Agenda item

To consider a report

The Assistant Chief Officer and Treasurer introduced his report setting out the forecast year-end budget monitoring position as at 31 May 2022.

In introducing the report, the Assistant Chief Officer and Treasurer highlighted the following:

• The Service had received an additional £392,000 in business rate income than had been allocated in the budget.
• The Service had provisionally budgeted for a 4% pay increase for both Green and Grey Book staff. If a 5% pay award was agreed, this would have an additional impact of £200,000 for the 2022/23 financial year, as the pay award would be effective from 1 July 2022. The full year impact of an additional 1% pay increase was £250,000.
• The Firelink grant had been £50,000 less than budgeted and would be subject to a 20% reduction each year.
• The project that was to be funded through the £593,000 received through the Government’s decarbonisation grant was no longer being progressed.
• The forecast pressure of increased inflationary costs was £285,000.

In relation to the non-salary forecast, there was currently a £308,000 overspend, largely related to the increased inflationary costs. There were no variances currently being reported against the forecast salary budgets.

The Capital Programme projects were all currently on target. The Authority was being asked to bring forward spend on the thermal imaging cameras capital scheme into the current financial year from 2023/24 as there had been a number of failures with the current equipment.

In response to a question, the Assistant Chief Officer and Treasurer advised that the non-salary variance relating to the increased inflationary pressures had been RAG rated as green as it was believed that this cost could be managed and measures were being put in place to address this. Further consideration could be given to changing the RAG status to Amber if this was felt necessary.

The Deputy Chief Fire Officer detailed how the funding for the improvement of fire safety was being allocated. This included two new crew commander posts, as well as funding the cost of a number of Level 3, 4 and 5 certifications in fire investigation.

He also reported that the funding received for dementia prevention from Bedford Borough Council funded two posts within the Prevention Team.

As it was noted that the Authority had to approve any changes to the budget over £100,000, it was agreed that the proposals for how the additional income of £392,000 received from business rates was to be allocated should be submitted to a future meeting of the Authority for Member approval. Final proposals had not yet been agreed by the Service’s Corporate Management Team.

RESOLVED:

1.         That the updates provided within this report be received.

2.        That the receipt of unbudgeted Business Rates Relief income from central government be noted.

3.         That the potential extra unbudgeted costs as a result of the recent inflation rate increases and expectations for the remainder of the financial year be noted.

4.         That the request in paragraph 3.4.3 of the report, to bring forward £300,000 spend for thermal imaging cameras capital scheme into 2022/23 from the 2023/24 Capital Programme, be agreed.

5.         That a further report be submitted to the next meeting of the Authority for Members to agree the allocation of the additional unbudgeted £392,000 of business rate income.