Agenda item

To consider Item 11

The Director of Finance and Assets advised Members that the original strategy was approved in November 2020, and this was the second update on progress. The financial position had improved significantly since the last update, primarily due to additional flexibility on council tax. Also, the Authority continued to push hard on efficiency, and the HMICFRS data showed the cost per firefighter per person in Buckinghamshire was just over £20, compared to the national average of just over £25. The Authority’s own KPI data showed that total net expenditure was also significantly below the national average. The Service was very efficient in terms of what it delivered for the money it had.

The Director of Finance and Assets advised Members that with regard to the debt position, steps had been taken to improve this even further. One of the loans had been repaid early and the change in interest rates over the past year, had meant that rather than paying a premium to repay it early, the Authority actually got a discount. Other loans were being kept under review.

The Director of Finance and Assets advised Members that the updated action plan, showed the majority of actions were green or complete. A lot of 2022/23 actions were to be carried forward to this year, as there was flexibility in the plan. The Reserves Strategy had been updated and it was proposed to rename some reserves to more accurately describe their purpose, plus reallocating some reserves no longer required for the original purpose. Taking some of the reserves no longer required, there would be approximately £3m available to invest in transforming the service in line with the upcoming CRMP.

The Chairman advised Members that with regard to precept flexibility, the Authority sought the benefit of precept flexibility, and would continue to push for flexibility, but that was different to exercising that flexibility when it comes to a decision, as pressures on council taxpayers had been significant over the past twelve months. It was important that as well as seeking flexibility, the Authority continued to drive on efficiencies. The next phase on seeking efficiencies would be much harder, and the Chairman felt it would be worth considering whether to seek external support to challenge the budget process.

The Director of Finance and Assets advised Members that in terms of precept flexibility, the Authority should only be asking for what it needed. Last year if the Authority had not taken it, the service would have been in a bad financial position. There was a budget setting challenge process to go through, and expenditure would be challenged to ensure the Authority was spending what it needed to spend and investing where it needed to invest, and the budget would be set accordingly. In terms of efficiencies and getting external support, or potential challenge, this would be investigated. In terms of governance, the self-assessment was more around the Service than skills.

The Chairman asked about the governance section where it referred to the financial expertise of the governing body and asked when the CIPFA self-assessment was undertaken and felt it would be helpful if Members did a self-assessment.

A Member asked when the Masterclasses would be available to Members and why was there a significant delay in receiving the final audit opinion from the external auditor. Also, the only red status was the HMICFRS ‘efficiency and effectiveness’ still rated as ‘requires improvement’ in the most recent report, what actions were in place to address it.

The Director of Finance and Assets advised that with regard to HMICFRS, this was based on the last report. As Members would be aware, HMICFRS had completed their latest inspection of the Service, but the report had not yet been received. Until the latest report was received, it was too early to sign it off. The issue around the audit had primarily been around valuations, and the way it was presented in the balance sheet but would have no impact on the accounts themselves.

The Director of Finance and Assets would circulate the Masterclasses to Members, as well as looking at potential self-assessments.

RESOLVED –

1.      That the Committee note the report.

2.      That the following changes to usable reserves (detailed on pages   21 to 25 of Appendix 1) be made retrospectively with effect from 31 March 2023 be approved:

a) That the Apprentice Reserve be renamed Workforce Planning Reserve.

b) That the Future Funding Reserve be renamed Transformation Reserve.

c) That the Continuing Projects Reserve be closed and the balance of £80k transferred to the Transformation Reserve.

d) That the COVID-19 Reserve be closed and the balance of £594k transferred to the Transformation Reserve.