Nottinghamshire Fire and Rescue Service
2023-24 Efficiency and Productivity Plan

2 Efficiency and productivity

2023/24 Budget Information

  1. The Authority’s 2023/24 budget was approved by Fire Authority on 24 February 2023 and is detailed in Table 1 below. More details can be found in the Budget Report.
    Table 1a - Budget Details 2023/24 - Costs
    Cost Revised Budget 2022/23 £'000 Budget 2023/24 £'000 Budget 2024/25 £'000
    Employees 37,145 39,939 41,448
    Premises 3,345 4,111 4,468
    Transport 1,778 2,219 2,247
    Supplies & Services 3,938 4,394 4,514
    Payments to other Local Authorities 908 950 1,086
    Support Services 167 172 172
    Capital Financing Costs 2,761 2,692 3,149
    Income (4,036) (4,512) (4,359)
    Total 46,006 49,965 52,725
    Table 1b - Budget Details 2023/24 - Sources of Income
    Sources of Income Revised Budget 2022/23 £'000 Budget 2023/24 £'000 Budget 2024/25 £'000
    Revenue Support Grant (RSG) (5,619) (6,189) (6,498)
    Business Rates Income (2,925) (3,649) (3,685)
    Business Rate Top-Up Grant (7,277) (7,638) (8,020)
    Pension Grant (2,340) (2,340) (2,340)
    Council Tax (£5 2023/24, 2.95% 2024/25) (27,692) (29,746) (31,036)
    Reserves (153) (404) (1,146)
    Total Income (46,006) (49,965) (52,725)

Reserves

  1. Expected levels of reserves at 31 March 2023 are £10.2m as detailed in Table 2 below.
    Table 2 - Reserve position at 31 March 23 - 31 March 24
    Reserves Opening Balance* 01/4/22 £'000 Movement During 2022/23 £'000 Closing Balance 31/3/23 £'000 Expected Balance 31/3/24 £'000
    Resilience Crewing and Training 36 (1) 35 0
    Prevention Protection and Partnerships 245 (103) 142 20
    Business Systems Development 59 0 59 59
    Transformation and Collaboration 553 (217) 336 259
    Operational 444 36 480 270
    Covid-19 30 (12) 18 18
    ESN Reserve 1,244 (243) 1,001 981
    Headquarters move 50 (3) 47 47
    Budget Pressure Support 936 190 1,126 722
    Efficiency Programme 900 0 900 200
    Other 356 0 356 277
    Estates 0 62 62 62
    Total Earmarked Reserves 4,853 (291) 4,562 2,915
    General Reserve 5,191 469 5,660 5,236
    Total Reserves 10,044 (232) 10,222 8,151
  2. The general reserve is predicted to be £5.7m at the end of the financial year, which is above the minimum level of £4.5m general fund reserve agreed by Fire Authority in December 2022.
  3. Earmarked reserves are expected to be in the region of £4.6m by 31 March 2023. These reserves are earmarked for known projects or items of one-off expenditure. They include a budget pressure support reserve of £1.126m which was created to support the budget in 2023/24 and future years. Earmarked Reserves are reviewed annually as part of the Reserves Strategy included in the MTFS.

Outline of decision to increase Council Tax by £5

  1. A Futures 25 efficiency strategy was initially presented to the Policy and Strategy Committee in May 2022, with a further report being considered by the Authority in September 23. At this point in time there was a significant amount of uncertainty around the firefighter pay award and funding for future years. The budget deficit was expected to be in excess of £3m and the Authority were asked to approve public consultation to save £2m from operational budgets by reducing the number of appliances in the Service from 30 to 28 and reducing the ridership by 44 posts. Savings of £250k were also identified through the disestablishment of support staff posts.
  2. By the time the final budget was approved in February 2023 the 7% / 5% pay award had been offered, the one year funding position was agreed along with the option to increase Council Tax by £5. This placed the Authority in a position where the removal of fire appliances could be avoided, but only if Council Tax were increased by the maximum amount.
  3. The decision to increase Council Tax by £5 was made by Fire Authority on 24 February 2023. More details can be found in the Budget Report.
  4. A comparison of the deficit if Council Tax had been increased by 0%, 2.95% and £5 in 2023/24 and 2024/25 is shown in table 3 below. Future year estimates remain uncertain at this point in time due to the one year funding settlement and the uncertain economic climate, but the deficit is expected to increase beyond £1.1m estimated for 2024/25.
    Table 3 - Comparison of different Council Tax Precepts
    2023/24 £'000 2024/25 £'000
    Budget Requirement 49,965 52,725
    Total External Funding (19,815) (20,543)
    Balance to be met locally 30,150 32,182
    Council Tax Yield (0%) (28,086) (28,464)
    Council Tax Yield (2.95%) (28,912) (30,168)
    Council Tax Yield (£5) (29,746) (31,036)
    Budget Shortfall (0%) 2,064 3,717
    Budget Shortfall (2.95%) 1,237 2,014
    Budget Shortfall (£5) 404 1,146
  5. The Council Tax increase of £5 has raised £1.6m additional funding compared to a Council Tax Freeze and £826k compared to 2.95% increase.
  6. The Authority holds £1.126m of earmarked reserves set aside for budget pressure support. This was not sufficient to cover the projected deficit should Council Tax be frozen or increased by 2.95%. Both options would require significant savings still to be made from the Futures 25 Efficiency Strategy (see also section 4).
  7. The Authority holds £1.126m of earmarked reserves set aside for budget pressure support. This was not sufficient to cover the projected deficit should Council Tax be frozen or increased by 2.95%. Both options would require significant savings still to be made from the Futures 25 Efficiency Strategy (see also section 4).
  8. The Authority holds £1.126m of earmarked reserves set aside for budget pressure support. This was not sufficient to cover the projected deficit should Council Tax be frozen or increased by 2.95%. Both options would require significant savings still to be made from the Futures 25 Efficiency Strategy (see also section 4).

Efficiency

  1. The Authority holds £1.126m of earmarked reserves set aside for budget pressure support. This was not sufficient to cover the projected deficit should Council Tax be frozen or increased by 2.95%. Both options would require significant savings still to be made from the Futures 25 Efficiency Strategy (see also section 4).
    Table 4 - Efficiency Savings 2023/24
    Savings £000s Comments / Risks Risk
    Pay related savings
    Vacant posts - Admin (Temporary savings) 211 7% Vacency Factor has been built into Green Book Pay Budget This is considered achievable and has a low risk level
    Workforce review 250

    Disetablishment of posts from Admin Pay (This represents 3.37% of Admin Pay).

    This will include structural redesign and business process improvement to maximise the efficiency and effectiveness of the Service

    		 This has already been achieved
    Delayed recruitment of wholetime staff (temporary savings) 450

    The service has been holding vacant firefighter posts during 2022/23 pending decisions arounf the wholetime establishment. 

    Recruitment has now been planned for 2023/24 but the service will remain below establishment until recruits begin training. 

    A temporary saving of £450k (1.71%) has been built into the 203/24 budget to reflect this.

    		 This will be achieved as the Service has insufficient capacity to train more firefighters than have been assumed in the budget.
    Total Pay Savings 911
    Non Pay Savings
    Temporary reduction in repairs to buildings 63 Reducing the costs of the boarding up of the HQ building due to occupancy being maintained for longer. This has been achieved
    Insurance contract savings 36 Reduction in the actual costs from insurance contract This has been achieved
    Review of Engineering Equipment budget 29 This was a detailed review of need which resulted in savings in the budget This has been achieved
    New ways of working since Covid (reduced travel etc) 14 This is a further reduction in travel / accommodation budgets (savings were already built into 2022/23 budgets) This is low risk as historical expenditure has indicated that savings can be made
    Decreased usage of supplies and services 53 Reduction in various supplies and services budgets
    Other Non Pay Savings 30 Various smaller savings
    Non pay savings 225
    Total Cashable Savings 1,136
    Non Cashable Savings
    Business Rates Appeals against valuations 200 The service has been successful in the past in appealing against BR but there remains a risk that this will not be achieved. This will not be built into the budget until savings are materialised. Not built in budget yet due to risk factor
    Procurement efficiency savings using framework 169 Mainly due to the review of new contracts awarded in 2022/23. This has been measured against the average cost of bids and is a non cashable saving Risk that opportunities may diminish until Kent framework is back up and running
    Total 1,505

Productivity

  1. The Service has set itself challenging productivity targets within its current CRMP which runs from 2022-25.

    The following table sets out the Key Performance Indicators that form the Service’s public facing commitment.

    Table 5 - Key Performance Indicators
    Key Performance Indicator 2022/23 2023/24 2024/25
    Safe and Well Visits 13,000 14,000 15,000
    Business Safety Checks 500 1,000 1,500
    Fire Protection Inspections 1,200 1,500 2,00
  2. In addition a range of internal metrics are used to monitor and drive efficiency and productivity of Operational Response crews. These include:

Maintenance and Review of Operational Risk Information

  1. The service has an expectation that all Level 3 site specific risk information is reviewed on a three yearly basis by operational crews. In addition, where Level 4 tactical plan sites fall within station areas, crews are expected to conduct routine familiarisation visits to these premises.

Operational Preparedness

  1. Performance indicators relating to operational training including completion of the quarterly training planner and attendance at a minimum of two operational exercises and two tabletop exercise per year to ensure operational preparedness.

Community Engagement and Prevention Activity

  1. Minimum attendance at two Data Intelligence-led Community Engagement (DICE) events per year per Watch per station. In addition crews undertake Community Reassurance and Engagement Activities (CRaE) following all domestic fires.
  2. Delivery of quarterly prevention plan to deliver prevention activity around road, fire and water risks.
  3. A new initiative for 2023/24 is the Community Group Befriending Scheme. Each Wholetime Watch has been asked to befriend a community group in their local area to develop and embed the Fire and Rescue Service as part of local communities, contribute to positive action initiatives and strengthen community trust.

Review of the Working Day

  1. During 2023/24 the Service has planned to review the standard working day for Wholetime Fire Stations. The Service acknowledge receipt of the Home Office Productivity Calculator and as a first stage intend to use the content of this to contribute to the working day review. The intention is to integrate the use of the productivity calculator further in line with the next CRMP.