MINUTES of the Meeting of the DERBYSHIRE FIRE & RESCUE AUTHORITY Meeting held at the Fire and Rescue Service Joint Training Centre, Butterley Hall, Ripley commencing at 1000 hours on Thursday 7 December 2023
Present:
Councillors: T Ainsworth, S Swann, S Bull, R Ashton, J Woolley, D Taylor,
S Fowke, G Nawaz, K Gillott, J Innes, G Potter.
Officers in Attendance:
L Taylor Solicitor/Monitoring Officer
M Nash Head of Corporate Financial Services/Treasurer
G Tomlinson Chief Fire Officer/Chief Executive
R Taylor Deputy Chief Fire Officer
L Mellors Committee Clerk
Prior to commencement of formal proceedings, the Chair wished to say a few words:
‘The Chair wished to congratulate the Protection team who were shortlisted in three protection categories at the recent National Fire Chiefs Council Awards and were awarded first place in working partnerships.’
33/23
PUBLIC QUESTION TIME
33.1 The Chair acknowledged receipt of three Public Questions submitted by Mr A Mountain. A response was provided by the Chair. The public questions and responses are available for inspection on the Service’s website.
34/23
APOLOGIES
34.1 Cllr Iliffe, Cllr Potter, Cllr Ramsey, Cllr Onuoha, Cllr Burfoot, Cllr Gourlay and APCC R Flatley.
35/23
DECLARATIONS OF INTEREST
35.1 None.
36/23
TO CONFIRM THE MINUTES OF THE FIRE & RESCUE AUTHORITY MEETING HELD ON 21 SEPTEMBER 2023
36.1 Members confirmed the minutes as a correct record.
Recorded votes: Unanimous
Cllr Ainsworth proposed, Cllr Ashton seconded.
37/23
TO CONFIRM THE STANDARDS COMMITTEE MEETING HELD ON 21 SEPTEMBER 2023
37.1 Members confirmed the minutes as a correct record.
Recorded votes: Unanimous
Cllr Ainsworth proposed, Cllr Taylor seconded.
38/23
REVENUE BUDGET MONITORING 2023/24 (as at October 2023)
38.1 The Head of Corporate Financial Services/Treasurer presented Members with the Revenue Budget Monitoring (as at September 2023), members noted the outline progress on the target savings, and forecast level of Reserves.
38.2 Members noted the Revenue Budget Outturn, being a forecast underspend of £692,400 which will be transferred to reserves and used in conjunction with capital strategy and financing capital programme. The underspend includes ongoing vacancies within the support function and a number of savings being implemented that are generating in year and on-going reductions.
38.3 Members also noted an underspend of £617,675 is anticipated for direct Employee Expenses after taking account of final agreed pay awards, current vacancies, known starters and leavers, agency, and overtime costs.
38.4 As for direct Employee Expenses, including Administration, Professional, Technical and Clerical, an underspend of £433,765 reflects the significant number of support vacancies experienced so far this year (12.60 Full Time Equivalent (FTEs) as at September 2023). This underspend highlights the Service’s continuing difficulty in recruiting to support posts and retaining key support personnel. The Service continues to strive to recruit to these posts which may influence the forecast underspend for the remainder of the financial year.
38.5 With regards to pay inflation, the 2023/24 Revenue Budget has been impacted substantially by pay awards and inflation. The increase in precept income allowed the Service to fund this cost for 2023/24. However, the increased pay bill and potential for further incremental increases continues to impact on future years of the Medium-Term Financial Plan. The ‘Green Book’ settlement, for support staff, has only recently been resolved. The budget contains provision for a 4% increase, which is in line with the agreed offer of £1,925 per Salary Scale Point from the National Joint Council (NJC).
38.6 As for general inflation, the past two years have been marked by a period of rapidly rising inflation caused by a number of big shocks to our economy. In the wake of the Covid 19 pandemic, global supply chains struggled to meet renewed demand for goods and services. The invasion of Ukraine in February 2022 further disrupted both energy and food prices. Further, a reduction in the number of people available to work has driven up wages offered by employers to attract job applicants. The recovery of these wage costs has in turn led to increase prices, also compounding UK inflation.
38.7 Members noted that the Consumer Prices Index (CPI) cost of living increased sharply across the UK during 2021. It reached a 41 year high, rising to 11.1% in October 2022, before easing in subsequent months. The UK inflation rate fell to 6.7% in August (remaining level in September 2023), down from 6.8% in July.
38.8 Throughout previous financial years, energy cost prices have risen sharply and remains particularly volatile. Members noted that an overspend of £350,000 is forecast despite a previous year budget increase. The longer-term outlook for energy costs continues to remain unclear. The ongoing increase in energy costs is built into future budget modelling.
38.9 Regarding Direct Transport Costs, in particular fuel, the price of fuel has fluctuated significantly over the previous 12 months, initially dropping from its peak in late 2022, prices are now starting increase again. A budget increase of £73,600 was applied to the 2023/24 budget, although at the current time underspends in the region of £50,000 appear likely. Members noted that the Service remains vulnerable to movements in fuel prices which can be volatile and will influence the year end position.
38.10 As for Reserves, a forecast Closing Balance of £11.9m reflects the funding of the 2023/24 Forecast Revenue and Capital Outturn position. Members noted that the balances of reserves will continue to be reviewed. At Outturn the Service will consider the most beneficial use of reserves and may adjust plans to minimise levels of borrowing while balancing the need to fund future investments.
Resolved:
38.11 Members noted the Revenue Budget Monitoring and Forecast Outturn for 2023/24 being an underspend of £692,400.
38.12 Members approved all transfers to and from Earmarked Reserves, as outlined in the report.
38.13 Members approved recommendations 2.1 to 2.2.
Recorded votes: Unanimous
Cllr Ainsworth proposed, Cllr Ashton seconded.
39/23
CAPITAL BUDGET MONITORING 2023/24 AND PRUDENTIAL INDICATOR UPDATE
39.1 The Head of Corporate Financial Services/Treasurer presented Members with the 2023/24 Capital Monitoring position as at October 2023 and Prudential Indicators as required under the Prudential Code.
39.2 Members noted the capital monitoring position is shown in Appendix 1, this shows total expenditure to date of £0.838m which represents 14% of the revised budget of £5.786m. While this appears to be relatively low the scheme at Matlock and the Replacement Mobilising System are now underway and increased capital spend is expected to begin being incurred.
39.3 Updates were provided on the property schemes and new fire station located at Matlock, which is well underway. The old station has been demolished, the site cleared, and erection of the steel frame is due to be completed by 10 November 2023, with the first-floor structure to follow. It is anticipated the roof works will commence on 4 December 2023. The scheme has not suffered any major setbacks and is on course to complete as originally planned.
39.4 Members were informed that the £0.5M scheme to potentially refurbish a further station will not progress in 2023, the budget needs to be reduced to reflect this. The Matlock scheme is progressing and a further scheme at Glossop is currently awaiting planning consent and will then go out to tender. The refurbishment budget will be considered along with other investment needs in the 2024/25 Medium Term Financial Plan and the new 2024/25 – 2026/27 capital programme.
39.5 Members noted the need for a new scheme has been identified to replace aging CCTV security cameras at a number of stations. Issues are being experienced as equipment is reaching the end of its functional life, break downs are being experienced. A scheme of £100,000 split between 2023/24 and 2024/25 is proposed.
39.6 All other remaining property schemes are either complete or close to completion for 2023/24. The only exception is the fire station lighting upgrades which will soon enter the tender stage. The lighting scheme is still on target and is currently anticipated to complete within the financial year.
39.7 It was highlighted that a number of projects within the ICT programme require slipping until later years. The Service has extended the useful life of ICT infrastructure/hardware in several areas, which is in line with the intention for the revenue budget to generate savings through extending the replacement time of equipment. These projects will still be required but can be slipped until 2024/25.
39.8 As for vehicles, the transport schemes for Major Rescue Unit equipment replacement and a number of light fleet vehicles are all now complete for 2023/24. No further capital expenditure is expected on these schemes and all vehicles are in service.
39.9 Orders in relation to the 2 replacement 4x4 vehicles are due to be placed but current lead times mean these are not expected into service until after the financial year end. This scheme of £70,000 now requires slipping into 2024/25 to match anticipated delivery times.
39.10 Members noted that the programme also includes provision for 2 new Welfare Vehicles. Orders have been placed for the base vehicles, but these are also not expected into service before the year end. This scheme of £220,000 requires slipping into 2024/25.
39.11 As for Capital Prudential Indicator expenditure, the service has removed all borrowing from the 2023/24 programme and replaced this with increased use of reserves. This allows for the avoidance of high interest rates currently being experienced.
Resolved:
39.12 To note the capital monitoring position as at 31 October 2023.
39.13 To approve the overall reduction of £2.165m to the capital programme as detail in the report, consisting of:
-
1.495m slippage from the ICT programme
-
£0.500m reduction in the property programme in relation to fire station refurbishment
-
£0.050m additional for a new scheme for CCTV cameras
-
£0.220m slippage from the transport programme
39.14 To note the addition of a new £1.2m scheme for the cost of the new replacement mobilising system in 2023/24, previously approved.
39.15 To note the Treasury Management update as at 31 October 2023.
39.16 To note the updated Prudential Indicators and approve the revised borrowing limits for 2023/24.
39.17 Members approved recommendations 2.1 to 2.5.
Recorded votes: Unanimous
Cllr Ainsworth proposed, Cllr Swann seconded.
40/23
MEDIUM TERM FINANCIAL STRATEGY 2024/25 – 2027/28
40.1 The Head of Corporate Financial Services/Treasurer presented Members with the Medium-Term Financial Strategy for 2024/25 – 2027/28. The Authority were asked to consult on its budget, savings and council tax proposals which will be considered through a public consultation.
40.2 Healthy reserves, savings and underspends were identified. This strategy allows us to move forward for future years with budget gaps.
40.3 A settlement is due in December 2023 and will be presenting in the upcoming February 2024 Fire and Rescue Authority meeting.
Resolved:
40.4 Members approved the Medium-Term Financial Strategy.
40.5 Members approved recommendation 2.1.
Recorded votes: Unanimous
Cllr Ainsworth proposed, Cllr Bull seconded.
41/23
BRIGADE MANAGERS’ PAY REVIEW 2023/24
41.1 The Solicitor/Monitoring Officer presented the Brigade Managers’ Pay Review for 2023/24, seeking Members approval to the recommendation arising from the Pay Review Panel.
41.2 Members noted that the review has been undertaken in accordance with the ‘Gold Book’ terms and conditions, the Fire Authority’s Pay Policy Statement of March 2023 and in consultation with the Brigade Managers.
Resolved:
41.3 Members approved the Local Review Pay Award of 0.75% to the Chief Fire Officer/Chief Executive’s salary (to which the Deputy Chief Fire Officer’s pay is linked) following the Local Review for 2023/24.
Recorded votes: Unanimous
Cllr Ainsworth proposed, Cllr Swann seconded.
REPORTS FOR INFORMATION
42/23
UPDATE FROM DEPUTY CHIEF FIRE OFFICER
42.1 The Deputy Chief Fire Officer wished to congratulate all crews and everyone involved in Storm Babet.
42.2 All Fire Authority Members send their thanks to our front line employees for their efforts and everything they did to support Derbyshire during Storm
Babet. It was noted that the Service performed fantastically under very difficult circumstances and the public’s reaction was very much appreciated.’
42.3 The Deputy Chief Fire Officer provided Members with an overview of incidents of note that have taken place since the last Fire Authority meeting.
42.4 Regarding the Cultural Survey, Members noted that 73% of the organisation have participated and completed the survey, of which 86% agreed they were proud to work for Derbyshire Fire and Rescue Service. This is one of the highest scores we have received, and a good reflection of our Service.
42.3 People Insight have awarded Derbyshire Fire and Rescue Service with the ‘Outstanding Workforce 2023’ award.