Agenda and minutes

Apologies were received from County Councillors Lorraine Beavers and Stuart Morris.

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.

In response to a question raised by County Councillor Pattison regarding whether consultation had taken place with staff regarding the Maternity Policy, what form this had taken and whether any feedback had been received the Director of People and Development confirmed that the consultation had largely taken place with interest groups, the Fire Brigade Union (FBU) and the Fire Officers’ Association before the paper was brought to the Committee.  No changes were made to the policy at the last Authority meeting therefore, further consultation was not specifically required.  Feedback had subsequently been received from the FBU who had raised an issue of the day crewing allowance continuing when pay had ceased; however, this issue was and already had been refused. 

RESOLVED: - That the Minutes of the last meeting held on 7 July 2021 be confirmed as a correct record and signed by the Chairman.

Mr Tom Cousins, Head of Fleet and Engineering Services presented to Members the Fleet Asset Management Plan (FAMP).  This was the fifth Fleet Asset Management Plan which continued to build on a structured approach to the management of operational vehicles, equipment, breathing apparatus and hydrant assets.

The FAMP was key in determining strategic decisions regarding assets and defining how resources were efficiently and effectively utilised.  This would ensure that Lancashire Fire and Rescue Service (LFRS) vehicles and equipment provided a resilient service to meet the changing needs of a modern Fire and Rescue Service and the communities it served.

While the FAMP projected asset replacement over the next 20 years, in reality it set out an improvement plan for the next 3 years.  The plan would be refreshed on a 3-year cycle to ensure it continued to accurately reflect the operating environment.  This approach secured stability in capital and revenue budgets and facilitated the introduction of new technologies through a staged approach.  The FAMP also covered short to medium term business planning improvement objectives.

Running a modern Fleet was a safety critical operation that must ensure employee and public safety. This was achieved through best practice in vehicle inspection, maintenance, operation and procurement. LFRS also ensured compliance to Department of Transport and Driver & Vehicle Standards Agency (DVSA) regulations on construction, use and roadworthiness.

Key projects in the 2021/24 FAMP were:

• Body worn and vehicle CCTV;
• Battery RTC Tools;
• Aerial Appliance provision;
• Replace Command Support Units;
• Breathing Apparatus and Telemetry Equipment;
• A Greener, more environmentally sustainable fleet.

The Head of Fleet and Engineering Services advised that in addition to the above key projects, wildfire, flooding and all-terrain provision was currently being assessed.

Running alongside the FAMP, Fleet and Engineering Services department also held an improvement plan, which focused on four key performance areas:

·         Customer – building stronger working relations and meeting requirements;

·         Financial – achieve efficiency savings and maintain a healthy replacement plan;

·         Systems – continued development of asset management systems;

·         Development / Growth – invest in staff training and development.

The above, in conjunction with the FAMP, ensured that the Fleet and Engineering Services continued to provide the best possible support to Service Delivery.

In response to a question raised by County Councillor Pattison regarding appliance availability due to maintenance issues and particularly the availability of the Stinger vehicle, the Head of Fleet and Engineering Services reassured Members there was reserve fleet provision and a management system that recorded vehicle off road time to manage maintenance and repairs.  He confirmed that in his experience, currently the Stinger vehicle was no more prone to defects than any other appliance.  This perhaps was not the case when the vehicle was first delivered 4 years ago as it was in its development stage; the appliance was now a much more refined product.

In response to a question raised by County Councillor Mein regarding whether fleet maintenance was provided by Lancashire County Council (LCC), the Head of Fleet and Engineering Services confirmed that LCC  ...  view the full minutes text for item 19-20/21

The Director of Corporate Services presented the report.  The current Procurement Strategy covered the period 2018-2021.  This was approved in May 2018 and attached to the report as appendix 1.  It was noted that a new Procurement Strategy would usually be produced for 2022-2025 however, the Government had published a green paper ‘Transforming Public Sector Procurement’ in December last year.  The proposals within the Green Paper were intended to shape the future of public procurement in this country for many years to come.

The Government’s goal was to speed up and simplify procurement processes, place value for money at their heart, and unleash opportunities for small businesses, charities and social enterprises to innovate in public service delivery. The current regimes for awarding public contracts were too restrictive with too much red tape for buyers and suppliers alike, which resulted in attention being focused on the wrong activities rather than value and transparency. It was now felt that a progressive, modern regime was required which could adapt to the fast-moving environment in which business operated. Markets and commercial practice were constantly evolving and the need to ensure that the new regulatory framework could drive a culture of continuous improvement to support more resilient, diverse and innovative supply chains.

The Government proposed to comprehensively streamline and simplify the complex framework of regulations that currently governed public procurement. Rationalising and clarifying the parallel rules in the Public Contracts Regulations 2015, the Utilities Contracts Regulations 2016, the Concession Contracts Regulations 2016 and the Defence and Security Public Contracts Regulations 2011, replacing them all with a single, uniform set of rules for all contract awards. This would be supplemented with sector-specific parts or sections where different rules were required for effective operation or to protect our national interest, for example in the defence or utilities sectors.

The Government’s stated aim was to provide the UK with a modern, fit-for-purpose set of rules, to minimise the bureaucratic burden for contracting authorities and businesses, facilitate innovation and the participation of small and medium sized enterprises and improve the process of challenging decisions in the courts.  If the proposals were implemented, they would have a significant and long-term impact on public sector contracting. 

The consultation closed on 10 March 2021.  It was suggested that reforms were unlikely to be in place before the end of 2021 and some had suggested not until 2022/2023 but at this stage no guidance or outcomes of the consultation had been shared.  Hence until such time as this was received it was proposed to extend the existing Strategy.

County Councillor O’Toole commented that some years ago the North West Fire Forum was set up (which included Greater Manchester, Cheshire, Merseyside, Cumbria and Lancashire Fire and Rescue Authorities).  This worked well for continuity of procurement across the North West with the procurement of inter-changeable equipment.  County Councillor O’Toole queried whether this procurement collaboration continued.  In response, the Director of Corporate Services confirmed that Fire Services in the North West did continue to collaborate.  He  ...  view the full minutes text for item 20-20/21

The Director of Corporate Services presented the report which set out the current budget position in respect of the 2021/22 revenue and capital budgets and performance against savings targets.

Section 31 Grant in respect of Business Rates Relief - update

Members were aware that part of the Authority’s funding came from business rates in the form of a locally retained share and a top-up grant. As reported previously, the 2021/22 revenue budget assumed the receipt of £1.9m S31 grant for additional reliefs in respect of items such as retail, nursery and newspapers, announced prior to the 2021/22 budget setting exercise, to offset the shortfall carried forwards on the business rate collection fund.  The grant amount had been confirmed and was anticipated to be received later in the financial year, most likely in Q4 2021/22, however it was likely to be paid over as part of the reconciliation carried out by central government after the completion of the Business Rates 2020/21 year-end returns submitted by billing authorities, which may affect the actual amount eventually received dependent on the overall reconciliation.  This would be reported to Members in due course.

Local Tax Income Guarantee scheme

The government had announced proposals to support billing authorities by providing an additional grant equivalent to 75% of the shortfall in collection rates, for both Council Tax and Business Rates, during 2020/21.  When the 2021/22 budget was set, billing authorities were unable to reliably estimate the grant due to the Authority, therefore this sum was excluded from the budget setting process, as reported to the Authority. 

The shortfalls were calculated as part of the billing authority collection fund outturn reporting, and £132k was accrued in relation to this.  In early June Ministry for Housing, Communities & Local Government (MHCLG) confirmed that we would receive an ‘on account’ payment of the sum of £74k for Business Rates, being 50% of their estimate of our entitlement under this guarantee scheme.  The corresponding estimate for Council tax was nil.   The final calculated grant was expected to be £160k (£28k higher than accrued) and the outstanding grant sum of £86k would be paid after a reconciliation of the submitted 2020/21 year-end returns.  This was expected to result in an additional £28k income in 2021/22.

Pay awards 2021/22

As previously reported the unbudgeted grey book pay award of 1.5% would cost approx. £450k in 2021/22. The pay award for green book staff had not yet been agreed, but the pay offer had been increased to 1.75%, which would, after allowing for anticipated vacancies, cost approximately £100k more than allowed for in the budget.

Wholetime Staffing

Forecasting early retirements was extremely difficult, due to the uncertainty surrounding changes to pensions. Hence at the time of setting the budget it was highlighted that “actual retirements may vary from this due to the impact of either the transitional pension arrangements or making allowances pensionable, which may increase early leavers leading to a higher vacancy factor”. This had proven to be the case, with a large  ...  view the full minutes text for item 21-20/21

The Director of People and Development presented the report.  As a public body there was a requirement to publish information which demonstrated compliance with the Equality Duty.  As an employer the aim was to recruit and develop a diverse workforce and to ensure that the workforce could work with dignity and respect, protected from any type of prejudice or discrimination. 

The Director of People and Development advised that an Equality Diversity and Inclusion Steering Group had been established which was chaired by the Chief Fire Officer to reflect that equality, diversity and inclusion was across all parts of the Service.

Equality objectives (as set out on page 104 of the agenda pack) were:

Our communities:

·         Support local businesses to reduce the risk of fire and remain compliant within fire safety legislation;

·         Reduce the number and impact of fire and other emergencies to our diverse communities across Lancashire;

·         Develop and deliver a Prevention service targeting our most vulnerable communities.

Our workforce:

·         Promote equality in our workforce policies and workforce practices;

·         Develop our staff to ensure they can respond competently meeting the different needs of our diverse communities.

It was noted that the completion of Equality Impact Assessments (EIA) was no longer a legal requirement however, it was considered EIA was an effective tool in demonstrating how the Service met its legal requirements under the public sector equality duty, identifying the impact of policies and decisions on staff and communities and ensuring that the impact was fully understood and any negative impact mitigated.  The Service ensured that any partnership operated in line with equality principles and associated equality duties.

Members noted other areas of focus related to equality, diversity and inclusion set out in section 7 of the report (which commenced on page 106 of the agenda pack) were: -

Accessibility

Information was made available in a variety of formats using multiple channels to best reach Lancashire’s diverse communities.  Equality and diversity values were promoted in key publications and information sources internally and externally.  Information was provided in printed form and via digital channels including the website.  The website met web content accessibility guidelines and work was ongoing towards compliance with public sector bodies (websites and mobile applications) accessibility regulations 2018.  Key messages were targeted at those who were most at risk.  Positive action campaigns were undertaken when recruiting to encourage women and under-represented groups to apply.  National campaigns and special events were supported (such as: Pride Month, I’m not a Muslim but I will Fast for One Day and International Women’s Day).  Information was also available in alternative formats (large print, additional languages on request and videos were produced with subtitles).  Measures from the British Dyslexia Association’s style guide were also applied to both internal and external material.

Training and Development

The Service had a proactive approach to training and development in relation to equality, diversity and inclusion.  The Service prioritised the development of a strong organisational culture where its values were understood, receiving ‘outstanding’ in its inspection by Her Majesty’s  ...  view the full minutes text for item 22-20/21

The Organisational Development Plan was presented by the Director of People and Development.  The document was a dynamic and evolving plan as more issues were identified or their importance increased or decreased and approaches to address deficiencies were progressed.

Changes as a result of experience would need to be factored into actions taken when fully known and understood as would the developing picture in respect of the apparent deficits in the protection of the built environment impacted on proposals for the Protection activity arising from the implications of the Grenfell incident. Progress would be impacted by sourcing and the availability of funding. However, the plan demonstrated the thrust in respect of organisational development and measures being developed and progressed.

The Organisational Development Plan was part of a suite of documents that informed and guided the Authority’s Human Resources policies.  It set out strategic people priorities, Service STRIVE values (Service, Trust, Respect, Integrity, Valued and Empowered) which were supported by the national Core Code of Ethics for Fire and Rescue Services in England; and organisational development priorities (which included embedding Service values and behaviours and developing capability and resilience of leaders).

RESOLVED: - That the Committee noted the report.

The Director of Corporate Services presented the report.  The Authority currently held £2.0m of debt, incurring annual interest charges of £90k on this. As such the report considered options around early repayment.

The Director of Corporate Services advised that the Authority’s 2021/22 Treasury Management strategy outlined the following position in respect of existing debt.

“The Authority’s debt has arisen as a result of prior years' capital investment decisions. It has not taken any new borrowing out since 2007 as it has been utilising cash balances to pay off debt as it matures, or when deemed appropriate with the authority making early payment of debt. The anticipated holding of debt at 31 March 2021 is £2.0m. All the debt is from the Public Works Loans Board (PWLB) and is all at fixed rates of interest and is repayable on maturity. The table below shows the maturity profile and interest rate applicable on these: -

(Note, this debt was taken out in 2007 when the base rate was 5.75% and when the Authority was earning 5.84% return on its investments.)

Given the high interest rates payable on these loans, relative to current interest rates, we have again reviewed opportunities for debt repayment/restructuring. The level of penalty applicable on early repayment of loans now stands at £1.180m. (As previously reported the level of penalty is dependent upon two factors, the difference between the interest chargeable on the loan and current interest rates, the greater this difference the greater the penalty, and the length to maturity, the greater the remaining time of the loan the greater the penalty. Hence as interest rates increase or as loans get closer to maturity the level of penalty will reduce.)

Outstanding interest payable between now and maturity is £1.407m.

However as highlighted previously, any early repayment means that cash balances available for investment will be reduced and hence interest receivable will also be reduced. The extent of which is dependent upon future interest rates. It is estimated that if interest rate on investments are at 0.7% over the remaining period of the loan then repaying the loans now will be broadly neutral. 

It is also worth noting that the capital budget does allow for additional borrowing within the next 5 years. Current long-term borrowing rates are 1.67% for a 25-year loan and 1.49% for a 50-year loan, both of which exceed the breakeven position noted above. Hence given the penalties it is considered beneficial to retain these loans.”

A further update on this position had now been prepared in line with the resolution of the June Resources Committee.

Total debt remained at £2.0m, incurring £0.090m of interest payments each year. Outstanding interest payable between now and maturity totalled £1.363m. The penalty payable on early repayment now stood at £1.063m.  (It was noted that the penalty changed on a daily  ...  view the full minutes text for item 24-20/21

The Director of Corporate Services presented the report.  Lancashire Fire and Rescue Service (LFRS) supported the implementation of the Modern Slavery Act 2015. The Act consolidated slavery and trafficking offences, introduced tougher penalties and sentencing rules and provided more support for victims.

The Service recognised its responsibilities as an employer and procurer / commissioner of services and was committed to doing all that it could to prevent slavery and human trafficking in corporate activities and to ensuring that supply chains were free from slavery and/or human trafficking.

Modern slavery was a crime and a violation of fundamental human rights. It took various forms, such as slavery, servitude, forced and compulsory labour and human trafficking, all of which had in common the deprivation of a person's liberty by another in order to exploit them for personal or commercial gain. To tackle these crimes, the Modern Slavery Act 2015 was introduced. The Modern Slavery and Human Trafficking Statement, as considered by Members, set out the current position within the Service following the introduction of the Modern Slavery Act 2015. 

It was noted that the Service would support the Act through: i) staff training and education; ii) supporting victim identification; iii) partnership working in collaboration with relevant agencies and groups; and, iv) adopting responsible procurement practices.  

It was also noted that an action plan was provided which stated that the Service would: redesign the online safeguarding package, provide additional training packages relevant to specific roles and continue to develop targeting and delivery of prevention and protection activities through closer working Gangmasters and the Labour Abuse Authority, Police and Local Authorities. 

RESOLVED: - That the Committee approve the Modern Slavery and Human Trafficking Statement for publication.

The next scheduled meeting of the Committee has been agreed for 10:00 hours on 1 December 2021 in Washington Hall, Service Training Centre, Euxton.

Further meetings are:          scheduled for 30 March 2022 and 6 July 2022

                                                proposed for 28 September 2022

The next meeting of the Committee would be held on Wednesday 1 December 2021, at 1000 hours in Washington Hall, Service Training Centre, Euxton.

Further meeting dates were noted for 30 March 2022 and 6 July 2022 and agreed for 28 September 2022.

The Committee 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.

(Paragraph 3)

Members considered a report that provided an update on all contracts for one-off purchases valued in excess of £100,000 and high value procurement projects in excess of £100,000 including: new contract awards, progress of ongoing projects and details of new projects.

RESOLVED:  That the Committee noted the report.