BUDGET

2011/2012 to 2014/2015

Ref. FN51412114

Comprehensive Spending Review

(20th October 2010)

• 25% reduction25% reduction in the Fire Service in the Fire Service formula grant over the next four formula grant over the next four years (2011/12 to 2014/15).years (2011/12 to 2014/15).

• ‘‘Back-loaded’Back-loaded’ onto the last two onto the last two years of the four year period.years of the four year period.

National Cumulative Grant National Cumulative Grant AdjustmentsAdjustments

-14%

-12%

-10%

-8%

-6%

-4%

-2%

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Service Changes 2011-13Service Changes 2011-13

• Introduction of Late pumps – a reduction of 13 fire Introduction of Late pumps – a reduction of 13 fire engines at nightengines at night

• Changes to crewing models, e.g Dual CrewingChanges to crewing models, e.g Dual Crewing• Recruitment Freeze since 2009Recruitment Freeze since 2009• Top to bottom management reviewTop to bottom management review• 22% reduction in traditional ‘back office’ costs by 22% reduction in traditional ‘back office’ costs by

20132013• Merging Halesowen & Cradley Heath StationsMerging Halesowen & Cradley Heath Stations

West Midlands Fire ServiceGrant Reductions

Grant reduction:Grant reduction:

2011/20122011/2012 9.5%9.5% (£7.7m)(£7.7m)

2012/20132012/2013 3.4%3.4% (£2.5m)(£2.5m)

Funding of Expenditure Funding of Expenditure 2011/122011/12

£’m£’m

Formula GrantFormula Grant 73.100 73.100Council TaxCouncil Tax 38.300 38.300S31 Grant (Council Tax Freeze)S31 Grant (Council Tax Freeze) 1.000 1.000

112.400112.400

Grant ReductionsGrant Reductions

2011/12 2012/132011/12 2012/13 2013/14 2013/14 2014/152014/15

£’m£’m £’m £’m £’m £’m £’m £’m

7.77.7 2.5 2.5 ?? ??

Years 3 & 4 Grant FiguresYears 3 & 4 Grant FiguresCLG Position (Sept 2011)CLG Position (Sept 2011)

Individual Authority settlement Individual Authority settlement announcements November/December 2012announcements November/December 2012

IndicativeIndicative national reductions: national reductions:

Year 3Year 3 8.5%8.5%

Year 4Year 4 5.0%5.0%

Grant Reduction Planning Grant Reduction Planning OptionsOptions

National Years 1 and 2National Years 1 and 2 = 6.5%= 6.5%

WMFSWMFS = 12.5%= 12.5%

National Years 3 and 4National Years 3 and 4 = 13.5%= 13.5%

WMFSWMFS = 26.0% = 26.0%

Estimated Position assuming Estimated Position assuming 13.5 % National Grant Reduction13.5 % National Grant Reduction

(with 2012/13 C’Tax Grant)(with 2012/13 C’Tax Grant)

2013/14 2014/15£m £m

Base budget 108 106Service Savings - 3 - 3

105 103Grant 64 60Council Tax 40 41Shortfall 1 2

Estimated Position assuming Estimated Position assuming 2 x 13.5% National Grant Reduction2 x 13.5% National Grant Reduction

(with 2012/13 C’Tax Grant)(with 2012/13 C’Tax Grant)

2013/14 2014/152013/14 2014/15£m£m £m£m

Base budgetBase budget 108108 106106Service Savings Service Savings - 3- 3 - 3- 3

105105 103103GrantGrant 57 57 49 49Council TaxCouncil Tax 40 40 41 41ShortfallShortfall 8 8 13 13

Council Tax Freeze Grant Council Tax Freeze Grant 2012/20132012/2013

• 3% for Fire Authorities3% for Fire Authorities

• One year only - £1.2MOne year only - £1.2M

Council Tax ThresholdCouncil Tax Threshold 2012/2013 2012/2013

• 4% for the Fire Service4% for the Fire Service

• Increase for Band D £1.91 per Increase for Band D £1.91 per annumannum

• Increase of £1.5 m in base fundingIncrease of £1.5 m in base funding

Impact of potential Impact of potential budget shortfallbudget shortfall

• 300 firefighters – 12 fire engines300 firefighters – 12 fire engines

• A number of station closuresA number of station closures

• Increased response timesIncreased response times

• Less prevention workLess prevention work

BUDGETBUDGET

2011/2012 to 2014/20152011/2012 to 2014/2015