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 forecast outturn position was £68.888m, an overspend of £0.395m; an overspend of £0.594m on non-pay activities and an underspend of (£0.199m) on pay.
The year-to-date and forecast positions within all departmental budgets were set out in the report with major forecast variances of note shown separately in the table below:
|
Area £’m |
Overspend/ (Under spend) |
Reason |
|
Pay |
(0.199) |
The forecast was consistent with the position reported to the Committee in September:
· There was a forecast pressure of £0.140m as a result of the Service meeting its legal responsibilities in relation to the Bear Fulton legal case regarding holiday pay; · Whilst the Emergency Cover Review (ECR) remained on target, there had been some initial timing delays compared to the budget which had resulted in an in?year pressure that had been offset through improvement in the management of overtime arrangements; and · Other savings included some vacancies particularly at the training centre of (£0.179m).
|
|
Fleet and technical Services - Non Pay |
0.358 |
The forecast overspend was mainly due to inflationary pressures on the supply of parts and increase in repairs. It was hoped that this pressure would reduce in future years as inflation fell and the older fleet stock was replaced.
|
|
Apprenticeship Levy Funding – Non Pay |
0.300 |
As previously reported the Apprenticeship Levy income for the year was forecast to be lower than budgeted resulting in an annual pressure of approximately £0.300m; this was 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.
|
|
Training Centre Courses – Non Pay |
0.163 |
Due to vacancies in the Training Centre, as previously reported, the department had had to appoint more associate trainers than budgeted to meet the training needs of the service such Driver Training and specialist training such as swift water rescue as a result of the ECR. This pressure was offset by vacancies and the service was putting in place arrangements to try to increase the number of internal trainers.
|
|
Service Delivery / Heads of Service Delivery – Non Pay
|
0.108 |
As previously reported, there was a forecast overspend of £0.108m on protective equipment, including the roll out of wildfire kit and Urban Search And Rescue (USAR) kit.
|
|
Non – DFM – Bank Interest |
(0.302) |
There was a forecast saving on interest earned on cash balances invested.
|
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 to date was £3.79m which was predominantly on pumping appliances.
Following a review of the current year end forecasts an in year spend of £9m was anticipated. This would lead to total slippage of £2.6m; an additional £1.566m slippage for approval by the Resources Committee. Details of capital projects are as outlined in the table below with the additional slippage for approval:
|
Area |
Budgeted Items |
|
Operational Vehicles Budget £5.991m Forecast £4.507m Approved Slippage £0.301m Additional Slippage £1.136m |
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. The following additional items had slipped to 2024/25 due to extended lead times: · 2 Water Towers (£1.027m) due for delivery quarter 1 2024/25; · 2 Prime movers (£0.260m) have slipped pending specification certification from the supplier.
|
|
Other vehicles Budget £1.03m Forecast £0.925m Approved slippage £0.123m
|
This budget allowed for the replacement of various operational support vehicles. The supply of 3 rescue team vans had been delayed to 2024/25. |
|
Operational Equipment Budget £1.47m Forecast £1.22m Approved slippage £0.25m
|
As reported in September, 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. There was a risk works may slip into early 2024/25. |
|
IT systems Budget £1.7m Forecast £1.3m Approved slippage £0.3m Additional Slippage £0.430 |
This budget included for the upgrade Firewalls and digitisation of fire appliances. Slippage was expected on the following: · The national Emergency Services Mobile Communication Programme (ESMCP) has paused to 2025 (£0.1m); · Upgrade of Asset Management (£0.1m) due to review of interdependencies; · WIFI (£0.135m) could only be completed after the Firewall scheduled in quarter 4 of 2023/24; · Incident ground radios (£0.23m) had slipped in line with helmet communications and the breathing apparatus replacement programme; and · RDS Alerters (£0.065m) had slipped due to period of soft market research.
|
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 from CC Pattison the Assistant Chief Fire Officer advised that firefighter apprenticeships were for a two-year period; this was broadly commensurate with the firefighter initial recruits course and development programme completed prior to the apprenticeship route being introduced into the Service. He confirmed that the apprenticeships scheme brought in income via a levy.
In response to a question from CC Woollam regarding staffing of Service Training Centre (STC), the Assistant Chief Fire Officer advised that the change to shift patterns associated with working there sometimes deterred applicants, however, the Service was clear in the developmental benefits to staff of working at STC and that staff received payment of an additional responsibility allowance whilst undertaking instructional duties. He confirmed that there were contingency arrangements in place via the use of associate trainers who worked as trainers on their days off, to support the delivery of training required by the Service.
Resolved: that the committee noted and endorsed the financial position and approved the additional slippage in the capital programme of £1.566m to 2024/25.
Supporting documents:
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