Senior Sector Group and the Spending Review

Purpose of report

For information.

Summary

Emma Lawrence, from the Fire Funding team in the Home Office, will be attending FSMC to provide an update on the work of the Senior Sector Group, the outcomes from the Spending Round for Fire and Rescue Authorities and next steps for the Senior Sector Group going forward. This paper provides some background on the work of the Senior Sector Group to inform the discussions with Emma.

Recommendations That members note and comment on the work of the Senior Sector Group, and the outcomes for the fire and rescue sector arising from the Spending Round. Actions Officers to action any matters arising from the discussion as appropriate.

Contact officer:	Mark Norris

Position:	Principal Policy Adviser

Phone no:	020 7664 3241

Email:	mark.norris@local.gov.uk

Senior Sector Group and the Spending Review

Background

At its meeting in November 2018, the Committee received presentations from the Home Office and the National Fire Chiefs Council (NFCC) about the work then underway to prepare for the Spending Review, which at that point was anticipated to take place after March 2019. The Home Office explained it was looking to make a joint proposition to the Treasury with the sector.

During the discussion following the presentations members suggested there should be a similar structure to that used by the Home Office when developing submissions to the Treasury around police funding, with the LGA involved alongside the NFCC and Home Office.

This led to the creation of the Senior Sector Group (SSG) in early 2019 as a forum for informing the Home Office’s submission to the Treasury.

The Senior Sector Group

The SSG was established by the Home Office to provide oversight to the delivery of a comprehensive proposal for the future funding, and also involved representatives from FSMC and the NFCC. It met five times between January and June 2019, and in addition there were workshops held on specific work strands. During its meetings the SSG considered what should be included in the final submission, and it was agreed this would include programme proposals, a financial proposition, an evidence pack and a strategic narrative.

Within this overall framework consideration was given to four particular themes: demand and risk; capabilities; efficiency and productivity; and funding models. The work also considered issues such as the implications for Fire and Rescue Authorities of the Hackitt Review and any recommendations from the Grenfell Inquiry, as well as the delivery of the Emergency Services Network programme.

In addition the SSG’s work involved a range of input from individual services. For example the impact of different Spending Reviewing funding scenarios was modelled with the help of three different services.

During the time the SSG met it became clear that as well as responding to a three-year Spending Review, it might also have to respond to a one year Spending Round announcement.

The Spending Round

The Chancellor set out the outcomes of the government’s one year Spending Round on 4 September. The work the SSG had done in the first half of the year was helpful in responding to the announcement there would be a one year Spending Round as Whitehall departments had a very short period of time to finalise their submissions.

The Home Office received a 6.3 per cent increase in the department’s budget from 2019/20 to 2020/21. The government’s focus in the announcement was on the additional funding for the police, so it is not yet clear what the Spending Round means for the fire sector, although like the rest of local government the funding assessment for Fire and Rescue Authorities will increase by inflation. As with the remainder of local government there will be a consultation over the autumn on what the cap on council tax precept increases for Fire and Rescue Authorities will be.

Key questions for the sector are what the Home Office settlement means for the fire pensions grant, national resilience grants, the funding of the Emergency Services Network and other Home Office funding related to fire in the coming financial year.

The future of the SSG

All the members of the SSG met in September to discuss its future. There was agreement across all the organisations involved that the SSG had been a successful means for bringing the sector and the Home Office together. Given that a longer term Spending Review will have to take place in 2020, there was also agreement the SSG should continue to meet, with consideration being given to its remit and membership going forward.

Implications for Wales

Responsibility for Fire and Rescue Authorities is a devolved matter so the funding of Welsh Fire and Rescue Authorities is a matter for the Welsh Assembly.

Financial Implications

There are no financial implications arising from this report for the LGA. The question of whether the increase in the Home Office settlement includes provision for paying fire pensions will be of considerable interest to Fire and Rescue Authorities.

Next steps

FSMC will continue to engage with the Senior Sector Group going forward.