Agenda and minutes

Standing item.

On behalf of the Authority, the Chairman acknowledged the bravery and commitment of Lancashire Firefighters who were amongst those deployed to Turkey as part of the UKs International Search and Rescue Team following the recent earthquakes in Southern Turkey and neighbouring Syria.  The Chief Fire Officer added that 77 firefighters from across the UK went to Turkey (including 4 dogs) who were deployed really quickly; with 6 of the Firefighters and 2 dogs from Lancashire.  The dogs had been crucial to scent live casualties and the team effected successful rescues. A presentation would be given at a future Authority meeting.

The Chairman presented the Director of Corporate Services / Treasurer to the Authority, Mr Keith Mattinson with a clock in recognition of his long service, dedication and hard work.  The Authority applauded Mr Mattinson and extended their best wishes to him for the future.  In response to a question regarding succession planning from Councillor Hugo, the Chief Fire Officer advised that Members were involved in running the recruitment process last year and Mr Steven Brown would be starting in the role at the end of the month.

The Chairman welcomed Councillor Rick Scott who had replaced Councillor Tony Williams on the Authority from Blackpool Council.  Following Councillor Williams’ departure from the Authority, the Chairman proposed County Councillor Stephen Rigby be appointed as Chairman of Resources Committee.

Resolved: That County Councillor Stephen Rigby be appointed as Chairman of Resources Committee

Apologies were received from County Councillor Beavers.

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.

None received.

Resolved: - That the Minutes of the CFA held on 19 December 2022 be confirmed and signed by the Chairman.

Resolved: That the proceedings of the Audit Committee held on 29 November 2022 be noted and endorsed.

Resolved: That the proceedings of the Resources Committee held on 30 November 2022 be noted and endorsed.

In response to a question from the Chairman of the Authority regarding long-term sickness absence (referred to on page 55 of the agenda pack) the Head of HR advised that there were robust processes in place to manage absence whereby HR Business Partners and managers worked together to review and support people who were unwell.  Absence was reviewed timely with early referral to occupational health as appropriate and staff were encouraged to access the Employer Assistance Programme.  It was noted that long?term absence was being influenced by difficulties accessing NHS appointments and delays for treatment.

Resolved: That the proceedings of the Performance Committee held on 14 December 2022 be noted and endorsed.

The Chairman of the Committee, CC Clarke drew Members attention to the following:

·         Automatic Fire Alarm Attendance Policy 

The Committee had analysed 9?months of data which demonstrated significant reductions in the number of Automatic Fire Alarm attendances and endorsed the Service continue with the roll out of the revised policy across the full 24-hour period;

·         The Committee endorsed the Service re-define its ‘risk based’ inspection programme, to take into consideration national best practice.  Performance requirements would then be more realistic and achievable and would free up much needed capacity;

·         The Authority Chairman had proposed to re-establish a Task and Finish Working Group established some years ago to provide Member engagement in the potential relocation of Service Headquarters.  It was now proposed that a reconstituted Task and Finish Working Group would support both the potential relocation of Service Headquarters and the redevelopment of Preston Fire Station.

Resolved: That the proceedings of the Planning Committee held on 6 February 2023 be noted and endorsed.

The Head of Human Resources presented the report.  In accordance with the provisions of the Localism Act 2011 a pay policy statement for 2023/24 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.

In response to a question raised by the Chairman regarding whether the Service had re-engaged any firefighters after retirement (as referred to on page 106 of the agenda pack) the Head of HR advised that there were no staff at a senior level who had been re-engaged.  Some firefighters were interested in returning (to use an essential skill such as appliance driver) but not fully in an operational role.  In response to a further question raised by the Chairman regarding how re-engagement would impact on an individual’s pension, the Head of HR confirmed that there were rules around abatement.  Should an individual earn over a certain amount of money there would be a tax charge imposed therefore the Service recommended individuals seek independent advice prior to re?engagement; following that it was usual to return either part-time or into a lower grade.

Resolved: - That the Pay Policy Statement be approved.

The Director of Corporate Services / Treasurer advised that the following 4 items on the agenda were linked, with changes in one impacting on the others: i) the Treasury Management Strategy set out investment, borrowing, repayment and how money was set aside to repay borrowing, ii) the Reserves and Balances Policy set out savings and how they were planned to be used over the next 5 years; iii) the Capital Strategy and Budget set out major expenditure for investment within the Service and iv) the Revenue Budget was for the day to day running of the Service.

The Director of Corporate Services / Treasurer presented the report that set out the Treasury Management Policy and Strategy for 2023/24.

Treasury Management Strategy for 2023/24

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 2023/24

In setting the treasury management strategy the: economic position and 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 background

Key factors to consider when assessing the impact on the Strategy were the expectation for economic growth, inflation and the possible impact on interest rates.  CPI inflation was expected to have peaked in the last calendar quarter of 2022 and then fall from early in 2023 partly as a result of previous increases in energy prices dropped out of the annual comparison. The Bank of England forecast that inflation would fall sharply and be below the 2% target, in two years’ time and to fall further below the target in three years’ time.

Arlingclose Forecast

The Bank of England increased Bank Rate by 0.5% to 3.5% in December 2022.  This followed a 0.75% rise in November which was the largest single rate hike since 1989 and the ninth successive rise since December 2021.  ...  view the full minutes text for item 69/22

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, cost associated with maintaining operational cover in the event of Industrial Action etc.

There remained a great deal of uncertainty over long term funding, as a result, the anticipated multi-year settlement had been postponed again.  The Local Government Finance Settlement only covered 2023/24, although the policy statement that accompanied it stated “The core settlement will continue in a similar manner for 2024-25.  The major grants will continue as set out for 2023-24: Revenue Support Grant will continue and be uplifted in line with Baseline Funding Levels”.  Whilst this provided a basis for estimating future funding increases, as set out in the revenue budget paper, it did not provide any certainty.

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 had also been postponed.

The position in terms of pension awards had still not been resolved however, the likelihood of this being significantly higher than budgetary allowance and the likelihood of industrial action had both reduced as a result of the latest pay offer.

Whilst future pension costs remained uncertain, with authorities still awaiting definitive guidance on how to implement changes following the McCloud judgement, and with the next re-valuation of the firefighter pension scheme being due  ...  view the full minutes text for item 70/22

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 2023/24 to 2027/28 and would be updated in May to reflect the effects of the final level of slippage from the current financial year (2022/23).

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.

Vehicles

The Fleet Asset Management plan had been used as a basis to identify the following vehicle replacement programme, which was based on current approved lives:-

The Director of Corporate Services / Treasurer presented the report which set out the draft revenue budget for 2023/24-2027/28 and the resultant council tax implications.

The budget requirement had been re-assessed taking account of known / anticipated changes, incorporating current projections, and forecast vacancy factors based on anticipated recruitment resulting in a total requirement of £68.5m.

It was noted that the Local Government Settlement was not the anticipated multi-year settlement, as it only covered next year. It did however allow for:-

·         a 6.0% increase in funding, and it had been assumed that this increased by a further 5.0% next year and 2.0% in subsequent years;

·         a ‘Service Grant’ of £0.6m;

·         a change to the council tax referendum principles for Fire and Rescue Authorities (FRAs) increasing this to 3.0% but with a one-off increase in 2023/24 to £5 for all FRAs.

It was therefore proposed utilising this flexibility to increase council tax by £5 (6.4%, 10p per week), to £82.27. This would still leave a funding gap of £0.3m, which would be met from a combination of drawdown of reserves and unidentified savings delivered in year.

Looking longer term the key variables remained future funding levels, pay awards, pension costs and the successful implementation of the outcome of the Emergency Cover Review. At the present time funding gaps in future years were being forecast and depending upon the extent of these further efficiencies would look to be delivered and / or reserves utilised to offset these.

Members considered the report in detail.

Summary of Budget Changes

In summary, the lack of a multi-year settlement made longer term planning more difficult as there could be no certainty around future funding forecasts. Offsetting this was the opportunity provided by the £5 council tax flexibility allowed this year.

Raising council tax by the maximum permissible still only increased the overall council tax bill by £5 but would generate £2.3m of funding for the Authority. It was proposed to utilise a combination of drawdown from reserves and further savings to bridge the funding gap in 2023/24 and beyond, the extent of this requirement being dependent upon final pay award agreement and future funding settlements.

The council tax increase / budget gave greater long term funding certainty which would form the basis of future investment requirements which were essential to hit the ‘road to outstanding’ ambition and be the best equipped, best trained and  ...  view the full minutes text for item 72/22

The concept of Member Champions was introduced in December 2007.  A review of the areas of focus for Member Champions was considered at the Authority meeting held in June 2017 where new areas of responsibility were agreed.  The current Member Champions and their areas of responsibility were:

·         Community Safety – Councillor Jean Rigby

·         Equality, Diversity and Inclusion – Councillor Zamir Khan;

·         Health and Wellbeing – County Councillor Andrea Kay

·         Road Safety – County Councillor Ron Woollam

Reports relating to the activity of the Member Champions were provided on a regular basis to the Authority.  This report related to activity for the period up to 31 January 2023.  During this period all had undertaken their respective role in accordance with the defined terms of reference.

Member Champions went through the detail of their reports and expressed thanks to the officers who supported them in their roles. 

In addition: -

Councillor Hugo advised that she had been asked by the Local Government Association Fire Services Management Committee to become an Equalities Advocate and she would welcome a meeting with Councillor Khan in order to present a broader view to that body. 

CC Kay tabled a copy of the Wellness Events Calendar (referred to on page 185 of the agenda pack) in order for Members to provide support.

Resolved: That the Authority noted the report and acknowledged the work of the respective Champions.

The report summarised Lancashire Fire and Rescue Service prosecutions pertaining to fire safety offences and set out a conviction resulting from arson which had progressed via the criminal justice process.

The Assistant Chief Fire Officer drew Members’ attention to an unusual fire in a commercial building which led to loss of life (as detailed on page 189 of the agenda pack).  The incident occurred in Morecambe in October 2019 which led to a very detailed fire safety prosecution case being brought through the court system. 

Fire Protection and Business Support information was included in the report to provide Members with an update on the number of Business Fire Safety Checks undertaken, to demonstrate how the Service was ensuring it kept pace with legislative changes and as CC Clarke had referred to earlier (under consideration of the proceedings of the Planning Committee) the Risk Based Inspection Programme was reflective of all risks.

In relation to fire safety prosecutions, CC Mein queried whether the Service was satisfied with the sentences given as these seemed lenient.  In response, the Assistant Chief Fire Officer advised that the Service presented concise information but the level of sentence was determined by the courts.  The Clerk added that it was complex and there was a lot of case law on sentencing.  There were sentencing guidelines and while there would be wide discretion, sentencing would be within those guidelines based on many things including previous convictions for previous offences, timely guilty plea, severity of incident and whether or not the entry grade for the offence was custodial or not etc. 

Resolved: That the Authority noted and endorsed the report.

The report provided Members with information relating to operational incidents of note over the period 1 December 2022 – 31 January 2023.  Members noted the breadth of operational activity including the frequency of the drone deployment and the importance of the role that it played across the whole spectrum of operational response activity.

Resolved: That the Authority noted 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 24 April 2023 at 1000 hours at Washington Hall Training Centre, Euxton.

The next meeting of the Authority would be held on Monday 24 April 2023 at 10:00am at the Training Centre, Euxton.

The Authority is asked to consider whether, under Section 100A(4) of the Local Government Act 1972, they consider that the public should be excluded from the meeting during consideration of the following items of business on the grounds that there would be a likely disclosure of exempt information as defined in the appropriate paragraph of Part 1 of Schedule 12A to the Local Government Act 1972, indicated under the heading to the item.

Resolved: that the press and members of the public be excluded from the meeting during consideration of the following items of business on the grounds that there would be a likely disclosure of exempt information as defined in the appropriate paragraph of Part 1 of schedule 12A to the Local Government Act 1972, indicated under the heading to the item.

(Paragraphs 3 and 4)

(Paragraphs 3 and 4)

The Assistant Chief Fire Officer provided Members with an update on the current approach to business continuity in the event of industrial action.

Resolved: That the report be noted and action outlined endorsed.