PFCP Response to the Fire Precept 2019

Report of the Staffordshire Police, Fire and Crime Panel (‘The Panel’)

to the 

Police, Fire and Crime Commissioner for Staffordshire (’The PFCC’) 

with regard to: 

The Police, Fire and Crime Commissioner for Staffordshire’s Draft Fire and Rescue Service Budget and Precept 2019/20 

Following the transfer to you of governance responsibility for the Staffordshire Fire and Rescue Service, the Police, Fire and Crime Panel is now required to formally consider your proposed Budget/Precept for that Service for 2019/20.

In doing so, we are required to follow the procedures set out in the Police Reform and Social Responsibility Act 2011 and to report formally to you on our view. We have the power to veto your Precept if we consider it to be too low or too high. In the event of the veto being exercised, a revised proposed Precept would be required from you. 

The Panel met on Friday 15 February 2019.  You attended, accompanied by your Chief Finance Officer for the Fire and Rescue Service. 

The Panel received your report on the proposed budget/Precept which showed a net revenue budget requirement of £40.936million for 2019/20 of which £26.247million would be funded from the Precept.  This equated to a 2.99% (£2.20 per annum) increase on the previous year’s Precept.  This figure was below the 3% threshold for which a referendum would be required.  You reported that during formal consultation on the Precept, 61% of respondents supported an increase in funding for the Fire and Rescue Service.  The remainder of the budget would be funded from a combination of Settlement Funding (including a reduced Revenue Support Grant), Business Rates Top-up grant and 1% share of Business Rates. We noted your comment that the 2.99% increase in Precept was below the rate of inflation and therefore did not provide any real cash increase. 

2019/20 is the final year of a four year funding arrangement agreed with the Home Office under which grant allocations had been guaranteed in return for the delivery of an Efficiency Plan to enable a £4.8million reduction on the Revenue Support Grant. Your proposed Budget/Precept was therefore a continuation of the former Fire and Rescue Authority’s four year financial plan with minor amendments to help facilitate your proposals for the Service in future. 

The balance of savings to be achieved in 2019/20 as part of the Efficiency Plan (after taking account of revised Council Tax assumptions) was £0.5million. Your report detailed savings of £0.2million from a review of the Prevention and Protection Programme which included Safe and Well visits.  We discussed in detail the operation of the Prevention and Protection Programme, the criteria used to target visits to those at most risk, breadth of information obtained from participants and the links with other agencies.  You reported a wish to expand this area of work, subject to funding being prioritised to ensuring that the Response Service was effective. We queried this wish to expand the Prevention activity whilst reducing funding. 

We shared your concern that the funding of the Fire and Rescue Service beyond 2020 was uncertain with a Comprehensive Spending Review due in 2019. (A funding gap of £3million is forecast from 2022/23). We supported your view that funding settlements needed to be for a minimum of 3 years to provide for Service planning.  A further factor adding to uncertainty on future funding was the Fair Funding Review which would incorporate Fire and Rescue Services.  

Referring to pressures on future Budgets, you highlighted the 17% pay increase claim submitted by the FBU and the increase in employer contributions to the Fire Service Pension Scheme, an element of which has to be funded locally. You also reported your intention to reduce costs by reviewing the Service Estate and explore the possibility of the Fire and Rescue and Policing services sharing facilities where appropriate. We queried the possible limitations on any joint use of facilities due to the terms of the PFI contracts covering 21 of the 33 Fire Stations in the County. You felt that overall the PFI contracts held by the Service were favourable but you wished to negotiate with the contractors on the use of the premises. 

We discussed the level of Reserves provided by your budget noting that £1million was earmarked for future Integration, Collaboration and Change Programme. You indicated an intention to report on collaboration projects later in the year. The 2019/20 budget does not include any savings which might be achieved through collaboration. 

Along with your budget report you submitted the Capital Strategy and Capital Programme 2019/20- 2021/22 and your Treasury Management Strategy, both of which we supported. 

At the conclusion of our discussions on your proposal we resolved to support your Fire and Rescue Service Precept and Revenue Budget for 2019/20, including the 2.99% increase in Precept, however we request that you provide more information in respect of prevention programmes and savings and efficiency programmes for future years.                       

S. Sweeney 

Chairman

Staffordshire Police, Fire and Crime Panel
On behalf of the Staffordshire Police, Fire and Crime Panel.