Merseyside Fire & Rescue Authority 2011/2012 Budget

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e-mail: iancummins@merseyfire.gov.uk
Tel: 0151 296 4244

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Finances

The Fire Authority is facing an unprecedented financial challenge over at least the next two years as Central Government reduces the level of grant support. In 2010/11 the Authority received £46.304m funding from Central Government, for 2011/12 this has been reduced by £4.398m or 9.5% to £41.906m. Further reductions of 3.5% have been announced for 2012/13.

The Authority’s original medium term financial plan anticipated future council tax increases of 4% or below. Despite the severe cut in Central Government grant funding the Authority recognises the financial pressures on the communities of Merseyside and has therefore frozen its council tax at the 2010/11 rates. Most council taxpayers in Merseyside pay about 12p per day for the Fire and Rescue Service.

The Authority has set a budget of £69.100 million for 2011/12. This represents a reduction in planned expenditure of £6.422m or 8.5%. This has been achieved by:-

Assuming a 3 year pay freeze for all staff Cutting Support Services & Management Costs Being more efficient in Front Line Staffing including changing duty systems at Whiston Fire Station and the Marine Unit Using Rexerves to avoid compulsory redundancy Net Budget Reduction

£2.0m £1.7m £1.8m (£0.9m) (£6.4m)

Over the next two financial years (2011/12 – 2012/13) the financial plan will deliver £9.0m of savings and see the workforce reduced by 173:-

•  Firefighter reductions, (92), will be achieved by natural retirements
•  Non-uniform staff reductions, (81), it is hoped that voluntary severance and other means will allow the avoidance of compulsory redundancy

The reduction in management and support staff numbers is much higher at -20% than in front line areas -10%.

As stated above the budget saving options require a large number of staff reductions. It is hoped these can be achieved by voluntary means but voluntary severance and / or early release of pensions comes at an additional cost. The Authority has had a strategy of building up reserves over recent years to ensure resources exist to support any business re-engineering work either in terms of:-

• providing an extended period of time to deliver the necessary long term service changes by utilising a “£3.0m smoothing reserve” over the short term, and
•  meeting any one-off severance costs by the establishment of a “£3.0m severance reserve” In order to try and avoid compulsory redundancies over the next two years the Authority has planned to use £2.3m of the smoothing reserve and potentially all of the severance reserve.

In order to try and avoid compulsory redundancies over the next two years the Authority has planned to use £2.3m of the smoothing reserve and potentially all of the severance reserve.

The Authority has a financial plan that as far as possible maintains the front line response and service to the people of Merseyside.

The Authority has managed to set financial plans that allow investment in line with its Integrated Risk Management Plan and will help maintain its high performing status. The Integrated Risk Management Plan sets out the future strategic direction for the Authority and is available on our website at www.merseyfire.gov.uk.

How the money is spent

The Authority has budgeted to spend in the following areas:-

Budget Expenditure 2011/12	%	£'000
Employee Costs	76.0%	55,920
Capital Financing	7.9%	5,844
Transport	2.2%	1,626
Agencies & Cemtral Expenses	3.6%	2,633
Premises	4.9%	3,605
Supplies & Services	5.3%	3,929
	100.0%	73,557
Income		-3,000
		70,557
Planned use of Reserves		-1,457
2011/12 Budget Requirement		69,100

The Authority’s budget makes significant provision for investing in the Authority’s world leading Community Fire Safety work and Reducing Risk which continues to make Merseyside safer reflecting the key strategic aims and priorities of the Authority:

Our Vision – “Making Merseyside a safer, stronger healthier community”
 
Our Aim – To work in partnership with others to provide an excellent, affordable service to all the diverse communities of Merseyside that will:
 

• Reduce risk throughout the community by protective community safety services
• Respond quickly to emergencies with professional staff who reflect the diverse communities we serve.
• Restore and maintain quality of life in our communities
• Resource the organisation in a manner which will provide an efficient, cost effective and sustainable service to the people of Merseyside.

The approved budget will ensure the Authority can continue with and enhance its excellent performance in a variety of formats, to date the Authority:-

•  Was the first fire authority in the world to visit 100,000 households in a single year (and approximately 700,000 visits in total have been carried out)
•  Has fitted approximately 750,000 free smoke alarms
•  Received Beacon Status for Early Intervention (Children at Risk), Working with Older People, and for Reducing Health Inequalities
•  Reduced fire deaths from an average of 20 in 1999 to 8 in 2009/10.
•  Is targeting risks using specialist skills in dealing with age, disability, deafness, drugs, alcohol, arson and anti-social behaviour, as well as multilingual specialists.
•  Between 2003/2004 to 2009/2010, the Authority has been successful in:-

•  Reducing accidental dwelling fires by 19%
•  Reducing injuries in accidental dwelling fires by 32%
•  Reducing anti-Social behaviour fires by 61%

This work has successfully reduced the incidence of death and injury from fire in Merseyside. The table below summarises some key performance over the last 7 years:

 

Year	Accidental Dwelling Fires	Injuries in Accidental Dwelling Fires	Fatalities in Accidental Dwelling Fires	Anti Social Behaviour Fires
2003-04	1,612	171	9	18,984
2004-05	1,470	173	11	12,258
2005-06	1,456	155	11	11,689
2006-07	1,336	126	8	12,721
2007-08	1,286	69	9	10,449
2008-09	1302	107	9	7648
2009-2010	1299	117	8	7384
2010-2011 Q3	933	97	4	5731
% Change 2003/04  to 2009/10	-19.04%	-31.6	-11.11%	-61.1%

(Reduced fire deaths from an average of 20 in 1999 to 8 in 2009/10, a 60% reduction)