Item 12

HAMPSHIRE FIRE AND RESCUE AUTHORITY BUDGET 2006/07

1. Following its increase of 1.6% for 2005/06, the Fire Authority has again been able to set a relatively low increase of 2.9% in the council tax for 2006/07. This takes the council tax at Band D to £53.64. The total budget will be £59.6m. The Authority will maintain its sound financial position, with £2m of reserves in accordance with an assessment of the strategic risks faced by the Authority, and a policy of purchasing replacement vehicles from revenue rather than borrowing or leasing.

2. This relatively favourable position has been made possible by a combination of factors including a reasonable settlement, the underspend achieved in 2004/05 and expected in 2005/06, a reduced need to contribute to one-off costs, and good progress in making efficiency gains.

M. F. Cartwright

Chairman