Appendix E

Efficiency gains forecast for the financial year 2008-2009

All figures £'000

Quality cross-check (QCC) met / Recurring / Capital / Revenue / Annual cashable efficiency gain 2008-09 / Cumulative cashable efficiency gain / Annual non-cashable efficiency gain / Cumulative non-cashable efficiency gain
Revised shift systems/
Crewing arrangements (IRMP) / Recurring
/
/
/ 0
/ 0
/ 0
/ 0
Other IRMP savings / Recurring
/ No
/ Yes
/ 0
/ 0
/ 0
/ 0
Reduced ill-health retirements / Recurring
/
/
/ 0
/ 0
/ 0
/ 0
Sickness reduction / Recurring
/
/
/ 0
/ 0
/ 0
/ 0
Other HR savings / BVPI 150. Also see commentary note 2 / Recurring
/ No
/ Yes
/ 26
/ 26
/ 0
/ 0
Better procurement / BVPI 150. Also see commentary note 2 / Recurring
/ No
/ Yes
/ 34
/ 34
/ 0
/ 0
Corporate services / BVPI 150. Also see commentary note 2 / Recurring
/ No
/ Yes
/ 20
/ 20
/ 0
/ 0
Other / BVPI 150. Also see commentary note 2 / Recurring
/ No
/ Yes
/ 65
/ 65
/ 0
/ 0
Total / 145 / 145 / 0 / 0

NORTH YORKSHIRE FIRE & RESCUE – FORWARD LOOK EFFICIENCY STATEMENT 2008/09 - COMMENTARY

Construction of Figures

  1. The figures are based on the approved budget for 2008/2009 and the Integrated Risk Management Plan approved by the Authority.

2.The planned efficiencies for 2008/2009 of £145,000 are made up of:

  • reduction in removal and lodging allowances consequent of the workforce planning requirements over the next three years £26,000 (Other HR)
  • reduction in breathing apparatus lease costs following review and extension of existing contract 2008/09 – 2010/11 £23,000 (Procurement)
  • reduction in uniform purchase requirements 2008/09 onwards following review of existing stock levels to support requirements £11,000 (Procurement)
  • reduction in IT Technician support costs consequent of a review of requirements 2008/09 onwards £15,000 (Corporate)
  • reduction in transport workshop tools requirements 2008/09 onwards £5,000 (Corporate)
  • Savings following from the calculation of the Authority’s 2008/09 counterfactual spend as defined in the CSR07 guidance uplifted by GDP deflator of 3% (as per SR04 guidance). This counterfactual spend is then compared with the 2008/09 budget excluding growth and savings i.e. expected expenditure should nil VFM action have taken place. Resultant savings £65,000 (Other)

3.There are a number of projects currently being carried out within the Authoritywith a view to securing future efficiency gains:

  • In order to meet our internal target of keeping annual Precept increases below 5%, each Function of the Authority has been charged with undertaking a Best Value Review with a target of achieving £100,000 recurring savings (£300,000 in total) by 2009/10. Such reviews include one of middle manager uniformed posts. The target savings are currently expected to be achieved, but the timing of such cannot yet be predicted with certainty
  • An environmental strategy has been drafted by the Authority with the objective of ensuring that environmental issues are embedded into the decision making processes of the Service. The strategy involves a number of targets to be met which include the reduction of the Authority’s overall carbon footprint, in turn reducing energy costs. At present, neither the amount nor timing of these savings can be predicted accurately. It is however acknowledged that initial investment will be required to enable such savings to be made over the longer term.
  • The Authority is currently out to tender on Insurance with expected savings, although to date these cannot be quantified.
  • Not included within this AES statement are as yet unquantified savings of national initiatives such as Firelink.

4.Strategy for Securing Efficiency Gains / Quality Check

The Authority’s aims over the planning period are to:

  • ensure community safety services develop to reflect the differing needs of North Yorkshire’s diverse communities
  • continue to provide an emergency response to calls for assistance that is effective, resilient and safe
  • maintain and develop the Service’s capacity to handle major and prolonged incidents.

The Authority has adopted a Medium Term (5 year) Financial Strategy which supports these aims.

The aims of the Strategy are to continue to secure value for money in all the Authority’s activities:

  • keep increases in Precepts to a reasonable level
  • reduce volatility in expenditure plans to no more than +/- 1% of the original estimate
  • maintain and provide assets that are adequate and fit for purpose
  • maintain an adequate reserve as protection against Contingent events

To achieve these aims, income and expenditure proposals require an assessment of:

  • keep increases in Precepts to a reasonable level
  • the priority of the business case and its contribution to achieving overall Authority policy objectives
  • consultation outcomes
  • stakeholder priority
  • the shared service/partnership content of any project
  • the level of funds available from external sources
  • the relative priority of change issues vis a vis core intervention /protection /compliance demands
  • potential for re-direction of current expenditure
  • savings from improved efficiency
  • corporate Risk Management Perspective and Risk Rating.

The Strategy and its outcomes arereviewed and updated as part of the Authority’s regular (monthly) budget monitoring policy and annual budget setting process.