|
Hampshire Fire and Rescue Authority | |
5 December 2001 |
Item 6 | |
Draft Budget 2002/03 | ||
Report of the Treasurer and the Chief Fire Officer | ||
Contacts: Paul Carey-Kent, Deputy Treasurer, 01962 847525
David Howells, Director of Corporate Services, 023 8064 4000 ext 203
1 Summary
1.1 This report sets out the first draft budget for 2002/03. It includes the base budget and a number of options for priority growth beyond this starting point.
1.2 All figures are provisional at this stage and may be subject to some revision later in the budget cycle.
1.3 The normal practice is for the Authority to set an indicative budget and to consult on that with the three constituent authorities. It is recommended that a meeting be offered to facilitate this process.
1.4 The views of the constituent authorities will be reported back to the next meeting of the Finance and General Purposes Committee on 16 January 2002. The Authority will need to determine its budget for 2002/03 at its meeting on 6 February 2002 and set the levies required from the constituent authorities to fund that budget.
1.5 The base budget, which in effect rolls forward the current budget and policies, is £47.5m. This is an increase of £2.3m (5.1%). As a starting point, the base budget increase is already in excess of the 4.0% increase in the standard spending assessments (SSA) expected to be received by the constituent authorities to meet their increased levies. As grant is a fixed amount at SSA, any increase in the levy beyond the SSA increase falls entirely on their council taxes. Although it is entirely the decision of this Authority to set its budget and levies, members will still wish to be mindful of the impact on the constituent authorities in fixing the final amount.
1.6 The base budget increase is relatively high despite the very modest increase in pension costs. This is principally due to the full year impact of the higher than expected firefighters pay award, additional insurance costs and the full year effect of growth proposals agreed for 2001/02.
1.7 The first priority beyond this base budget level is to review existing practices and approaches to see whether more efficient means of delivering service can be achieved. Section 4 sets out the potential areas of self financing improvements. The scope to deliver substantial savings for 2002/03 appears limited, but members might wish to initiate actions designed to reduce the potential full year impacts in 2003/04.
1.8 Illustrative examples have been identified for growth beyond the base budget level. Whilst some growth beyond appears unavoidable, examples are shown which broadly equate to increases in budget of 1% increments (increases of 6.3%, 7.4%, 8.7%, 9.4% and 10.2% respectively). Full year impacts typically add 1% to each. This provides a basis for initial consideration of the growth proposals. If all the growth proposals were to be approved, the overall budget would be £49.8m, an increase of 10.2% with a full year effect of 11.2%.
1.9 A budget increase at any of these levels is clearly substantial and will have a significant impact on the constituent authorities, especially against the background of a 9.8% increase in the levy for 2001/02, the SSA increase at 4% and the Government's headline level of inflation at 1.8%. To help put this increase in context, the report first sets out the history of budget and SSA increases since the Authority was formed in 1997, and compares these with other authorities.
2 Budget comparisons
2.1 In 1997/98 the budget was 3.6% above SSA compared with an average of 9.9% above SSA for all fire authorities. By 2001/02 the position had reversed with this Authority spending 11.9% above SSA and other authorities an average of 10.9% above SSA. The base budget would be 13.1% above SSA in 2002/03; if all growth proposals are included, the resultant budget would be 18.6% above SSA. The trends are shown below:
Table 1 - Spending relative to SSA
Hampshire |
|||||
SSA |
Budget |
Budget over SSA |
All fire authorities over SSA | ||
£m |
£m |
% |
% | ||
1997/98 |
33.1 |
34.3 |
3.6 |
9.9 | |
1998/99 |
35.3 |
38.4 |
8.8 |
10.1 | |
1999/00 |
36.6 |
39.6 |
8.2 |
11.7 | |
2000/01 |
38.3 |
41.2 |
7.6 |
11.2 | |
2001/02 |
40.4 |
45.2 |
11.9 |
10.9 | |
2002/03 base |
42.0 (est) |
47.5 |
13.1 |
n/a | |
2002/03 with all |
42.0 (est) |
49.8 |
18.6 |
n/a | |
growth proposals |
|||||
2.2 Over the same period, Hampshire has received larger increases in its SSA than the average national increases. Overall, the Authority's budget had increased by about 47% by 2001/02, double the national increase in budgets over the same period as shown below:
Table 2 - Budget growth relative to SSA
Increases in Hampshire |
National increases in | ||||
SSA |
Budget |
SSA |
Budget | ||
% |
% |
% |
% | ||
1997/98 |
5.3 |
8.0 |
4.4 |
4.7 | |
1998/99 |
6.6 |
11.9 |
5.0 |
5.1 | |
1999/00 |
3.7 |
3.1 |
3.6 |
5.2 | |
2000/01 |
4.6 |
4.1 |
3.5 |
3.1 | |
2001/02 |
5.4 |
9.8 |
5.0 |
4.6 | |
Cumulative increase since 1996/97 |
28.3 |
47.0 |
23.5 |
24.9 | |
2.3 Although the Authority had relatively modest increases in budgets in 1999/00 and 2000/01, relatively large increases in 1997/98 and 1998/99 and 2001/02 have resulted in a faster rate of growth than the average for all fire authorities.
2.4 Spend per head is also relevant background, and is the Government's primary Best Value Indicator of the cost of delivering services to the public. Hampshire currently spends £27.18 per head of population compared with the median of all the fire authorities of £30.21 and lower quartile of £26.66 (based on 2001/02 estimates).
3 Base budget
3.1 The base budget has been prepared in the same way as last year and includes:
· the current year's original budget increased to the November 2001 price base, including increases in insurance costs
· the net cost of salary increments
· all known and projected pension costs
· an estimate of the costs of inflation from November 2001 to
March 2003: 4% for firefighters pay, 3% for non-uniformed pay and 2.5% for non-pay costs
· full year effect of 2001/02 growth items
· increases in the cost of operational leasing and capital financing
· increases to the retained pay budget reflecting higher average number of incidents.
3.2 The changes in the base budget are summarised in Appendix 1. The most significant factor to note here is that the increase in pension costs (£175,000 or 2.5%) is small compared with previous years because the inflationary costs of rising pension payments are offset by a substantial (£583,000) reduction in the projected level of lump sum payments. This is due to more higher-ranked officers retiring in 2001/02 than expected in 2002/03. This, of course, is a figure subject to fluctuations due to the incidence of actual retirements. Members will recall that the pensions budget is ring-fenced, and that should actual costs vary from this anticipated figure, it will be possible to deal with this as a year-end adjustment to constituent authority contributions.
3.3 The base budget totals £47.5m, an increase of £2.3m (5.1%) over 2001/02 and is set out in more detail in appendix 2.
4 Efficiency Improvements and Savings Potential
4.1 In accordance with good management practice when dealing with increased service demands, the first action should be to explore the scope for efficiency savings or advantageous reprioritisation within the budget. In line with this approach, the following self-financing changes have been identified:
· Prince's Trust Volunteers
It is proposed to enter into a collaborative arrangement with other public and private sector partners to establish a Prince's Trust Volunteer Scheme, targeted in areas of social exclusion. This is in line with national guidance from Her Majesty's Inspectorate of Fire Services. The Service's participation in the scheme would be subject to it being cost-neutral - with actual costs (estimated to be £122,000) being fully offset by grants received from other partners. (Note: the scheme helps in the achievement of Corporate Aim 1; and has been endorsed by the Community Fire Safety Task Group meeting on 19.11.01)
· Driver Training Department
The 1997 review of the Service's organisation and management structure included a recommendation for the removal of uniformed driving instructor posts in favour of non-uniformed appointments. This has been partially achieved, but recent experience has shown that non-uniformed instructors are difficult to recruit because of the specific qualifications and experience required. Further, the retention of qualified instructors is a problem because the salary level is comparatively low when compared with private-sector driver training establishments. It is therefore suggested that a minimum of two instructor posts should be remain as uniformed appointments to provide a level of stability and continuity. As the additional cost is currently being met from within existing resources, this can continue without the need for a specific growth bid. (Note: this will contribute to Corporate Aim 6; and the issue was identified in the Best Value Review of Driver Training)
· Commercial Services Department - fire safety courses for industry and commerce
Customer feedback has shown that one of the most valuable marketing advantages the Service has is the deployment of uniformed personnel as instructors in the Department. In a recent pilot scheme - in which a uniformed officer was seconded to the team - it became apparent that the level of understanding and retention of key fire safety information by course delegates was significantly improved. The cost of replacing two non-uniformed posts with Sub Officer appointments (£20,000) can be met from anticipated increases in income generation so the revision to the establishment will be cost-neutral. (Note: helps in the achievement of Corporate Aim 1)
· `Vector' Command Simulator - specialist-training role
The development and implementation of the training simulator was a joint project between Vector Command Limited and the Service. This involved the temporary deployment of a Divisional Officer post part-funded by Vector. Following completion of the development phase, funding from Vector ceased. The specialist-training role has, nevertheless, continued and is currently undertaken by an Assistant Divisional Officer responsible for command strategy training throughout the Service. The additional cost of retaining the appointment on the establishment has been met from within existing training resources. It is now clear that this role needs to be maintained for the foreseeable future and it is proposed to maintain the current funding arrangements. (Note: supports/addresses: `Training for Competence' policy recommendations; HMI Expectations; Health & Safety at Work - good practice in risk-management approach).
4.2 In addition, some offsetting savings are incorporated within the list of possible growth proposals, although these are relatively small (£32,000 against growth proposals of £2.3m) and cannot be sensibly separated from growth proposals themselves. The difficulties experienced in achieving the anticipated efficiency savings in the current year suggests that it is prudent to take a cautious view on the potential for savings - especially those that are subject to future detailed reviews.
4.3 Members may wish to consider what scope there is for cash savings unrelated to growth proposals. Given the relatively constrained nature of the Fire Service budget due to the requirements of legislation, Her Majesty's Inspectorate, fire standards, national conditions of service, health and safety etc. the scope for savings is relatively limited apart from efficiency gains arising out of reviews of fire cover. The current and future Best Value Reviews and `Scoping Studies' provide appropriate opportunities for members and officers to challenge existing policies and practices - especially in those areas that do not directly impact on the delivery of services to the public. It is important that these reviews identify savings potential, though it is also essential that a realistic assessment is made about the timing of potential savings. In the case of efficiency gains that might arise out of reviews of fire cover, experience suggests that, once decisions are made, actual savings may take up to two years to achieve in full.
4.4 Given that budgetary pressures are likely to continue, there is therefore a case for planning well in advance for possible savings in 2003/04.
4.5 So far as current proposals are concerned members may wish to consider whether there is scope to:
· reduce the immediate financial impact of particular bids by further delaying or phasing-in their implementation
· re-prioritise some of the proposals and accept that in some areas performance (especially where service delivery is measured by Best Value Performance Indicators) may remain well below targets for continuous improvement
· accept that proposals that are not mission-critical - ie those that do not impact directly on the delivery of services to the public - may have to be abandoned or delayed for the time being.
4.6 Evidently these approaches are not ideal and members will understand that these are difficult judgments to make. However, given that the government has allowed only a 4% increase in SSA, members could not be criticised for any increase at a level above this.
5 Growth Proposals
5.1 Appendix 4 sets out growth proposals in broad priority order to illustrate the approximate degree of importance attached to them. This is designed not to constrain members to selecting any particular `example package' of proposals, but to illustrate the extent of service developments which would or would not be funded as a result of setting the levy at a particular level. Where appropriate, phased implementation has been considered and the projected impact over three years is shown. Costs include overheads (allowances, uniforms, travel etc).
5.2 To help members assess the impact of the proposals, the following examples show, in approximate 1% increments, what could be funded:
· Example A: 6.3% increase. Base budget plus financing of capital programme and wholly unavoidable costs (failure to achieve previously identified savings, loss of contractual income, relocation expenses associated with Copnor) and investments in the clear long-term financial interests of the Authority (introduction of some purchasing of vehicles, increased building maintenance). This incorporates the items in Appendix 3 and 1-3 in Appendix 4
· Example B: 7.4% increase. Example A plus items 4-13 in Appendix 4 - increased costs directly concerned with delivering frontline service or responding to external pressures and previously considered in detail by the Personnel Committee
· Example C: 8.7% increase. Example B plus items 14-19 in Appendix 4 - development of IT infrastructure with long-term advantages, additional resources for national projects and increases in legal actions and changes required in firefighting practice
· Example D: 9.4% increase. Example C plus items 20-26 in Appendix 4 - additional (rather than reprioritised) training and equipment spend
· Example E: 10.2% increase. Example D plus items 27-37 in Appendix 4 - all remaining growth proposals.
5.3 There is one proposal included in Example A which is somewhat different in that it does not involve spending additional money, but spending it at a different time. See Appendix 3, Example C3, page 17. Indeed, the proposal to move on a phased basis towards purchasing three frontline vehicles per year from revenue (at a cost of £150,000 in 2002/03) would save money in the long run and the principle has already been supported by members. In the context of a capital programme spend of some £1.5m per year on vehicle replacement, purchase from revenue would then remain a minority element compared with leasing. However, by moving in this direction more flexibility would be built in for the future as leases end and the impact of cumulative leasing costs on the Authority's base budget comes through. There would also be some savings on the actual cost of vehicle replacement, and operational advantages such as making it easier to modify vehicles in line with changing operational conditions without requiring the permission of the leasing company and to keep vehicles longer (eg for the reserve fleet) without incurring additional leasing charges.
5.4 The impact of these illustrative examples over the next three years is illustrated in Table 4.
6 Costs and levies
6.1 Actual costs can be summarised as follows:
Table 4 : Budget options
2002/03 |
2003/04 |
2004/05 |
|||||
£000 |
% |
£000 |
% |
£000 |
% | ||
Base budget * |
47,543 |
5.1 |
47,543 |
5.1 |
45,543 |
5.1 | |
Example A growth |
48,087 |
6.3 |
48,240 |
6.6 |
48,373 |
6.9 | |
Example B growth |
48,584 |
7.4 |
48,999 |
8.3 |
49,132 |
8.6 | |
Example C growth |
49,164 |
8.7 |
49,565 |
9.5 |
49,698 |
9.8 | |
Example D growth |
49,496 |
9.4 |
49,943 |
10.4 |
50,036 |
10.6 | |
Example E growth |
49,848 |
10.2 |
50,181 |
10.9 |
50,291 |
11.2 |
* note - the base budget has been shown here as a constant figure across all three years so that changes, eg to the forecast cost of pensions, do not distort the effects of the growth proposals.
6.2 If set at the base budget, the levies on the constituent authorities would be as follows:
Table 5 : Levies at base budget (5.1% increase)
Levy 2001/02 |
Base 2002/03 |
Increase over 2001/02 | |||
£'000 |
£'000 |
£'000 | |||
36,081 |
Hampshire |
(79.7236%) |
37,903 |
1,822 | |
4,376 |
Portsmouth |
(9.6706%) |
4,598 |
222 | |
4,790 |
Southampton |
(10.6058%) |
5,042 |
252 | |
45,247 |
47,543 |
2,296 |
Note: The split between the constituent authorities is based upon the draft Revenue Support Grant (RSG) tax base figures. Final figures will be known before the levy is approved in February.
6.3 A detailed base budget is set out in appendix 2.
6.4 The levies based on the examples costed above would be:
Table 6 : Impact of growth options on levies
Original 2001/02 |
ExampleA |
Example B |
Example C |
Example D |
Example E | ||
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£,000 | ||
36,081 |
Hampshire |
38,337 |
38,733 |
39,195 |
39,460 |
39,741 | |
4,376 |
Portsmouth |
4,650 |
4,698 |
4,755 |
4,787 |
4,821 | |
4,790 |
Southampton |
5,100 |
5,153 |
5,214 |
5,249 |
5,287 | |
45,247 |
48,087 |
48,584 |
49,164 |
49,496 |
49,848 |
7 Capital
7.1 The proposed capital programme for the three years 2002/03 to 2004/05 is set out in Appendix 5. This includes all existing commitments revised to reflect the latest estimate of costs in addition to two schemes (one at headquarters and the other at B division) which would be funded through Supplementary Credit Approval. It also incorporates the requirement to replace current breathing apparatus (BA) kit in 2003/04 together with the proposed vehicle replacement programme. As currently presented, this has some impact on the timing of items in the capital programme, making it unlikely that the new Basingstoke Fire Station can start before 2005/06. This, however, is a preliminary view prior to receipt of details of basic credit approval (BCA) from the Government. In addition, every attempt will be made to generate capital receipts, eg from Copnor, St Mary's temporary building and any sales of surplus housing. It is therefore proposed that capital priorities be revisited at the January meeting of the Finance and General Purposes Committee once relevant details are available.
Vehicles
7.2 The vehicle programme is as presented to the Finance and General Purposes Committee in October (with costs updated to 2002/03 outturn prices). The programme would be unaffected by any change in financing methods discussed above. The funding proposals set out in appendix 5 do not assume approval of the proposed change in financing.
Breathing Apparatus
7.3 Breathing apparatus cylinders were replaced in 1997 but the other components of the sets are now 13 years old. The current sets are reliable and easy to maintain but there have been many advances in technology since their introduction. During 2002/03 various evaluations will take place with the aim of replacing all existing sets in 2003/04.
7.4 It is possible that, depending on the set chosen, revalving of cylinders may be required. This was the part of the kit that was leased in 1997. Any modification would therefore require the leasing company's approval and may incur additional costs. The estimated costs of replacing the sets is £355,000.
8 Basic Credit Approval (BCA)
8.1 The BCA notification for 2002/03 has yet to be received.
8.2 The estimated balance of BCA that will be held by Hampshire County Council at the end of 2001/02 is £360,000. Capital payments for 2002/03 financed by BCA are estimated to be £702,000 (assuming the Authority approves the proposed capital programme) and therefore the estimated level of BCA to be held at the end of 2002/03 is increased to £892,000 if the same level of BCA (£1,234,000) is granted as in 2001/02. This is a starting point for determining the scope to fund the new Basingstoke Fire Station.
9 Capital Charges
9.1 Capital charges for the use of assets amount to £4,724,000, an increase of £248,000. This increase covers charges for new assets and revaluation of existing assets.
9.2 Capital charges are made to services in order to show the full cost of providing services. However, they do not affect the Authority's total expenditure as they are reversed in the asset management accounts and so do not change the overall levy.
10 European Convention on Human Rights and the Human Rights Act 1998
10.1 The proposals within this report are compatible with the provisions of the European Convention on Human Rights and the Human Rights Act 1998.
Recommendations
That:
1 the base budget be approved
2 copies of this report be sent to the constituent authorities and that the opportunity be offered for a meeting between the Chairman of the Fire Authority and representatives from each of the constituent authorities (together with appropriate officers) in December so that constituent authorities may be best placed to make comments on the example packages set out and any preferences expressed by this Authority. These comments to be returned to the Treasurer and Chief Fire Officer by 2 January 2002 for the report to the Finance and General Purposes Committee on 16 January 2002
3 the final budget be prepared taking these views into account, and levies set by the Authority at its meeting on 6 February 2002
Section 100 D - Local Government Act 1972 - background papers
The following documents disclose facts or matters on which this report, or an important part of it, is based and has been relied upon to a material extent in the preparation of this report.
NB the list excludes:
1. Published works.
2. Documents which disclose exempt or confidential information as defined in the Act.
TITLE
Fire Budget 2000/01 revised, 2001/02 forward - general papers
Fire pensions 2000/01 revised, 2001/02 forward
Appendix 1
Calculation of the base budget
1 Summary of changes in the base budget
£000 |
£000 |
% | |
Original budget 2001/02 at outturn prices |
45,247 |
||
Add full year costs of inflation to November 2001 prices |
|||
Pay and prices (includes £100,000 for insurance) |
904 |
2.00 | |
2001/02 budget at November 2001 prices |
46,151 |
2.00 | |
Add growth items allowed in the base budget: |
|||
Net cost of increments |
20 |
0.04 | |
Operational leasing |
67 |
0.15 | |
asset management costs |
154 |
0.34 | |
Retained incidents |
43 |
0.10 | |
Full year effect of 2001/02 growth |
225 |
0.50 | |
Provision for inflation from Nov 2001 to outturn 2002/03 |
|||
Pay |
492 |
||
Prices |
216 |
708 |
1.56 |
Cash limited expenditure budget 2002/03 |
47,368 |
4.69 | |
Pensions: |
|||
Full year cost of inflation to November 2001 prices |
1 |
||
Allowable growth: reduction in lump sums |
-583 |
||
increase in ordinary and ill health pension payments |
542 |
||
other |
91 |
||
Provision for inflation November 2001 to outturn 2002/03 |
124 |
175 |
0.39 |
BASE BUDGET 2002/03 |
47,543 |
5.08 |
2 Full year cost of inflation to November 2001 prices
2.1 The original budget has been increased by the actual costs of inflation to November 2001. Total inflation is £904,000 for pay and prices and £1,000 for pensions.
3 Increments
3.1 These are the gross cost of increments less savings on turnover. The net cost for firefighters is nil and for support staff is £20,000.
4 Operational leasing and capital financing costs
4.1 The operational leasing budget has been calculated based on indicative quotes from the broker for the vehicles to be leased by 31 March 2003. This increases the operational leasing budget by £67,000 and is for existing commitments only.
The latest estimate of the cost of making the statutory debt repayments and interest on loans taken out adds £154,000 to the base budget.
5 2001/02 growth
5.1 When the growth was approved in February, implementation of several of the items was either phased in during 2001/02 or delayed until 2002/03. These are therefore now added at a cost of £225,000.
5 Retained pay - number of incidents
5.1 The budget is currently set assuming a base of 22,747 incidents. This has been examined and increased, in line with the agreed formula to 23,253 incidents at a cost of £43,000.
7 Pensions
7.1 The overall pensions budget for 2002/03 consists of:
£m | |
Pensions payroll |
6.9 |
Lump sum payments |
2.8 |
Transfer values paid |
0.3 |
Transfer values received |
-0.5 |
Employee contributions |
-2.1 |
7.4 | |
7.2 The trends in pensions since 1997/98 are:
Budget |
Outturn | ||
1997/98 |
4.0 |
4.0 | |
1998/99 |
5.8 |
4.4 | |
1999/00 |
5.3 |
5.6 | |
2000/01 |
5.8 |
5.1 | |
2001/02 |
7.1 |
7.2 (estimated) | |
8 Provision for future inflation
8.1 The provision for inflation from November 2001 to March 2003 has been calculated based on 4% for firefighters, 3% for non-uniformed staff, 1.7% for pension payments and 2.5% for all other costs. In addition an estimated increase in local government/pension contributions from 195% to 205% of employees' contributions has been included (yet to be confirmed). This is offset by reductions in national insurance rates.
Appendix 3
Adjustments to previous years' growth and savings and revenue costs of proposed capital programme
Ref |
Item and Commentary |
Staff (fte) |
2002/03 £'000s |
2003/04 £'000s |
2004/05 £'000s |
1. |
Variances from 2000/01 savings |
||||
- |
Computer Aided Design (CAD) Operator post removal The budget proposals identified efficiency savings from the reduction of one CAD operator post through centralising operations from each divisional headquarters to Service headquarters. This has not been achieved as the additional travel costs outweigh any potential savings. |
1 |
14 |
14 |
14 |
- |
Farnborough Air Show Income |
-5 |
-5 | ||
Contract re-negotiated resulting in an additional £5,000. |
|||||
2. |
Variances from 2001/02 growth and savings |
-1 |
-5 |
-5 |
-5 |
E2 |
Performance review team The original intention was to replace existing uniformed Divisional Officer post two non-operational posts - with estimated savings of £5,000. Following job evaluation this has been amended to one post graded HMG. The saving is increased to £10,000. |
||||
E4 |
Best Value Review of Catering Services |
140 |
|||
Report awaited so savings deferred at this stage. |
|||||
P301 |
3 additional Firefighters for Schools Unit |
-22 |
-22 |
-22 | |
Change of calculation of costs. |
|||||
3. |
Revenue cost of capital programme * |
||||
C1 |
Proposed vehicle programme |
17 |
113 |
262 | |
Operational leasing, external interest and provision for statutory debt repayment costs of the proposed vehicle replacement programme 2002/03. |
|||||
C2 |
Breathing apparatus kit |
- |
8 |
30 | |
The external interest and provision for statutory debt repayment costs of the proposed purchase in 2003/04. |
|||||
C3 |
Revenue financing of vehicles |
150 |
284 |
401 | |
A phased introduction of purchasing vehicles through revenue contributions would in the longer term save money. These costs (£150,000 in 2002/03, £300,000 in 2003/04 and £450,000 in 2004/05) are shown net of existing financing costs and are equivalent to a full year effect of £17,500 per year per frontline vehicle no longer leased |
|||||
Totals |
- |
289 |
392 |
675 |
* if proposals approved: whereas items at (1) and (2) on the previous page are unavoidable, C1-C3 are not.
Appendix 4
Growth Bids
Ref |
Item and Commentary |
Staff |
2002/03£'000s |
2003/04£'000s |
2004/05£'000s |
1 |
Buildings maintenance Increase in the provision for the general repair and maintenance of buildings (including housing stock) and re-establish a modest programme of planned maintenance work - largely abandoned because of other (more urgent) pressures on the budget. Higher level of provision in the first two years to enable some progress to be made on reducing the current backlog of work. (Corporate Aims 4, 5, & 7; Her Majesty's Inspector of Fire Services (HMI) - Draft Inspection Report - focus area 2; considered a high priority by HFRA F&GP Cete, 31 October 2001) |
175 |
225 |
75 | |
2 |
Copnor Fire Station and B Division Headquarters, Portsmouth - major structural building problems Provision for the implications of relocating staff to other Service locations (initial estimate, subject to further analysis - should reduce after four years). (Corporate Aim 4; HMI - Draft Inspection Report - focus area 1; HFRA F&GP Ctee, 31 October 2001) |
50 |
50 |
50 | |
3 |
Ending of contract with Warsash Maritime Centre Loss of income (net) in respect of support costs resulting from ending the contractual arrangements to supply instructor staff for the Centre's firefighting training courses. (HFRA Personnel Committee, 14 November 2001) |
30 |
30 |
30 | |
4 |
Crewing levels at fire stations The Service is failing to achieve nationally prescribed targets for the number of firefighters expected to be on duty at the start of shifts at wholetime fire stations (`confidence levels'); and, consequently, failing to achieve national standards for the initial number of firefighters attending incidents (`weight of attack'). Detailed analysis - in conjunction with Her Majesty's Inspectorate of Fire Services - has confirmed that the Service's establishment for wholetime firefighters (`ridership factor') is deficient at Fareham, Gosport, Redbridge and St Mary's Fire Stations. Increasing the establishment by 8 firefighters in 2002/03 and 8 in 2003/04 will make a significant improvement in this critical area of the Service's performance (Corporate Aim 4; Best Value Performance Indicator (BVPI) 145b; Personnel Ctee, 14 November 2001) |
8:16:16 |
164 |
328 |
328 |
5 |
Station Officers - flexible duty system Significant workload pressures now requires that more Station Officer posts need to be conditioned to the `flexible duty system' primarily to improve levels of operational command at incidents and to meet new requirements of safe systems of work. This action will enhance career development and lower the turnover of experienced staff in the Fire Safety Department. It will also help to provide more effective support for retained fire stations. There will be some efficiency gains through reductions in specialist and high-cost training. The savings can be re-directed to meet other training needs. Phased in: 3 re-gradings in April 2002 and 3 in October 2002. (Corporate Aims 2 & 4; Personnel Ctee, 14 November 2001; HMI - Draft Inspection Report - focus areas 1 & 3) |
17 |
22 |
22 | |
6 |
Divisional Officers The new national training and competency framework demands closer supervision, monitoring and audit of training development activities. This can be achieved by increasing the Divisional Officer establishment by 4 posts. This action (in conjunction with item 5) will further strengthen the resource available to provide enhanced levels of support for operational command at incidents; and improve managerial liaison and support for retained stations. It will also reduce the current inappropriate levels of additional hours worked by this officer grade. Phase in: 2 in April 2002 and 2 in October 2002. (Corporate Aims 4 & 7; Personnel Ctee 14 November 2001) |
4 |
143 |
190 |
190 |
7 |
Waterlooville Fire Station - crewing deficiency The current authorised wholetime establishment to provide nucleus-crewing is 7 firefighter posts. Experience has now confirmed that 8 posts are required to meet national expectations regarding `confidence levels' and `weight of attack' at incidents (see item 4 above). Temporary staffing arrangements to satisfy this need in the current year has meant that a Community Safety post has had to remain vacant. (Corporate Aim 4) |
1 |
20 |
20 |
20 |
8 |
Value Added Tax (VAT) It is likely that a recent European Court ruling on VAT reclaims made in respect of allowances and reimbursements made to staff for travel (fuel) and subsistence may no longer be allowed. Provisional estimate of impact. |
10 |
10 |
10 | |
9 |
Replacement of financial systems - SAP - Payroll The Service has to respond to the County Council's major changes to its financial and related system applications (SAP). Specifically, implementation of the new payroll system requires considerably more data input activity within the Service (previously undertaken by the Payroll Section of the County Council). An additional support post within the Personnel Department is required to meet this need. (Corporate Aim 8; HMI - Draft Inspection Report - focus areas 1 & 4; 10 September 2001 Personnel Ctee) |
1 |
15 |
15 |
15 |
10 |
Replacement of financial systems - SAP - development input It is essential that the Service plays an active part in specifying end-user needs for SAP development and implementation. This requires the personal involvement of the Financial and Office Services Manager (who is also helping to cover the currently vacant IT Manager's post). To relieve the post holder of some of some day-today responsibilities, a part time accountant has been seconded to the Service (from the County Council's Treasurer's Department). This provision would substantiate the current arrangement. (Corporate Aim 8; HMI - Draft Inspection Report; HFRA F&GP Ctee, 18 July 2001 - minute 4g) |
0.6 |
27 |
27 |
27 |
11 |
Performance review Enhanced support for the Performance Review Team and to the Director of Corporate Services to ensure that a positive response can be made to address issues identified, and recommendations made, by both the District Auditor and HMI. Subject to confirmation through job evaluation, two posts, graded HMG, one from September 2002, one from January 2003. (Corporate Aim 8; District Audit - BV Statutory Report; District Audit - Annual Audit Letter; Internal Audit - Annual Audit Opinion; HMI - Draft Inspection Report; HFRA F&GP Ctee, 18 July 2001 - minute 4g) |
2 |
30 |
76 |
76 |
12 |
Control Room Staffing A review of staffing levels has been undertaken applying the national control room staffing formula. This formula is similar to the `ridership' formula used on fire stations to determine standard crewing levels (see item 4 above). The control room staffing formula takes into account workloads measured against the number of calls handled during selected busy periods and factors such as annual leave, sickness, training needs, paternity/maternity leave, etc. But, unlike crewing at fire stations, it is not possible to simply transfer people in from other locations to cover for absences - there is no wider `pool' of resources. Applying the formula shows clearly that the Service is understaffed and that the establishment needs to be increased by one operator per watch. This would be the first increase in the control room staffing level since 1974 since when activity levels have increased considerably and additional functions have been taken on to meet new demands. There will be a saving from reduced overtime working by existing staff (estimated at £18,000). (HMI - Expectations Manual; Conditions of Service for Control Staff). |
4 |
60 |
60 |
60 |
13 |
Retained personnel conditions of service - correction of anomalies Retained personnel based at certain wholetime fire stations are paid at a different (lower) rate for being called-in to `standby' at their home station than that to standby at other stations. This is inequitable and needs correcting. Also, payments are not currently made to Sub Officers' in charge of retained units based at wholetime stations (unlike their counterparts at retained fire stations). However, the level of administrative work now undertaken by them should be formally recognised by making equivalent payments. (Corporate Aim 5; HFRS Review Retained Issues) |
11 |
11 |
11 | |
14 |
Information and Communications Technology (ICT) strategy Provisional estimate of the implementation and rollout costs of adopting Hampshire County Council's IT2000 `managed service' ICT infrastructure and associated applications. This represents the estimated net increase in costs (ie after taking into account savings that will be achieved by reducing some existing ICT maintenance costs). (Corporate Aim 8; expectations of `Modernisation' agenda - e-government; various recommendations from District Auditor and HMI to improve out-dated IT systems; also, unavoidable if HCC to remain preferred lead authority for various support functions). |
300 |
300 |
300 | |
15 |
Radio Replacement Project Provision for the preparation of detailed specification of the Service's future needs and contribution to the development of the regional procurement process. Funding will enable key staff - whose input is essential to the development, project management, and future implementation of the project - to be released wholly or partly from their existing duties (temporary staffing costs of £58,000 in first year, £71,000 in the following two years); and, for the Service's contribution (£22,000 per annum for three years) towards regional collaboration consultancy costs. There will be significant capital and/or revenue implications from 2005/06 when implementation is expected. It is a matter of concern that fire authorities have not yet been advised on the funding arrangements to support this major project. (Corporate Aims 4 & 8; HMI/Home Office requirement to vacate existing radio frequencies) |
2 |
80 |
93 |
93 |
16 |
Collaborative arrangements for firefighter recruitment A pilot scheme with brigades in the South East Region has shown collaboration to be a very cost-effective way of responding to new national recruitment and selection criteria. Collaboration has minimised the potentially much higher costs that might otherwise be involved in meeting these new demands - ie through reducing the need to divert from other core activities within the Service. (Corporate Aims 5 & 8; HMI's Thematic Review on Equality and Fairness in the Fire Service; Fairness and Dignity Group) |
20 |
20 |
20 | |
17 |
Professional Standards Team - reappraisal of staffing needs The increasing workload created by litigation claims - medical appeals, Employment Tribunals, personal injury claims, fairness and dignity issues, etc. - has resulted in a need to replace the currently vacant non-uniformed support post with a uniformed officer to assist with investigation work in this sensitive and specialist area. (Corporate Aim 5 & 8; 12 March 2001 Personnel Cttee;) |
11 |
11 |
11 | |
18 |
Legal Costs - increase in the provision for specialist advice Allied to item 17, the Service increasingly has to rely on specialist employment law advice and legal representation from the private sector to successfully defend itself against actions brought by individuals and their legal representatives. The provision also includes the increased cost of seeking specialist legal advice for technical fire safety enforcement issues (currently funded from savings in other budgets). (Corporate Aim 8; 12 March 2001 raised at Personnel Ctee) |
89 |
89 |
89 | |
19 |
Emergency incidents involving working in, and around, water As a result of the death of a firefighter in Greater Manchester Fire Service - and the subsequent issue of a `Dear Chief Fire Officer Letter', fire authorities have been required to risk-assess their training and provision of equipment for working in, and around, water. Although the Service has made some provision for dealing with coastline and some coastal river/harbour incidents, it does not have sufficient specialist equipment for incidents at lakes and inland waterways. No special provision has been made for incidents involving deep or fast-running water caused by weather-related flooding. The risk assessment has identified the need for a range of additional specialist equipment for issue to all fire stations. Provision higher in the first year to make the initial issue - lower thereafter to meet replacement needs. (Dear Chief Fire Officer Letter 21/2001; Health and Safety at Work Act; HMI - Expectations Manual) |
80 |
53 |
53 | |
20 |
Specialist training need - fire investigation and hazardous materials (HAZMAT Officers) Known and potential retirements of the Service's existing core of specially-trained officers suggests that a significant investment needs to take place over the next four years in the training new officers to undertake both the fire investigation and HAZMAT roles in order to provide appropriately resourced and competent teams able to respond to emergency incidents. (Corporate Aim 6; Health and Safety at Work Act; HMI - Expectations Manual) |
75 |
75 |
75 | |
21 |
Specialist training need - Crew and Watch Commanders' courses at Fire Service College The current spending provision for courses at the Fire Service College does not allow the Service to provide training for Crew and Watch Commanders prior to, or shortly after, their appointment. To satisfy current demand requires an increase of 10 Crew Command Courses and 9 Watch Command Courses per year. These courses represent the first leadership and management progression modules. Failure to make this provision will result in some Crew and Watch Commanders taking up operational command positions without the required accredited progression training. (Corporate Aim 6; Health and Safety at Work Act; HMI - Expectations Manual) |
120 |
120 |
120 | |
22 |
Specialist training need - new rescue roles The Fire Service is increasingly taking on more specialised rescue roles. This includes water rescues, confined space rescues and urban search and rescue. Failure to provide additional specialist training to support these activities may increase the risk to operational personnel. The recommended level of funding will be used to train instructors who will then deliver training to operational personnel. (Corporate Aim 6; Health and Safety at Work Act; HMI - Expectations Manual) |
20 |
20 |
20 | |
23 |
Special project resourcing - health and safety action plan There is a continuing need to review and improve health and safety activities in line with the recent Health and Safety Executive (HSE) publication 'Revitalising Health & Safety'. This funding (commencing in June 2002) will enable a more efficient approach to project planning a need highlighted in the recent HMI inspection. (Corporate Aim 7; HMI - Draft Inspection Report - focus area 1) |
19 |
25 |
25 | |
24 |
Electo-magnetic Compatibility Directive 95/94 Although it now appears that emergency services may have been granted some form of exemption from this Directive, no official notification from the DTLR has been yet been received. It is unlikely that there will be complete exemption and it is anticipated that there will be some increased costs associated with assessment of our existing vehicles and the identification of equipment that may require replacement. The regulations will come into effect in October 2002. (EU Legislation) |
30 |
30 |
30 | |
25 |
Training Centre Staffing A recent review of Training Centre staffing indicated a shortfall of 2 Sub Officer posts and the need to re-grade 1 Leading Firefighter to Sub Officer in order to meet increased demand (brought about by the recruitment `bulge' and increased HMI/HSE expectations) by delivering significantly more training courses - especially those that are safety-critical for personnel, e.g., Breathing Apparatus, HAZMAT, Fire Behaviour. (Zero based budgeting exercise) |
62 |
62 |
62 | |
26 |
Geographic Information Systems (GIS) GIS applications are recognised as being amongst the most useful and powerful means of producing management information for targeting resources to satisfy particular policy initiatives - both in the promotion of community safety and in work and the better planning of emergency response. Plotting incidents to track arson and the identification of geographic `black spots' facilitates effective partnership/collaboration with other bodies. Currently, the Service has very limited capability to produce management information and further investment is essential if the valuable data at the Service's disposal is to be exploited. Every effort will be made to seek sponsorship or grants, such as those available for certain 'E Government' initiatives and better use will be made of improving links with the County Council's `Hantsmap' application. (Corporate Aim 1 & 4; HMI - Draft Inspection Report) |
6 |
46 |
6 | |
27 |
Personal Protective Equipment (PPE) - heath and forest firefighting Although existing firefighters' tunics and over trousers provide excellent levels of personal protection, the specification - which includes layering for moisture release, thermal insulation, heat protection and weatherproofing - is essentially designed for 'structural' firefighting. When used in hot weather conditions - especially during heath and forest fires - the existing provision is unnecessarily bulky and heavy which rapidly induces heat-related stress. Provision of the latest specification of lightweight tunics will still give adequate levels of heat protection, but will reduce the rate of heat stress and enable the better utilisation of resources at heath and forest fire incidents. (PPE Regulations; Health and Safety at Work Act; Fire Service Inspectorate - Expectations Manual) |
129 |
5 |
22 | |
28 |
Payments to volunteers involved in Community Safety initiatives (Fire Setters, Young Firefighters' Association, etc) The Authority relies heavily on many of its staff volunteering to carry out various community safety initiatives. It is proposed to pay expenses to those personnel involved in delivering the programmes to recognise the valuable contribution they make. (Corporate Aims 1 & 3; discussed in detail at CFS Task Force meetings) |
10 |
10 |
10 | |
29 |
Payments to retained firefighters involved in targeted Community Safety initiatives The highly successful pilot project in Waterlooville produced a significant reduction in preventable fires in a target area. This proposal would enable the initiative to be progressively extended to other retained fire station areas that are known to have high numbers of arson-related incidents. In some cases, the cost of supporting the initiative is likely to be offset by savings directly attributable to attending fewer incidents in the station area. (Corporate Aims 1 & 3; discussed in detail at CFS Task Force meetings) |
10 |
10 |
10 | |
30 |
Headquarters' Service Support - Events Unit A review of the demands made upon the events unit has highlighted a need to increase the level of support to more effectively meet the Service's needs by replacing the non-uniformed events organiser with a Station Officer and to provide a general duties assistant. (Corporate Aim 4) |
1 |
31 |
31 |
31 |
31 |
Contingency funding to support existing facilities agreement The workplace partnership arrangement with the recognised trades unions is proving particularly effective; but, it imposes considerable demands on the representatives' which has an adverse affect their primary work responsibilities and inevitably impacts on their work base colleagues. This contingency would help to alleviate the impact that time off work is having. (Corporate Aim 8) |
1 |
21 |
21 |
21 |
32 |
Provision for increased numbers of retained firefighters Currently the Service is not funded to cover its full authorised establishment of retained personnel. The current recruitment initiatives have resulted in some success in reducing staffing shortfalls at particular fire stations (e.g. Stockbridge). Although greatly welcomed, it will have an increased financial impact and this needs to be addressed. (Corporate Aim 4) |
60 |
60 |
60 | |
33 |
Development and installation of mobile data technology The provision of data and information at incidents requires an additional communications technician post in the information services department to undertake installation and configuration work. A temporary post is currently funded by holding vacant a non-related post that now needs to be filled. (Identified Health & Safety Executive Audit recommendation) |
1 |
19 |
19 |
19 |
34 |
Provision of management information To keep pace with the increasing demands to provide a range of management information the database/statistics team requires an additional data input assistant. Without this post it will not be possible to provide full and timely data/information to support the identified need for enhanced levels of performance management activity. (Corporate Aim 8; District Audit - Best Value Statutory Report; HMI - Draft Inspection Report) |
1 |
15 |
15 |
15 |
35 |
Internal communication and improved methods of training There is a need to improve our current methods of communication to personnel at fire stations, particularly for delivering training and operational information. Increased use of videos, CDs/DVDs, PowerPoint lecture packages, etc is considered to be the most appropriate method of meeting this need. Basic equipment for using these packages at fire stations level can be funded from existing training budgets for one year. Once the equipment is in place there will be a need for an additional Audio/Visual technician to produce the packages in appropriate formats, and to manage their distribution and use throughout the Service. This methodology of delivering training packages will be particularly helpful in meeting the training needs of retained personnel. |
1 |
22 |
32 |
32 |
36 |
Administrative Support for Training Department - National Vocational Qulifications (NVQs); Training and Assessment Plans (TAPs); Training and Assessment Records (TARs) A review of the work carried out by the Station Officer (Coordination & Audit) has highlighted the need to increase the administrative support. The post holder is responsible for all of the administrative procedures associated with the statutory promotion examinations. This work was previously carried out by the Personnel Department, but since the retirement of the former 'Personnel Adviser' this has been transferred to the Station Officer post who is also responsible for administering NVQ's, TAPs & TARs procedures throughout the Service. This is an increasing workload that requires administrative support. (Fire Service Circular 15/1997 'Training for Competence'; Expectations - Training & Development; Appointment & Promotion Regulations) |
1 |
15 |
15 |
15 |
37 |
Continuous Professional Development - funding of attendance at short duration courses, seminars and conferences The increase in the number and cost of external training and awareness events requires additional funding. The need to keep personnel up to date in their various professional and technical disciplines is considered essential. Currently, personnel are being denied the opportunity to attend such events leaving the Service vulnerable and less able to achieve continuous performance improvement. |
20 |
20 |
20 | |
Totals |
33.6 full year |
2016 |
2246 |
2073 |
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