Merseyside Fire & Rescue Authority 2011/2012 Budget

If you have any comments on any aspect of the financial information contained on
the website or would like further information please contact Ian Cummins by
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)