Agenda item

Area

Overspend/ (Under spend)

Reason

£’000

Fleet & Technical services

104

The increase in fuel prices was reflected in the overspend to date. The budget allowed for 12.5% increase in fuel costs, but the actual increase was significantly higher than this, approx. 50%, which equated to approx. £125k. In terms of usage, it was too early to base any year end forecast on this, but the situation would continue to be monitored.  In addition, repairs costs had increased reflecting works needed in the first quarter of the year and the increase in costs due to inflationary pressures.

Information Technology

84

The overspend to date was attributable to a combination of the timing of expenditure, with software licenses being paid up front, and a general increase in costs, again reflecting inflationary pressures.

Property

190

The increase in energy prices was reflected in the overspend to date. The budget allowed for 25% increase in fuel costs, but the actual increase was significantly higher than this, approx. 100%, which equated to approx. £300k. In terms of usage, it was too early to base any year end forecast on this, but the situation would continue to be monitored.

In addition, an increase had been seen in maintenance costs aligned with inflationary pressures, which would potentially lead to  further overspend in year but again it was too early to predict that at the present time.

Wholetime Pay

(73)

The majority of the underspend was attributable to the slight shortfall in recruit numbers at the start of the year.

Retirements and leavers were broadly in line with forecast.

On Call Pay

34

This was broadly in line with budget.

Support staff (less agency staff)

60

The budget was adjusted to take account of the increased level of vacant support posts within the Service. Whilst a number of posts remained vacant, agency staff were being utilised to fill some of these, resulting in an overspend to date, however it was anticipated that this would slow down in the second half of the year as recruiting to posts was anticipated therefore, reducing the reliance on agency staff.

Apprentice Levy

(16)

The apprentice levy was payable at 0.5% of each month’s payroll costs with expenditure slightly less than budgeted.

Spend to 30 August

Year End Forecast

£m

£m

Operational vehicles

-

0.9

The budget allowed for the replacement of various operational vehicles. 13 pumping appliances had already been ordered (7 this year and 6 next year), 2 Command Units and an ALP.

Having reviewed lead times, and staged payment dates, the current anticipated year end spend was approximately £0.9m, resulting in slippage of £2.2m.

This would be kept under review, and would be subject to change due to the current difficulty in obtaining raw materials etc.

Support vehicles

0.1

0.4

This budget allowed for the replacement of various operational support vehicles, whilst some of these had already been delivered, the shortage of raw materials was affecting both the timeframe for delivery and the cost of vehicles. Latest predictions indicated that approx. 50% of the programme would be completed in year, at a cost of £0.4m, with the balance sipping into 2023/24.

Operational Equipment

0.1

0.3

A £0.3m spend was anticipated from piloting CCTV on a number of pumping appliances and the replacement of light portable pumps.

However, it appeared unlikely that any in year expenditure would be incurred in respect of the replacement of cutting and extrication equipment where the project was in the early stages and where costs may change depending on the type of equipment purchased and whether this was a whole scale replacement or not. It was therefore anticipated this budget would slip (£1.5m into next year)

Building Modifications

0.3

0.8

This budget allowed for:

• The replacement of 4 drill towers, where one tower, Blackpool, was completed in June, and where contracts had now been let for a further 2 towers, Tarleton and Bolton Le Sands, both of which would be completed by the end of the year.
• Enhanced facilities at Hyndburn fire station, where  works had commenced and would be completed by October
• The budget of £0.2m had been removed for fees associated with developing plans for the replacement of Preston Fire Station, as this was unlikely to occur in the current financial year.

IT systems

-

0.9

The majority of the capital budget related to the national Emergency Services Mobile Communications Project (ESMCP), to replace the Airwave wide area radio system and the replacement of the station end mobilising system. The ESMCP project budget, £1.0m, was offset by anticipated grant, however the timing of both expenditure and grant was dependent upon progress against the national project. This national project had suffered lengthy delays to date, hence was included within slippage into the next financial year.

The balance of the budget related to the replacement of various systems and ICT hardware, in line with the ICT asset management plan. Whilst no costs had been incurred in the year so far, it was highlighted that contracts had been awarded or were in the process of being awarded for several of the systems, with an anticipated year end spend of £1.0m.

The balance of the budget, £0.5m, related to systems/replacements which were likely to slip into 2023/24.

Total

0.5

3.3