Makeup of the Budget - Notes

Full year cost of inflation to November 2010 prices

The original budget has been reduced to reflect the actual costs of inflation to November 2010. Total inflation is -£234,000 for pay and prices. The main reason for the reduction is that there were no pay awards provided in 2010.

Interest and provision for statutory debt repayment costs

Interest payable to the Public Works Loans Board together with the amount that has to be set aside for the statutory provision for debt repayment increase these budget heads overall by £229,000 in 2011/12. It is assumed there will be no change in interest payable to the County Council.

Full year effect of previous years’ growth and budget adjustments

These decrease the budget by £651,000. This is mainly due to the contributions to the Grant Reduction and Capital Payments Reserves offset by the cost of new breathing apparatus which were decisions for one year only.

Provision for future inflation

The provision for inflation from November 2010 to March 2012 has been calculated based on 0% for firefighters and support staff pay awards, 2.5% for pension payments that the Authority is still liable for and 2.5% for most other costs. An increase in local government employer’s pension contributions of 0% for support staff and 0% for employer’s pension contributions for firefighters has also been provided for.

HFRA firefighters pension costs

The pension costs for which the Authority is liable for are estimated to increase by £9,000 in 2011/12.

Reduction in leasing costs

This is the reduction in costs in the year of the leasing charges falling out as leases expire.

Costs of FireLink

The installation of this new radio system was at no cost to the Authority. However, all future costs will be charged to the Authority and this represnts the expected costs in 2011/12.

Council Tax Freeze Grant

This is the Government Grant equivalent to a 2.5% increase in Council Taqx which is receivable by the Authority in return for setting a zero percent increase in Council Tax.

Efficiencies

Efficiencies identified in 2010/11 totalling £485,000 have been incorporated into the base budget.

Contribution to grant reduction reserve

Contributions of £440,000 to the grant reduction reserve and £1,429,000 to the capital payments reserve are planned for 2011/12.