Contact: Paul Carey-Kent, Deputy Treasurer, tel 01962 847525

David Howells, Director of Corporate Services tel: 023 8064 4000 ext 203

1. Introduction

1.1 This report sets out for Members the latest budget predictions for the year. Overall an underspend of £358,000 is predicted, the reasons for which are set out in the following paragraphs. As indicated in the Final Accounts report, also on this agenda, any such underspend will be used in the final instance to supplement reserves. It is possible that further savings on pensions and external interest may occur which could be added to reserves.

2. Revenue

2.1 The latest position is given in Appendix A.

Whole-time firefighters pay and allowances

2.2 Whole-time firefighters' pay is projected to be on budget. This does however assume there are no trainee courses for new firefighters run during the current financial year.

Retained firefighters pay and allowances

2.3 The number of incidents for the first 3 months of the year is 6,027 compared to 5,892 assumed in the budget, which represents a 2% increase. The number of incidents for the same period last year was 6,950.

2.4 Overall expenditure is in line with the budget.

Firefighters' pay award

2.5 Members will be aware that the 3.5% balance of the firefighters pay award due from November 2003 has yet to be paid and 4.2% from July 2004. Both are subject to verification by the Audit Commission and completion of negotiations.

Support staff (-£300,000)

2.6 Support staff pay is projected to underspend by £300,000 due to staff vacancies and delays in recruiting to new posts. The outstanding pay award due from 1 April 2004, which is budgeted for at 2.5%, is also subject to negotiations.

Premises costs (-£120,000)

2.7 As mentioned in the Final Accounts report, also on this agenda, successful revaluation for business rate purposes have resulted in ongoing savings of £150,000. Increased cost of £30,000 on energy has partly offset this.

Transport

2.8 Increased fuel costs of £80,000 reflecting last year's experience are expected this year.

Partnership initiatives - council tax from second homes

2.9 It is proposed to use the additional £88,000 of council tax raised from second homes to fund partnership initiatives with other local authorities and agencies particularly those associated with activities arising from local crime and disorder panels and local strategic partnerships. No specific funding has been set aside in the original budget for such activities, so this new investment should be regarded as a positive contribution towards the achievement of the Authority's Integrated Risk Management Plan in conjunction with key stakeholders - especially in the areas of prevention and protection where the intention would be to support genuinely practical initiatives (e.g. the supply and fitting of smoke detectors).

3. Pensions

3.1 In the first two and half months there have been just five retirements (two ill-health and three age related). This compares with the budget of 32 retirements (22 age related and 10 ill-health) for the whole year, which would equate to 24 in the year to date.

3.2 However given the volatile nature of this budget it is too early to predict any variances on this budget head.

4. Capital

4.1 Appendix B details the latest costs of the approved capital programme.

Command, control and communications system

4.2 Members will be pleased to note that this scheme has finally finished.

2002/03 vehicles

4.3 2002/03 vehicles are now all completed at a cost of £38,000 over the last estimate. The main reason for this is an increase of £27,000 in converting the two old vehicles to schools units as a result of increasing the specification to the works needed to the vehicles and their contents.

2003/04 vehicles

4.4 The latest estimate for these vehicles shows an increase of £25,000 which is due to a change in the number of support vehicles being purchased.

Prudential Indicators

4.5 As the overall change in projected capital payments in 2004/05 is minimal, the effect on the approved prudential indicators is very marginal.

5. European Convention on Human Rights and the Human Rights Act 1998

5.1 The proposals within this report are compatible with the provisions of the European Convention on Human Rights and the Human Rights Act 1998 and considered in the light of the Race Relations (Amendment) Act 2000.

Recommendations

That it be recommended to the Authority that:

1. The £88,000 second homes specific reserve be allocated to support practical partnership initiatives that directly contribute to the achievement of the Authority's Integrated Risk Management Plan.

2. The latest budget position be noted.

3. The latest capital starts values set out on Appendix B be approved.

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:

Published works.

Documents which disclose exempt or confidential information as defined in the Act.

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Fire budget monitoring -pp3.33(d)