lfc 0050 financial position as at the end of june 2018 v8 for publication 1.pdf

Report title
Financial Position as at the end of June 2018

Report to
Date
London Fire Commissioner
01 August 2018
Report by
Report number
Assistant Director, Finance
LFC-0050
NOT PROTECTIVELY MARKED

Summary
This report presents the London Fire Commissioner’s (LFC) financial position as at the end of June
2018 (Quarter 1). It provides information on financial performance against revenue and capital
budgets.
Recommendation
That the report be received.
Background
1.  This report considers the financial position as at the end of June 2018, including a forecast of
outturn at the financial year end.
2.  All departments review their actual income and expenditure on a regular basis, and provide an
updated forecast of outturn and explanation of variances, against all their budgets, to the Finance
Department. These returns then form the basis of reporting to the Corporate Service’s
Directorate Board and from there on to the Commissioner’s Board.
Background to 2018/19 Budget
3.  The 2018/19 budget was approved by the previous Authority at its meeting on 29 March 2018
(FEP2825) and adopted as the budget for the Commissioner for 2018/19, with a net revenue
budget of £401,087k. The budget included funding of £2,081k from earmarked reserves,
£12,205k from specific grants and included savings of £2,210k.
4.  This report sets out a summary position on both the revenue and capital budgets, and then
provides more detailed explanations of variances.
Revenue
5.  The forecast outturn position for 2018/19 on the revenue budget is an underspend of £7,348k
(1.8%). The variance is mainly due to an underspend of £4,009k on operational staff budgets
based on expected operational staff numbers given forecasts for recruitment and leavers. Action
The London Fire Commissioner is the fire and rescue authority for London
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continues to be taken to increase firefighter numbers, including working with the training
provider, Babcock, to increase trainee throughput, as well as plans to deliver additional training
through the Fire Service Col ege.
6.  There is also a significant forecast underspend of £1,026k on FRS staff budgets due to the
number of vacant posts, £1,216k on property rates due to successful rate valuation appeals
completed with the estates management consultant, £400k on vehicle passthroughs due to
forecast lower number of repairs and abatements level on the vehicle and equipment contract,
£514k on capital financing costs mainly due to reduced borrowing requirement in 2017/18 as a
result of re-phasing some projects to 2018/19 and additional income from Metropolitan Fire
Brigade Act 1865 (MFB Act) income from insurance companies of £259k.
7.  This forecast underspend position will continue to be monitored throughout the 2018/19
financial year.
8.  The key variances are explained in more detail from paragraph 11 below.
Capital
9.  The approved capital programme for 2018/19 has been reviewed and this has seen some
significant projects having revised timescales, that defer some expenditure into later years.
These projects include the new training centre, PEG/BDC development and the redevelopment
of Plumstead fire station, as well as a revised delivery schedule on the significant programme of
fire station improvements works across the estate.  These and other changes lead to an £887k
increase in the capital programme, but an overall reduction of £17,270k in the budgeted spend
in 2018/19, fol owing the re-phasing. Further details on the capital programme, and the changes
outlined above, are set out from paragraph 26.
10.  The capital programme will be further reviewed as part of the budget setting process and capital
strategy requirements for 2019/20 and proposals to re-profile the budgets will be included in the
Quarter 2 monitoring position. As part of that review the format of future reports will also be
revised where possible, in order to more transparently show the key issues impacting the capital
programme.
Tables and Appendices to this report
11.  A number of tables and appendices provide additional detail on the financial position, as fol ows:
  Table 1 provides a summary of the financial position for the revenue budget;
  Table 2 provides the latest position on reserves;
  Appendix 1 contains additional detail on the current and forecast financial position;
  Appendix 2 reports on the forecast outturn on the capital programme;
  Appendix 3 discusses the risks to the revenue and capital position that have not been
quantified;
  Appendix  4 meets the requirement to disclose all budget virements within the quarter
under the LFC Scheme of Governance;
  Appendix 5 provides an analysis of outstanding debt relating to charges for Shut in Lift
attendances; and
  Appendix 6 provides an update on expenditure approved in the Additional Resilience
Requirements report (FEP2763).

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Table 1. Summary Financial Position
Forecast
Current
Current
Current
Revised
Forecast

Outturn
Budget
Spend
Variance
Budget
Outturn
Variance

£000s
£000s
£000s
£000s
£000s
£000s
Operational staff
58,888
57,924
(964)
240,397
236,389
(4,008)
Other staff
13,581
15,351
1,770
57,353
56,520
(834)
Employee related
19,045
18,538
(506)
23,122
23,086
(36)
Pensions
4,989
4,981
(8)
20,445
20,445
0
Premises
17,706
19,969
2,263
37,790
36,680
(1,110)
Transport
13,882
14,191
310
16,790
16,224
(566)
Supplies and services
13,801
18,626
4,825
30,245
30,166
(80)
Third party payments
298
762
464
1,896
1,923
26
Capital financing costs
252
858
607
9,770
9,256
(514)
Central contingency
0
0
0
135
175
40
against inflation
Total revenue
142,441
151,201
8,759
437,945
430,863
(7,081)
expenditure

Other income
(23,372)
(22,295)
1,077
(37,220)
(37,432)
(211)
Net revenue
119,069
128,906
9,836
400,724
393,432
(7,292)
expenditure







Use of earmarked
0
0
0
(1,721)
(1,721)
0
reserves
Financing
119,069
128,906
9,836
399,003
391,711
(7,292)
Requirement

Financed by:

Specific grants
(10,122)
(12,067)
(1,945)
(12,278)
(12,334)
(56)
GLA funding
0
0
0
(386,725)
(386,725)
0

Net Financial Position
108,947
116,838
7,891
0
(7,348)
(7,348)

Reasons for the Revenue Position
Staff
12.  The budget for operational staff is forecast to underspend by £4,009k. The 2018/19 Budget
(FEP2825) included a one off saving in 2018/19 of £3,724k on operational staff based on forecast
recruitment and leaver numbers showing an average of 84 vacancies over the year. These
forecasts have now been updated and the expected number of vacancies has increased to 141.
Whilst this was identified as a potential risk as part of the budget setting process, the budget for
this year was not adjusted further due to ongoing work to increase recruitment and therefore
reduce the number of vacancies.
13.  The most recent recruitment campaign is showing some success and good quality applicants are
progressing wel  through the recruitment and trainee processes.  Work has been undertaken
with the training provider, Babcock, to increase each trainee cohort from 12 to 14  trainees, as
wel  as advanced plans to procure additional trainee courses from the Fire Service Col ege, to
increase the pace at which new joiners can be posted on to fire stations.  The Brigade continues

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to experience challenges in forecasting the number of leavers, particularly as the fire service is in
a transition phase fol owing the introduction of the new firefighter pension scheme in 2015,
which sees the majority of  firefighters in the 2015 scheme but with, potentially, substantial
protected pensions accrual in the old scheme(s).
14.  FRS staff budgets are forecast to underspend by £1,026k, 2.0% of the revised budget. This is due
to the number of vacant posts, with 144 vacant at the end of June, 16% of the establishment.
There are 89 agency staff at the end of June, offsetting the underspend caused by the vacancies.
15.  Control staff budgets are forecast to overspend by £193k. Overtime levels remain high due to
backfil ing of posts and staff required to support large and protracted incidents.
16.  It should also be noted that the budget includes funding for an additional 1% for the 2017 pay
award for operational and control staff, for a total 2% award in that year. Discussions between the
National Joint Council and the FBU are continuing but any additional amount agreed above the
1% would reduce the forecast underspend.
Employee Related
17.  Employee related budgets are forecast to underspend by £36k largely due to an underspend on
medical and welfare budgets, due to a lower forecast number of medical appeals in this financial
year.
Premises
18.  Premises budgets are forecast to underspend by £1,110k due to an underspend on Business
Rates (£1,216k) fol owing the completion of successful appeals submitted in this financial year,
offset by a number of work orders carried out from 2017/18 on appliance bay doors and
remedial lift works, adjustments required to Euston Fire Station for counsel ing services in
relation to Grenfel  (£76k) and due to the cost of secure storage for museum exhibits prior to
opening the new museum (£29k).
Transport
19.  Transport budgets are forecast to underspend by £566k. This includes a forecast underspend on
the vehicle and equipment contract (£200k) based on forecast abatement levels and on vehicle
passthroughs (£200k) due to lower accident repair costs expected from new fleet vehicles,
which will be considered as part of the budget process, and delays to modifications
programmes. There is also an additional underspend on running costs (£170k) due to a
reduction in the motor insurance fleet premium because of the increase in the self-insured sum,
as part of recently completed insurance tender. This will be built into the budget process for
2019/20.
Supplies and Services
20.  There is a forecast underspend of £80k on supplies and services budgets. This includes a
forecast underspend on hydrant maintenance budgets (£250k) due to difficulties encountered in
the recruitment of qualified Hydrant Technicians resulting in a lower number of referrals to water
companies, offset by a forecast overspend on hardware and software budgets (£141k) due to
spend on the wallboard at Merton carried forward from 2017/18 and a forecast overspend on
professional services due to additional spend on legal services (£59k).
Capital Financing
21.  There is a forecast underspend of £514k on capital financing costs based on the expected level
of capital receipts being achieved in year.

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Income
22.  There is a forecast over recovery of £211k on income. This is due to an increase in MFB Act
income from insurance companies (£259k) and additional income from smoke fil ed environment
training (£212k) offsetting spend elsewhere. These are offset by forecasts that LIFT income will
recover less than budgeted in this financial year (£127k) and reimbursement from LFB
Enterprises will be less than budgeted due to less staff being seconded to the company (£100k).
2019/20 Budget Update
23.  The Mayor’s Budget Guidance for 2019/20 was published on June 2018 and set out the overall
funding the Mayor intends to provide the LFC over the next four financial years. The Guidance
required that a final budget submission should be submitted to the GLA by 30 November,
presenting a financial y balanced budget for 2019/20. The Guidance also requires that the
submission should include a Capital Strategy covering the next 20 years.
Position on Reserves
24.  The forecast position on reserves is set out in Table 2 below. Movements on the reserves applied
in year together with the underspend for the year, leave a balance on the general reserve at the
year end of £21,387k. This is £7,362k in excess of the stated minimum level of £14,025k, which
is 3.5% of the net revenue expenditure budget.
Table 2. LFC Reserves for the 2017/18 Financial Year

Opening
Underspend/
Use of
Anticipated
£000s
Balance at
Approved
(Overspend)
Reserves in
Balance at
01/04/18
movements
in 2018/19
2018/19
31/03/19
Additional Resilience
4,773

(1,727)
3,046
Requirements
Community Safety
101

(101)
0
Investment Fund
Compensation
1,000

0
1,000
Emergency Services
Mobile Communication
178

(57)
121
Programme
Emergency Medical
830

(147)
683
Response
Firefighters' Pension
1,172

0
1,172
Fire Safety and Youth
909

(176)
733
Engagement
Hazardous Material
18

0
18
Protection
HMICFRS inspection
0
149

(128)
21
regime
Hydrants
462

0
462
ICT Development Reserve
1,310
600

(1,450)
460
London Resilience
2,250

(592)
1,658
LSP2017 Implementation
4,635

(698)
3,937
New Governance
300

(300)
0
Arrangements
Pension Early Release
400

0
400
Costs
Property PFI
1,912
(1,912)

0
0

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Opening
Underspend/
Use of
Anticipated
£000s
Balance at
Approved
(Overspend)
Reserves in
Balance at
01/04/18
movements
in 2018/19
2018/19
31/03/19
Recruitment/ Outreach
418
83

(338)
163
Sustainability
235

0
235
Vehicle & Equipment
1,163

(421)
742
Reserve
Watch Structure Review
0
168

0
168
Budget Flexibility
11,469
7,229

4,413
23,110
General
20,356
(6,317)
7,348

21,387
Total
53,890
0
7,348
(1,721)
59,517

25.  The reserves table above includes the use of the Additional Resilience reserve that was
established to meet forecast costs in 2017/18 arising from an initial assessment of the LFB
resources requirement. The reserve was carried forward to 2018/19 to fund delayed
expenditure and the forecast use for this year includes expenditure of £190k on wicking t-shirts,
£89k for Smokehoods and £59k for improved USAR kit. It also includes £1,000k spend on
increases to the establishment in Fire Safety and £389k for additional legal investigation costs.

26.  Other drawings from earmarked reserves in 2018/19 include:
  £1,450k from the ICT development reserve to fund delayed expenditure from 2017/18,
  £698k for implementation of LSP2017, including £502k for community safety pilots, £141k
for the ULEF programme and £55k for the staff surveys,
  £592k from the London Resilience reserve for new equipment related to Mass Casualty
Response (MCR) and flood response projects,
  £421k from the vehicle and equipment reserve to fund chargepoint implementation costs,
  £338k to support the recruitment outreach programme,
  £300k to support new governance arrangements,
  £176k to support a range of community safety pilots from the Fire Safety and Youth
Engagement reserves,
  £147k from the emergency medical response,
  £128k to fund the HMICFRS inspection regime costs,
  £159k from the Community Safety Investment Fund, and
  £57k to fund the Emergency Services Mobile Communication Programme.
27.  As a result of the forecast underspend, a review is currently being undertake to assess the
feasibility of transferring an additional £6.1m from the general reserve to the Budget Flexibility
Reserve (BFR), to support the budget in future financial years.  This al ows additional flexibility in
the management of the budget into the medium term, but the Brigade will continue to pursue
savings, and make these as early as possible, to support balancing the budget in future years.
Capital
28.  The approved capital programme (FEP 2825) has a budget spend for 2018/19 of £39,098k. The
budget was updated fol owing the 2017/18 outturn, which included the slippage from 2017/18
and resulted in a revised capital programme of £41,265k.

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29.  The current forecast capital spend for 2018/19 is £23,995k, which is £17,270k less than the
revised capital budget. This significant reduction in forecast spend reflects the outcome of a
review that was undertaken fol owing the outturn capital position for 2017/18. That review led to
a revised approach to ensure that forecasts are realistic, both in terms costs of projects in the
capital programme and the phasing of the spend on those projects across the financial years.
Whilst this has not led to any significant changes to the overal  costs of capital projects, it has
resulted in some changes to the phasing of spend. These changes together with events
impacting on the delivery of some significant projects, including the new training centre,
PEG/BDC development and the redevelopment of Plumstead fire station, as wel  as a revised
delivery schedule on the significant programme of fire station improvements works across the
estate, result in a £887k increase in the capital programme, but an overall reduction of £17,270k
in the budgeted spend in 2018/19, fol owing the re-phasing.
30.  The review of the capital programme, which also includes workstreams to improve the
management information available to those responsible for managing the projects, is expected to
help to improve the funding strategy going forward and ensure that borrowing is not entered
into before it is necessary. This should also support development of the new Capital Strategy
required under the Prudential Code and to comply with the Mayor’s Budget Guidance 2019/20.
31.  The changes in the capital programme are detailed below. The capital programme will continue
to be reviewed as part of the development of the new Capital Strategy and any further changes
will be reported in the quarter two financial position report.
Budget re-phasing between 2018/19 and 2019/20 or later years – £18,157
  ICT – Control & Mobilisation System (CAMS) – £470k
  ICT – Emergency Services Network - £707k
  ICT – Farynor System - £750k
  ICT – Incident Grounds Communication - £1,800k
  ICT – Wireless Access Point - £400k
  Heating/rewiring/windows/flooring/minor works – £2,403k
  Plumstead Fire Station Redevelopment – £1,500k
  West Hampstead Cottage Refurbishment – £486k
  PEG/BDC Development – £2,260k
  New Training Centre – £6,808k
  Other budget re-phasing – £573k

Budget savings/adjustments 2018/19 – (£887k)
  ICT Core Switch Data Modules - £300k
  ICT – Network Storage - £750k
  ICT Removal of over programming – (£2,207k)
  Other budget savings/adjustments – £270k

32. Control & Mobilisation System (CAMS) – Capita are producing a detailed plan for approval by the
Brigade, setting out delivery of future releases of software and ongoing improvements to the
VISION mobilising system (CAMS) product. The implementation of these releases and
improvements will be fully managed under the contract. However, it is prudent to hold a
contingency to cover potential costs, due to the need to ensure VISION is stable and performing
as contracted. There has been a delay in implementing remaining deliverables from the CAMS
contract e.g. BOSS mobile, MAIT (Multi Agency Information Transfer) / DEIT (Direct Electronic

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Incident Transfer). In addition, there are some changes identified to improve  turn out
performance, which have come to light post go live and are as a result of new mobilising
equipment  like Station End Equipment that needs to be implemented with the key focus
remaining on ensuring the deployed system operates as effectively as possible and  resources are
prioritised to these tasks which impacts on the suppliers ability to deliver the additional
functionality. As a consequence, £470k has been slipped to 2019/20 when it is anticipated that
resources can be re-assigned.
33. ICT Public Service Network – The Public Services Network (PSN) is the government’s high-
performance network, which helps public sector organisations work together, reduce duplication
and share resources. No decision has been made on LFB’s requirement for PSN compliance.
However, the government funded Emergency Services Network (ESN) project requires a similar
standard of security accreditation and this project is undertaking works which largely satisfies the
PSN requirements from an LFB perspective. The scope of the grant funding for ESN may however
be restricted to control room services only. Should this occur, additional funding may be required
to finalise the PSN requirements for the LFB. It is envisaged that it will not be known until late
2019 whether the contingency budget of £707k will be required. On this basis, the budget has
been deferred to 2019/20.
34. ICT – Farynor System (£750k) – This project has slipped to 2019/20 as it is considered prudent to
assess the impact of the Independent Review of Building Regulations and Fire Safety led by
Dame Judith Hackitt, that made recommendations to ensure there is a sufficiently robust
regulatory system for the future. To that end this project needs to be deferred until due
consideration can be given to the Hackitt report and subsequent guidance from government.
35. ICT – Incident Grounds Communication – £1,800k has slipped to 2019/20. This has occurred as
the project is still to fully specify the requirements as a review of a significant number of
operational policies is required prior to its completion. The primary issue is to consider the impact
of the introduction of dual band (analogue and digital) devices to support both in building
coverage for deployed solutions such as London Underground and the shift to digital band radio
for incident communications.
36. ICT – Wireless Access Point – £400k slippage to 2019/20. This project is currently in the initiation
phase but as it will require physical instal ation of equipment at al  LFB sites, which may require
site surveys to ensure adequate coverage, it is expected to take some months to complete once a
contractor is appointed. As such it has been considered prudent to split the costs across 2018/19
and 2019/20.
37.  Heating works at various fire stations/rewiring of fire stations/appliance bay floors/window
replacements/minor works (£2,403k) – the capital programme has been fully reviewed fol owing
the appointment of new consultants. The majority of the feasibility studies have now been
completed and have suggested a longer timeframe for completion than originally proposed by
the outgoing consultants. As a consequence, indicative timelines for many of these projects from
commencement to project completion are such that it would be challenging to complete the
works in the current financial year. The project timescales for a number of projects have
therefore been revised with a number being deferred to 2019/20 and in addition the budget
being re-al ocated to the most high priority works, as identified by the conditions surveys that
have been undertaken. Subject to LFC approval, these works will progress to tender and the
works will now be on site during 2019/20.

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38.  Plumstead Re-development – The initial site identified for the relocation of the existing
Plumstead fire station is no longer available and our estate agents are exploring new land
opportunities for this development. If a suitable site is not available, a decision will be required as
to whether to refurbish the fire station on this existing site, although the property is currently
listed and has numerous restrictions, or to build on the adjacent site. Accordingly, no spend is
envisaged in the current financial year and the budget of £1,500k has been carried forward to
2019/20, when the outcome of the proposed development will be known. The remaining
budget has been re-forecast across the fol owing three years of the programme, based on a
refurbishment/extension of the existing building, which is thought to be the most likely
outcome.

39.  West Hampstead Cottages Refurbishment – This is a listed property and listed planning consent
is required before the commencement of the refurbishment works. Work continues to obtain the
listed planning consent and the budget has been re-profiled to reflect the revised works
programme, accordingly £486k has been re-phased to 2019/20.

40.  PEG/BDC Development (IELP) – The lease agreement for the new and combined PEG / BDC
facility (Integrated Equipment and Logistics Project – IELP) was finally signed at the end of
February 2018. This, along with some delays in refining the requirements to house the specialist
PEG equipment, resulted in delays in the completion of the tender package.  Accordingly,
£2,260k has been carried forward to 2019/20.

41.  New Training Centre, Croydon – This project is dependent on PEG (IELP project) moving out of
the Croydon site by December 2018. The lease for the new IELP premises is now in place and fit
out of the premises will commence later this year. It is now expected that the Croydon site will
be vacated by June 2019. Work continues on the cost plan for the new Training Centre to deliver
this on budget, with a further report from the Quantity Survey expected shortly. The projected
completion date for the training centre is now November 2020, and the budget has been re-
phased accordingly.

42.  There are also a number of smaller budget re-phasing items to later years including £98k for ICT
– Records Management, £130k for the Home Fire Safety Database, £200k for Virtual Desktop
Technology, £100k for Middlesex Design Fire Station Refurbishments, £100k for Edmonton Fire
Station Refurbishment, £30k for the LFB Museum Fit out and £100k to improve security at Fire
Stations. This is offset by re-phasing of £185k from 2019/20 to 2018/19 for the Fleet
Replacement Project.
43. ICT Core Switch Data Modules – this scheme is no longer required as this functionality has been
delivered through the upgrade to Data Centre Switches 3750 Replacement project completed in
March 2018. This has resulted in a budget saving of £300k.
44. ICT Network Storage – this provision was made to replace the physical Storage Area Network
(SAN) which was due to go out of support in 2019. Advances in virtual technology have allowed
LFB to make use of Virtual SAN (VSAN) software which we have been able to install on the new
hyper converged server estate. This has resulted in a budget saving of £750k.
45. Other budget savings/adjustments include £70k for the Online Payment Facility and £200k for
the Station Network Rewires, which are both no longer required.

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46.  Table 3 below shows the current changes to the capital programme and full details of the capital
programme are set out at Appendix 2.

Table 3 – Changes to the Capital Programme

2018/19
2019/20
2020/21  2021/22  Notes
2017/18 Outturn Report
41,265
47,221
21,382
23,090
Control & Mobilising Sys  (CAMS)
(470)
470

  C/fwd to 2019/20
Emergency  Services Network
(707)
707

  C/fwd to 2019/20
(ESN)
ICT – Records Management
(98)
98

  C/fwd to 2019/20
ICT – Home Fire Safety Database
(130)
130

  C/fwd to 2019/20
ICT – Farynor Replacement
(750)
750

  C/fwd to 2019/20
ICT – Incident Grounds
(1,800)
1,800

  C/fwd to 2019/20
Communications
ICT – Virtual Desktop Technology
(200)
200

  C/fwd to 2019/20
ICT – Wireless Access Point
(400)
400

  C/fwd to 2019/20
ICT – Online Payment Facility
(70)

  Budget savings
ICT – Core Switch Modules
(300)

  Budget savings
ICT – Station Network Rewires
(200)

  Budget savings
ICT – Network Storage
(750)

  Budget savings
ICT – Over programming
2,207

  Budget savings
Fleet Equipment Replacement
185
(185)

  B/fwd from
2019/20
Fire Station Refurbishment  -
(100)
833
(1,000)
(4,343)  Project re-phasing
Middx
Plumstead FS Redevelopment
(1,500)
(2,350)
1,853
1,997  Project re-phasing
LFB Museum – Fit out
(30)
(2,322)

2,352  Project re-phasing
Refurbishment of Edmonton FS
(100)
1,110
3,600
  Project re-phasing
Heating at various stations
(1,275)
150

  C/fwd to 2019/20
Improve Security at fire stations
(100)
(1,155)

1,255  Project re-phasing
Window replacement at fire
(326)
425

  C/fwd to 2019/20
stations
Rewiring of property at fire
(550)
590

  C/fwd to 2019/20
stations
Minor Improvement Programme
(102)
1,135
(100)
(100)  Project re-phasing
Appliance Bay Doors (Phase 3)
(150)
305

  C/fwd to 2019/20
West Hampstead Cottages Refurb
(486)
470
14
  Project re-phasing
New Training Centre
(6,808)
916
5,892
  Project re-phasing
PEG/BDC Development
(2,260)
2,160
100
  Project re-phasing
Quarter 1 Forecast
23,995
53,858
31,741
24,251
Change
(17,270)
6,637
10,359
(1,161)

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Spend by Department
2018-19
2019-20
2020-21  2021-22
ICT Projects
1,717
5,370
2,360
2,000
Fleet Projects
23,472
25,105
10,738
11,680
Estate Projects
5,492
23,383
18,643
10,571
Over-programming
(6,686)
0
0
0
TOTAL
23,995
53,858
31,741
24,251

Debtors
47.  An analysis of debtors relating to Shut in Lift is provided in Appendix 5. This includes a chart that
shows the decrease in Shut in Lift debts over the past 18 months of shut in lift charges. The total
number of shut in lift debts has been fal ing gradual y over the last two years, after its peak in
2015, with the overal  balance reduced from £300k at the end of September 2015 to £104k at the
end of June 2018.
48.  The continued joint effort by Brigade staff has resulted in the positive progress made to date on
shut in lift debts recovery. It does however continue to be a challenging process to recover a
number of these debts.
Additional Resilience Requirements
49.  Appendix 6 provides detailed information on the additional resourcing costs agreed (FEP2763)
fol owing the Grenfel  Tower fire and terrorist incidents in 2017. This includes the forecast spend
for 2018/19 and the budget requirement for 2019/20 and future years.
Finance comments
50.  This report is presented by the Assistant Director – Finance and there are no further comments.
Workforce comments
51.  No staff-side consultations have been undertaken on this report.
Legal comments
52.  General Counsel has reviewed this report and has no comments.
Sustainability implications
53.  There are no direct sustainable implications.
Equalities implications
54.  This report has no equality implications.
List of Appendices to this report:
1.  Financial Position, 2018/19 Forecast Outturn
2.  Capital Programme 2018/19
3.  Risks to the Revenue and Capital Position
4.  Scheme of Governance - Budget Virements
5.  Outstanding LIFT debtors
6.  Additional Resilience Requirements

11 of 49

Consultation
Name/role
Method consulted
Heads of Department
Departmental finance returns

12 of 49

Financial Position, 2018/19 Forecast Outturn
Appendix 1
Current
Current
Current Variance
Original
Revised

Budget
Spend
Budget
Budget
Outturn
Outturn Variance

£
£
£
%
£
£
£
£
%
Operational Staff
58,395,571
57,476,803
(918,769)
(1.6%)
237,484,871
238,427,381
234,418,701
(4,008,680)
(1.7%)
Trainee Firefighters
492,392
447,477
(44,916)
(9.1%)
1,647,846
1,969,569
1,969,884
315
0.0%
Total Operational Staff
58,887,964
57,924,279
(963,684)
(1.6%)
239,132,716
240,396,950
236,388,585
(4,008,365)
(1.7%)

FRS Staff
12,236,983
13,910,448
1,673,465
13.7%
52,360,574
51,867,372
50,841,256
(1,026,116)
(2.0%)
Control Staff
1,344,098
1,440,236
96,138
7.2%
5,500,716
5,485,847
5,678,347
192,500
3.5%
Total Other Staff
13,581,081
15,350,684
1,769,603
13.0%
57,861,291
57,353,219
56,519,603
(833,616)
(1.5%)

Other Pension Payments
165,000
157,993
(7,007)
(4.2%)
990,000
990,000
990,000
0
0.0%
Severance
0
(27,384)
(27,384)
0.0%
0
0
0
0
0.0%
Professional Development
18,146,667
17,688,406
(458,261)
(2.5%)
20,757,145
19,724,220
19,724,220
0
0.0%
Recruitment
73,528
55,041
(18,487)
(25.1%)
197,500
197,500
200,709
3,209
1.6%
Employee Related Insurance
0
69,375
69,375
0.0%
190,000
190,000
190,000
0
0.0%
Compensation
138,953
104,251
(34,703)
(25.0%)
555,813
555,814
555,814
0
0.0%
Medical and Welfare Expenses
520,629
490,668
(29,961)
(5.8%)
2,096,536
2,096,536
2,057,522
(39,014)
(1.9%)
Employee Capitalised Costs
0
0
0
0.0%
(631,974)
(631,974)
(631,974)
0
0.0%
Total Employee Related
19,044,777
18,538,350
(506,427)
(2.7%)
24,155,020
23,122,096
23,086,291
(35,805)
(0.2%)

Firefighter Pension Scheme
4,988,815
4,980,628
(8,187)
(0.2%)
20,445,260
20,445,260
20,445,260
0
0.0%

Building Maintenance
2,738,141
2,828,460
90,319
3.3%
6,893,188
7,064,400
7,141,369
76,969
1.1%
Grounds Maintenance
14,696
20,174
5,478
37.3%
146,396
120,984
120,984
0
0.0%
Premises Security
468,670
467,696
(974)
(0.2%)
451,670
571,670
571,670
0
0.0%
Energy Costs
351,415
405,425
54,010
15.4%
2,034,205
2,034,205
2,034,205
0
0.0%
Rents
3,595,338
4,031,022
435,684
12.1%
8,143,116
8,303,856
8,332,866
29,010
0.3%
Property PFI Contract
5,585,202
5,584,639
(563)
(0.0%)
5,585,202
5,585,202
5,585,202
0
0.0%
Property Rates
2,481,775
4,403,064
1,921,289
77.4%
9,088,111
9,088,111
7,872,111
(1,216,000)  (13.4%)

13 of 49

Financial Position, 2018/19 Forecast Outturn
Appendix 1
Current
Current
Current Variance
Original
Revised

Budget
Spend
Budget
Budget
Outturn
Outturn Variance
Water & Sewerage Rates
47,867
22,081
(25,786)
(53.9%)
263,515
263,515
263,515
0
0.0%
Fixtures & Fittings
13,664
9,414
(4,250)
(31.1%)
97,969
97,969
97,969
0
0.0%
Cleaning and Domestic Supplies
354,035
86,394
(267,641)
(75.6%)
2,020,097
2,101,297
2,101,297
0
0.0%
Premises Insurance
18,600
93,409
74,809
402.2%
372,000
372,000
372,000
0
0.0%
Other Property Services
2,037,023
2,017,531
(19,492)
(1.0%)
2,464,908
2,186,583
2,186,963
380
0.0%
Total Premises
17,706,426
19,969,309
2,262,883
12.8%
37,560,376
37,789,791
36,680,150
(1,109,641)
(2.9%)

Running Costs
1,541,232
1,443,059
(98,173)
(6.4%)
3,071,571
3,070,464
2,900,358
(170,106)
(5.5%)
Vehicle and Equipment Contract
10,927,011
11,131,200
204,189
1.9%
10,972,929
10,927,011
10,727,011
(200,000)
(1.8%)
Vehicle Passthroughs
467,079
612,744
145,664
31.2%
643,651
692,589
492,589
(200,000)  (28.9%)
Maintenance and Repairs
0
0
0
0.0%
670,000
70,000
70,000
0
0.0%
Contract Hire & Operating Leases
724,953
719,109
(5,844)
(0.8%)
1,173,800
1,110,233
1,134,514
24,281
2.2%
Travel
221,479
285,147
63,668
28.7%
1,108,859
919,829
899,384
(20,445)
(2.2%)
Total Transport
13,881,755
14,191,259
309,504
2.2%
17,640,810
16,790,125
16,223,856
(566,269)
(3.4%)

Hydrants
496,055
481,024
(15,031)
(3.0%)
496,055
496,055
246,055
(250,000)  (50.4%)
Operational Equipment
626,681
562,375
(64,306)
(10.3%)
2,991,620
2,331,784
2,361,976
30,192
1.3%
Smoke Alarms
210,000
308,231
98,231
46.8%
700,000
700,000
674,593
(25,407)
(3.6%)
Equipment Furniture and Materials
77,854
164,573
86,719
111.4%
287,727
318,441
322,964
4,523
1.4%
Lost & NFWT Operational Equipment
111,425
152,808
41,383
37.1%
111,425
111,425
91,425
(20,000)  (17.9%)
Catering
96,546
124,558
28,012
29.0%
298,990
315,436
315,836
400
0.1%
Clothing & Laundry
1,483,663
1,736,147
252,485
17.0%
3,011,598
3,013,628
3,025,299
11,671
0.4%
General Office Expenses
193,350
154,648
(38,702)
(20.0%)
703,793
636,986
603,148
(33,837)
(5.3%)
Professional Services
7,810,406
8,084,634
274,228
3.5%
8,950,632
9,726,163
9,785,509
59,346
0.6%
Postal Services
13,446
54,930
41,485
308.5%
61,255
61,055
61,055
0
0.0%
Communications
955,956
1,902,229
946,272
99.0%
3,682,073
3,935,450
3,951,000
15,550
0.4%
Hardware and Software
1,543,840
4,635,644
3,091,804
200.3%
7,056,685
7,759,730
7,900,322
140,592
1.8%
Staff Reimbursements
60,316
56,025
(4,291)
(7.1%)
248,772
242,021
241,876
(145)
(0.1%)

14 of 49

Financial Position, 2018/19 Forecast Outturn
Appendix 1
Current
Current
Current Variance
Original
Revised

Budget
Spend
Budget
Budget
Outturn
Outturn Variance
Grants and Subscriptions
85,088
85,617
530
0.6%
235,643
227,143
223,443
(3,700)
(1.6%)
Other Insurance
0
57,496
57,496
0.0%
225,000
225,000
225,000
0
0.0%
Advertising
25,665
21,565
(4,100)
(16.0%)
117,750
105,861
97,869
(7,992)
(7.5%)
Other Supplies and Services
10,505
43,014
32,509
309.5%
38,976
39,170
38,470
(700)
(1.8%)
Total Supplies and Services
13,800,795
18,625,519
4,824,723
35.0%
29,217,993
30,245,347
30,165,839
(79,508)
(0.3%)

Other Agencies
25,146
46,630
21,484
85.4%
318,700
419,284
419,284
0
0.0%
Other Local Authorities
191,397
681,540
490,143
256.1%
1,561,002
1,388,594
1,415,594
27,000
1.9%
Audit & Bank Charges
81,250
33,840
(47,410)
(58.4%)
88,600
88,600
88,000
(600)
(0.7%)
Total Third Party Payments
297,793
762,011
464,218
155.9%
1,968,302
1,896,478
1,922,878
26,400
1.4%

Debt Repayment
0
0
0
0.0%
6,282,000
6,282,000
5,833,000
(449,000)
(7.1%)
External Interest
251,760
858,490
606,730
241.0%
3,488,000
3,488,000
3,423,000
(65,000)
(1.9%)
Total Capital Financing Costs
251,760
858,490
606,730
241.0%
9,770,000
9,770,000
9,256,000
(514,000)
(5.3%)

Central Contingency
0
0
0
0.0%
333,197
135,345
174,996
39,651
29.3%

Total revenue expenditure
142,441,166  151,200,529
8,759,363
6.1%  438,084,965  437,944,611  430,863,458  (7,081,154)  (1.6%)

MFB Act Income
(20,528,079)
(20,686,249)
(158,170)
0.8%
(27,695,000)
(27,740,647)
(28,000,000)
(259,353)
0.9%
Customer and Client Receipts
(2,843,660)
(1,633,722)
1,209,938
(42.5%)
(8,801,309)
(9,079,609)
(9,031,539)
48,070
(0.5%)
Interest Receivable
0
18,798
18,798
0.0%
(400,000)
(400,000)
(400,000)
0
0.0%
Bad Debts
0
6,176
6,176
0.0%
0
0
0
0
0.0%
Total Other Income
(23,371,739)
(22,294,997)
1,076,742
(4.6%)
(36,896,309)
(37,220,256)
(37,431,540)
(211,283)
0.6%

Net revenue expenditure
119,069,427  128,905,532
9,836,105
8.3%  401,188,655  400,724,355  393,431,918  (7,292,437)  (1.8%)

Use of Earmarked Reserves
0
0
0
0.0%
(2,183,254)
(1,721,281)
(1,721,280)
0
(0.0%)

15 of 49

Financial Position, 2018/19 Forecast Outturn
Appendix 1
Current
Current
Current Variance
Original
Revised

Budget
Spend
Budget
Budget
Outturn
Outturn Variance

Financing Requirement
119,069,427  128,905,532
9,836,105
8.3%  399,005,401  399,003,074  391,710,638  (7,292,437)  (1.8%)

Financed by:

Specific grants
(10,122,331)
(12,067,161)
(1,944,831)
19.2%
(12,205,401)
(12,278,187)
(12,334,187)
(56,000)
0.5%
GLA Grant
0
0
0
0.0%  (386,800,000)  (386,724,887)  (386,724,887)
0
0.0%

Net Financial Position
108,947,096  116,838,371
7,891,275
7.2%
0
0
(7,348,436)  (7,348,436)
0.0%

16 of 49

Financial Position, 2018/19 Capital Programme
Appendix 2
2018-19  Qtr. 1
Variance
Qtr. 1

Notes
Budget  Forecast
Spend
2018/19
2018/19 CAPITAL BUDGET
July 2018
ICT Projects
£’000s
£’000s
£’000s

Records Management - Operating
98
0
(98)

0
  C/fwd to
System
2019/20
Business Intelligent Solution
654
654
0

0

470
0
(470)
(333)
C/fwd to
Control & Mobilisation System (CAMS)
2019/20
Mobile Data Terminals Replacement
71
71
0

0

Replacement of the incident grounds
1,800
0
(1,800)

0
  C/fwd to
communications
2019/20
Home Fire Safety Database (linked to
130
0
(130)

0
  C/fwd to
Farynor))
2019/20
Replacement of laptops (FEP2462)
45
45
0

0

707
0
(707)
0
C/fwd to
Emergency Services Network
2019/20
ICT – Accident (event) reporting solution
62
62
0
0

Online Payment Facility
70
0
(70)
0
Budget Savings
250
50
(200)
0
C/fwd to
ICT – Virtual Desktop Technology
2019/20
New telephone system equipment
42
42
0
0

New computer terminals
41
41
0
0

Core Switch Modules
300
0
(300)
0
Budget Savings
853
453
(400)
0
C/fwd to
Wireless Access Points
2019/20
Data Centre Switches 3750 Replacement
104
104
0
0

Station Network Rewires
200
0
(200)
0
Budget Savings
Network Storage
750
0
(750)
0
Budget Savings
Farynor Replacement (linked to ICT
750
0
(750)

0
  C/fwd to
Home Fire Safety Database Project)
2019/20
Data transfer system - Joint Emergency
195
195
0

0
  C/fwd to
Service
2019/20
ICT Projects Over programming
(2,207)
0
2,207

0
  Removed
ICT PROJECTS
5,385
1,717
(3,668)

(333)

ESTATE PROJECTS

100
0
(100)
0
Budget re-
Fire Station Refurbishment (Middx FS)
phased
Workplace Improvement Plan (WIP)
60
60
0
(1)

Union St
1,500
0
(1,500)
0
Budget re-
Plumstead Fire Station Redevelopment
phased

17 of 49

Financial Position, 2018/19 Capital Programme
Appendix 2
2018-19  Qtr. 1
Variance
Qtr. 1

Notes
Budget  Forecast
Spend
2018/19
2018/19 CAPITAL BUDGET
July 2018
30
0
(30)
0
Budget re-
LFB Museum – Fitout
phased
100
0
(100)
0
Budget re-
Refurbishment of Edmonton Fire Station
phased
Heating at various stations
1,411
136
(1,275)
(100)
C/fwd to 19/20
510
184
(326)
0
C/fwd to
Window replacement at various stations
2019/20
Rewiring of property at various fire
600
50
(550)
(37)
C/fwd to
stations
2019/20
1,943
1,842
(101)
171
C/fwd to
Minor Improvement Programme
2019/20
663
513
(150)
169
C/fwd to
Appliance Bay Doors (Phase 3)
2019/20
Brigade wide Survey for Asbestos &
50
50
0
7

Removal
Fire Safety Works at Fire Stations
47
47
0
0

Forecourts/Rear yards Refurbishment
51
51
0
0

Improve Security at all Fire Stations,
100
0
(100)
0
C/fwd to
Offices
2019/20
7,445
637
(6,808)
14
Budget re-
New Training Centre *
phased
3,733
1,473
(2,260)
(12)
Budget re-
PEG/BDC Development – IELP Project
phased
686
200
(486)
0
Budget re-
West Hampstead Cottages Refurb
phased
Development costs
250
250
0

(95)

Other accrual reversals
0
0
0

(54)

ESTATE PROJECTS
19,279
5,492
(13,787)

62

FLEET & EQUIPMENT PROJECTS

Replacement of Fleet and Operational
13,521
13,706
185

1,782
  B/fwd from
Equipment
2019/20
Respiratory Protective Equipment
2,300
2,300
0

0

Early Replacement of ALP & HP*
3,750
3,750
0

0

CCTV on Pumping Appliances *
369
369
0

0

Early Replacement of Fire Boat*
1,000
1,000
0

0

22mm Water Hose and Reel for
1,014
1,014
0

0

Appliances *
Vehicle Security *
1,333
1,333
0

0

FLEET & EQUIPMENT PROJECTS
23,287
23,472
185

1,782

Projected Underspend
(6,686)
(6,686)
0

0

18 of 49

Financial Position, 2018/19 Capital Programme                                                                                                        Appendix 2
2018-19
B/fwd
C/fwd to
2018-19

2019/20
2020/21
2021/22
Prior
Projected
Approved
Budget
from
2019/20/
Budget
Budget
Budget
Budget
Years
Project
budget
March 18
2017-18
savings
Qtr. 1

Spend
Spend
FUTURE CAPITAL PROGRAMME –Quarter
FEP2825
Outturn
New
Report
1 2018/19
Projects
ICT Projects
£’000s
£’000s
£’000s
£’000s

£’000s
£’000s
£’000s
£’000s
£’000s
£’000s
Records Management - Operating System
98
0
(98)
0

98
0
0
2,091
2,189
2,350
Business Intelligent Solution
600
54
0
654

600
360
0
196
1,810
1,810
Control & Mobilisation System (CAMS)
470
0
(470)
0

470
0
0
9,013
9,483
10,650
Mobile Data Terminals Replacement
71
0
0
71

0
0
0
2,029
2,100
2,100
Fireground Radios
1,300
0
(1,300)
0

1,800
0
0
0
1,800
Q4    18-19
Home Fire Safety Database (linked to Farynor)
130
0
(130)
0

130
0
0
0
130
n/a
Replacement of laptops (FEP2462)
0
45
0
45

0
0
0
358
403
450
Emergency Services Network
707
0
(707)
0

707
0
0
0
707
Q1   19-20
ICT – Accident (event) reporting solution
0
62
0
62

0
0
0
68
130
130
Online Payment Facility
70
0
(70)
0

0
0
0
0
0
n/a
ICT – Virtual Desktop Technology
250
0
(200)
50

200
0
0
0
250
TBA
New telephone system equipment
0
42
0
42

0
0
0
115
157
157
New computer terminals
0
41
0
41

0
0
0
28
69
75
Netscaller Replacement
0
0
0
0

400
0
0
0
400
TBA
Core Network 6509 Replacement
0
0
0
0
0
1,900
0
0
1,900
TBA
Core Switch Modules
300
0
(300)
0
0
0
0
0
300
TBA
Network Access Switches 3650 Replacement
0
0
0
0
750
0
0
0
750
TBA
Wireless Access Points
853
0
(400)
453
400
0
0
0
853
TBA
Data Centre Switches 3750 Replacement
104
0
0
104
0
0
0
0
104
TBA
Station Network Rewires
200
0
(200)
0
100
100
0
0
200
TBA
New ISP
0
0
0
0

500
0
0
0
500
TBA
New WAN
0
0
0
0

0
500
0
0
500
TBA

20 of 49

Financial Position, 2018/19 Capital Programme                                                                                                        Appendix 2
2018-19
B/fwd
C/fwd to
2018-19

2019/20
2020/21
2021/22
Prior
Projected
Approved
Budget
from
2019/20/
Budget
Budget
Budget
Budget
Years
Project
budget
March 18
2017-18
savings
Qtr. 1

Spend
Spend
FUTURE CAPITAL PROGRAMME –Quarter
FEP2825
Outturn
New
Report
1 2018/19
Projects
VM Server Environment Hosts
0
0
0
0

500
0
0
0
500
TBA
Network Storage
750
0
(750)
0

0
0
0
0
0
n/a
Replacement of laptops
0
0
0
0

563
0
0
0
563
TBA
New computer terminals  - Thin Client
0
0
0
0

0
1,150
0
0
1,150
TBA
New audio visual equip for Stations
0
0
0
0

0
100
0
0
100
TBA
New computer terminals  - Fat Client
0
0
0
0

100
0
0
0
100
TBA
Data transfer system  - Joint Emergency Services
0
195
0
195

195
0
0
71
266
266
Business Management System (PMF)
215
0
(215)
0

215
0
0
0
215
TBA
Farynor Replacement (linked to ICT Home Fire
700
50
(750)
0

750
0
0
0
750
£100k fees
Safety Database Project)
ICT Projects Over programming/to be allocated
(2,207)
0
2,207
0

(2,913)
(1,750)
2,000
0
(4,870)
TBA
ICT PROJECTS
4,611
489
(3,383)
1,717

5,370
2,360
2,000
13,969
24,529

ESTATE PROJECTS

Fire Station Refurbishment (Middx FS)
100
0
(100)
0

2,000
1,000
917
n/a
3,917
Tba
Workplace Improvement Plan (WIP) Union St
0
60
0
60

0
0
0
107
240
240
Plumstead Fire Station Redevelopment
1,500
0
(1,500)
0

2,000
2,000
1,997
0
5,997
Tba
LFB Museum – Fit out
30
0
(30)
0

30
0
2,352
18
2,400
2,400
Refurbishment of Edmonton Fire Station
100
0
(100)
0

2,000
3,600
0
0
5,600
tba
Heating at various stations
1,350
61
(1,275)
136

1,500
1,350
1,350
n/a
n/a
n/a
Window replacement at various stations
400
110
(326)
184

825
400
400
n/a
n/a
n/a
Rewiring of property at various fire stations
600
0
(550)
50

1,190
600
600
n/a
n/a
n/a
Minor Improvement Programme
1,467
476
(102)
1,842

2,435
1,200
1,200
n/a
n/a
n/a
Appliance Bay Doors (Phase 3)
475
188
(150)
513

505
200
200
n/a
n/a
n/a

21 of 49

Financial Position, 2018/19 Capital Programme                                                                                                        Appendix 2
2018-19
B/fwd
C/fwd to
2018-19

2019/20
2020/21
2021/22
Prior
Projected
Approved
Budget
from
2019/20/
Budget
Budget
Budget
Budget
Years
Project
budget
March 18
2017-18
savings
Qtr. 1

Spend
Spend
FUTURE CAPITAL PROGRAMME –Quarter
FEP2825
Outturn
New
Report
1 2018/19
Projects
Brigade wide Survey for Asbestos & Removal
50
0
0
50

50
50
50
n/a
n/a
n/a
Fire Safety Works at Fire Stations
47
0
0
47

0
0
0
n/a
n/a
n/a
Forecourts/Rear yards Refurbishment
0
51
0
51

0
0
0
n/a
n/a
n/a
West Hampstead Cottages Refurb (FEP2776)
670
16
(486)
200

500
14
0
4
720
720
Improve Security at all Fire Stations, Offices
100
0
(100)
0

100
1,250
1,255
0
2,605
TBA
New Training Centre
7,374
71
(6,808)
637

7,788
6,629
0
446
15,500
15,500
PEG/BDC Development
3,610
123
(2,260)
1,473

2,210
100
0
217
4,000
4,000
Development costs
250
0
0
250

250
250
250
n/a
n/a
n/a
ESTATE PROJECTS
18,123
1,156
(13,787)
5,492

23,383
18,643
10,571

FLEET & EQUIPMENT PROJECTS

Replacement of Fleet and Operational
11,535
1,986
185
13,706

22,325
10,488
11,680
10,813
69,012
TBA
Equipment
Respiratory Protective Equipment
0
0
2,300
2,300

0
0
0
0
2,300
TBA
Early Replacement of ALP & HP
3,750
0
0
3,750

1,530
0
0
0
5,280
5,280
CCTV on Pumping Appliances
79
290
0
369

0
0
0
115
484
501
Early Replacement of Fire Boat
1,000
0
0
1,000

1,250
250
0
20
2,520
2,500
22mm Water Hose and Reel for Appliances
0
1,014
0
1,014

0
0
0
486
1,500
1,500
Vehicle Security
0
1,333
0
1,333

0
0
0
56
1,389
1,389
FLEET & EQUIPMENT PROJECTS
16,364
4,623
2,485
23,472

25,105
10,738
11,680
11,490
82,485

Projected Underspend
0
(6,686)
0
(6,686)

0
0
0
0
(6,686)
n/a
CAPITAL EXPENDITURE TOTAL
39,098
(418)
(14,685)
23,995

53,858
31,741
24,251

22 of 49

Risks to Revenue and Capital Position
Appendix 3
1.
Firefighter and Local Government Pension Schemes
1.1.  The Fire Brigades Union has notified the Authority, along with 49 other Fire and Rescue
Authorities, of a potential discrimination claim in connection with the transitional
arrangements applicable to the 2015 Firefighters Pension Scheme, as explained in FEP2506.
Any increase in the numbers receiving protection under the transitional arrangements may lead
to a budget pressure. Any changes may also have an impact on other public sector pensions,
including the LGPS. Although the Employment Tribunal (ET) had determined that the
transitional (protection) arrangements, which were designed to protect those within ten years
of normal pension age are objectively justified, a subsequent Employment Appears Tribunal
(EAT) al owed the firefighter’s appeal on a narrow basis. The EAT has granted respondents
permission to appeal.
2.
London Pensions Fund Authority (LPFA) Pensions Administration
2.1.  The London Pensions Fund Authority (LPFA) and Lancashire County Pension Fund (LCPF) have
formed a partnership and from April 2016 created a whol y owned company, Local Pensions
Partnership (LPP), to manage pension fund investment activities (only on the Local
Government Pension Scheme (LGPS)) and also to provide pensions administration services,
including to third party clients on the LGPS and the Firefighters’ Pension Scheme. The Brigade
continues on a shared service arrangement with the LPFA for the administration of the
Firefighters’ Pension Scheme but with the LPFA sub-contracting this to the LPP (FEP2644). The
LPP has been on a transition plan to develop the way services are provided, based on
experiences from LPFA and LCPF, and including delivering services across the multiple sites
occupied by LPP.  There have been some challenges during this transition period, and the
service provided to LFB by LPP will be reviewed during 2018/19, including comparing this to
alternative shared service options. There has been some upward pressure on the cost of the
service, and this is part of the driver for the review.
3.
Pay and Inflation
3.1.  There is ongoing significant economic uncertainty as the Brexit negotiations continue. The
impact of this is currently unclear, and so preparing forecasts for increases in general inflation
remains difficult.
3.2.  The Brigade has made a budget provision for a 2% pay award for al  staff in this year’s budget
and an additional 1% for Operational and Control staff for the on-going pay negotiations from
last financial year (also bringing this to 2%). Negotiations are continuing on the national
firefighters pay award for 2017, and there is increasing pressure on the public sector pay cap.
4.
Capital Expenditure and Financing
4.1.  The capital budget is subject to change during the year. Initial project specification is key as it is
important to keep variations to projects to a minimum, as change once a project has been
agreed and commenced may result in additional costs. However even a wel  managed project
can be subject to re-phasing or deferral due to a number of unforeseen issues, such as failure
or default on the part of the contractor or exceptionally adverse weather conditions. This can
also impact on funding requirements which in turn may have a debt charge (cost of borrowing)
revenue impact.
4.2.  All capital projects will require third party collaboration to varying degrees over the project
life. The programme depends heavily on external factors and therefore can be subject to
variation with the potential for delays in project delivery and revised cash flow requirements.
The capital programme is managed on a monthly basis and is reported quarterly to the CAPS
group (Capital, Approval, Planning and Strategy Group, chaired by the Director of Corporate

23 of 49

Risks to Revenue and Capital Position
Appendix 3
Services) where al  changes to the programme are reviewed and substitution projects or re-
financing proposals are assessed and agreed.
4.3.  The debt charges arising from the capital programme have been calculated using the current
forecast Public Works Loans Board (PWLB) rates. No al owance has been made in the capital
programme for potential future capital grants or contributions and the Brigade will bid for
available capital resources as and when such opportunities arise.
4.4.  The Capital Programme for 2018/19 previously included a forecast capital receipt of £7.5m for
the sale of Clerkenwell Fire Station. This receipt has now been deferred to 2019/20 and the
future financing costs have been revised to reflect this change. If this property is not sold in
2019/20 this could result in an increased borrowing requirement and resulting capital financing
costs estimated at £857k. This is based upon the current forecast capital programme and does
not take account of any re-phasing or slippage that might occur.
4.5.  The Brigade has entered into a conditional contract for the sale of the site of the former
Southwark Training Centre with Hadston. The price specified therein was £54 million,
payable in two equal tranches. Southwark Council has resolved to grant planning consent to
Hadston and this was confirmed as acceptable by the Mayor. Terms have been agreed to
reduce the price from £54m to £42.5m fol owing receipt of the Valuer’s Report confirming it
represents best consideration.  The price change reflects rising construction costs, worsening
sales market and the requirement to include 22% affordable housing in the scheme which
originally proposed zero social housing. The GLA has provided temporary funding to meet the
shortfal  in the capital receipt.
4.6.  The new LFB Training Centre project has a dependency on PEG moving out of Croydon and
any delay to the PEG/BDC development may have a knock-on effect on the delivery of the
Training Centre programme. The lease agreement for the new combined PEG/BDC facility
(Integrated and Equipment Logistics Project – IELP) has been recently signed and the fit-
out/adaptation works are to commence later this year. The scope of the project is currently
being reconsidered due to potential difficulties in delivering the project within the approved
budget. Plans are in place to bring the project back within budget, including a full review of
options. This review could potentially result in a change to the training centre leading to
revenue costs for planning and design work carried out to date which would then be abortive,
and therefore no longer treated as capital expenditure.

4.7.  There is still uncertainty regarding Plumstead fire station, depending on a review of a new
site. There is a risk that this new site may not be deemed suitable and therefore a decision will
need to be made whether to instead refurbish the existing building, potentially with an
extension. This uncertainty could result in delay and changes to the forecast spend for this
project.

4.8.  Edmonton/Middlesex fire station projects – Further feasibility work may result in a revised
forecast for both these projects, depending on the agreed options, priorities and the agreed
way forward.
4.9.  The business case for the project to Improve Security at Fire Stations needs to be re-
validated. This may result in the project being removed from the programme, or in delays to
delivering this project.
4.10. The Lambeth River Station has been identified as a site requiring refurbishment. This is not
currently included in the capital programme, therefore further funding may need to be
requested/re-directed from other projects if deemed a priority. This is also the case for a
number of other sites including the fire stations at North Kensington, Biggin Hill and Bromley.

24 of 49

Risks to Revenue and Capital Position
Appendix 3
4.11. The design and specification of the replacement vehicles and equipment is now underway
fol owing the commencement of the new contract in November 2014. Key risks relate to the
contractor sourcing appropriate vehicle build options within a timeframe that meets fleet
replacement requirements and which may in turn impact the Authority’s cash flow. The
forecast cash expenditure for 2018/19 and future years is based on the current assessment of
the stage payment requirements for the pump replacement programme, which represents
nearly 50% of the forecast Vehicles and Equipment expenditure in that period, and the delivery
timings for the balance of the fleet replacement programme
5.
Property Services
5.1.  There are currently four sites awaiting disposal and it is not known exactly when they will be
disposed of. Any delays to planned disposal will result in additional security costs for those
sites.
5.2.  Energy budgets have experienced underspending in recent years, in part because of the
prudent assumptions used when calculating the budget requirement. Savings have been made
that now set the budget at a less cautious level and as a result energy budgets overspent by
£158k in 2017/18. As a result there is a risk of an overspend, for example because of a colder
than average winter.
5.3.  The cost of replacement property contracts are now likely to be above that previously
forecast. Approval of the new contracts is currently being finalised. If approved, this will result
in substantial increase in costs compared to existing contracts and the additional cost cannot be
contained within approved budgets. Full details of costs are included in the report.
5.4.  There is potential for further refunds in 2018/19 for new business rate appeals on 2010
rateable values if successful. Officers are awaiting confirmation of actual values from the Estates
Management Consultant.
5.5.  The water and sewerage budget was overspent by £71k in 2017/18 mainly due to
deregulation of market increasing costs. There has only been a small inflation increase to the
budget in 2018/19. A new water contract is due to be let shortly but it is likely there will be a
budget overspend this year.
6.
Col aboration, New Initiatives and Service Improvements
6.1.  Co-responding had previously been piloted in four London Boroughs. If co-responding is later
re-introduced across London this may result in budget pressures, if additional funding is not
provided.
6.2.  Discussions between officers and the FBU have now agreed a new watch structure in order to
further improve the resilience of the Brigade by simplifying, yet strengthening, the officer
structure at stations with the intention to reduce officer out duties and improve appliance
availability. This wil  resolve some longstanding issues around appliance redeployment, address
the issue of WMAs working alongside WMBs on the same watch and achieve some general
efficiency improvements. This will ensure that watches are less reliant on staff from other
stations to keep their appliances available for the shift through a more sequential use of acting
up, out duties and redeployment of appliances. This would give a greater level of appliance
availability throughout the shift, which when combined with the new approach to direct
standbys, will maximise the resources we currently have. Work is now taking place to develop
the implementation plan, including a full assessment of the costs of the new structure.
7.
Emergency Services Mobile Communications Programme (ESMCP)

25 of 49

Risks to Revenue and Capital Position
Appendix 3
7.1.  DCLG wil  replace the existing Airwave contracts, which expire in the period up to 2020 as
part of the ESMCP. There could be significant financial pressures to LFEPA under any new
contract provision. The current contract is subsidised and DCLG may be unwilling to continue
to subsidise any future system. The budget plans also include a saving of £277k in 2021/22 for
disbanding the project team. It is now clear that the forecast dates for the programme will
change, work is continuing within the Home Office to update both the project timeline and the
Ful  Business Case. It is currently expected that the revised timeline together with any impact
on funding arrangements should be made known early in 2018. Once received the budget
forecasts will be updated accordingly.
8.
Contractual Pressures/ Risks
8.1.  Significant demand continues to be placed on the Information and Communications
Technology Department to meet new requirements and aid in the development of smarter
systems for the Authority. This is at a time where resources are limited and as a result there is a
risk that development of information technology solutions may be constrained.
8.2.  There continues to be interim arrangements in place to support the Authority’s Command
Support Unit system software, due to the previous supplier ceasing trading. This means
there is no formal arrangement yet in place to support the deployed version other than on a
time and materials basis. There may then also be additional training requirements once a
replacement system is implemented.
9.
Changes to Income
9.1.  Telecommunications income in respect of radio masts may be reduced in the future due to a
reduction in the number of operators in the industry and a potential change to legislation on
access to land by operators.

26 of 49

Scheme of Governance - Budget Virements
Appendix 4
Financial Regulation 9:
“(b) With the agreement of the Director of Corporate Services, a Head of Service may transfer up to
£50,000 from a budget head within that department’s approved budget to a budget head within
another department’s approved budget, but if those budget heads are in different Directorates the
agreement of the appropriate Director or Commissioner is also required.
(c) With the agreement of the Director of Corporate Services, Directors may transfer up to £150,000
from a budget head within that department’s approved budget to a budget head within another
department’s approved budget.
(e) The Director of Corporate Services shall report all transfers under (b) and (c) to the Commissioner
as part of the quarterly Financial Position reports.”
No transfers were processed in Quarter 1 that require reporting.

27 of 49

Analysis of Shut in Lift Debtors

Appendix 5
The chart below shows the amount of outstanding LIFT debts over the last 18 months, with £104k
outstanding at the end of June 2018. The graph shows a continuing downward trend in the level of
outstanding debt.
£180k
£160k
£140k
£120k
£100k
£80k
£60k
£40k
£20k
£0k

The table below shows the top five (worst) outstanding debtors for LIFT income.

£ outstanding
Average Age
No of
in days
invoices
TESCO STORES LTD
6,036
1,093
17
LONDON BOROUGH OF LAMBETH
5,534
61
14
PERSIMMON PLC
4,315
306
11
WHITBREAD HOTEL COMPANY
3,530
440
9
NETWORK HOMES
3,223
990
9
Grand Total
22,639
594
60

The top five (worst) outstanding debtors, totalling £22,639, has continued to decrease over the past
years. This reached a peak of £105k at the end of September 2015, reduced to £48k as at the end of
September 2017 and has further reduced to £23k as at the end of June 2018. The continued joint
effort by LFC staff has resulted in the positive progress made to date.
Review of the top five debtors
Tesco Store LTD:
Debt chasing letters have been sent to Tesco Stores within the North West and South East Areas. A
payment was expected but has not been forthcoming. A joint referral has been sent to General
Counsel’s Department for legal action.

28 of 49

Analysis of Shut in Lift Debtors

Appendix 5
London Borough of Lambeth
LB Lambeth have had a new payment system put in place this financial year which they assert as
resulted in the delay in raising purchase order for payment. The outstanding debts are relatively new
and are expected to be paid.

Persimmon PLC:
Persimmon,  Gallion  Housing,  Family  Mosaic  and  Peabody  Trust  have  now  merged  into  Gallion
Peabody  Trust.  Copies  of  all  invoices  have  been  sent  but  clarification  is  required  as  to  whether
invoices can be paid under the old company names or whether they need to be re-issued to the new
company name.

Whitbread Hotel Company:
This company had promised to pay their outstanding invoices but has not yet done so. Whitbread
Hotel debts have been referred to General Counsel’s Department for further action.

Network Homes:
Officers have been informed that Network Homes is now operating under a new name, and further
information on the new name/owner is now being pursued.

29 of 49

Update on expenditure approved in the Additional Resilience Requirements report (FEP2763) Appendix 6
Actual
Forecast
Forecast
Forecast
Forecast
Spend in
Spend in
Spend in
Spend in
Spend in
Ref
Department
Expenditure Item
2017/18
2018/19
2019/20
2020/21
2021/22
£
£
£
£
£
C1
Procurement
Extended Height Aerial
0
0
600,000
3,150,000
0
(Technical &
Appliances x3
Service

Support)
Aerial appliances are used for
a range of tasks at incidents
which include providing a
means of escape for
firefighters working inside a
building, as water towers,
lighting and observation
platforms and rescues, as just
several examples. Greater
height ladders have now
become available on a similar
size chassis to the Brigade’s
current fleet that could be
effectively utilised at certain
incidents within London.

As part of the Brigade’s
existing plan to upgrade its
aerial appliance fleet, planes
are being progressed to
procure extended height
aerials.

LFB have provided our
vehicles and equipment
contractor “Babcock” with a
detailed output based
specification (OBS) for three
extended height aerial

Update on expenditure approved in the Additional Resilience Requirements report (FEP2763)                                              Appendix 6
Actual
Forecast
Forecast
Forecast
Forecast
Spend in
Spend in
Spend in
Spend in
Spend in
Ref
Department
Expenditure Item
2017/18
2018/19
2019/20
2020/21
2021/22
£
£
£
£
£
appliances to complement the
twelve standard height aerial
appliances which wil  be
ordered at the same time. In
May 2018, Babcock went to
the market to invite tenders for
the supply of al  new aerial
appliances, to include the
supply of both standard and
extended range appliances as
a single contract. The window
to accept tender proposals
closed on 25 June and the
evaluation process of the
received tender proposals has
now commenced. It is
anticipated that the tender
evaluation process wil  be
concluded during July 2018,
which should al ow for a
contract to be drawn up with
the successful bidder during
August/September 2018. The
expectation wil  then be to see
delivery of the new aerial
appliances occurring between
mid 2019 to early 2020.
C2
Procurement
Drones x2
0
28,000
0
0
0
(Technical &

Service
Drones provide an alternative
Support)
option to requests for the
support of police helicopters

Update on expenditure approved in the Additional Resilience Requirements report (FEP2763) Appendix 6
Actual
Forecast
Forecast
Forecast
Forecast
Spend in
Spend in
Spend in
Spend in
Spend in
Ref
Department
Expenditure Item
2017/18
2018/19
2019/20
2020/21
2021/22
£
£
£
£
£
which is an extremely
expensive option, is not
always available, is not within
our direct control and for
some uses is not as effective as
drones might be.

Drone pilot training (x6) has
been completed. PDA's for
drone mobilisation have been
identified and agreed with
Brigade Control.
Arrangements are being
finalised for the
commencement of the drone
trial, which is expected to start
in July 2018.
C3
Procurement
Extended Duration
0
0
2,813,000
0
0
(Technical &
Breathing Apparatus Sets
Service

Support)
LFB Standard Duration BA has
a working duration of 31

Update on expenditure approved in the Additional Resilience Requirements report (FEP2763) Appendix 6
Actual
Forecast
Forecast
Forecast
Forecast
Spend in
Spend in
Spend in
Spend in
Spend in
Ref
Department
Expenditure Item
2017/18
2018/19
2019/20
2020/21
2021/22
£
£
£
£
£
minutes. Extended Duration
BA has a working duration of
45 minutes.

A ‘Prior information notice’ has
been published via the
emergency services blue light
portal letting the market know
of the intention to replace the
Brigade’s Respiratory
Protective Equipment
provision, which includes both
standard duration and
extended duration breathing
apparatus. Six companies have
registered an interest in the
procurement, and preliminary
meetings with suppliers are
scheduled through July to
outline timescales and
requirements.

Work is also undertake to
formal y commence the
project, under the Brigade’s
project management
arrangements.

In the interim the Brigade is
reviewing how it can deliver
the current EDBA provision to
incidents at an earlier stage via

Update on expenditure approved in the Additional Resilience Requirements report (FEP2763) Appendix 6
Actual
Forecast
Forecast
Forecast
Forecast
Spend in
Spend in
Spend in
Spend in
Spend in
Ref
Department
Expenditure Item
2017/18
2018/19
2019/20
2020/21
2021/22
£
£
£
£
£
R1c
Procurement
Ongoing Maintenance for
0
0
0
613,000
613,000
Technical
Capital Items in FEP2763
Services and

Support)
This is the £613k for Extended
Operational
Duration Breathing Apparatus
Policy
Sets

R2
Operational
Improved USAR Kit
0
79,000
20,000
20,000
20,000
Policy

USAR specific drones: To
map the area and conduct
localised or wide area
search/casualty search. Can
also enter danger areas and
structures to minimise risk to
crews.

Drone pilot training (x6) has
been completed. PDA's for
drone mobilisation have been
identified and agreed with
Brigade Control.
Arrangements are being
finalised for the
commencement of the drone
trial, which is expected to start
in July 2018.

WASPs: Early Warning safety
device for structural stability.
Can also be used for Trench

Update on expenditure approved in the Additional Resilience Requirements report (FEP2763)                                              Appendix 6
Actual
Forecast
Forecast
Forecast
Forecast
Spend in
Spend in
Spend in
Spend in
Spend in
Ref
Department
Expenditure Item
2017/18
2018/19
2019/20
2020/21
2021/22
£
£
£
£
£
rescue and confined space
working.

Two units are currently on
trial, available on request.
These can be mobilised to an
incident by the duty RSO. This
unit wil  form part of the
inventory on the next
generation FRU.

Pop-Up Tents: To provide
welfare/shelter for
crews/command team in both
inclement or sunny weather.

Officers are carrying out an
assessment of whether this
equipment is required.

Half Masks: For crew welfare
over long periods of use
compared to ful  face, which
can cause crews to overheat.

80 USAR personnel have been
fitted for half face respirators.
This wil  form part of the
personal PPE issue when
resources al ow the
completion of face fitting for
the remaining staff.

Update on expenditure approved in the Additional Resilience Requirements report (FEP2763)                                              Appendix 6
Actual
Forecast
Forecast
Forecast
Forecast
Spend in
Spend in
Spend in
Spend in
Spend in
Ref
Department
Expenditure Item
2017/18
2018/19
2019/20
2020/21
2021/22
£
£
£
£
£

R3
Procurement
Wicking T-Shirts
0
247,000
57,000
57,000
57,000
(Technical &

Service
A shirt which has the ability to
Support) or
breathe and keep the user's
Operational
skin dry from sweat. The initial
Policy
cost is based on estimate of
£10 per shirt and al ocation of
five each for al  firefighter and
crew manager roles.

An appropriate wicking t-shirt
has been identified and staff
group entitlement now
agreed. A Communication
message to instruct al  USAR
personnel to order wicking t-
shirts was issued on the
28/6/18.
R4a
HR
Additional resources -
68,836
210,960
210,960
210,960
210,960
Management
Counselling and Wellbeing
Team

Changes in the nature of the
Brigade's work have increased
the workload of the C&W

Update on expenditure approved in the Additional Resilience Requirements report (FEP2763)                                              Appendix 6
Actual
Forecast
Forecast
Forecast
Forecast
Spend in
Spend in
Spend in
Spend in
Spend in
Ref
Department
Expenditure Item
2017/18
2018/19
2019/20
2020/21
2021/22
£
£
£
£
£
Team.  The unprecedented
nature of the Grenfel  Tower
fire has increased workloads
on a significant and sustained
basis.  In addition to
supporting col eagues who
were impacted by the fire in
the immediate aftermath, the
team are supporting the
col ection of witness
statements by the police and
wil  be required to support
individuals for months and
years to come, up to and
including the Public Inquiry.

Four additional Counsel or
posts (FRS E) are now in place.

R4b
HR
Additional resources -
0
33,934
33,934
33,934
33,934
Management
Counselling and Wellbeing
Team

Further to the information
above, to operate effectively
the expanded C&W team
requires administrative
support.

A FRS B post to support the
team and maintain critical and

Update on expenditure approved in the Additional Resilience Requirements report (FEP2763)                                              Appendix 6
Actual
Forecast
Forecast
Forecast
Forecast
Spend in
Spend in
Spend in
Spend in
Spend in
Ref
Department
Expenditure Item
2017/18
2018/19
2019/20
2020/21
2021/22
£
£
£
£
£
confidential records is now in
place.

R5
Fire Stations
Increase in officer levels
238,500
461,000
461,000
461,000
461,000

An increase in the Deputy
Assistant Commissioner
(DAC) establishment from 12
to 16 is required to provide
greater resilience within the
operational top management
group. DACs provide strategic
support at incidents that
require eight or more fire
engines. They are also integral
to the Brigade’s wider
strategic response
arrangements including to
Major Incidents. The
additional posts wil  support
the ongoing day to day
resilience within existing
departments and provide the
necessary level of managerial
responsibility to the Brigade’s
Grenfel  Investigation Team.

Update on expenditure approved in the Additional Resilience Requirements report (FEP2763)                                              Appendix 6
Actual
Forecast
Forecast
Forecast
Forecast
Spend in
Spend in
Spend in
Spend in
Spend in
Ref
Department
Expenditure Item
2017/18
2018/19
2019/20
2020/21
2021/22
£
£
£
£
£
R6
Commissioner's  Costs of the Investigation
705,506
1,900,000
1,500,000
900,000
900,000
& Directors'
Team (excl. Legal costs)

The establishment of this team
was set out in the report on
the Grenfel  Tower Inquiry –
Proposed Terms of Reference
(FEP 2747). The associated
legal costs are set out in a
separate line below.

The team is now in place to
support work on the
investigation.  The number
and make of the establishment
is changing to meet
organisational need, and now
the public enquiry is under
way.  Additional equipment
has been provided, for
example to al ow the review of
CCTV footage.

Update on expenditure approved in the Additional Resilience Requirements report (FEP2763)                                              Appendix 6
Actual
Forecast
Forecast
Forecast
Forecast
Spend in
Spend in
Spend in
Spend in
Spend in
Ref
Department
Expenditure Item
2017/18
2018/19
2019/20
2020/21
2021/22
£
£
£
£
£
R7a
Legal &
Grenfell - Legal Support
504,657
909,691
1,272,000
0
0
Democratic
(External Legal Advisors)
Services

The Grenfel  fire has led to the
instigation of a Public Inquiry
of which the Authority is  a
core participant. Additional y,
a paral el criminal investigation
into the fire is being carried
out by the Metropolitan Police
with support from the Brigade
and HSE.

The Brigade may be required
to play an extensive role in
each. The funding wil  meet
the costs in backfil ing posts of
staff required to work on the
Grenfel  Tower case, and for
external legal advice and
representation.

The 2018/19 forecast has
decreased significantly from
the previous update primarily
due to updated forecast on
likely costs of Junior Counsel.
Forecasts for future years
remain the same.

Update on expenditure approved in the Additional Resilience Requirements report (FEP2763)                                              Appendix 6
Actual
Forecast
Forecast
Forecast
Forecast
Spend in
Spend in
Spend in
Spend in
Spend in
Ref
Department
Expenditure Item
2017/18
2018/19
2019/20
2020/21
2021/22
£
£
£
£
£
R7b
Legal &
Grenfell - Legal Support
95,631
437,933
150,000
78,000
0
Democratic
(Disclosure Management)
Services

This funding is to meet the
costs of a dedicated IT solution
to enable effective
management of the review
and disclosure of documents
for the purpose of disclosure
in the legal proceedings noted
above.

The 2018/19 forecast has
increased significantly from
the previous update and is
based on recent estimates
provided by PA Consulting
Ltd, which includes £216,000
of consultant support.  The
figures have been chal enged
and continue to be monitored
closely. Forecasts for future
years remain the same.

.

Update on expenditure approved in the Additional Resilience Requirements report (FEP2763) Appendix 6
Actual
Forecast
Forecast
Forecast
Forecast
Spend in
Spend in
Spend in
Spend in
Spend in
Ref
Department
Expenditure Item
2017/18
2018/19
2019/20
2020/21
2021/22
£
£
£
£
£
R8
Fire Station
Overtime Support for
0
103,000
103,000
103,000
103,000
Specialist Teams

This is based on a 30 per cent
increase in operational
overtime at FRU and
FRU/USAR Stations alongside
overtime costs for Regulatory
Fire Safety in relation to
cladding inspections. For Fire
Safety, the one off costs cover
additional inspections in June
and July 2017.
R9
Fire Safety
Fire Safety resources to
0
1,000,000
1,500,000
1,500,000
1,500,000
support and enhance the
inspection programme

The ongoing costs are for an
additional resources to
support the inspection
programme.

Recruitment process is
currently under way.

Update on expenditure approved in the Additional Resilience Requirements report (FEP2763)                                              Appendix 6
Actual
Forecast
Forecast
Forecast
Forecast
Spend in
Spend in
Spend in
Spend in
Spend in
Ref
Department
Expenditure Item
2017/18
2018/19
2019/20
2020/21
2021/22
£
£
£
£
£
R10
Legal &
Review of staff support for
0
101,000
101,000
101,000
101,000
Democratic
Chair
Services

This was to  consider whether
additional support is required
for the Deputy Mayor for Fire
and Rescue

This is no longer required, and
the budget wil  be removed.

R11
Fire Stations
Potential cost of increased
371,000
371,000
371,000
371,000
371,000
sickness

It is anticipated that the
aftermath of recent incidents
wil  see an increase in sickness
rates for operational staff, in
particular. This sets out the
overtime cost that wil  be
expected to be incurred in
covering the resulting gaps.

.

Update on expenditure approved in the Additional Resilience Requirements report (FEP2763)                                              Appendix 6
Actual
Forecast
Forecast
Forecast
Forecast
Spend in
Spend in
Spend in
Spend in
Spend in
Ref
Department
Expenditure Item
2017/18
2018/19
2019/20
2020/21
2021/22
£
£
£
£
£
R12
Development
Training
0
7,000
477,000
477,000
477,000
and Training

This includes additional
training requirements for:

• Extended Height Appliances
• Drone Piloting
• Extended Duration
Breathing    Apparatus Sets
• Improved USAR Kit
• Smoke Evacuation Hoods
This also includes ongoing
EDBA training Requirements

The spend for 2018/19 for
drones training, with £5k for
training already delivered.
R13 (new)
Finance
Additional Borrowing Costs
0
0
0
608,000
608,000
Services

Items funded through the
capital programme wil
increase the overal  level of
external borrowing required
over the current four year
planning period and increase
capital financing costs by an
estimated £842k per annum.
R14 (new)
Operational
Improved Communications
0
0  TBC
TBC
TBC
Policy
for Breathing Apparatus

A BA replacement project wil

Update on expenditure approved in the Additional Resilience Requirements report (FEP2763)                                              Appendix 6
Actual
Forecast
Forecast
Forecast
Forecast
Spend in
Spend in
Spend in
Spend in
Spend in
Ref
Department
Expenditure Item
2017/18
2018/19
2019/20
2020/21
2021/22
£
£
£
£
£
shortly be underway to
examine the next generation
of BA and how this can be
delivered to the LFB. Whilst
telemetry is being identified as
a consideration any additional
communications requirements
over an above the current
(BARIE) sets can be included
for consideration.  Outline
costs have yet to be
determined.

BA communications is now in
scope of the Repertory
Protective Equipment
replacement project and the
project is just starting. There
are meetings with
manufacturers scheduled
through July to outline
timescales. with the User
requirement scheduled to go
to suppliers by end of the
calendar year.
R15 (new)
Operational
Smoke hoods
0
89,000
20,000
20,000
20,000
Policy

This budget wil  be used to
explore the viability of the
purchase of smoke hoods for
al  front line appliances and is
for the equipment costs only

Update on expenditure approved in the Additional Resilience Requirements report (FEP2763)                                              Appendix 6
Actual
Forecast
Forecast
Forecast
Forecast
Spend in
Spend in
Spend in
Spend in
Spend in
Ref
Department
Expenditure Item
2017/18
2018/19
2019/20
2020/21
2021/22
£
£
£
£
£
and does not include any
additional staffing costs that
may be associated with getting
this project up and running.

There has been a slight delay
in the procurement process
because of the size of the
order and the smal
modification made to the
Escape Hoods (previously
known as smoke hoods)
pouch. Delivery is anticipated
in September 2018.
Procurement for this project is
via the Devon & Somerset FRS
framework agreement
Total additional resilience requirements

1,984,130  5,982,518  9,843,894  8,857,894  5,629,894