23. Provisions - Notes to the core accounting statements
| Short Term | Long Term | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| On-Call Duty System £000 | Officers Car Leasing £000 | Legal Costs £000 | Ill Health £000 | Domestic Rates Appeals £000 | Total Short Term £000 | Insurances £000 | Ill Health £000 | Total Long Term | Total Overall Provisions £000 | |
| Balance at 1 April 2020 | (21) | (225) | 0 | 0 | (375) | (621) | (10) | 0 | (10) | (631) |
| Additional provisions made in 2020 /21 | 0 | 0 | (50) | (85) | (42) | (177) | 0 | (43) | (43) | (220) |
| Amounts used in 2020 / 21 | 0 | 0 | 0 | 0 | 0 | 0 | 10 | 0 | 10 | (220) |
| Unused amounts reversed in 2020 /21 | 21 | 155 | 0 | 0 | 0 | 176 | 0 | 0 | 0 | 176 |
| Balance at 31 March 2021 | 0 | (70) | (50) | (85) | (417) | (622) | 0 | (43) | (43) | (665) |
Insurance
This provision allows for potential liabilities arising from existing claims against the authority. The provision is not required at 31 March 2021.
On Call Duty System
This liability arose from an employment tribunal test case relating to “Part Time Workers (Prevention of Less Favourable Treatment) Regulations”. A prudent estimate was made in 2009/10 and 2010/11 relating to the payment of compensation to on call duty system firefighters. During previous years amounts of compensation have continued to be paid, although these have now ceased. It was decided the provision was no longer required.
Officers Car Leasing
A tax review identified that some travel related expenses have been incorrectly treated for tax purposes. Whilst these expenses are now being correctly taxed, negotiations have ongoing with Her Majesties Customs and Excise (HMRC) relating to outstanding VAT. A provision had been created to cover the costs which are estimated to be in the region of £225k, this was reduced to £70k in 20/21 when the calculation was finalised.
Ill Heath & Legal Costs
The service is currently subject to two litigation cases lodged at the High Court, relating to the national age discrimination claim, McCloud. The claimants are seeking damages relating to ill health pensions. Legal cost to cover this are expected to be in the region on £50K and the Ill Health cost are expected to be £85k short term and £43k long term.
Non Domestic Rates Appeals
From 2013/14, a proportion of Non Domestic Rates collected by Nottinghamshire collecting authorities is retained locally, rather than paid directly to central government. Part of these retained rates are collected on behalf of NFRS, and so a portion of any related provisions must now be recognised by NFRS. This provision allows for possible losses arising from any successful appeals of business premises rateable values in 2020/21.