1, with major forecast variances of note shown separately in the table below:
|
Area £’m |
Overspend/ (Under spend) |
Reason |
|
Pay |
(0.199) |
The forecast is consistent with the position reported to the Committee in September:
· There is a forecast pressure of £0.140m as a result of the Service meeting its legal responsibilities in relation to the Bear Fulton legal case regarding holiday pay; · Whilst the Emergency Cover Review (ECR) remains on target, there have been some initial timing delays compared to the budget that have resulted in an in year pressure that has been offset through improvement in the management of overtime arrangements; and · Other savings include some vacancies particularly at the training centre of (£0.179m).
|
|
Fleet and technical Services - Non Pay |
0.358 |
The forecast overspend is mainly due to inflationary pressures on the supply of parts and increase in repairs. It is hoped that this pressure will reduce in future years as inflation falls and the older fleet stock is replaced.
|
|
Apprenticeship Levy Funding – Non Pay |
0.300 |
As previously reported the Apprenticeship Levy income for the year is forecast to be lower than budgeted resulting in an annual pressure of approximately £0.300m; this is due to a reduction in the number of recruits meeting the eligibility criteria for funding. On call fire fighters and recruits with significant prior learning do not attract levy funding.
|
|
Training Centre Courses – Non Pay |
0.163 |
Due to vacancies in the Training Centre, as previously reported, the department has had to appoint more associate trainers than budgeted to meet the training needs of the service such Driver Training and specialist training such as swift water rescue as a result of the ECR. This pressure is offset by vacancies and the service is putting in place arrangements to try to increase the number of internal trainers.
|
|
Service Delivery / Heads of Service Delivery – Non Pay
|
0.108 |
As previously reported there is a forecast overspend of £0.108m on protective equipment, including the roll out of wildfire kit and Urban Search And Rescue (USAR) kit.
|
|
Non – DFM – Bank Interest |
(0.302) |
There is a forecast saving on interest earned on cash balances invested.
|
Capital Budget
The Capital Programme for 2023/24 is £11.7m, after allowing for the year end slippage agreed at the last Resources Committee meeting. Spend to date is to date is £3.79m which is predominantly on pumping appliances as set out in Appendix 2.
We have reviewed the current year end forecasts and are currently anticipating an in year spend of £9m. This will lead to total slippage of £2.6m; an additional £1.566m slippage for approval by the Resources Committee. Details of capital projects are outlined in the table with the additional slippage for approval:
|
Area |
Budgeted Items |
|
Operational Vehicles Budget £5.991m Forecast £4.507m Approved Slippage £0.301m Additional Slippage £1.136m |
The budget allows for the remaining stage payments for 10 pumping appliances purchased in previous financial years. In addition, the budget allows for the first stage payments of the 3 pumping appliances for the 2023/24 programme. It also includes two climate change vehicles and three command units. All are on target in 2023/24, except for extended lead time of the smaller climate change vehicle. The following additional items have slipped to 2024/25 due to extended lead times: · 2 Water Towers (£1.027m) due for delivery quarter 1 2024/25; · 2 Prime movers (£0.260m) have slipped pending specification certification from the supplier.
|
|
Other vehicles Budget £1.03m Forecast £0.925m Approved slippage £0.123m
|
This budget allows for the replacement of various operational support vehicle. The supply of 3 rescue team vans have been delayed to 2024/25. |
|
Operational Equipment Budget £1.47m Forecast £1.22m Approved slippage £0.25m
|
As reported in September, this budget allows for equipment purchases including thermal imaging cameras and cutting and extrication equipment 2023/24. Slippage on Ballistic Vest and Helmet PPE will enable exploration and pilot of equipment. |
|
Building Modifications Budget £1.6m Forecast £1.6m
|
This budget includes the continuation of Drill Tower replacements and an upgrade to the Wylfa prop facility. Completion of works is on target. There is a risk works may slip into early 2024/25. |
|
IT systems Budget £1.7m Forecast £1.3m Approved slippage £0.3m Additional Slippage £0.430 |
This budget includes for the upgrade Firewalls and digitisation of fire appliances. Slippage is expected on the following: · The national Emergency Services Mobile Communication Programme (ESMCP) has paused to 2025 (£0.1m); · Upgrade of Asset Management (£0.1m) due to review of interdependencies; · WIFI (£0.135m) can only be completed after the Firewall scheduled in quarter 4 of 2023/24; · Incident ground radios (£0.23m) has slipped in line with helmet communications and the breathing apparatus replacement program; and · RDS Alerters (£0.065m) has slipped due to period of soft market research.
|
Appendix 2 sets out the capital programme and the committed expenditure position against this, as reflected above. The committed costs to date will be met by revenue contributions and usage of capital reserves and capital receipts.
Financial Implications
As outlined in the report
Business Risk Implications
None
Environmental Impact
None
Equality and Diversity Implications
None
Human Resource Implications
None
Local Government (Access to Information) Act 1985
List of background papers
Paper:
Date:
Contact:
Reason for inclusion in Part 2 if appropriate: N/A
APPENDIX 1
APPENDIX 2