Agenda and minutes

Apologies were received from County Councillors L Beavers and B Yates.

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 last meeting held on 28 September 2022 be confirmed as a correct record and signed by the Chairman.

The Director of Corporate Services advised that this report set out the current budget position in respect of the 2022/23 revenue and capital budgets. 

Revenue Budget

The overall position at the end of September was an overspend of £0.5m, largely as a result of price increases associated with energy, fuel and property maintenance costs. 

The year-to-date positions within individual departments were set out in the report with major variances relating to non-pay spends and variances on the pay budget being shown separately in the table below: -

In accordance with the CIPFA Treasury Management Code of Practice and to strengthen Members’ oversight of the Authority’s treasury management activities, the Resources Committee received a treasury management mid-year report and a final outturn report. Reports on treasury activity were discussed on a quarterly basis with Lancashire County Council Treasury Management Team and the Authority’s Director of Corporate Services and the content of these reports was used as a basis for this report to the Committee.

Economic Overview

The economic backdrop during the April to September period continued to be characterised by ongoing high inflation and its impact on consumers’ cost of living and the expectation of low growth. There was no imminent end in sight to the Russia-Ukraine hostilities and its associated impact on the supply chain, and China’s zero-Covid policy. Subsequently, UK inflation remained extremely high. Annual headline CPI hit 10.1% in July, the highest rate for 40 years, before falling modestly to 9.9% in August. RPI registered 12.3% in both July and August.

To combat inflation the Bank of England increased the official Bank Rate to 2.25% over the period. From 0.75% in March, the Monetary Policy Committee (MPC) pushed through rises of 0.25% in each of the following two MPC meetings, before hiking by 0.50% in August and again in September. Current expectations were that the Bank Rate would continue to rise.

Over the period the 5-year UK benchmark gilt yield rose from 1.41% to 4.40%, the 10-year gilt yield rose from 1.61% to 4.15%, the 20-year yield from 1.82% to 4.13% and the 50-year yield from 1.56% to 3.25%.

The Sterling Overnight Rate (SONIA) averaged 1.22% over the period. SONIA is calculated by the Bank of England based on  actual transactions reflects the average of the interest rates that banks pay to borrow sterling overnight from other financial institutions and other institutional investors.

A table in the report, now considered by Members showed the latest forecast for interest rates from Arlingclose.

Inflation pressures facing the UK were being faced by countries throughout the world. In the US inflation hit 9.1% in June, although there was some slight easing in July and August to 8.5% and 8.3% respectively. The Federal Reserve continued its fight against inflation over the period with a 0.5% hike in May followed by three increases of 0.75% in June, July and September, taking policy rates to a range of 3% - 3.25%.

Treasury Management position and Policy

The underlying need to borrow for capital purposes was measured by the Capital Financing Requirement (CFR), while usable reserves and working capital were the underlying resources available for investment. The treasury management activity was influenced both by the position at the beginning of the year and the plans in year. The position at the start of the financial year was summarised in the report indicating that the level of loans was above the borrowing requirement.  This was the result of the Authority adopting a policy of setting aside additional Minimum Revenue Provision (MRP) in  ...  view the full minutes text for item 31/22

The Deputy Chief Fire Officer presented the report. 

In March 2021, the National Fire Chiefs Council (NFCC) published a position statement entitled “Rescues of submerged casualties” which included the following:

“The HSE have indicated that not preparing for a foreseeable risk, including rescues of submerged casualties, is unacceptable. Fire and rescue services may face action if they are found to be exposing their staff to a situation that involves an intervention to save a submerged casualty. Operational discretion is not seen as applicable in circumstances that require actions not supported by legislation, policy and procedure, when there is evidence to support this is foreseeable.”

NFCC position: “Unless services are able to address the identified gap in the required resources, equipment, training, and the actions that are required to remain compliant with legislation, when attending an incident involving a casualty that is submerged – All rescues of a submerged casualty should be taken from the land, the surface of the water or by personnel in the water maintaining the correct levels of Personal Protective Equipment (PPE). Rescuers should be competent to risk assess and carry out rescues and should maintain the correct levels of PPE. Operational discretion should not be used to remove PPE, enter confined spaces underwater or act outside of service policy to go underwater.

There may be specific sub-surface situations that can be controlled to allow a rescue attempt. These situations will usually be when the casualty is visible and submerged in shallow water. The NFCC will consider future National Operational Learning cases but are unlikely to re-evaluate existing guidance unless they include new evidence, alternative safe systems of work or equipment, or other technical solutions that are deemed as a potential improvement in this matter.”

Lancashire Fire and Rescue Service (LFRS) Response

LFRS sought to minimise the impact of this necessary operational restriction through investment in Swift Water Rescue Technician (SRT) equipment such as reach poles. This only went a short way in closing the capability gap that existed for submerged casualties.

Remotely Operated Vehicles (ROVs)

A ROV normally involved a small submersible that housed a battery, propellers, and a camera with high powered lighting. It was connected to the land via a tether cable which carried the command wire. The controller was held by the pilot on the bankside.

In order to fully close this gap, the Drone Team secured a small amount of investment from the Research and Development group (c.£3,000) for an underwater ROV in order to conduct feasibility trials, to prove concept.  The purpose of its use was to assess its potential for life saving operations and to identify a list of necessary requirements for a fully capable unit. According to national guidance, as set out in the report, a recently submerged person could present a viable rescue for up to 90 minutes.  During that time Fire and Rescue Services and other Blue Light responding partners must be seen to be responding or there was a likelihood that others would intervene.  ...  view the full minutes text for item 32/22

The next scheduled meeting of the Committee has been agreed for 10:00 hours on 29 March 2023 in the Main Conference Room, at Lancashire Fire & Rescue Service Headquarters, Fulwood.

Further meetings are:    scheduled for 10 July 2023 and 27 September 2023

                                           proposed for 29 November 2023

The next meeting of the Committee would be held on Wednesday 29 March 2023 at 1000 hours in the Main Conference Room at Lancashire Fire and Rescue Service Headquarters, Fulwood.

Further meeting dates were noted for 12 July 2023 and 27 September 2023 and agreed for 29 November 2023.

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.

County Councillor Pattison left the meeting at this point.

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.

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(Paragraphs 4 and 5)

Members considered a report that provided an update on the various issues which had arisen in respect of the changes to the pension schemes applying to the uniformed members of the Fire Sector.

RESOLVED: - That the report be noted.

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(Paragraphs 1 and 2)

RESOLVED: - That the Committee approved the Chief Fire Officer’s recommendation as outlined in the report.

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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.

An item of business may only be considered under this heading where, by reason of special circumstances to be recorded in the Minutes, the Chairman of the meeting is of the opinion that the item should be considered as a matter of urgency.  Wherever possible, the Clerk should be given advance warning of any Member’s intention to raise a matter under this heading.

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Members received an update from the Clerk to the Authority on the appointment of Treasurer / Director of Corporate Services by the Resources Sub-Committee Appointments Panel.

RESOLVED: - That the report be noted and endorsed.