Agenda and minutes

Standing item.

The Chairman, CC Frank De Molfetta welcomed Authority Members and members of the press and public to the virtual committee meeting of the Lancashire Combined Fire Authority.  He advised that in response to the Covid-19 Pandemic the Government had made regulations that enabled virtual meetings.  This meeting was accessible for Committee Members via Microsoft Teams and for members of the press and public via a live webcast on YouTube.

Mr Mark Nolan, Clerk to the Authority conducted a roll call and Authority Members individually confirmed their attendance.

Apologies were received from: Councillor Mohammed Khan and County Councillor Liz Oades.

Members are asked to consider any pecuniary and non-pecuniary interests they may have to disclose to the meeting in relation to matters under consideration on the Agenda.

A personal interest was declared by County Councillor M. Pattison outside the meeting as an employee for Ageconsulting who supported the Authority’s Champion responsible for older people.

The Clerk and Monitoring Officer to the Authority notes that this is recorded by Councillor Pattison on the Member’s Register of Interests and is satisfied that for the purposes of the Authority Meeting there is no conflict of interest.

RESOLVED: - That the Minutes of the CFA held on 14 December 2020 be confirmed and signed by the Chairman.

RESOLVED: - That the proceedings of the Performance Committee held on 16 December 2020 be noted and endorsed.

The Assistant Chief Fire Officer presented the report.  Her Majesty’s Inspectorate of Constabulary and Fire and Rescue Services (HMICFRS) completed a Thematic Inspection of Lancashire Fire and Rescue Service (LFRS) in September 2020. On 22 January 2021, the thematic report as now considered by Members was released alongside a covering national report which summarised the findings across the sector. This was the first of three reports expected from HMICFRS in the first quarter of 2021. The second report was HMICFRS findings of the phase 1 Inquiry into Grenfell Tower which had now been received and the third was the annual State of Fire and Rescue report, due March 2021.

Lancashire Fire and Rescue Service (LFRS) received a positive inspection from HMICFRS.  The inspection was a light touch and looked at how the Service had delivered its functions safely and how it worked for the greater good of the community alongside partners.  The report noted how prevention and protection work continued, albeit in a modified capacity and how the Service worked with its partners in the Local Resilience Forum (LRF) providing structure, support and logistics.  LFRS had successfully engaged with unions such as the Fire Brigade Union and Unison and was able to put in place effective plans in line with requests from partners in the LRF, many of which came under the tripartite agreement. LFRS was also praised for wellbeing support to staff which was supported by all levels of management and the ability to communicate with staff at all levels using a variety of innovative methods.

LFRS was graded ‘outstanding’ in the round 1 inspections for culture and values.  This further positive result arising from the Thematic Inspection would contribute to grading under the round 2 inspection.  Based on latest information available, it was expected that the outcome report from LFRS’ inspection would be published in summer 2022 and tranche three reports in winter 2022, followed by the third State of Fire and Rescue Report in 2023.

In response to a request from County Councillor Pattison regarding how the Service identified the most vulnerable, the Assistant Chief Fire Officer advised that the Service worked on a day to day basis with the local authorities as key referral partners into the Service for vulnerable people at risk from fire; this was the basis of the circa 20,000 safe and well visits undertaken per year.  In addition, the 3 upper tier authorities also had arrangements for the Service to refer a vulnerable person back to them.  At the start of the pandemic last year, under the tripartite arrangements LFRS staff also visited 5,000 clinically vulnerable people to ensure they had access to necessities (medicines and food etc) which was hugely successful and remained ongoing.  He confirmed that the Service was still meeting critical needs and whilst a covid secure risk assessment applied, where the risk from fire and harm was significant a visit was made by the Service.

The Assistant Chief Fire Officer advised anyone who had concerns about a member  ...  view the full minutes text for item 120/19

The Director of People and Development presented the report.  In accordance with the provisions of the Localism Act 2011 a pay policy statement for 2021/22 was considered by Members. 

The pay policy published data on senior salaries and the structure of the workforce and it demonstrated the principles of transparency.

The pay policy statement set out the Authority’s policies for the financial year relating to: -

-           The remuneration of its chief officers;

-           The remuneration of its lowest paid employees;

-           The relationship between the remuneration of its chief officers and that of other employees who were not chief officers.

The statement included: -

-           The level and elements of remuneration for each chief officer;

-           Remuneration range for chief officers on recruitment;

-           Methodology for increases and additions to remuneration for each chief officer;

-           The use of performance-related pay for chief officers;

-           The use of bonuses for chief officers;

-           The approach to the payment of chief officers on their ceasing to hold office under, or be employed by, the authority, and

-           The publication of and access to information relating to the remuneration of chief officers.

It also included the Authority’s policies for the financial year relating to other terms and conditions applying to its chief officers.

RESOLVED: - That the Pay Policy Statement be approved.

The Director of Corporate Services / Treasurer presented the report that set out the Treasury Management Policy and Strategy for 2021/22.

Statutory Requirements

The Local Government Act 2003 (the Act) and supporting Regulations required the Authority to “have regard to” the Chartered Institute of Public Finance and Accountancy (CIPFA) Prudential Code and the CIPFA Treasury Management Code of Practice to set Prudential and Treasury Indicators for the next three years to ensure that the Authority’s capital investment plans were affordable, prudent and sustainable.  

This report fulfilled the Authority’s legal obligation under the Local Government Act 2003 to have regard to both the CIPFA Code and the Ministry of Housing, Communities and Local Government (MHCLG) Guidance.

Treasury Management Strategy for 2021/22

The Strategy Statement had been prepared in accordance with the CIPFA Treasury Management Code of Practice.  Accordingly, the Lancashire Combined Fire Authority's Treasury Management Strategy would be approved by the full Authority, and there would also be a mid-year and a year-end outturn report presented to the Resources Committee. In addition, there would be monitoring and review reports to Members in the event of any changes to Treasury Management policies or practices.  The aim of these reporting arrangements was to ensure that those with ultimate responsibility for the treasury management function appreciated fully the implications of treasury management policies and activities, and that those implementing policies and executing transactions had properly fulfilled their responsibilities with regard to delegation and reporting.

The Authority had adopted reporting arrangements in accordance with the requirements of the Code as set out in the report.

The Treasury Management Strategy covered the following aspects of the Treasury Management function: -

•        Prudential Indicators which would provide a controlling framework for the capital expenditure and treasury management activities of the Authority;

•        Current Long-term debt and investments;

•        Prospects for interest rates;

•        The Borrowing Strategy;

•        The Investment Strategy;

•        Policy on borrowing in advance of need.

Setting the Treasury Management Strategy for 2021/22

In setting the treasury management strategy the: economic forecasts, interest rate forecasts, the current structure of the investment and debt portfolio and the future capital programme and underlying cash forecasts were considered.

Economic Context

The impact on the UK from coronavirus, lockdown measures, the rollout of vaccines, as well as the new trading arrangements with the European Union (EU), would remain major influences on the Authority’s treasury management strategy for 2021/22.

The Bank of England (BoE) maintained Bank Rate at 0.10% in December 2020 and Quantitative Easing programme at £895 billion having extended it by £150 billion in the previous month. The BoE also forecast the economy would now take until Q1 2022 to reach its pre-pandemic level rather than the end of 2021 as previously forecast.

UK Consumer Price Inflation (CPI) for November 2020 registered 0.3% year on year, down from 0.7% in the previous month.

Interest Rate Forecast and Prospects for Market Liquidity

The treasury management consultant Arlingclose was forecasting that BoE Bank Rate would remain at 0.1% until at  ...  view the full minutes text for item 122/19

The Director of Corporate Services / Treasurer presented the report.  The Fire Authority held reserves to meet potential future expenditure requirements. The reserves policy was based on guidance issued by the Chartered Institute of Public Finance and Accountancy (CIPFA). It explained the difference between general reserves (those held to meet unforeseen circumstances), earmarked reserves (those held for a specific purpose) and provisions (where a liability existed but the extent and/or timing of this was uncertain). In addition, the policy identified how the Authority determined the appropriate level of reserves and what these were. The policy confirmed that the level of, and the appropriateness of reserves would be reported on as part of the annual budget setting process and as part of the year end accounting process.

Review of Level of Reserves

In determining the appropriate level of general reserves required by the Authority, the Treasurer was required to form a professional judgement on this, taking account of the strategic, operational and financial risk facing the Authority.  This was completed based on guidance issued by CIPFA, and included an assessment of the financial assumptions underpinning the budget, the adequacy of insurance arrangements and consideration of the Authority’s financial management arrangements. In addition, the assessment should focus on both medium and long-term requirements, taking account of the Medium-Term Financial Strategy (as set out in the draft budget report elsewhere on this agenda).

For Lancashire Combined Fire Authority this covered issues such as: uncertainty surrounding future funding settlements and the potential impact of this on the revenue and capital budget; uncertainty surrounding future pay awards and inflation rates; the impact of changes to pension schemes and the remedy for the McCloud judgement; demand led pressures; risk of default associated with investments as set out in the Treasury Management Strategy, cost associated with maintaining operational cover in the event of Industrial Action etc.

Funding for 2021/22 was subject to a one-year settlement, with a further four-year Spending Review planned for 2022/23.  Based on December’s Local Government Finance Settlement, the Authority would receive a 0.2% inflationary increase for 2021/22.

There was greater degree of uncertainty over long term funding than in recent years as the impact of both Brexit and the Pandemic on public finances and the national economy were still unknown. Furthermore, the outcome of the fair funding review of relative needs and resources and the Government intention to move to greater retention of Business Rates would take effect over the next Spending Review period.

As such the Treasurer considered it prudent to increase the minimum target reserves level at £3.5m, 6% of the 2021/22 net revenue budget, reflecting the increasing level of uncertainty. This was slightly higher than the 5% threshold identified by the Home Office above which the Authority was required to justify why it held the level of reserves, reflecting the increasing uncertainty about future funding, pension costs and pay awards.

Should reserves fall below this minimum level the following financial year's budget would contain options for increasing reserves back up  ...  view the full minutes text for item 123/19

The Director of Corporate Services / Treasurer presented the report.  The Authority’s capital strategy was designed to ensure that the Authority’s capital investment:

·         assisted in delivering the corporate objectives;

·         provided the framework for capital funding and expenditure decisions, ensuring that capital investment was in line with priorities identified in asset management plans;

·         ensured statutory requirements were met, i.e. Health and Safety issues;

·         supported the Medium-Term Financial Strategy by ensuring all capital investment decisions considered the future impact on revenue budgets;

·         demonstrated value for money in ensuring the Authority’s assets were enhanced/preserved;

·         described the sources of capital funding available for the medium term and how these might be used to achieve a prudent and sustainable capital programme.

Managing capital expenditure

The Capital Programme was prepared annually through the budget setting process, and was reported to the Authority for approval each February.  The programme set out the capital projects taking place in the financial years 2021/22 to 2025/26, and would be updated in May to reflect the effects of the final level of slippage from the current financial year (2020/21).

The majority of projects originated from approved asset management plans, subject to assessments of ongoing requirements.  Bids for new capital projects were evaluated and prioritised by Executive Board prior to seeking Authority approval.

A budget manager was responsible for the effective financial control and monitoring of their elements of the capital programme.  Quarterly returns were submitted to the Director of Corporate Services on progress to date and estimated final costs.  Any variations were dealt with in accordance with the Financial Regulations (Section 4.71).  Where expenditure was required or anticipated which had not been included in the capital programme, a revision to the Capital Programme must be approved by Resources Committee before that spending could proceed.

Proposed Capital Budget

Capital expenditure was expenditure on major assets such as new buildings, significant building modifications and major pieces of equipment/vehicles.

The Service had developed asset management plans which assisted in identifying the long-term capital requirements. These plans, together with the operational equipment register had been used to assist in identifying total requirements and the relevant priorities.

A summary of all capital requirements was considered by Members:

Vehicles

The Fleet Asset Management plan had been used as a basis to identify the vehicle replacement programme as detailed in the report.  This was a very large programme and hence some slippage may occur.

It was noted that Lancashire Fire & Rescue Service (LFRS) currently had several vehicles provided and maintained by Communities and Local Government (CLG) under New Dimensions (5 Prime Movers and 1 Incident Response Units), which under LFRS replacement schedules would be due for replacement during the period of the programme.  However, it was understood  ...  view the full minutes text for item 124/19

The Director of Corporate Services / Treasurer presented the report which set out the draft revenue budget for 2021/22-2025/26 and the resultant council tax implications.

The budget requirement had been re-assessed taking account of known/anticipated changes, incorporating current year-end forecast projections, and forecast vacancy factors based on anticipated recruitment. The most significant unknowns were: -

·         Future pay awards, it had been assumed a freeze in 21/22 and 2% each subsequent year;

·         What impact the McCloud judgement would have on the budget, such as increased employer contributions, transfer of personnel between schemes, retirement profiles and hence vacancy factors, whether a new pension scheme would be introduced and if so what contribution rates would be set. None of these changes had been factored into the budget;

·         Section 31 Grant in respect of the additional pension costs had been confirmed for 21/22 and would be incorporated into the subsequent Spending Review, and it had therefore been assumed this would continue throughout the Medium-Term Financial Strategy.

The draft Local Government Settlement showed funding increasing by 0.19%. Until such time as a future Spending Review was announced there was no indications of future funding levels, as such the draft budget allowed for a funding increase of 1.5% each year.

Both the council tax base and collection fund, and the business rates collection fund had all been affected by the pandemic: -

·         The council tax base had fallen by 0.25%, predominantly due to an increase in the Local Council Tax Support Scheme. Hence the Government had allocated additional grant of £0.8m to offset the short-term reduction in the tax base;

·         The council tax collection fund was £0.1m in deficit;

·         The business rate collection fund was £1.9m in deficit, but this was offset by anticipated additional section 31 grant in respect of new in-year rate reliefs agreed by the Government in response to the pandemic’s impact on businesses;

·         To offset both the collection fund deficits the Government was allowing any relevant in-year deficits to be spread over 3 years, thus smoothing the impact, and had agreed to provide additional grant equivalent to 75% of the relevant reduction in specific elements of the collection fund deficits. However as billing authorities had not yet calculated this it had been excluded from our estimates.

In terms of council tax, the referendum limit had been maintained at 2%.

Overall the following year’s budget showed a funding shortfall of approx. £0.3m, assuming council tax was increased by 2%.

Looking longer term the key variables remained pay awards, pension costs and funding. There was an increase in the funding gap as no allowance had been made for the Local Council Tax Support Scheme continuing, and hence the estimated funding gap increased to approx. £1m.

However, any pay award in 21/22 or further increases in pension costs would add in further financial pressures, as would a reduction in funding as part of the next Spending Review. As such additional scenarios were presented showing the potential impact of these. As always, the longer the forecast  ...  view the full minutes text for item 125/19

The Clerk and Monitoring Officer to the Authority presented the report following a review undertaken of various constitutional and procedural governance policies and the corresponding Constitutional and Procedural Standing Orders to bring them in line with changes to legislation, to promote continuing best practice and to sustain and support the current needs of the Authority.

Of the policies reviewed by the Clerk, all but one had undergone minor amendments:

1.    Code of Conduct for Fire Authority Members;

2.    The Role of Members and Generic Member Champions Role Description;

3.    Members’ Allowance Scheme

4.    Member / Officer Relations Protocol;

5.    Constitutional and Procedural Standing Orders

The only significant change related to the current Members’ Code of Conduct following the publication of the Evans Report and a draft Model Code of Conduct by the Local Government Association.    The Clerk advised that the Model Code was not as far reaching as the Evans Committee recommendations but remained consistent with the current Authority Code of Conduct, with some relevant updates.

Members considered the reviewed policies in detail.

RESOLVED: - That the proposed changes as now presented be endorsed as amendments to the Authority’s policies and to its corresponding Constitutional and Procedural Standing Orders.

In response to Member questions and discussions at the last meeting (resolution 104/19 refers) a report was presented by the Deputy Chief Fire Officer in relation to person-centred Home Fire Safety Checks (HFSC) and the overall effectiveness of the HFSC, Safe and Well visits delivered by the Service.

Members noted that a ‘person-centred approach’ placed the Service recipient at the centre of the offer and ensured they were treated as a person first.

Lancashire Fire and Rescue Service (LFRS) had a number of prevention activities and campaigns which had been developed around this personalised approach by focussing on the importance of well-informed risk assessments, dignity, choice and close partnership working.

The HFSC and Safe and Well visit delivered a bespoke, personalised fire risk assessment, which was tailored towards individual need and, by working with partners for inward and onward referrals, ensured resources were focussed on, and tailored to, high risk and vulnerable individuals.

Fire and Rescue Services in the UK have a statutory duty to prevent fires and considerable effort and resources had been focussed on reducing risk using a variety of prevention activities.  LFRS’ largest prevention offer was the HFSC which assessed risk in the home and enabled specific fire safety advice and equipment to be provided to meet the needs of the individual.

Historically the HFSC was target driven where success tended to equate to a high number of checks being carried out.  As time progressed it was recognised that targeting at such a wide geographic level was becoming increasingly inefficient and a shift occurred towards targeting the individual’s presenting greatest risk by suing lifestyle and societal factors.

In 2015 the Chief Fire Officers Association, now the National Fire Chiefs Council, together with the Local Government Association, Public Health England and Age UK produced a joint consensus statement setting out their intention to collaborate and strengthen efforts to tackle a range of shared health risks.  The aim of this was to improve safety and quality of life thereby reducing pressures on the NHS.

To address this LFRS shaped the transition from a HFSC to a new co-designed, more holistic visit, centred on the person/family.  This was the Safe and Well visit which now formed part of the complete HFSC Service.

The Safe and Well visit included additional questions relating to seven areas which were selected not only because they linked to the types of health risks partners were seeking to address, but also because they were inexorably linked to fire risk. These were:

1.    Falls prevention;

2.    Social isolation;

3.    Living with dementia;

4.    Diabetes;

5.    Healthy homes/ winter pressures;

6.    Home security/ arson vulnerability;

7.    Mental health.

If appropriate and with the person’s consent, a referral could be made to the appropriate service/organisation to access further support (and reduce risk). The Service recognised the benefit of individuals making their own decisions and being involved with their fire risk assessment so that they were fully engaged with the process.

The opportunity for Fire and Rescue Services and strategic  ...  view the full minutes text for item 127/19

The Deputy Chief Fire Officer presented the report which summarised fire safety prosecutions and arson incidents (where evidence had been provided by Fire Investigators into the Criminal Justice system) where court proceedings had progressed to trial and sentencing. 

Fire protection and business support information was provided in relation to the building risk review work to audit and assess all Lancashire's 72 residential high-rise premises over 18m.  The Service was currently ahead of schedule having completed 39 inspections.  LFRS aimed to have all the audits completed by June in recognition that the provision of technical reports by building owners and managers could be a lengthy process.  Currently Lancashire had 6 premises with interim measures to the presence of non-compliant cladding and a further 3 were due to compartmentation issues.

It was also noted that the residential care sector was receiving ongoing fire safety business support in the form of a 7-minute briefing to all Lancashire Care and Nursing Home providers which had been produced in conjunction with the Lancashire Safeguarding Adults Board.  In addition, Fire Protection staff were delivering fire safety talks to providers via online webinars.

County Councillor Shedwick expressed his satisfaction for the robust approach the Service took. 

Councillor Williams noted the high proportion of arson incidents in Blackpool.  He commented that this work was very serious and it did cost lives.  The work the Service was doing was excellent and something to be proud of.

RESOLVED: - That the Authority noted and endorsed the report.

The Chief Fire Officer advised that for the past few months the Service had focussed its efforts to support the local NHS vaccination programme with support garnered from the Home Office and Home Secretary to achieve the approach made.   Since 15 December 2020 LFRS had supported vaccination centres as soon as they opened; initially this was 22 / 23 vaccination sites across GP surgeries and latterly clinics and now mass vaccination centres. 

The Service was now mainly supporting just the mass vaccination centres including the two new centres that went live that week at Preston and Burney. This meant that so far LFRS had supported around 80,000 people including the direct administration of 8,000 around vaccines by LFRS staff from all different parts of the organisation.

Wonderful stories had been received from people who had encountered LFRS staff while attending the vaccination centres and staff had found being able to support others during this time to be inspiring, memorable and emotive.  LFRS as the first Service to do this had led to other Fire and Rescue Services following our lead.  The current position across the country was that 1 in 60 vaccinations was being delivered by a Fire and Rescue Service.

The Fire Authority unanimously requested that their pride and appreciation be put on record and conveyed to staff who were involved in this tremendous achievement to make the people of Lancashire safer.

The report presented by the Deputy Chief Fire Officer included information for the 2 Unitary and 12 District Authorities relating to Fire Safety Initiatives and Fires and Incidents of particular interest during the period December 2020 – January 2021.

The Deputy Chief Fire Officer highlighted that while efforts were focussed on the response to the pandemic, LFRS had also continued to deliver its prevention agenda on a risk assessed basis (as outlined in 1.5 of the report) as well as attending a number of significant incidents (outlined in 1.7 of the report).

County Councillor Eaton thanked the firefighters for their professional action when dealing with the Birtwistle Mill incident in Haslingden.  He had received a number of calls from constituents where some residents had to be relocated for their safety.

RESOLVED: - That the Authority noted and endorsed the report.

Standing item.

The Monitoring Officer confirmed that there had been no complaints since the last meeting.

RESOLVED: - That the current position be noted.

The next meeting of the Authority will be held on Monday 26 April 2021 at 1000 hours – venue to be confirmed.

The next meeting of the Authority would be held on Monday 26 April 2021 at 10:00am at – venue to be agreed.