Agenda item

RESOLVED that: the Panel notes the report.

The PFCC presented the report setting out the latest forecast outturn position, highlighting the following points:

·         The current forecast outturn was for an overspend of £27,000, which represented 0.01 per cent of the budget.

·         There remained base budget challenges in the medium term.

The Panel considered the report and members made the following points during the course of discussion:

·         The PFCC was questioned as to whether he was satisfied with progress made to date towards the development of a sustainable capital programme.

·         Further information was sought about the thinking behind the level of reserves currently held by the Fire & Rescue Authority and the planned reduction in general reserves from £3m to £2m in 2021/22.

·         The fact that the government was proposing to make the PFCC governance model the standard reflected well on what had been done in Northamptonshire. The governance transfer had benefitted NFRS.

The PFCC made the following points during the course of discussion:

·         Significant progress had been towards putting the capital programme in a sustainable position, although there continued to be challenges.

·         He had heard that when the Home Office considered decisions on Fire & Rescue service matters they thought about the effect on Northamptonshire and Buckinghamshire. It was welcome that Northamptonshire’s situation was prominent in future planning.

·         He hoped that when the government brought forward legislation on Fire & Rescue services it would change the funding provided to Northamptonshire. The Chief Finance Officer was working to maximise what was available from other sources, such as Section 106 funding. The enabling services approach also helped to identify new ways of using resources as effectively as possible.

The Chief Finance Officer provided additional information in response to points raised by members during the course of discussion as follows:

·         NFRS required a relatively large amount of capital stock and there was a challenge in balancing affordability with the timely delivery of new items. The capital programme had been subject to two reviews in 2021/22 as well as
monthly monitoring.

·         £99,000 in underspends from 2020/21 had been ring-fenced to support staff relocation costs connected with the move to Darby House and two areas of prevention activity that could not be delivered in the previous financial year.

·         The level of reserves held by the Northamptonshire Commissioner Fire & Rescue Authority was the lowest in the country by far. General reserves would be maintained at £2m to provide a sensible buffer. Other reserves were at planned level.

·         The future financial shortfall identified in the medium term financial plan to 2025/26 represented the best estimate at the current time. Funding was not projected to keep pace with requirements. The OPFCC continued to make a case for additional resources to the government at the same time as identifying savings and alternative options in case of need.

·         Ideally general reserves would be maintained at £3m. The development of the 2021/22 budget had planned for general reserves at £2m. The Home Office had then provided additional resources to maintain reserves at the higher level but only for one year. This explained the timing of the change.

RESOLVED that: the Panel notes the report.