Agenda item
Minutes:
The Director of Corporate Services advised that this report set out the current budget position in respect of the 2023/24 revenue and capital budgets.
Revenue Budget
Lancashire Fire and Rescue Service’s 2023/24 revenue budget had been set at £68.493m. The budget profiled to the end of July 2023 was £22.017m. Expenditure to the end of July 2023 was £22.295m, an overspend on the year-to-date budget of £0.176m The overspend position was broken down between pay and non-pay budgets; an underspend of £0.014m on pay and a £0.190m overspend on non-pay activities.
The year-to-date positions within individual departments were set out in the report with major variances of note being shown separately in the table below:
|
Area £’m |
Overspend/ (Under spend) |
Reason |
|
Pay |
(0.014) |
The year-to-date position was broadly breaking even albeit there were some variances within the position to date:
· The Service had met its legal responsibilities in relation to the Bear Fulton legal case regarding holiday pay. This had resulted in a payment of £0.285m for backdated costs, that had largely been accrued for in previous years, and ongoing costs of £0.011m per month resulting in year-to-date pressure of £0.057m. There was a forecast pressure of £0.140m that would need to be included in the 2024/25 budget. · The Emergency Cover Review (ECR) approved by the Authority resulted in an overall increase of 8 Wholetime Firefighter across the Service and ongoing efficiency savings. There was currently an in-year shortfall of £0.200m against the savings profile due to timing delays but overall, the ECR was on target. · Through improvement in the management of overtime arrangements the service had seen a significant reduction in overtime costs in the period to date that was offsetting the above pressures. |
|
Fleet and technical Services - Non Pay |
0.052 |
The year-to-date position was a small overspend broadly consistent with reporting in May 23; with higher vehicle insurance premiums that were experienced across the market and higher than budgeted fuel costs.
|
|
Apprenticeship Levy Funding – Non Pay |
0.100 |
Total Apprenticeship Levy income for the year was forecast to be lower than budgeted resulting in an annual pressure of approximately £0.300m; due to a reduction in the number of recruits meeting the eligibility criteria for funding. On call fire fighters and recruits with significant prior learning did not attract levy funding. This might require an adjustment to the income budget for 2024/25 if this trend was expected to continue.
|
|
Training Centre Courses – Non Pay |
0.070 |
The Training Centre Courses overspend was mainly due to associate trainers and external training course providers. This pressure was partly offset by vacancies however, the Service was putting in place arrangements to try to increase the number of internal trainers.
|
|
Service Delivery / Heads of Service Delivery – Non Pay
|
(0.047) |
There was a (£0.160m) underspend on National Non Domestic Rates (NNDR) due to rebates received for Eastern and Pennine stations resulting from surveyor revaluations.
This saving was partly reduced by an overspend of £0.078m on protective equipment, including the roll out of wildfire kit and Urban Search And Rescue (USAR) kit.
|
|
Fire Link Grant |
0.025 |
This Home Office grant which supported expenditure on data costs associated with using Airwave service radios was budgeted at (£0.200m). The Home Office had advised authorities that the grant was to decrease by 20% per annum, ending in 2026/27, resulting in a £0.025m year to date pressure, and full year pressure of £0.050m. This pressure would need to be included in the 2024/25 budget.
|
Capital Budget
The Capital Programme for 2023/24 was £11.7m, after allowing for the year end slippage agreed at the last Resources Committee meeting. Spend to date was £2.5m predominantly on pumping appliances. The current year end forecasts had been reviewed and were currently anticipating an in year spend of £10.9m, leading to slippage of £0.9m. Details of capital projects are outlined in the table:
|
Area |
Budgeted Items |
|
Operational Vehicles Budget £5.991m Forecast £5.795m Slippage £0.301m |
The budget allowed for the remaining stage payments for 10 pumping appliances purchased in previous financial years. In addition, the budget allowed for the first stage payments of the 3 pumping appliances for the 2023/24 programme. It also included two climate change vehicles and three command units. All were on target in 2023/24, except for extended lead time of the smaller climate change vehicle.
|
|
Other vehicles Budget £1.03m Forecast £1.03m
|
This budget allowed for the replacement of various operational support vehicles. Delivery of all vehicles were expected in year. |
|
Operational Equipment Budget £1.47m Forecast £1.22m Slippage £0.25m
|
This budget allowed for equipment purchases including thermal imaging cameras and cutting and extrication equipment 2023/24. Slippage on Ballistic Vest and Helmet PPE would enable exploration and pilot of equipment. |
|
Building Modifications Budget £1.6m Forecast £1.6m
|
This budget included the continuation of Drill Tower replacements and an upgrade to the Wylfa prop facility. Completion of works was on target. |
|
IT systems Budget £1.7m Forecast £1.3m Slippage £0.3m |
This budget included for the upgrade Firewalls and digitisation of fire appliances. The new Firewall (£0.235m) was expected to be completed in quarter four, therefore the WIFI (£0.1m) would slip to quarter 1 of 2024/25. The Emergency Services Mobile Communication Programme (ESMCP) was a national project that had been paused to 2025 delaying slippage (£0.1m) from 2022/23 further.
|
Appendix 2, as now considered by Members set out the capital programme and the committed expenditure position against this, as reflected above. The committed costs to date would be met by revenue contributions and usage of capital reserves and capital receipts.
In response to a question raised by CC O’Toole regarding the potential for a sizeable increase to external audit fees, the Director of Corporate Services advised that the current fees were circa £44k which was relatively low when compared with others and reflected the work of an organisation that delivered on time with minor adjustments. An increase was estimated in the region of 100% of the total fee.
The Director of Corporate Services added that the standards and guidance for auditors were set against international audit standards which the sector felt were not suitable and confirmed that Treasurers had been lobbying for a risk-based model. He advised that the potential for increased fees had been expected for some time. It was recognised that the audit profession were under pressure which had led to delays in completing audits and that there were a very small number of auditors that wanted or could undertake the work. In addition, he advised that the Service was looking to attract Government support through ‘new burdens funding’ and that Public Sector Audit Appointments was currently undertaking a consultation on proposals for setting the fee scale for 2023/24 audits with responses due mid?October.
Resolved: that the committee noted and endorsed the financial position and approved slippage in the capital programme of £0.9m to 2024/25.
Supporting documents:
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