Derbyshire fire service aims to introduce cost-saving cuts after identifying £1.2m budget shortfall

Derbyshire Fire and Rescue Service has identified a potential budget gap of £1.2m by the time of the 2026/27 financial year so it has proposed possible changes to its budget for the 2024/25 financial year which it believes could save the service as much as £543,000.

Budget saving Proposals for 2024/25 include: Reducing spending; Reviewing staff positions; Getting rid of any long-term vacancies with a reduction of the service’s protection team; Reviewing allowances and ICT arrangements; Streamline training; Reducing leases on vehicles; Changing vehicle and maintenance arrangements: And the removal of sprinkler match funding.

A Derbyshire Fire and Rescue Service spokesperson said: “The past few years have seen an increase in the financial pressures faced by all in Derbyshire. The Fire and Rescue Service had to deal with spiralling costs of inflation, energy and interest rates.”

The service has now launched a public consultation to gather people’s views on its proposed approach to addressing the increased financial pressures while ensuring it fulfils its public safety duty.

Its previous Medium-Term Financial Plan and Strategy reports were influenced, according to the fire service, by increasing levels of inflation, the energy crisis and rising interest rates along with the impact of the Ukraine war, the cost of living crisis, pay disputes and threats of industrial action across different sectors.

In addition, the fire service believes the Ukraine war and the Middle East conflict are expected to lead to a further increase in financial volatility in the coming years and it is suspected that an anticipated General Election in 2024 may also influence matters.

Derbyshire fire service set a balanced budget in 2023/24 but identified a budget gap for future years and it has stressed that there is a statutory requirement for the authority to produce a balanced budget.

The size of the service budget will be reliant on the Local Government Finance settlement which is not due until the end of December and the full details of the Derbyshire fire service budget for 2024/25 will not be known until work around growth needs and savings has been completed.

A review of budgets and spending has been undertaken to create a savings plan to address the budget gap and many of the identified savings have been implemented during the current year which contributes to the 2023/24 underspend which can be transferred to reserves to fund future investment and reduce the cost of future borrowing.

And a final local settlement is not expected to be released until February before the 2024/25 financial year begins from April as the fire service considers pay awards, inflation, use of reserves, Government funding, borrowing and interest rates in its calculations.

Current projects which have been reviewed include the new fire station at Matlock which is underway and plans for the Glossop station which is soon to go to tender, and even though plans for a third new station have been temporarily removed the service recognises the need for investment so proposals to investigate the prospect of a third station are still being considered.

Specific areas are also being closely considered by the service in terms of making possible future savings and these include: The capital programme; Vehicles review; Vacancies; Ways of working; Apprenticeships and training; The use of the estate; The use of technology; and General Reserves and Earmarked Reserves.

A Derbyshire Fire and Rescue Service spokesperson added: “The service remains committed to ensuring the facilities provided are fit for purpose. The service will continue to plan for investment and ensure proposals are affordable and prudent considering the immediate and longer-term financial impacts.

“The service has a good track record at adjusting to changing financial climates in the investment decisions it makes.

“Our commitment to the safety of our residents and firefighters will be maintained and investments in necessary appliances and equipment will continue.”

Derbyshire fire service recognises that savings will need to be delivered between now and 2027/2028 to balance the budget and its updated position will be reported in February 2024 as part of the Medium-Term Financial Plan and the 2024/2025 budget setting process including proposed savings for the service.

Work has already identified savings plans for 2024/25 with many to be implemented before the budget gap emerges.

Council Tax receipts make up about 75per cent of the fire service’s income and for several years a two per cent cap has been in place for Fire Authority precept increases but Derbyshire fire service has requested that the Government maintains an additional flexibility option of up to £5 for 2024/25 after this was in place for 2023/24.

A Derbyshire fire service spokesperson said: “The service’s main source of income comes from the council tax precept, supported by lesser amounts of business rates and Government grant.

“It has been indicated by Central Government that the council tax precept could be three per cent for 2024/25 which is well below the current and previous rates of inflation experienced throughout the year.

“In order to ensure the continued delivery of services and maintain a sound financial position, Derbyshire Fire and Rescue Service projects its financial position over the next four years.

“These projections indicate an increasing budget gap in later years. To proactively address this position the service has implemented a savings programme which will identify potential areas to reduce costs and meet the future budget gap.”

The fire service has stated that council tax precept options and its levels of available reserves and borrowing along with its investment needs will continue to be considered and the public consultation survey will help it to plan for the next 2024/25 financial year.

Derbyshire Fire and Rescue Service has urged those wishing to take part in the consultation survey to visit the web link https://forms.office.com/pages/responsepage.aspx?id=HNR6EIYvxUK83xcm5_9PsrHtuYIySixLiuKyBr7D-QpUQ1QzNlZJTTJEQUpWVDRPVFZXUldOVlA4WSQlQCN0PWcu&origin=lprLink for details.