Comprehensive Spending Review

Purpose

For discussion.

Summary

The report outlines the work the LGA and NFCC have undertaken on creating a central team to provide the sector’s response to the comprehensive spending review.

Recommendation Members are asked to comment on the terms of reference and risk register. Actions LGA and NFCC officers to proceed with the creation of the CSR central team.

Contact officer:	Lucy Ellender

Position:	Senior Adviser

Phone no:	0207 7664 3321

Email:	lucy.ellender@local.gov.uk

Comprehensive Spending Review

Background

At the November 2018 FSMC discussions were held with the NFCC on the spending review. At that meeting Members outlined their support for a central team to develop the sector’s spending review submission, mirroring the arrangements in place for the police.

Following discussions with Lead Members and the NFCC a letter has been sent out to fire and rescue authorities asking for them to commit to funding to create a central Comprehensive Spending Review (CSR) team. Responses from the sector were asked for by 24 January and an update will be given in the meeting on the response.

Issues

From January through to the summer of 2019 the LGA and National Fire Chiefs Council worked closely with the Home Office through the Senior Sector Group (SSG) to develop a fire and rescue service funding submission from the department ahead of the anticipated Spending Review. The SSG fed into the one year Spending Round announced in September 2019.

The outcome of that work was an inflationary increase in fire and rescue service budgets in the Local Government Finance settlement, along with the ability to raise precepts by two per cent. The increase in the Home Office’s budget for 2020/21 in the Spending Round also included funding to cover the increase in the employer’s contributions for fire sector staff’s pensions. We are however waiting confirmation that this will be paid to authorities and the amount it will cover.

The Comprehensive Spending Review is now expected in 2020. In December 2019 a letter was sent out Chairs and Chief Fire Officers/Chief Executives asking them to contribute towards the provision of a central team to provide the fire and rescue service’s response to the Comprehensive Spending Review. This team would work with the Home Office and be overseen by the LGA and NFCC. The terms of reference for the team are attached at Appendix A.

The terms of reference set out the strategic objectives of the team, as defined by the Senior Sector Group, the ways of working, including its reporting mechanisms into the LGA and NFCC.

The aim of the team would be to work with the sector and the Home Office to help set out to the Treasury the business case for funding the fire and rescue service, including looking at the need for increased funding to the sector. It would be a dedicated team, working for the sector and directed through the LGA and NFCC, allowing the sector to make a proactive case to the Government for funding, highlighting the challenges facing the sector, as well as the potential new burdens from the Hackitt and Grenfell tower inquiries.

Officers will provide an update on the FRAs who have agreed to fund the team and outline next steps.

Officers have compiled a risk register for the work which will be shared at the meeting.

Implications for Wales

There are no implications for Wales as the fire and rescue service is a devolved responsibility and funding is provided to Welsh Fire and Rescue Authorities by the Welsh Assembly Government.

Financial Implications

There are no financial implications for this work for the LGA.

Next steps

Following members comments on the terms or reference and risk register officers will compile a job description and person specification for the team leader which will be shared with lead members. This will ensure that the team leader can be appointed as soon as possible once we have secured the commitment of FRAs to the team.

Appendix A

Terms of Reference for CSR Team

Vision

Working with the sector and the Home Office, the team will provide the Government with a business case setting out the need for increased funding to the fire and rescue service.

Strategic Objectives

The team will produce a business case that is aligned to the strategic objectives of the Senior Sector Group (SSG) for the fire sector.

The resource will make the case to:

Maintain appropriate operational response, including to major incidents, in line with national standards.

Significantly enhance prevention and protection activity, in particular for high risk buildings.

Maintain national resilience capability (and renew where necessary).

Boost operational effectiveness through a change programme centred on enhancing leadership and supporting cultural change.

Develop a new workforce strategy to improve standards, reward skills acquisition, and increase productivity.

Strengthen the talent pipeline for Fire and Rescue, addressing recruitment gaps, opening opportunity to all communities, tackling bullying and driving up diversity.

Improve the efficiency and effectiveness of fire and rescue services, including through better use of data and improved commercial activity.

Make use of technology to reduce risk, strengthen communications and improve outcomes.

Delivery of objectives

The delivery of the strategic objectives will be done through:

Deliver a core business case and ensure that there is a mechanism to deliver evidence to support key arguments

Proactively working alongside Home Office, LGA and NFCC colleagues to deliver a shared approach

Making sure that the funding of key service changes is considered early and in a strategic fashion as part of spending review approaches

Ensuring that spending review bids are aligned to the objectives as agreed with the SSG

Gathering evidence from existing LGA and NFCC workstreams on efficiency and productivity and seek to utilise HMICFRS datasets to support arguments

Developing a narrative on planned use of reserves and how these may be used locally to support national objectives

Having an available resource for scripting persuasive papers and sending key messages in other formats so as to influence decisions effectively

Providing regular updates on progress to date to: the SSG, the LGA and the NFCC

Working with all stakeholders to agree a strategic approach to funding submissions

Ensure that issues around inclusion, diversity and cultural change are considered within the business case.

Ways of working

The team will work with the LGA and NFCC.

The Team Leader will be appointed by the LGA and NFCC against a jointly developed person specification/job description

The LGA and NFCC will sign off progress against jointly set objectives

The budget for the resource will be held by the NFCC

Line management of the role will be provided through the NFCC

The location of the resource will be flexible, however it is expected that there will be co-location with the Home Office for at least part of the week.

Engagement

Fire and rescue services and authorities will need to proactively engage with the team to ensure that data and information is shared to make a strong business case.

Out of scope

The following will be out of scope:

Technical development of core financial models

Development of pay reform and expanding the role as this is dealt with through the National Joint Council for Fire and Rescue Services

Development of the business cases for IRS and national assets

Reporting accountabilities

The team will be expected to report regularly to both the LGA and the NFCC on progress against objectives. Any changes to the objectives will be signed off by the NFCC and LGA. The final product will be signed off by the LGA and NFCC.

Reporting into the LGA will take place through regular reports and attendance at the Fire Services Management Committee and Fire Commission, and informal reporting at the FSMC Lead Members meetings.

Reporting into the NFCC will be through the NFCC Finance Committee in the first instance, with further reporting to the NFCC Council when necessary.

Timescales

The work is expected to conclude by the end of September 2020. If there is an extension to this work, requiring further funding, that will need to be agreed with the sector.