Page 1 MEMBERS of CLEVELAND FIRE AUTHORITY

CLEVELAND FIRE AUTHORITY ORDINARY MEETING

1 2 FEBRUARY 2016 - 2 . 0 0 P M

FIRE BRIGADE HEADQUARTERS, STOCKTON ROAD, HARTLEPOOL, TS25 5TB

MEMBERS OF CLEVELAND FIRE AUTHORITY -

HARTLEPOOL : Councillors - Stephen Akers-Belcher, Rob Cook, Marjorie James , Ray Martin-Wells MIDDLESBROUGH : Councillors - Ronald Arundale, Shamal Biswas, Jan Brunton, Teresa Higgins, Naweed Hussain, Tom Mawston REDCAR & CLEVELAND : Councillors - Billy Ayre, Norah Cooney, Brian Dennis, Ray Goddard, Mary Lanigan, Mary Ovens STOCKTON ON TEES : Councillors - Gillian Corr, John Gardner, Paul Kirton, Jean O’Donnell, Stephen Parry, Mick Stoker, Bill Woodhead

A G E N D A

1. APOLOGIES FOR ABSENCE

2. DECLARATIONS OF MEMBERS INTEREST

3. TO CONFIRM THE MINUTES OF PROCEEDINGS OF THE CLEVELAND FIRE AUTHORITY ORDINARY MEETING ON 11 DECEMBER 2015

4. TO CONFIRM THE MINUTES OF COMMITTEES:- Executive Committee on 22 January 2016

5. TO RECEIVE COMMUNICATIONS RECEIVED BY THE CHAIR

6. TO RECEIVE THE REPORTS OF THE CHIEF FIRE OFFICER

6.1 Emergency Services Mobile Communications Programme (ESMCP) 6.2 Public Consultation on Emergency Services 6.3 Community Integrated Risk Management Plan (CIRMP) Annual Review – Alternative Proposal: Three Watch Duty System 6.4 Draft Service Plan Priorities 2016/17 6.5 Safeguarding Children, Young People and Vulnerable Adults Policy 6.6 Information Pack

7. TO RECEIVE THE JOINT REPORT OF THE CHIEF FIRE OFFICER AND TREASURER 7.1 Medium Term Financial Strategy 2016/17 - 2019/20

CLEVELAND FIRE AUTHORITY O R D I N A R Y MEETING

1 2 F E B R U A R Y 2 0 1 6 - 2 . 0 0 PM

FIRE BRIGADE HEADQUARTERS, STOCKTON ROAD, HARTLEPOOL, TS25 5TB

A G E N D A

- 2 -

8. TO RECEIVE THE REPORT OF THE TREASURER 8.1 Treasury Management Strategy 2016 - 2017

9. ANY OTHER BUSINESS WHICH, IN THE OPINION OF THE CHAIR, SHOULD BE CONSIDERED AS A MATTER OF URGENT

10. LOCAL GOVERNMENT (ACCESS TO INFORMATION) (VARIATION ORDER) 2006 Members are requested to pass the following resolution:- “That under Section 100(A) (4) of the Local Government Act 1972, the press and public be excluded from the meeting for the following items of business, on the grounds that it involves the likely disclosure of exempt information as defined in paragraphs 1, 3 and 4 of Part 1 Schedule 12A of the Local Government Act 1972 as amended by the Local Government (Access to Information) (Variation) Order 2006, namely information relating to an individual, information relating to the financial or business affairs of any particular person (including the authority) holding that information and information relating to any consultations or negotiations, or contemplated consultations or negotiations, in connection with any labour relations matter arising between the authority or a Minister of the Crown and employees of, or office holders under, the authority”.

11. TO CONFIRM THE CONFIDENTIAL MINUTES OF PROCEEDINGS OF THE CLEVELAND FIRE AUTHORITY ORDINARY MEETING ON 11 DECEMBER 2015

12. TO CONFIRM THE CONFIDENTIAL MINUTES OF COMMITTEES:- Executive Committee on 22 January 2016

13. CONFIDENTIAL JOINT REPORT OF THE TREASURER AND LEGAL ADVISER & MONITORING OFFICER 13.1 Pay Policy Statement 2015/16 - Salary Review

14. ANY OTHER CONFIDENTIAL BUSINESS WHICH, IN THE OPINION OF THE CHAIR, SHOULD BE CONSIDERED AS A MATTER OF URGENCY

AGENDA ITEM 3

C L E V E L A N D F I R E A U T H O R I T Y

MINUTES OF ORDINARY MEETING

11 DECEMBER 2015

PRESENT: CHAIR:- Councillor Jan Brunton – Middlesbrough Council HARTLEPOOL BOROUGH COUNCIL Cllr Rob Cook MIDDLESBROUGH COUNCIL Cllrs Ronald Arundale, Teresa Higgins REDCAR & CLEVELAND BOROUGH COUNCIL Cllrs Norah Cooney, Ray Goddard, Billy Ayre, Brian Dennis STOCKTON ON TEES BOROUGH COUNCIL Cllrs Gillian Corr, Paul Kirton, Jean O’Donnell, Stephen Parry, Mick Stoker, William Woodhead AUTHORISED OFFICERS Chief Fire Officer, Director of Corporate Services, Legal Adviser and Monitoring Officer MAZARS LLP Audit Manager (Ross Woodley)

APOLOGIES Cllrs Akers-Belcher, Martin-Wells, James – Hartlepool Borough Council FOR ABSENCE: Cllrs Ovens, Lanigan – Redcar & Cleveland Borough Cllrs Biswas, Mawston, Hussain – Middlesbrough Council Cllr Gardner – Stockton Borough Council

The Chair welcomed Councillor Brian Dennis to the Authority and wished to place on record the Authorities thanks to Councillor Bob Norton.

55. DECLARATIONS OF MEMBERS INTEREST It was noted no Declarations of Interests were submitted to the meeting

56. MINUTES RESOLVED – that the Minutes of the Cleveland Fire Authority Ordinary Meeting on 16 October 2015 be confirmed.

57. MINUTES OF COMMITTEES RESOLVED – that the Minutes of the Executive Committee on 20th November 2015, be confirmed.

58. COMMUNICATIONS RECEIVED BY THE CHAIR  Gill Gittins, LGA - Pension Scheme Transitional Protection Employment Tribunal Cases  Clair Alcock, LGA - Pension Scheme Contributions

RESOLVED – that the communications be noted.

CLEVELAND FIRE AUTHORITY ORDINARY MEETING – 11.12.15

59. REPORT OF MAZARS 59.1 Annual Audit Letter 2014/15 The Audit Manager (AM) Ross Woodley presented the Annual Audit Letter 2014/2015 which covered:

 Key Messages  Financial Statements  Value for Money  Future Challenges  Fees

He informed Members that Mazars had issued an unqualified opinion on the Financial Statements and the Value For Money conclusion that the Authority has proper arrangements in place to secure economy, efficiency and effectiveness in its use of resources. A detailed risk assessment of the challenges facing the Authority was carried out and presented to the Audit and Governance Committee on 21 August 2015.

The AM reported that with the financial outlook looking increasingly challenging, to deliver the Authority’s objectives and to manage the risk within the resources available the Authority will need to continue to:

 carefully forecast and effectively monitor budgets  identify and address financial pressures as they emerge  deliver a long term financial strategy that addresses immediate pressure while allowing scope for strategic service change  maintain effective arrangements for public engagement  use constructive relationships with partners to deliver further improvements

RESOLVED: that the report be noted.

60. REPORT OF THE CHIEF FIRE OFFICER 60.1 Fire/Police Collaboration Update The Chief Fire Officer (CFO) updated Members on the progress of the collaborative arrangements between Cleveland Police, the Office of the Police and Crime Commissioner (PCC) and the Fire Authority. He reported that collaborative opportunities are being considered and/or implemented in the following areas:

 Assets  Fleet Management and Equipment  Estates  Services Delivery  Corporate Services

Councillor Paul Kirton asked if this would include the North East Ambulance Service (NEAS). The CFO stated that he had given presentations on ‘Fire as a Health Asset’ to Clinical Commissioning Groups, Health and Wellbeing Boards, Local Hospitals and that NEAS are part of these discussions moving forward.

CFA Meeting Minutes – 11 DECEMBER 2015 Page 2

CLEVELAND FIRE AUTHORITY ORDINARY MEETING – 11.12.15

60.1 Fire/Police Collaboration Update Councillor Rob Cook sought further information regarding the proposed shared occupancy at Thornaby Fire Station and who would benefit from the sale of the Police Station. The CFO reported that the agreement we have with the Police is that they will cover all Capital costs but will keep control of their receipts but the Authority are continually seeking additional partners to share buildings to reduce costs.

RESOLVED – that the progress on the Memorandum of Understanding as detailed in Section 4 of the report be noted.

60.2 Information Pack 60.2.1. Fire & Rescue Service Monthly Bulletins

RESOLVED – that the information pack be noted.

61. REPORT OF THE CHAIR OF THE AUDIT & GOVERNANCE COMMITTEE 61.1 Information Pack Councillor Stoker advised Members of the following reports which were presented to the Audit & Governance Committee meeting on 13 November 2015:

 Audit Progress Report  Organisational Performance & Efficiency Report April – Sept 2015  Annual Statement of Assurance 2014/15  Performance Management Policy & Strategy  Treasury Management Strategy  Progress Against Revenue & Capital Budgets 2015/16

RESOLVED – that the Information Pack be noted.

62. ANY OTHER BUSINESS Following the recent change in Authority membership, the Director of Corporate Services (DCS) sought nominations to fill the vacancy on the Joint Consultative Committee. Councillor Brian Dennis was proposed and seconded and appointed to the Joint Consultative Committee for the ensuing year.

RESOLVED – that Councillor Dennis be appointed to the Joint Consultative Committee for the ensuing year.

63. LOCAL GOVERNMENT (ACCESS TO INFORMATION) (VARIATION ORDER) 2006 RESOLVED - “That under Section 100(A) (4) of the Local Government Act 1972, the press and public be excluded from the meeting for the following items of business, on the grounds that it involves the likely disclosure of exempt information as defined in paragraphs 3 & 4 below of Part 1 Schedule 12A of the Local Government Act 1972 as mended by the Local Government (Access to Information) (Variation) Order 2006”, namely information relating to the financial or business affairs of any particular person (including the authority) holding that information and namely information relating to any consultations or negotiations, or contemplated consultations or negotiations, in connection with any labour relations matter arising between the authority or a Minister of the Crown and employees of, or office holders under, the authority.

CFA Meeting Minutes – 11 DECEMBER 2015 Page 3

CLEVELAND FIRE AUTHORITY ORDINARY MEETING – 11.12.15

64. CONFIDENTIAL MINUTES OF COMMITTEES

RESOLVED – that the Confidential Minutes of the Executive Appeal Committee on 2 November 2015 and Executive Committee on 20 November 2015 be confirmed.

65. CONFIDENTIAL REPORT OF THE CHIEF FIRE OFFICER AND TREASURER 65.1 Medium Term Financial Strategy 2016/17 – 2018/19 The Treasurer and CFO provided an update to Members on the Medium Term Financial Strategy.

66. CONFIDENTIAL REPORT OF THE CHIEF FIRE OFFICER 66.1 Community Integrated Risk Management Plan 2015/16 The CFO informed Members of the progress on the implementation of the Community Integrated Risk Management Plan 2015/16.

COUNCILLOR JAN BRUNTON CHAIR

CFA Meeting Minutes – 11 DECEMBER 2015 Page 4

AGENDA ITEM 4

C L E V E L A N D F I R E A U T H O R I T Y

MINUTES OF EXECUTIVE COMMITTEE MEETING

22 JANUARY 2016

PRESENT: CHAIR Councillor Jan Brunton – Middlesbrough Council HARTLEPOOL BOROUGH COUNCIL Councillor Marjorie James REDCAR & CLEVELAND BOROUGH COUNCIL Councillors Mary Ovens, Ray Goddard STOCKTON ON TEES BOROUGH COUNCIL Councillors Gillian Corr, Jean O’Donnell AUTHORISED OFFICERS Treasurer, Legal Adviser and Monitoring Officer BRIGADE OFFICERS Director of Technical Services, Democratic & Administration Manager

APOLOGIES: Councillor William Woodhead – Stockton on Tees Borough Council

67. DECLARATION OF MEMBERS INTERESTS Councillors Goddard and James declared a Personal Interest as Members of NEREO. Minute No. 73.1 refers.

68. MINUTES RESOLVED - that the Minutes of the Executive Committee held on 20 November 2015 be confirmed.

69. REPORT OF THE CHIEF FIRE OFFICER 69.1 Safeguarding Children, Young People and Vulnerable Adults Policy and Procedures The Director of Technical Services (DoTS) reported that the Safeguarding Children, Young People and Vulnerable Adults Policy reflected the Authority’s commitment to ensuring this group of individuals were given an equal right to protection from abuse, harassment, violence and aggression regardless of their age, race, religion, ability, gender, language, background or sexual identity and considers the welfare of the child, young person or vulnerable adult as paramount.

He reported that this new policy was implemented and underpinned by two key procedures, which were:

 The Safeguarding Children and Young People Procedure  The Safeguarding Vulnerable Adults Procedure

EXECUTIVE COMMITTEE 22 JANUARY 2016

69.1 Safeguarding Children, Young People and Vulnerable Adults Policy and Procedures continued Councillor O’Donnell suggested a Safeguarding Member Champion should be established to lead on this area and Members recommended Councillor Brunton to be appointed as the Authority’s Safeguarding Member Champion for 2015/16.

Members supported the Authority’s Safeguarding Framework and the Democratic and Administration Manager reported that Safeguarding Training for Authority Members was currently being arranged.

Councillor James commended the Brigade’s Staff for doing an excellent job promoting the safeguarding of children, young people and vulnerable adults and pointed out that Members had a responsibility in this area regardless of whether training had been given.

Councillor Ovens queried how the safeguarding records were stored by the Authority. The DoTS reported they were kept on a secure system.

RECOMMENDED:- (i) That the Authority’s Safeguarding Children, Young People and Vulnerable Adults Policy, as attached at Appendix 1, be approved by the Fire Authority. (ii) That the Safeguarding Children and Young People Procedure at Appendix 2 and Safeguarding Vulnerable Adults Procedure at Appendix 3 be noted. (iii) That the Authority approve the appointment of Councillor Jan Brunton to the role of Safeguarding Member Champion for 2015/16.

70. LOCAL GOVERNMENT (ACCESS TO INFORMATION) (VARIATION ORDER) 2006 RESOLVED “That under Section 100(A) (4) of the Local Government Act 1972, the press and public be excluded from the meeting for the following items of business, on the grounds that it involves the likely disclosure of exempt information as defined in the paragraphs 1, 3 and 4 of Part 1 Schedule 12A of the Local Government Act 1972 as amended by the Local Government (Access to Information) (Variation) Order 2006, namely information relating to any individual, namely the financial or business affairs of any particular person (including the authority holding that information) and namely information relating to any consultations or negotiations, or contemplated consultations or negotiations, in connection with any labour relations matter arising between the authority or a Minister of the Crown and employees of, or office holders under, the authority.

71. CONFIDENTIAL MINUTES RESOLVED - That the Confidential Minutes of the Executive Committee held on 20 November 2015 be confirmed.

EXECUTIVE COMMITTEE MINUTES Page 2

EXECUTIVE COMMITTEE 22 JANUARY 2016

72. CONFIDENTIAL JOINT REPORT OF THE TREASURER AND THE CHIEF FIRE OFFICER 72.1 Medium Term Financial Strategy 2016/17 to 2019/20 Members considered the Medium Term Financial Strategy 2016/17 to 2019/20.

The Director of Technical Services left the meeting.

73. CONFIDENTIAL JOINT REPORT OF THE TREASURER AND LEGAL ADVISER & MONITORING OFFICER 73.1 Chief Fire Officer Salary Review and Pay Formula for Directors Members considered the Chief Fire Officer Salary Review and Pay Formula for Directors.

COUNCILLOR JAN BRUNTON CHAIR

EXECUTIVE COMMITTEE MINUTES Page 3 AGENDA ITEM 6.1 CLEVELAND FIRE AUTHORITY 12 FEBRUARY 2016

EMERGENCY SERVICES MOBILE COMMUNICATIONS PROGRAMME (ESMCP)

REPORT OF THE CHIEF FIRE OFFICER

For Approval

1. PURPOSE OF REPORT

The purpose of this report is to update the Authority on the Emergency Services Mobile Communications Programme (ESMCP).

2. RECOMMENDATIONS

2.1 That Members:

(i) Approve the formal response to DCLG, (Appendix A, Annex A ), confirming that Cleveland Fire Authority will transition to the new Emergency Services Network via the ESMCP programme, subject to the following caveats:--

- that the system provides, as a minimum, the same level of coverage and resilience as the existing Airwave system;

- that the Authority’s transition funding and steady state costs are not significantly different to the figures as reported to the Fire Customer Group and in the Fire and Rescue Authority’s Financial Information and Sign-Off Pack.

(ii) Note the proposed implementation of staffing arrangements, extending the three grant-funded temporary posts within the ICT department from March 2017 to March 2019, to cover the technical workloads associated with the transition.

(iii) Note the proposed North East FRS Regional Governance model (Appendix B) for the ESMCP programme.

3. BACKGROUND

ESMCP is a cross-government programme, led by DCLG, to replace the existing mobile communications service for the three emergency services (Firelink for the FRS) with a new secure system based on commercial 4G networks. Overall the objectives of ESMCP are to be:

- Better, with integrated broadband data services; public service functionality; national coverage and high availability.

CLEVELAND FIRE AUTHORITY 12 FEBRUARY 2016

- Smarter, to be more flexible, to evolve and improve over time, pay only for features required by users.

- Cheaper, to address budget pressures, re-competed regularly to leverage market forces.

There are three strategic drivers that are influencing the scope and timing of ESMCP’s development. These are that:

 Current contracts for the three emergency services (provided by Airwave) expire between 2016 and 2020 and cannot readily be extended. As such there will be no Airwave Firelink service from 2020 meaning that now is a good time to procure an alternative system.

 The current Airwave Firelink service is already significantly more expensive than similar public safety systems in Europe and price trends for publically available mobile telephony.

 Users within the three emergency services are increasing requiring broadband data (not just voice communications) to support operational transformation. This cannot be met by current Airwave technologies.

The intended scope of ESMCP will include 44 police forces, 50 fire and rescue services (including those in Scotland and Wales) and 13 Ambulance Trusts. A range of other civil contingency user organisations will also join ESMCP as second tier users. Overall this means that the system is likely to have approximately 300,000 users.

The new system itself will be called the Emergency Services Network (ESN). FRS transition on to the new ESN is due to begin with the mobilisation phase in 2016 and will be complete by January 2020 by which time all FRSs will be in a steady state. The steady state will last until the end of the financial year 2032 by which point a retendering of the contracts will have taken place.

Whilst DCLG is currently not mandating take up of ESMCP, it is strongly recommending that FRAs sign up to the system, both from a financial perspective (the fire service as a whole stands to make significant savings of approximately £80m) but also from an operational perspective.

4. CURRENT SITUATION

Although FRS have been involved in the initial scoping and user requirement phase of the ESMCP, the procurement phase has been dealt with primarily by DCLG and the implications and workloads on individual services at a local level has not been significant to date.

EMERGENCY SERVICES MOBILE COMMUNICATIONS PROGRAMME (ESMCP) Page 2 CLEVELAND FIRE AUTHORITY 12 FEBRUARY 2016

After a protracted tendering process the procurement phase is complete and contracts have now been awarded. Unlike Firelink, which had one main supplier (Airwave), the ESMCP is split into three main lots:

 Lot 1 – ESN Delivery Partner – awarded to Kellogg Brown & Root.

 Lot 2 – ESN User Services – awarded to Motorola Solutions.

 Lot 3 – ESN Mobile Network Services – awarded to EE.

As the programme now progresses into 2016 and beyond, workloads for the Brigade at a local and regional level will begin to increase significantly.

5. PROJECT TRANSITION PLAN

The table below provides an indicative timetable regarding how and when the mobilisation and transition process will operate.

At the present time, the North East region is scheduled to transition over to the new system between November 2017 and November 2018.

All North East emergency services will be required to transition within this twelve month window. The order in which services move over will be determined by DCLG nearer the time. This may be either:

 Service-based – e.g. the three Police, then the four FRS, then the ambulance services.

 Geographical – e.g. Cleveland Police and Cleveland Fire Brigade transition together.

It is important to note that this schedule has been revised on several occasions already and may yet change again in the future. The only definitive date is that the entire programme must be completed by January 2020.

EMERGENCY SERVICES MOBILE COMMUNICATIONS PROGRAMME (ESMCP) Page 3 CLEVELAND FIRE AUTHORITY 12 FEBRUARY 2016

6. FINANCIAL INFORMATION

A key objective of the ESMCP programme is that the new ESN network will be more cost effective and will provide a significant saving to the emergency services.

DCLG has provided a financial information sign-off pack to each individual FRS outlining indicative savings of the new ESN compared to current Airwave costs up until 2032 (see appendix A). For Cleveland Fire Brigade, the indicative savings each year are:

18/19 19/20 20/21 21/22 22/23 23/24 24/25 £31,921 £96,628 £110,664 £111,195 £106,963 £103,132 £110,913

25/26 26/27 27/28 28/29 29/30 30/31 31/32 £88,563 £97,716 £113,290 £114,431 £123,754 £127,388 £130,736

For the Brigade to transition to the ESN network and to receive funding support, a formal response is required. The sign-off pack needs to be completed and returned to DCLG prior to 25th March 2016.

As with many significant change programmes, ESMCP will incur some significant transition costs as Fire Services move from one communications system to another. In order to help achieve a smooth and effective transition, DCLG has made a commitment to support the cost of transition.

DCLG will separately provide four funding streams to each FRS for:

(i) Local Transition Support. This includes an element of regional and local funding to support the roles required to undertake the transition. The indicative amount awarded is:

North East Regional FRS Governance £573,664 Cleveland Fire Brigade (technical staff) £211,802

In addition to the regional joint award of £573k, the four individual North East fire services will receive £211k each. This amount will be officially confirmed when the ESMCP Full Business Case is published. The funding to Cleveland Fire Brigade for technical staff will be allocated directly from DCLG (expected to be as a Section 31 grant). North East regional FRS funding will be allocated to a lead service to be administered for the region with the governance and scrutiny of all spend being approved and monitored by the Regional ESMCP Steering Group (on which Cleveland is represented).

EMERGENCY SERVICES MOBILE COMMUNICATIONS PROGRAMME (ESMCP) Page 4 CLEVELAND FIRE AUTHORITY 12 FEBRUARY 2016

(ii) Control Rooms. Costs will be incurred as each FRS upgrades their Mobilising System and ICCS to meet the requirements of ESMCP. Additionally, a ground- based connection from each FRS main Control Room to the new ESN will be required. Each FRS will be required to seek quotations from their own technology suppliers for the upgrade works, which must then be submitted as a bid to DCLG for funding.

(iii) Vehicle Installations. FRS will be funded proportionately on the basis of their number of Fire Appliances. Services who intend to collaborate regionally on vehicle installations will then have the flexibility to combine awarded funding.

(iv) Devices. Funding will be provided for new devices to replace existing Airwave radios. Each FRS will have the flexibility to purchase from a device catalogue of the device type, cost level and quantities required.

7. PROPOSED STAFFING

There are three main identified areas where a technical staffing resource is required to deliver the outcomes of the ESMCP programme within each local FRS. These are:

Area DCLG recommendation Control & operational planning, Fire Control Watch Manager transitional preparation & training

Fire Control technology & ICT Technical Post – Grade F connectivity

Asset upgrades and fleet ICT Technical Post – Grade E integration

The anticipated skillsets required for the roles have been reviewed and align very closely with the Brigade’s existing three DCLG Fire Control Grant-funded temporary posts within the ICT department.

Funding for the current three temporary posts ends in March 2017. To extend the three posts by a further two years until March 2019 will cover the ESMCP transition period for the Brigade.

The cost of these three posts for a period of two years is £209,010, which falls within the anticipated local transition funding.

EMERGENCY SERVICES MOBILE COMMUNICATIONS PROGRAMME (ESMCP) Page 5 CLEVELAND FIRE AUTHORITY 12 FEBRUARY 2016

8. REGIONAL GOVERNANCE

A principal officer from County Durham and Darlington FRS represents the region on the ESMCP national Fire Customer Group and chairs a regional ESMCP steering group which also consists of senior officers and managers representing Cleveland, Tyne & Wear and Northumberland.

In September 2015, DCLG made available interim funding of £18,000 for each regional FRS transition area. The North East steering group agreed for County Durham & Darlington FRS to be the lead partner for this and agreed that the funding would be used to establish a regional co-ordinator post to act as a resource for each of the North East FRS.

With the forthcoming award of DCLG funding for the North East FRS Region, it is intended to formalise this steering group into a Regional ESMCP board. This board will provide the necessary level of governance for the regional funding and ensure that, wherever possible, collaboration opportunities are utilised to drive efficiencies during the programme. Board members will report regularly to their own executive

leadership teams to ensure that the required approvals and direction is obtained at each appropriate stage of the programme. The Board will also be responsible for approving and monitoring spend from the Government Regional Grant and the resourcing and management of the regional ESMCP Project Group.

A report is attached (see Appendix B) which provides a proposal on regional FRS ESMCP governance.

IAN HAYTON KAREN WINTER CHIEF FIRE OFFICER DIRECTOR OF CORPORATE SERVICES

EMERGENCY SERVICES MOBILE COMMUNICATIONS PROGRAMME (ESMCP) Page 6 APPENDIX A Emergency Services Mobile Communications Programme (ESMCP)

Fire and Rescue Authorities Financial Information and Sign Off Pack

Cleveland FRA

OFFICIAL

CONTENTS

1.0 Introduction 3

2.0 Assumptions 4

3.0 ESMCP Background 4

4.0 The Financial Rationale 6

5.0 The Indicative Financial Figures for your FRA 9

6.0 Issues with Alternatives to ESMCP 10

7.0 FRA Required Response to DCLG 13

8.0 Next Steps 13

Annex A - Sign Off Emails for DCLG 14

Annex B - Overview of Options for Replacement of 15 Emergency Services Communications

OFFICIAL

1.0 Introduction

1.1 The purpose of this pack is to provide Fire and Rescue Authorities (FRAs) with the information they require to make an informed decision about their participation in the Emergency Services Mobile Communications Programme (ESMCP) which will deliver a new Emergency Services Network (ESN.)

1.2 DCLG has committed to provide all reasonable transition funding for FRAs moving on to ESN. This process will begin with the mobilisation phase in spring 2016. As such, before significant funding is provided to FRAs, DCLG requires Chief Fire Officers (or appropriate individuals) to provide them with a signed commitment that they would like to take up the new service (see Annex A.)

1.3 The Pack provides summary information about the Programme rationale and its benefits for the fire service from both an operational and financial perspective. In particular this pack:

- Provides an explanation of the Programme’s transition and steady states and the financial implications involved - Provides an indication about the likely costs for your FRA of the ESN through its steady state up to 2032 - Highlights where there may be scope for additional efficiencies by FRAs - Demonstrates that the potential alternatives to participation in ESMCP carry significant risks for FRAs both from a financial and operational perspective - Asks FRAs to provide the Department for Communities and Local Government (DCLG) with a decision about whether your FRA intends to participate in the ESMCP going forward.

1.4 DCLG believes that the ESMCP provides the best solution for updating and enhancing the Fire Service’s emergency communications system. From a financial perspective it is cheaper overall when compared to Firelink costs, saving the Fire Service some £80m up to 2032. In addition the ESMCP allows Fire and Rescue Services (FRSs) to make further efficiencies by reconfiguring data and connections to suit their specific needs and by deciding on the scale and timing of device refresh. Further savings are likely to be made in the future as the new ESN is linked to commercial providers and as such retenders will take place in a competitive environment rather via a monopoly provider (as is the case at the moment.) Furthermore DCLG will support FRSs with the cost of transition, removing a potentially costly barrier. From an operational perspective DCLG believes the new system will be more interoperable, resilient and will support data functions better than the current system. It will also be better able to respond to innovations in the mobile communications market as it is linked to commercial providers.

OFFICIAL

2.0 Assumptions

2.1 This paper uses a number of assumptions to calculate the annual costs of ESN for your individual FRA. It is important to stress that the figures within this pack are indicative. Whilst we believe that the figures in this pack provide a good representation of the likely costs involved, in reality the final figures for an FRA will depend on a range of local decisions (such as configuration of data and connections and device refresh.)

2.2 The assumptions within this pack (such as the timeline for transition and the costs for Airwave) derive from the Programme’s Full Business Case. If you would like to discuss these assumptions, please do not hesitate to contact the DCLG Policy Team at [email protected].

2.3 The figures for devices, connections and vehicle installations and fit-outs have been derived from the As-Is2 survey which the Home Office collected in April 2014. Whilst DCLG believes that this survey gives a good indication of costs, we understand that some changes are likely to occur (or have occurred) before mobilisation begins in 2016. The Programme will undertake a more up to date survey prior during spring 2016.

3.0 ESMCP Background

3.1 ESMCP is a cross-government programme to replace the existing mobile communications service for the three emergency services (Firelink for the FRS) with a new commercial system based on 4G.

3.2 Overall the objectives of ESMCP are to be:

• Better with integrated broadband data services; public service functionality; national coverage and high availability.

• Smarter to be more flexible, to evolve and improve over time, pay only for features required by users.

• Cheaper to address budget pressures, re-competed regularly to leverage market forces.

3.3 There are three strategic drivers that are influencing the scope and timing of ESMCP’s development. These are that:

 Current contracts for the three services (provided by Airwave) expire between 2016 and 2020 and cannot readily be extended. As such there will be no Airwave Firelink

OFFICIAL

service from 2020 meaning that now is a good time to procure an alternative system.

 The current Airwave Firelink service is already significantly more expensive than similar public safety systems in Europe and price trends for publically available mobile telephony.

3.4 The intended scope of ESMCP will include 44 police forces, 50 fire and rescue services (including those in Scotland and Wales) and 13 Ambulance Trusts. A range of other civil contingency user organisations will also join ESMCP as second tier users. Overall this means that the system is likely to have approximately 300,000 users.

3.5 FRS transition on to the new ESN is due to begin with the mobilisation phase in 2016 and will be complete by January 2020 by which time all FRSs will be in a steady state. The steady state will last until the end of the financial year 2032 by which point a retendering of the contracts will have taken place.

3.6 DCLG recognises that Fire communications systems continue to be the responsibility of each individual FRA. However central government has a strong interest in ensuring that the country is fully prepared to deal with civil contingency issues. As such the Government believes that it is important to have in place a communications system that enables inter-working across boundaries and between the three emergency services. Furthermore the Government believes it is important to ensure that emergency services communications are robust and resilient, using the latest technology to aid the delivery of a more effective service.

3.7 As such, whilst DCLG is currently not mandating take up of ESMCP, it is strongly recommending that FRAs sign up to the system, both from a financial perspective (the fire service as a whole stands to make significant savings of approximately £80m) but also from an operational perspective.

OFFICIAL

4.0 The Financial Rationale

4.1 The delivery and realisation of the new Emergency Services Network via ESMCP will take place in two major stages. These will be a transition stage whereby FRSs will prepare for and undertake the switch to ESN and the steady state stage whereby FRSs will be fully utilising the ESN.

Transition Stage

4.2 The table below provides an indicative timetable regarding how and when the mobilisation and transition process will operate.

4.3 As with many significant change programmes, ESMCP will incur some significant transition costs as Fire Services move from one communications system to another. In order to help achieve a smooth and effective transition, DCLG has made a commitment to support FRAs in the cost of transition. Whilst we are not yet in a position to confirm funding on an individual basis, a total of £50.4m will be made available to FRAs to fund transition.

4.4 Details regarding the individual costs of transition will be provided over the first two quarters of 2016. However as DCLG requires a commitment from FRAs prior to providing transition funding, it was deemed prudent provide the indicative costs at the earliest opportunity.

4.5 During their transition FRAs will continue to pay the costs of Firelink (and receive the associated New Burdens Grant) until the point at which they have completed transition and no longer require a connection to Airwave (except for interworking in instances of mutual aid.) Once an FRS has completed its transition it will then begin paying for the

OFFICIAL

ESN service, benefitting from the greater functionality this provides, and in most cases, a lower cost. It is therefore in an FRA’s interest to facilitate a timely completion of transition in order to benefit from reduced costs of ESN. There will be no period when an FRA will be paying for both Airwave and ESN.

4.6 DCLG will provide funding for:

4.7 Local Transition Support – DCLG has previously agreed with Fire Customer Group the funding for Local Transition Support. This includes roles such as local project managers, control room managers and training. We would encourage local collaboration within transition regions and would welcome a lead authority model. Grant Payment would be made on an annual basis by Section 31.

4.8 Control Rooms and PSN – Due to the degree of variation in Control Room solutions, as part of the future control room scheme, and therefore the path for upgrade required for ESMCP, it is appreciated that there is not likely to be any simple, one size fits all calculation for splitting transition grant. As such, it is our intention to request bids for control room upgrades, based on quotes received following engagement with suppliers, in the new year with a view to agree funding at the appropriate stage. FRAs and Control Room Partnerships would be expected to make reasonable bids, with a focus on completing all control room upgrades required to deliver ESN functionality by commencement of transition.

4.9 Vehicle Installations – DCLG and the Programme have made an estimate on the anticipated cost for Vehicle Installations. We would propose to fund FRAs (proportionately) on the basis of the number of Fire Appliances. FRAs who intend to collaborate on vehicle installations will then have the flexibility to combine pots or appoint a lead authority.

4.10 Devices – DCLG has committed to fund ESMCP devices, however we also want to encourage flexibility for local decision making within Fire and Rescue Authorities. As such we would seek to provide funds to FRAs for the replacement of existing devices, based on the Programme’s calculations. Local FRAs would have the flexibility to purchase from the Device Catalogue at the cost level and in volumes they wish. DCLG will only be providing funding for devices during the transition stage. Individual FRAs will have the flexibility to determine their own device refresh in steady state (although the indicative costs provided in this paper include a full refresh taking place over a five/six year period.)

4.11 Regional Implementation Managers – In addition to the above funding for Local Transition Support the Department will be funding a Regional Implementation Manager

OFFICIAL

for each of the 10 Regions in England. They will be required to coordinate the transition of FRS and they will be responsible for monitoring and ensuring the core elements of the programme are delivered locally, but not the Non-Core (Vehicle Fit outs, Devices, Control Room upgrades).

4.12 Over the next few months DCLG will put in place a process for receiving bids for Control Room and PSN upgrades, with a view to begin receiving bids in 2016. For the other elements of Transition Funding we would intend to work with the Programme and Delivery Partner to confirm how many vehicle fit-outs and replacement devices (either Handheld or Vehicle) are required.

Steady State Stage

4.13 Overall the Programme estimates that ESN will produce at least an £80m saving to English Fire and Rescue Authorities nationally between 2020 and 2032. This indicates a strong value for money case for ESN. Furthermore the vast majority of FRAs will make a saving on the costs they were paying for the Airwave system. As such, DCLG believes that this saving combined with the support for transition costs makes a compelling case for FRA sign up.

4.14 However, there are a few FRAs (usually those authorities that have enjoyed generous subsidies for Airwave) who will see their individual costs rise. In most of these cases, FRAs will only see a small rise, however for a few it may be more significant.

4.15 There is however scope within the programme for an FRA to make efficiencies which will reduce their individual bill – meeting a long term wish of FRSs which have had fixed- price bills under Firelink. Non-Core costs (i.e. those for connections and data usage) are locally driven. In other words, an FRA will only pay for what they use. As such there may be scope to make savings on data and connection charges by reconfiguring devices to suit the specific needs of a particular fire service. Furthermore, the scale and timing of any device refresh will be up to individual services (the model at 5.0 provides for a full refresh of devices in the steady state, the cost of which would fall to the FRS.)

4.16 In order to help those FRAs that will see their individual costs rise, an element of tapering has been included within the modelling/indicative costs for the Core element on a declining basis (75%, 50%, 25%) for the first 3 years of ESN. This will mean that those FRAs affected by higher costs will not see a sudden rise but rather a gradual increase.

OFFICIAL

5.0 The Indicative Financial Figures for your FRA

Indicative ESN Costs to Cleveland FRA

18/19 19/20 20/21 21/22 22/23 23/24 24/25 25/26 26/27 27/28 28/29 29/30 30/31 31/32 Core £10,528 £33,340 £33,756 £35,059 £39,417 £42,448 £43,325 £44,323 £45,341 £46,381 £47,442 £48,525 £49,630 £49,990 Data £3,225 £9,795 £9,749 £10,998 £10,962 £10,962 £10,962 £10,962 £10,962 £10,962 £10,962 £10,962 £10,962 £10,962 Devices £- £- £- £- £3,055 £7,062 £1,677 £26,366 £19,598 £6,457 £7,797 £1,004 £- £- Total £13,753 £43,134 £43,505 £46,057 £53,434 £60,473 £55,964 £81,651 £75,902 £63,801 £66,202 £60,491 £60,593 £60,953

Indicative Airwave Costs to Cleveland FRA over same period – [Please note Airwave cannot continue post Dec-2020 at the latest]

18/19 19/20 20/21 21/22 22/23 23/24 24/25 25/26 26/27 27/28 28/29 29/30 30/31 31/32

£45,674 £139,763 £154,168 £157,252 £160,397 £163,604 £166,877 £170,214 £173,618 £177,091 £180,633 £184,245 £187,930 £191,689 Airwave

Indicative Net Saving/Cost to Cleveland FRA

18/19 19/20 20/21 21/22 22/23 23/24 24/25 25/26 26/27 27/28 28/29 29/30 30/31 31/32 Net £(31,921) £(96,628) £(110,664) £(111,195) £(106,963) £(103,132) £(110,913) £(88,563) £(97,716) £(113,290) £(114,431) £(123,754) £(127,338) £(130,736) Saving / Cost of ESN

OFFICIAL

6.0 Issues with Alternatives to ESMCP

6.1 Whilst DCLG is currently not mandating the take up of ESMCP, it is strongly recommending that FRAs sign up to the system both from a financial and operational perspective.

6.2 The Government considered a range of options for updating emergency service communications as part of the Outline Business Case for ESMCP (these are summarised at Annex B.) The result of this options analysis was that ESMCP (an enhanced commercial Long-Term Evolution network) provided a compelling case going forward. ESMCP will provide a system that is:

 Robust, interoperable and contains data capabilities  Smart in that it only charges only for what is used  Cheaper overall than the existing system  Contains scope for future efficiencies as it is linked to a commercial system.

6.3 In deciding whether to go ahead with ESMCP, FRAs will need to be aware that maintaining the status quo Airwave system will not be an option. Airwave is due to come to an end in 2019 (with scope for a further one year contractual extension until 31 December 2020) As such a change in communication system will need to take place regardless of whether an FRA decides to sign up to ESMCP or not.

6.4 Furthermore it will be important in making a decision about ESMCP that FRAs which have a formal relationship with other FRAs (such as the sharing of a Control Room) ensure that they have regard to what their partner organisations intentions are and the potential impact that this might have on future working relationships.

6.5 DCLG believes that ESMCP offers the best communications system going forward. As such DCLG will only contribute to transition costs for FRAs moving onto ESMCP as a Tier 1 user. It will not provide any support to FRAs wishing to choose alternative methods of communications.

6.6 The table below highlights a variety of alternatives to ESMCP and an explanation regarding why the Government believes they are not viable when compared to the benefits that ESCMP will bring.

OFFICIAL

Option Potential Issues

 DCLG’s current contract with Airwave runs out at the end of 2019 (with a possible extension to end of 2020)  As such the Fire Service will need to re-procure a communications service whether or not they are part of Do Nothing ESMCP. (Continuation of  Even if we could continue with Airwave, we would have to incur Airwave) the higher costs associated with a monopoly provider.  In addition the Airwave system is becoming increasingly outdated – as it is based on voice rather than data communications which are increasingly used by Fire Services.

 Likely to be more expensive than joining ESMCP which provides a 4G network and has gained cost efficiencies by negotiating on behalf of a wide range of users.  If provided by an organisation that is different to the Procure own 4G ESMCP provider, the network is unlikely to be Network for your FRA interoperable with other ESMCP users  The FRA would be responsible for its own procurement and delivery. This risks not having completed the transition to a new system by the time Airwave Firelink contacts end in 2019 or 2020

 Likely to be more expensive for the FRA over the long term as connection and costs will be higher for Tier 2 Become a Tier 2 User users. within the  There will be no DCLG financial support available for Programme* undertaking this option  Will have no influence over Control Rooms going forward  Will need to assess the impact of the relationship with other FRAs with whom they have a formal relationship.

 There is no guarantee that the procurement and delivery Procure your own of a new system will be cheaper for an FRA than ESMCP Radio (Tetra) System participation or Revert to Existing  These systems will not be interoperable with other fire Legacy System services or organisations other using the Emergency Service Network (ESN)  There may be resilience issues if coverage is not as good

OFFICIAL

as the new ESN (which will be at least as good as Airwave)  There will be no financial support from DCLG either for transition or steady state  Broadband provision will be included. This is increasingly being used for fire services and so an alternative solution will need to be found.  This system will not be future proofed to take advantage of a developing commercial 4G market.  The impact on formal Relationships with other FRAs that are using ESN will need to be addressed.

* Apart from the 3ES, there are a significant number of government and other public safety users totalling over 300 organisations all with individual ASL contracts, known as sharers. Under the current ESMCP model these organisations will be known as Tier 2 organisations.

OFFICIAL

7.0 FRA Required Response to DCLG

7.1 DCLG will require a formal response from each FRA’s Chief Fire Officer regarding whether or not they intend to migrate onto the new Emergency Services Network as part of the ESMCP. This will allow DCLG to have the assurance it needs to be able to distribute the required funding for transition in line with the Programme timescales.

7.2 A draft confirmation letter to be signed and returned to DCLG is attached at Annex A. In order to ensure that payments are made promptly we would ask that DCLG receive this letter no later than Friday 25th March 2016.

8.0 Next Steps

8.1 Between January and March 2016 members of the ESMCP Policy Team within DCLG shall arrange a number of meetings with FRAs around the country to discuss their particular ESMCP figures. If you feel that your FRA would benefit from such a conversation or if you have any specific quires about this pack or the sign off procedure, please contact Chris Hall at [email protected].

8.2 As noted at paragraph 7.2, DCLG require the signed response letter by Friday 25th March 2016.

8.3 Following FRA sign up to ESMCP, DCLG will make the appropriate funding payments via a Section 31 grant (subject to legal/financial approvals), in time for the transition arrangements.

OFFICIAL

Annex A – Sign Off Emails for DCLG

 DCLG has committed to provide all reasonable transition funding for FRAs moving on to ESN. This will begin with the mobilisation phase in spring 2016. As such, before significant funding is provided, DCLG requires Chief Fire Officers (or appropriate individuals) to provide them with a commitment that they would like to take up the new service.

 If your FRA would like to proceed with ESMCP we would be grateful if your Chief Fire Officer (or appropriate person) could sign, scan and email the statement below to DCLG’s Policy Official at [email protected] by 25th March 2016.

 Alternatively if your FRA does not wish to sign up to the new network, we would be grateful if you could sign, scan and email the alternative statement below to DCLG at the same email address.

Confirmation of Transition to the Emergency Services Network

I can confirm that Cleveland FRA will transition on to the new Emergency Services Network via the Emergency Services Mobile Communications Programme (ESMCP). I understand that the Department for Communities and Local Government (DCLG) will provide all reasonable transition funding for the Programme between 2016 and 2019.

Signed …………………………….. Date………………………….. Chief Fire Officer - Cleveland FRA

Rejection of the Emergency Services Network

I can confirm that Cleveland FRA will not transition on to the new Emergency Services Network via the Emergency Services Mobile Communications Programme (ESMCP).

Signed …………………………….. Date………………………….. Chief Fire Officer - Cleveland FRA

OFFICIAL

Annex B - Overview of Options for Replacement of Emergency Services Communications.

Economic Option Description

Existing Airwave contracts naturally expire. No central Option1 – Do Nothing involvement in procurement of replacement services.

Procure a private TETRA network with public safety voice Option 2– Continue with a and narrow-band data augmented by locally-procured TETRA network operational broadband data services. This requires (Do minimum) 400MHz spectrum which is not available until 2020

Procure a private LTE network with public safety voice Option 3 –Build a new private and broadband data services. This requires 700MHz LTE network spectrum which is unlikely to be available until 2020

Transition to a commercial LTE network when Airwave Option 4 – Enhanced contracts expire. Additional procurement of necessary Commercial LTE Service* public safety features to enhance the network

*From the ESMCP Outline Business Case – “The cost benefit analysis concludes that Option 4 is the preferred option on the basis that it represents the highest Net Present Value. Option 4 also provides the most non-financial benefits and critically delivers the non-financial benefits of interoperability required to meet the Programme’s objectives”

APPENDIX B

EMERGENCY SERVICES MOBILIE COMMUNICATIONS PROGRAMME

REGIONAL GOVERNANCE

DRAFT

PURPOSE OF REPORT

1. The purpose of this report is to provide a proposal on regional governance for the Emergency Services Mobile Communications Programme (ESMCP).

BACKGROUND

2. ESMCP will replace the existing communication service delivered by Airwave with a new national mobile communications service for the three emergency services and the other organisations that currently use Airwave. This new system will be called the Emergency Services Network (ESN) and this will take advantage of the latest mobile technologies to provide national critical voice and broadband data services.

3. Government funding will be provided at a local level for Public Service Network (PSN) implementation, control room upgrades, procurement of devices and vehicle fit out as part of the national implementation programme. In addition, government funding will be allocated to individual Services and separately to the regional transition areas, the north east area being one, to fund local project management / implementation costs.

4. As a result of government funding reductions for the Fire Service nationally since 2010 all the regional Services have had to make significant efficiency savings resulting in a reduction of staff. The result being that locally the Services do not have the same resources available as during the FireLink programme to deliver all tasks identified.

5. Emergency Services are expected to explore opportunities of collaboration, wherever possible to drive efficiencies; not just between fire and fire but also with the other blue light services of police and ambulance.

CURRENT SITUATION

6. Although fire and rescue services have been involved in the initial scoping and user requirement phase of the ESMCP, as the programme has moved into the procurement phase, which has been dealt with primarily by a central government team, the implications and workloads on individual services at a local level has not been significant.

7. A Principal officer from County Durham and Darlington Fire and Rescue Service (CDDFRS) represents the region on the national Fire Customer Group and chairs a regional ESMCP group consisting of senior officers/managers representing the Cleveland Fire Brigade (CFB), Tyne and Wear Fire and Rescue Service (TWFRS) and Northumberland Fire and Rescue Service (NFRS).

8. In September 2015 the Department for Communities and Local Government (DCLG) made available some interim funding of approximately 18k for each regional transition area. The north east region ESMCP group agreed for CDDFRS to be the lead authority for this and it was also agreed that the money would be utilised to fund a regional coordinators post. This role is being undertaken by FCM Julie Grosert who;

ESMCP Governance.doc.

although, based at CDDFRS is a regional resource each of the north east FRS can draw on.

NEXT STEPS

9. As the procurement phase of the programme is drawing to a close and the full business case (FBC) is signed off the workloads for FRS’s at a local and regional level will begin to increase significantly.

10. Part of the FBC includes the provision of local and regional funding the amount being determined according to the roles required to undertake transition tasks as identified in the initial transition plan. The funding takes account of the size of an individual Service classing them as small, medium and large and whether they operate their own control room. All the Services in the north east have been classed as medium for funding purposes and although TWFRS and NFRS share a mobilisation system each Service is deemed to have a separate control room.

11. Breakdown of the funding figures can be seen below. Although DCLG have indicated this is the amount, until the full business case is seen this is still to be confirmed.

Individual FRS’s £211,802 Regional £573,664 Total per region £1.420,872

12. The regional ESMCP group agreed that funding for individual FRS project teams will be allocated directly to them from DCLG. It was also agreed that the funding identified for regional work should be allocated to a lead service to be administered to individual services when required.

13. To provide the necessary level of governance for regional funding and to ensure that wherever possible collaboration opportunities are utilised to drive efficiencies it is proposed that a regional ESMCP Board is stablished.

PROPOSED REGIONAL GOVERNANCE

14. It is proposed that the Board consists of representatives at a senior level from the four north east FRS’s and that a Principal Officer from one of the four FRS’s in the region will chair the group. The Chair will be the regional representative on the national Fire Customer Group.

15. The flow of information regarding the project to all stakeholders will be driven from Department of Communities and Local Government (DCLG) and the ESMCP National Team via the ESMCP Fire Customer Group to the Regional ESMCP board.

16. The board members will be expected to report regularly to relevant Service Leadership/Management Teams and Fire Authority committees within the Service they

ESMCP Governance.doc.

are representing. This will ensure that the required approvals and direction is obtained at each appropriate stage of the project.

17. The board will provide leadership keeping the project aligned with the ESMCP strategy, govern project risks, work with other non-fire partners, and provide assurance and feedback to the constituent FRS’s.

18. With agreement from the four fire and rescue services the interim regional coordinators post and the appointment of the individual into the role, will be formalised next financial year and will continue for the duration of the project. The regional coordinator will provide a two way communication between the individual fire and rescue services in the North East region and the regional ESMCP board.

19. It is expected that each fire and rescue service will establish its own local ESMCP project team to include specialist staff as and when required.

20. The relationships between all internal and external groups involved in the project are shown in Appendix A

21. Terms of reference for the regional ESMCP board are shown in Appendix B

The regional ESMCP group are requested to:

1. Agree in principle the establishment of a board.

2. Agree in principle the regional governance structure.

3. Agree the terms of reference.

4. Agree to seek formal approval from own Service/Authority.

ESMCP Governance.doc.

AGENDA ITEM 6.2 CLEVELAND FIRE AUTHORITY 12 FEBRUARY 2016

PUBLIC CONSULTATION ON EMERGENCY

SERVICES

REPORT OF THE CHIEF FIRE OFFICER

For Information

1. PURPOSE

1.1 The purpose of this report is to advise Members of the Government’s response to the recent public consultation on a range of proposals to increase joint working between emergency services, in order to improve effectiveness and deliver savings for the public.

2. RECOMMENDATIONS

2.1 Members are recommended to:

(i) note the contents of the report;

(ii) consider any next steps, as appropriate;

(iii) receive additional reports, as appropriate.

3. BACKGROUND

3.1 The Government is committed to increasing the level and ambition of joint working between the emergency services. Closer working can enable the emergency services to deliver more effective and efficient services for the public.

3.2 The Government has invested over £80 million since 2013 in local projects to increase blue-light collaboration. Where the emergency services collaborate, they have delivered efficiencies and service improvements. However, the picture of collaboration around the country is still patchy and there is much more to do to ensure joint working is widespread and ambitious. The Government believe that the emergency services could achieve significant benefits from sharing premises, back offices, IT and procurement systems.

3.3 The Government has stated that strong leadership will be required to drive greater efficiencies and improved outcomes. That is why the Government committed in its manifesto to “enable fire and police services to work more closely together and develop the role of our elected and accountable Police and Crime Commissioners”.

CLEVELAND FIRE AUTHORITY 12 FEBRUARY 2016

PCCs are directly elected, have clear local accountability and a strong incentive to pursue ambitious reform to improve local services and deliver value for money.

3.4 On 11 September 2015, the Government published a consultation paper setting out its proposals for improving collaboration between the emergency services, strengthening accountability and seeking views on how those proposals could best be implemented.

3.5 The consultation ran for six weeks, ending on 23 October 2015. A total of 318 responses were received from national, local and regional organisations, police forces, police and crime commissioners, fire and rescue authorities, local councils, ambulance trusts, front line practitioners, associations and other interested groups and individuals.

3.6 Cleveland Fire Authority responded stating that it recognised that they have a responsibility to build on the existing partnership successes and offer the best service to the local community. However, the Authority firmly believes that greater collaboration not fire/police merger provides a huge potential for the emergency services, including the North East Ambulance Service, to build on past and present successes and grasp the new opportunities.

3.7 The attached document, “Enabling Closer Working Between the Emergency Services” (Appendix A) summarises the consultation responses and sets out the Government’s response and next steps.

4. GOVERNMENT RESPONSE TO THE CONSULTATION

4.1 The Prime Minister’s announcement on 5 January 2016 that responsibility for fire and rescue policy has transferred from the Department for Communities and Local Government to the Home Office demonstrating the Government’s commitment to closer collaboration between police and fire and rescue services. The Government believe that bringing together responsibility for fire and police in the same Department will provide the same clear leadership in central Government that the proposals on emergency services collaboration seek to deliver locally. Equally, the Government believe that closer working between the emergency services provides an excellent opportunity for sharing good practice to drive reform and to deliver better outcomes for the public.

4.2 Consequently, having considered the consultation responses, the Government’s next steps are to legislate to:

 Place a statutory duty on all three emergency services to collaborate with one another to improve efficiency or effectiveness for all parties. The duty will not prevent other parties, such as local authorities and the voluntary sector, from being part of a collaborative activity, albeit that the duty itself will not extend beyond the emergency services. The Government will ensure the duty is broad to allow local discretion over how it is best implemented for the benefit of local communities.

PUBLIC CONSULTATION ON EMERGENCY SERVICES 2 CLEVELAND FIRE AUTHORITY 12 FEBRUARY 2016

 Enable PCCs to take on the responsibilities of the fire and rescue service(s) in their area, where it is in the interests of economy, efficiency and effectiveness or public safety, and where a local case is made.

Provide a process for determining whether a PCC should assume governance for fire and rescue services as broadly set out in the consultation paper. The process should also include:

- A requirement that fire and rescue authorities provide PCCs with all necessary information to help prepare the business case.

- Where all parties are not agreed that fire and rescue should transfer to a PCC, it would be for the Secretary of State to consider the local business case and decide whether the governance change would be in the interests of economy, efficiency and effectiveness or public safety. To inform that view, they would take into account the outcome of the local consultation and they would seek an independent assessment of the local business case before any decision to proceed.

- Implementation in each area would be via secondary legislation which would be subject to Parliamentary scrutiny.

 Enable a PCC to put in place a single employer for local fire and policing (rather than two separate employers under the governance model) under his or her governance.

Provide that the case for putting in place a single employer is assessed using the same process as for a transfer of governance.

Enable any changes to the designation of powers to police personnel and volunteers to be applied locally to fire personnel, under the single employer model.

 Enable the post of chief officer to be open to applications from senior fire officers with relevant experience and who meet standards set by the College of Policing.

Remove the requirement in legislation for senior fire officers applying for chief constable posts to have previously been a constable.

Work closely with the College of Policing, National Police Chiefs’ Council and the fire sector to develop career pathways between policing and fire, and ensure senior fire officers have access to relevant policing qualifications.

PUBLIC CONSULTATION ON EMERGENCY SERVICES 3 CLEVELAND FIRE AUTHORITY 12 FEBRUARY 2016

 Extend the remit of Police and Crime Panels so that a PCC’s fire responsibilities are scrutinised by the Panel alongside a PCC’s police responsibilities, where the PCC’s role is extended.  Ensure that where a single employer model is put in place, complaints, conduct and death and serious injury matters for fire and rescue personnel and police personnel will be handled in the same way. For other governance models, the system for complaints and conduct matters for fire and rescue personnel will remain separate and unchanged.

 Enable a PCC to have representation on their local fire and rescue authority or its committees, with voting rights, in areas where fire and rescue services remain the responsibility of fire and rescue authorities. This will be subject to PCCs making clear their reasons for seeking membership and FRAs agreeing to their request; and

 Abolish LFEPA and incorporate fire responsibilities within existing Greater London Authority structures. This would include creating a deputy mayor for fire, creating a statutory “London Fire Commissioner” and a new Committee of the London Assembly which will provide scrutiny and oversight.

These legislative measures will apply to England only. Further details on the above measures and how the consultation has informed them, are set out within the document attached at Appendix A.

5. CONCLUDING REMARKS

5.1 The Government’s aim in introducing these measures is to help to ensure collaboration is widespread and ambitious across the country. Introducing a new statutory duty on the emergency services to collaborate with one another in the interests of efficiency or effectiveness will drive the sort of innovative collaboration between services that are essential for continuing to keep our communities safe and ensuring value for money for taxpayers. Moreover, the Government believes that enabling a new model of governance for fire services through Police and Crime Commissioners, where a local case is made, will help drive greater accountability to the public and further improve local collaboration.

5.2 The Government also believes that central policy making, as well as local delivery, can benefit from a more joined up approach. That is why the Prime Minister recently announced a Machinery of Government change that has transferred responsibility for fire policy from the Department for Communities and Local Government to the Home Office.

PUBLIC CONSULTATION ON EMERGENCY SERVICES 4 CLEVELAND FIRE AUTHORITY 12 FEBRUARY 2016

5.3 Clearly, the Government’s intended course of legislative action does not fully accord with the views of Cleveland Fire Authority. While the CFA strongly believes that greater collaboration between the emergency services is a key factor in providing better services to the public – and in saving lives. However, the CFA equally believes that a democratically and accountable Fire Authority can deliver improved outcomes for the public through closer working across all the emergency services but without the necessity to create merged governance models.

IAN HAYTON KAREN WINTER CHIEF FIRE OFFICER DIRECTOR OF CORPORATE SERVICES

PUBLIC CONSULTATION ON EMERGENCY SERVICES 5 Enabling Closer Working Between the Emergency Services

Summary of consultation responses and next steps

This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view this licence, visit nationalarchives.gov.uk/doc/open-government- licence/version/3 or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: [email protected].

Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned.

Alternative format versions of this report are available on request from [author’s contact details].

2 Contents

Foreword 4 Executive Summary 5 Introduction 6 Statistical Summary of Responses 21 List of Organisations Responding 22

3 Foreword

Emergency services play an essential part in serving our communities and keeping them safe. Whilst the police, fire and rescue and NHS ambulance services all have distinct frontline roles, it is clear that close collaboration between them can provide real benefits for the public and help each service better meet the demands and challenges they face.

The Government is committed to supporting collaborative and innovative blue light working and has invested over £80million in collaborative projects since 2013. However, while there are already a number of good examples of joint working across the emergency services locally, levels of collaboration are not as widespread as they could be. The Government’s manifesto commitment was clear that we will “enable fire and police services to work more closely together and develop the role of our elected and accountable Police and Crime Commissioners” and on 11 September 2015 the Prime Minister announced a joint public consultation on a range of proposals about how to achieve these aims.

We have reviewed and analysed the responses to that consultation, of which we received over 300, and have summarised our findings and how we intend to proceed in this document. We would like to thank all those who gave their time to respond and contribute to the consultation process.

The Prime Minister’s announcement on 5 January 2016 that responsibility for fire and rescue policy has transferred from the Department for Communities and Local Government to the Home Office again demonstrates the Government’s commitment to closer collaboration between police and fire and rescue services. Bringing together responsibility for fire and police in the same Department will provide the same clear leadership in central Government that our proposals on emergency services collaboration seek to deliver locally. It provides an excellent opportunity for sharing good practice to drive reform and to deliver better outcomes for the public.

There are clear opportunities for collaboration to go further and faster. The Government intends to legislate to enable local communities to drive forward joint working in their area, improving the services delivered to the public as well as providing direct local accountability by enabling Police and Crime Commissioners to take on the functions of fire and rescue authorities.

Rt Hon Theresa May MP Rt Hon Greg Clark MP Rt Hon Jeremy Hunt MP Home Secretary Secretary of State for Secretary of State for Communities and Health Local Government

4 Executive Summary

On 11 September 2015, the Government published a consultation paper1 seeking views on a range of proposals to increase joint working between the emergency services. The consultation ran for six weeks, ending on 23 October 2015. A total of 318 full or partial responses were received from a range of organisations and interested individuals, using the online survey and via email and post, commenting on the 16 questions posed in the consultation paper.

Having carefully considered the consultation responses, the Government intends to legislate to:

• introduce a high level duty to collaborate on all three emergency services, to improve efficiency or effectiveness;

• enable Police and Crime Commissioners (PCCs) to take on the functions of fire and rescue authorities (FRAs), where a local case is made;

• where a PCC takes on the responsibilities of their local FRA, further enabling him or her to create a single employer for police and fire personnel;

• in areas where a PCC has not become responsible for fire and rescue services, enabling them to have representation on their local FRA with voting rights, where the local FRA agrees; and

• abolish the London Fire and Emergency Planning Authority and give the Mayor of London direct responsibility for the fire and rescue service in London.

These measures will apply to England only. Further details on these measures and how the consultation has informed them, are set out within this document.

1 Enabling Closer Working Between the Emergency Services (September 2015)

5 Introduction

The Government is committed to increasing the level and ambition of joint working between the emergency services. Closer working can enable the emergency services to deliver more effective and efficient services for the public.

The Government has invested over £80 million since 2013 in local projects to increase blue-light collaboration. Where the emergency services collaborate, they have delivered efficiencies and service improvements.

However, the picture of collaboration around the country is still patchy and there is much more to do to ensure joint working is widespread and ambitious. The emergency services could achieve significant benefits from sharing premises, back offices, IT and procurement systems.

Strong leadership will be required to drive greater efficiencies and improved outcomes. That is why the Government committed in its manifesto to “enable fire and police services to work more closely together and develop the role of our elected and accountable Police and Crime Commissioners”. PCCs are directly elected, have clear local accountability and a strong incentive to pursue ambitious reform to improve local services and deliver value for money.

On 11 September 2015, the Government published a consultation paper setting out its proposals for improving collaboration between the emergency services and strengthening accountability, and seeking views on how those proposals could best be implemented.

The consultation ran for six weeks, ending on 23 October 2015. A total of 318 responses were received from national, local and regional organisations, police forces, police and crime commissioners, fire and rescue authorities, local councils, ambulance trusts, front line practitioners, associations and other interested groups and individuals.

The following pages summarise the views received and set out the Government’s response.

6 A new duty on all three emergency services to collaborate with one another

Although collaboration between the emergency services occurs in many areas of the country, it is not as widespread or as wide-ranging as it could be in delivering efficiencies and better services for the public. The Government wants to make effective collaboration common practice. To provide a driver for this change, the Government set out in its consultation paper its intention to introduce a new statutory duty on the three emergency services to collaborate with one another to improve efficiency or effectiveness. The duty is intended to be broad to allow for local discretion in how it is implemented so that the emergency services themselves can decide how best to collaborate for the benefit of their communities. However, there would be a clear duty on local emergency services to consider opportunities for collaboration and implement those which would improve the efficiency or effectiveness2 of all parties involved.

To inform this policy, the Government asked the following question in the consultation paper:

Question 1 - How do you think this new duty would help drive collaboration between the emergency services?

There was significant support for the new duty. Respondents thought it would help to drive efficiencies and savings, help the emergency services to share assets and reduce duplication. Whilst recognising existing collaboration, a number of responders felt that the new duty would help overcome local difficulties, remove barriers and raise the profile of collaboration, and that by doing so, it would strengthen and extend current collaborative activity.

Some responses suggested that the new duty was unnecessary in light of existing collaboration. There were also some views that collaboration should remain a matter for local decision.

Balanced against that, there were also views that the proposed duty should go further. Suggestions included extending the duty to other parties, such as local authorities, in order that they also play a role in driving collaboration and clarifying how compliance with the duty would be monitored.

Given the benefits from supporting, and extending further, existing collaboration, the Government has concluded that a statutory duty for the emergency services to collaborate should be introduced. We recognise that collaboration is well developed in some areas of the country, but it is our expectation that more can be done and a legislative duty will help drive this. We expect collaboration opportunities could include those identified in the Emergency Services Collaboration Working Group overview report3, including shared services such as procurement, vehicle maintenance and new stations.

The Government believes that the duty should be high level rather than overly prescriptive. The emphasis should be on local areas identifying collaboration opportunities which benefit their communities and then working together to implement the plans successfully.

2 The consultation paper referred to a duty to collaborate to improve efficiency and effectiveness. This should have read efficiency or effectiveness, to be consistent with the separate duty to collaborate on PCCs and Chief Constables, which was used as a model for the new duty on emergency services. We do not consider that this had a material effect on the consultation and have corrected it in this document.

3 National overview of collaboration (2014)

7 While the statutory duty will only apply to the emergency services, where appropriate, the Government would also encourage wider involvement in collaboration by other bodies such as local government, health bodies or the voluntary sector.

The Government intends to legislate to:

Place a statutory duty on all three emergency services to collaborate with one another to improve efficiency or effectiveness for all parties. The duty will not prevent other parties, such as local authorities and the voluntary sector, from being part of a collaborative activity, albeit that the duty itself will not extend beyond the emergency services. The Government will ensure the duty is broad to allow local discretion over how it is best implemented for the benefit of local communities.

Strengthening accountability and governance

PCCs have brought clear local accountability to policing and a strong incentive to reform local services and deliver value for money in the interests of local people. The Government set out in its consultation the opportunity to enable the extension of the sharp focus of directly accountable leadership that PCCs bring. Collaboration and innovation that delivers efficiency and effectiveness across the emergency services requires strong local leadership.

The 2013 review of the fire and rescue service, ‘Facing the Future’, by Sir Ken Knight4 concluded that PCCs “could clarify accountability arrangements and ensure more direct visibility to the electorate” and he raised the prospect of PCCs taking on responsibility for the fire and rescue service. The Home Affairs Select Committee also concluded in their 2014 report ‘Police and Crime Commissioners: progress to date’5 that PCCs had provided greater clarity of leadership for policing in their area and were increasingly being recognised by the public for the strategic direction they are providing.

The Government set out in its consultation that it intends to legislate to enable PCCs to take on responsibility for the fire and rescue service(s) in their area, where it is in the interests of economy, efficiency and effectiveness or public safety, and where a local case is made. Having the process driven by local leaders and requiring a local business case and local consultation is in keeping with the Government’s broader approach to devolving powers and will ensure that communities have a real say in the way emergency services are delivered in their area.

In the consultation paper, the Government set out a proposed process for determining whether a PCC should take on responsibility for fire and rescue, and asked the following question:

Question 2 - Do you agree that the process set out above would provide an appropriate basis to determine whether a Police and Crime Commissioner should take on

responsibility for fire and rescue services?

4 Facing the Future by Sir Ken Knight, 2013 5 Police and Crime Commissioners: Progress to date (2014)

8 The proposal that the process should be enabling, with local areas coming forward with plans, received good support on the basis that it would appropriately reflect varying local circumstances. Alongside that, there was a broad spectrum of views, with some respondents questioning whether PCCs had the necessary knowledge and expertise in fire and rescue matters to take on the extended role.

Amongst those who supported the process, there was agreement that there should be a duty on authorities to provide a PCC with all necessary information to help prepare a local business case. Some respondents suggested that there should be a requirement for a PCC to consult both the fire and rescue authority and local authorities within the area, in addition to the local community.

In instances where there was not local agreement amongst all parties to a PCC taking on responsibility for the local fire service, some respondents did not support the proposal that a Secretary of State should take the final decision. There was some concern that the process would enable a PCC to overrule local opposition, and there were questions around whether PCCs would have a mandate to run fire and rescue services in such circumstances.

Having considered the responses carefully, the Government has concluded that an approach of enabling a local case to be made for the transfer of fire and rescue to a PCC strikes the right balance between the alternative approaches of mandating change or inaction. We will require fire and rescue authorities to inform any business case the PCC develops and require the PCC to consult locally on the merits of that business case. We would expect that consultation to include relevant representative bodies.

Where a PCC and all the relevant authorities for the area are in agreement that fire and rescue should transfer to the PCC, and following the local consultation, the PCC will request that the Government introduces secondary legislation to give effect to the transfer. Where all parties are not in agreement, the PCC would still be able to submit the business case to the Secretary of State to consider whether the transfer was in the interests of economy, efficiency and effectiveness or public safety. To inform their view, the Secretary of State would seek an independent assessment and would take account of the local consultation before any decision to proceed. This process of Ministerial decision informed by an independent assessment is in line with the existing process for determining changes to fire and rescue service boundaries, and the Government believes it is appropriate for this process too. Any secondary legislation to transfer fire and rescue responsibilities to a PCC will of course be subject to Parliamentary scrutiny.

9 The Government intends to legislate to:

Enable PCCs to take on the responsibilities of the fire and rescue service(s) in their area, where it is in the interests of economy, efficiency and effectiveness or public safety, and where a local case is made.

Provide a process for determining whether a PCC should assume governance for fire and rescue services as broadly set out in the consultation paper. The process should also include:

• A requirement that fire and rescue authorities provide PCCs with all necessary information to help prepare the business case.

• Where all parties are not agreed that fire and rescue should transfer to a PCC, it would be for the Secretary of State to consider the local business case and decide whether the governance change would be in the interests of economy, efficiency and effectiveness or public safety. To inform that view, they would take into account the outcome of the local consultation and they would seek an independent assessment of the local business case before any decision to proceed.

• Implementation in each area would be via secondary legislation which would be subject to Parliamentary scrutiny.

Empowering Police and Crime Commissioners to maximise opportunities for efficient, effective services

Enabling PCCs to take on governance of fire and rescue services would allow them to make valuable reforms and improve joint working with the police service. However, as set out in the consultation, greater gains could be made through the integration of back office functions such as estates, HR and IT which support the two services. To facilitate this, the Government set out in its consultation its intention to enable PCCs, where a local case is made, to put in place a single employer for local fire and policing (rather than two separate employers under the governance model), with the PCC ultimately accountable to the public for both services. This would remove the barriers that can prevent the full potential of fire and police collaboration, including the need to draw up contracts and collaboration agreements to share back office services and streamline upper tiers of management. We were clear that the important distinction between operational policing and firefighting would be maintained. There is no intention to give firefighters the power of arrest or other core powers of a constable and the law preventing a full-time police officer from being a firefighter will remain in place.

In the consultation paper, the Government proposed applying the same process for creating a single employer as for transferring governance, and sought views on the benefits whilst retaining separate frontline services. The following questions were asked:

Question 3 - Do you agree that the case for putting in place a single employer should be assessed using the same process as for a transfer of governance?

Question 4 - What benefits do you think could be achieved from empowering Police and Crime Commissioners to create a single employer for police and fire and rescue personnel, whilst retaining separate frontline services, where a local case has been made to do so? 10 There was a broad range of views in answer to these questions, although generally they were supportive. Where responses were supportive of the principle of enabling a single employer to be established they were predominantly also supportive of the same process being used to make the decision as for a PCC taking on governance. Many responses agreed with the emphasis resting with proposals being developed locally. Some concerns were raised around the implications for the public perception of the fire service, and it was also noted that the single employer model would not necessarily guarantee that efficiencies would be secured.

The benefits identified by respondents included savings from more co-location, shared back office services and joint procurement, cross-service training programmes, streamlined management structures and simplified leadership arrangements. Some also noted that there would be a variation in benefits depending upon local circumstances.

Another comment was about the need to ensure sufficient capacity for Gold, Silver and Bronze commands if senior management numbers were reduced. Some responses highlighted the challenges of bringing two workforces closer together – for example, complex industrial relations and the alignment of terms and conditions of personnel. One possible example of this may be, as set out in further detail later on in this document under the “complaints” heading, the implications of the Government’s decision, having considered consultation responses, to bring together complaints and conduct procedures for personnel from both services under the single employer model. The principles of the Cabinet Office Code of Practice will be applied to personnel transfers taking these considerations into account.

The Government has concluded that the proposed process for transferring governance of fire and rescue to a PCC is appropriate to enable a single employer for police and fire to be established. Ultimately local considerations will determine whether a PCC seeks to take this extra step, either at the same time or subsequently to seeking a transfer of governance.

Some respondents also reasonably made the connection with a parallel consultation on proposals to reform the Powers of Police Staff and Volunteers6. Those proposals are relevant to the proposals discussed here to enable PCCs to take on responsibility for their local fire and rescue service and to put in place a single employer. Under the single employer model a chief officer would employ both police and fire and rescue personnel.

The Government has considered the interrelationship between the issues discussed in both consultations. In line with the police powers proposals, the Government intends to legislate so that the chief officer (under a single employer model) would be able to decide locally whether to designate certain police powers to their fire personnel as well as to their police personnel. Crucially, this would not include any of the core powers that only police officers can hold. As set out in the consultation paper, the current law that prevents a full-time police officer from being a firefighter will remain in place. Similarly, there is no intention to give firefighters the power of arrest. Currently, under the Community Safety Accreditation Scheme (CSAS), fire personnel can already be accredited with powers by a chief constable, including powers to issue penalty notices. This proposal would just be the extension of this and would allow chief officers to fully utilise all their personnel. The important distinction between frontline services and the powers of a police officer and a firefighter would be maintained.

6 Reforming the Powers of Police Staff and Volunteers, 2015

11 The Government intends to legislate to:

Enable a PCC to put in place a single employer for local fire and policing (rather than two separate employers under the governance model) under his or her governance.

Provide that the case for putting in place a single employer is assessed using the same process as for a transfer of governance.

Enable any changes to the designation of powers to police personnel and volunteers to be applied locally to fire personnel, under the single employer model.

Chief Officer Role

The Government set out in its consultation paper that the single employer model would be based on a chief officer, who would employ all fire and police personnel.

The chief officer would need to hold the rank of chief constable as this is required in legislation for police forces. This would not be an additional post, rather that the post of chief constable would become known as the “chief officer” to reflect its wider role. The Government consulted on the basis that it would be appropriate for the chief officer position to be open to applications from both senior police officers and fire officers, since they would both have relevant experience. To enable this, the Government intends to remove the requirement for senior fire officers applying for chief constable roles in the single employer model to previously have been a constable, and simultaneously ensure senior fire officers have access to the necessary training that would qualify them to apply for chief officer posts.

To inform the development of this proposal, the consultation paper asked

Question 5 - Do you agree that the requirement for a chief officer to have previously held the office of constable should be removed for senior fire officers?

There were a range of views in response to this question. Some agreed that it was appropriate to broaden the field of those who could apply for the chief officer post so that applications could be from either the fire and rescue service or the police. They pointed to the need to have the best candidates and that the largely strategic management role did not require direct policing experience. Where respondents were less convinced of the approach they raised points around the need for operational skills and experience in either service.

The Government has decided to proceed on the basis of changing the law to enable applications from either the police or fire and rescue service for the chief officer role in the single employer model. This will allow career pathways for both police and fire that extend right the way through the organisation. The Government recognises the importance of relevant skills and experience for any applicant to the post. That is why applicants from either service will need to meet the standards set by the College of Policing. For example, applicants would need to have satisfactorily completed the Senior Police National Assessment Centre and the Strategic Command Course, which currently prepares police officers and personnel for promotion to the most senior ranks in the service. Ultimately, it will fall to the PCC to make the appointment of who holds the post of chief officer based on their judgement of the best candidate for the job.

12 The Government intends to:

Enable the post of chief officer to be open to applications from senior fire officers with relevant experience and who meet standards set by the College of Policing.

Remove the requirement in legislation for senior fire officers applying for chief constable posts to have previously been a constable.

Improving performance

Where a PCC takes on responsibility for their local fire and rescue service, the PCC will need informed and independent information on the operational performance of the fire and rescue service. The consultation paper included the following question to seek views on how the performance of fire and rescue services should be reviewed and supported under PCCs:

Question 6 - How do you think the requirement for a Police and Crime Commissioner to have access to an informed, independent assessment of the operational performance of the fire service should best be met?

The responses to this question were mixed but two main themes emerged. First, the widespread view of respondents was in support of either expanding the role of HM Inspectorate of Constabulary (HMIC) or setting up a separate inspectorate for fire and rescue, to provide objective assessments of efficiency and effectiveness of fire and rescue services. In support of HMIC, it was felt this would provide a common methodology and approach to inspection across both services. Second, some respondents suggested that the existing peer review system was sufficient, whilst others felt that improvements could be made to it, such as by making it compulsory and by enabling better comparisons to be made on the performance of different fire authorities.

Having considered the consultation responses, the Government is clear that there must be appropriate arrangements in place to ensure PCCs have access to reliable independent assessments of local fire and rescue service performance, where they have taken on responsibility for it. However, the consultation received a range of views on how this might best be achieved. The Government will consider the options further before deciding how to proceed.

Scrutiny

In respect of their police and crime responsibilities, PCCs have well-established scrutiny mechanisms, based on the powers and functions of dedicated Police and Crime Panels, external audit, and transparency requirements. The Government believes that where a PCC takes on responsibility for fire and rescue, the remit of the relevant Police and Crime Panel should be expanded to include scrutiny of the PCC’s fire responsibilities. This approach would support the public in holding the PCC to account for all elements of their role.

13 The consultation paper, therefore, posed the following questions:

Question 7 - Do you agree that where a Police and Crime Commissioner takes responsibility for a fire and rescue service, the Police and Crime Panel should have its remit extended to scrutinise decision making in relation to fire services?

Question 8 - Do you think that where a Police and Crime Commissioner takes responsibility for a fire and rescue service, the Police and Crime Panel should have its membership refreshed to include experts in fire and rescue matters?

Responses were supportive of extending the remit of Police and Crime Panels. Respondents pointed to the need for equal scrutiny and transparency across both services, and the importance of ensuring individuals have sufficient expertise. Some respondents commented that this would support the findings of the Knight review that fire and rescue services should develop a consistent approach to scrutiny. Other responses suggested having an alternative panel dedicated to fire and rescue.

Some responses to question 8 agreed that the Police and Crime Panel should have its membership refreshed to include fire expertise. Those opposed to this approach did so in the belief that the existing Police and Crime Panel model does not require local representatives to have any expertise in policing. However, under the law currently, when forming a Police and Crime Panel local authorities must meet certain “balanced appointment objectives”. These are set down in the Police Reform and Social Responsibility Act 2011. Paragraph 31(5)(c) of that Act makes clear that a Panel must, when taken together, have the “skills, knowledge and experience necessary for the Police and Crime Panel to discharge its functions effectively”. This clause ensures that each Panel has appropriate expertise in the field of policing. The Government has concluded that the remit of the Police and Crime Panel should be extended to include fire and rescue where the responsibilities of the PCC are expanded. The Government will retain the “balanced appointment objectives”. Local authorities will be bound to review and reconstitute the membership of panels, as may be appropriate. This will ensure that Panels have the right skills, knowledge and experience to scrutinise matters relating to fire and rescue as well as crime and policing.

The Government intends to legislate to:

Extend the remit of Police and Crime Panels so that a PCC’s fire responsibilities are scrutinised by the Panel alongside a PCC’s police responsibilities, where the PCC’s role is extended.

Complaints

Where a PCC takes on responsibility for fire and rescue services, it will be necessary to look at how complaints against fire officers and personnel should be handled. At present, the majority of complaints and conduct matters against fire officers and personnel are currently handled internally by the fire and rescue services themselves. The public has recourse to the Local Government Ombudsman in certain cases of maladministration. The Health and Safety Executive may also investigate in certain situations.

14 Where a PCC takes over governance of fire and rescue, but continues to employ fire service personnel separately from police, the Government believes that the complaints system should also remain separate.

Where a PCC puts in place a single employer for fire and rescue and police services, the Government sought views on whether complaints and conduct matters concerning fire and rescue personnel should be treated in a similar way as complaints and conduct matters concerning the police.

Question 9 - Do you think that where a Police and Crime Commissioner puts in place a single employer for fire and rescue and police services personnel, complaints and conduct matters concerning fire should be treated in the same way as complaints and conduct matters concerning the police?

Many respondents noted the wider reforms to the police complaints system that are already underway. There were a range of views in response to the question. Some respondents saw benefit in having a single, consistent complaints system across both services. Other respondents questioned whether the police complaints system was appropriate for fire and rescue services, who do not have the same extensive powers as the police.

The Government has concluded that where a PCC establishes a single employer for both police and fire, it is appropriate for complaints, conduct and deaths and serious injury matters to be treated on a consistent basis under the Police Reform Act 2002. Where a matter relating to the fire service meets the mandatory referral criteria, it will be referred to the Independent Police Complaints Commission. Otherwise it will be handled locally under the reformed police complaints and discipline systems. Under a single employer model, personnel may be performing dual functions. It would be confusing for personnel and for the public to be subject to different complaints systems depending on the nature of the incident.

The Government intends to:

Ensure that where a single employer model is put in place, complaints, conduct and death and serious injury matters for fire and rescue personnel and police personnel will be handled in the same way. For other governance models, the system for complaints and conduct matters for fire and rescue personnel will remain separate and unchanged.

15 Enhancing collaboration between police and fire and rescue

In areas where fire and rescue services remain the responsibility of a fire and rescue authority, the Government consulted on the basis that it will still be beneficial to ensure that PCCs and fire and rescue authorities have meaningful opportunities to drive effective collaboration between fire and police services. To enable this, the Government consultation set out that, where a PCC has not become responsible for the fire and rescue service(s) in their local area, they should nevertheless have the opportunity to be represented on the fire and rescue authority or its committees with voting rights.

The consultation paper noted that this would be feasible for ‘standalone’ fire and rescue authorities but would be more complex in areas where a county council has responsibility for a fire and rescue service, and might not have a dedicated sub-committee for fire. In such cases, any voting rights extended to PCCs would need to be restricted only to matters affecting the fire and rescue service. It would also be important to consider how adding PCCs to the membership of fire and rescue authorities might affect the political balance of those bodies.

The consultation included the following question:

Question 10 - Do you agree that Police and Crime Commissioners should be represented on fire and rescue authorities in areas where wider governance changes do not take place?

Respondents felt the benefits of this approach included the ability for PCCs to identify areas for potential collaboration, particularly around community safety and public engagement, to develop a greater understanding of current issues and to broaden accountability. Some respondents expressed misgivings around the electoral mandate of PCCs in respect of fire matters. There were also concerns around how the political balance of fire and rescue authorities could be maintained where the PCC is able to vote. The Government recognises these concerns and, to address them, will require PCCs to state clearly their reasons for wishing to join the FRA, and the FRA itself will decide whether to agree to their request. Furthermore, FRAs will have the ability to change their membership in order maintain political balance where a PCC is appointed. The Government has concluded that, consistent with the overall approach of enabling closer collaboration between the emergency services, there would be real value in PCCs having representation on local fire and rescue authorities where there are no wider governance changes. This would give PCCs and fire and rescue authorities an ongoing opportunity to overcome any local barriers to collaboration and drive greater joint working between fire and police services.

The Government intends to legislate to:

Enable a PCC to have representation on their local fire and rescue authority or its committees, with voting rights, in areas where fire and rescue services remain the responsibility of fire and rescue authorities. This will be subject to PCCs making clear their reasons for seeking membership and FRAs agreeing to their request

16 London Fire and Emergency Planning Authority

The consultation paper set out how abolishing the London Fire and Emergency Planning Authority (LFEPA) would strengthen democratic accountability by removing the current confusion whereby the Mayor is accountable for setting the annual budget for fire but is in a minority position on LFEPA in respect of decisions relating to fire. The consultation paper explained that there are currently too many instances of the Mayor having to use his powers to direct LFEPA on the exercise of its functions.

The consultation paper sought views on abolishing LFEPA, enabling the Mayor of London to take direct responsibility for fire and rescue, and how fire and rescue responsibilities could be incorporated into the mayoral structure.

Question 11 - Do you agree that the London Fire and Emergency Planning Authority should be abolished and direct responsibility for fire and rescue transferred to the Mayor of London?

Question 12 - In the event that the London Fire and Emergency Planning Authority is abolished, how should responsibility for fire and rescue be incorporated into the mayoral structure?

The Mayor of London, the London Councils, the Labour Group at the London Assembly and LFEPA itself all supported the abolition of LFEPA and the transfer of fire and rescue responsibilities to the Mayor. They also all agreed that fire functions should be incorporated within existing Greater London Authority (GLA) structures. This would include creating a deputy mayor for fire.

The Mayor of London made specific proposals for the creation of the “London Fire Commissioner” as a legal body in its own right and tasked with running the London Fire Brigade on a day to day basis; with the Mayor responsible for setting budgets and strategic direction.

Furthermore, the Mayor proposed that the London Assembly should provide scrutiny and oversight of the work of the Mayor, Deputy Mayor and London Fire Brigade though a new, and statutory, Fire and Emergency Planning Committee.

The Government agrees with the Mayor’s proposals and will legislate accordingly. In addition, the Mayor’s office has confirmed that they intend for the LFB to continue to deliver the Mayor’s responsibilities for resilience on the Mayor’s behalf, and the London Local Resilience Forum agrees that the role of the LFB in managing the work of the London Resilience Team on behalf of the forum should continue. London Councils and London’s local authorities have confirmed that the pan-London emergency planning function delivered by the LFB’s emergency planning team should continue. Government will continue to discuss with London Local Resilience Forum members the opportunities to strengthen coordination of London’s resilience activities.

The Government intends to legislate to:

Abolish LFEPA and incorporate fire responsibilities within existing Greater London Authority structures. This would include creating a deputy mayor for fire, creating a statutory “London Fire Commissioner” and a new Committee of the London Assembly which will provide scrutiny and oversight.

17 Local resilience/Civil contingencies

Police forces and fire and rescue services have duties under the Civil Contingencies Act 2004, both as individual emergency responders and as members of local resilience forums. The consultation paper sought views on the implications for local resilience where a PCC is responsible for both police and fire.

Question 13 - To what extent do you think there are implications for local resilience (preparedness, response and recovery) in areas where the Police and Crime Commissioner will have responsibility for police and fire?

Question 14 - To what extent do you think there are implications for resilience responsibilities in areas where an elected metro mayor is also the Police and Crime Commissioner and responsible for the fire and rescue service?

Both q uestions elicited a rang e of views on the impl ications for resilience. However, some key themes emerged. Many respondents highlighted the existing duty to collaborate under the Civil Contingencies Act and that established and effective collaborative arrangements for resilience are facilitated at the local level through local resilience forums. Some respondents asked for clarity about the transfer of fire and rescue authority duties, including those under the Civil Contingencies Act and regulations on the Control of Major Accident Hazards (COMAH)7, to a PCC or elected mayor.

Respondents to question 13 felt that if a PCC was responsible for police and fire the positive outcomes for resilience would include greater collaboration, increased strategic oversight and reduced duplication. Some respondents raised concerns about clarity of command responsibilities under a single leadership model and the potential for a PCC to politically influence the local resilience forums.

Respondents to question 14 considered the benefits of greater collaboration to be achieved where a metro mayor has responsibility for both services. The case for positive impacts included improved operational effectiveness, simplified decision making and greater accountability. However, some respondents were concerned about political influence on the local resilience forums and conflict of interest given a Mayor’s wider remit and responsibilities.

7 http://www.hse.gov.uk/comah

18 The Government welcomes the responses about the implications for local resilience. It notes the comments about how the changes could enhance collaboration and the need to build on existing practice to further improve local preparedness and response. Where a PCC or elected mayor takes on responsibility for fire, all fire and rescue authority duties, including those under the Civil Contingencies Act and COMAH (Control of Major Accident Hazards) regulations, would transfer to the PCC or elected mayor.

The Government encourages local resilience forums to consider how local changes in police and fire governance, where PCCs or metro mayors take on responsibility for fire and rescue functions, can enhance local resilience arrangements. The early progress made in areas like Greater Manchester where, after the elections scheduled for 2017, the elected mayor will hold the functions of PCC and be responsible for fire and rescue, will provide opportunities to share emerging lessons.

Other views or comments

Question 15 - Are there are any other views or comments that you would like to add in relation to emergency services collaboration that were not covered by the other questions in this consultation?

A range of views were expressed in response to this question. By far the most commonly stated view was the need for ambulance services to engage more with the police and fire and rescue services. In response to this, the Government is of the view that the duty to collaborate will drive greater collaboration between all emergency services, including the ambulance service. The consultation also proposed that NHS foundation trusts should consider how best to engage with PCCs. In addition, the ambulance service is a key component of the working group on emergency services collaboration and through this group the sector will be able to develop further proposals.

The consultation also asked the following question on equalities:

Question 16 - Do you think these proposals would have any effect on equalities issues?

Positive impacts identified in responses to this question included enabling harmonisation of equality plans, policies and processes. Other responses suggested that the proposals could mean reduced community engagement between fire and rescue services and vulnerable people, and the risk of disproportionate impact on women and minority groups from any consolidation in roles of police and fire personnel that may be pursued locally.

The Government’s position is that the proposals consulted upon are enabling, meaning that the details will be developed at a local level. PCCs and fire and rescue authorities are also subject to the Equality Act 2010 and the obligations under that Act will apply to them in relation to specific proposals being developed for their local area.

19 The Equality Act 2010 introduced an Equality Duty on public bodies and others carrying out public functions. The duty requires public bodies to have due regard to the need to: • eliminate unlawful discrimination, harassment and victimisation and other conduct prohibited by the Equality Act 2010; • advance equality of opportunity between persons who share a relevant protected characteristic and persons who do not share it; and • foster good relations between persons who share a relevant protected characteristic and persons who do not share it.

20 Statistical Summary of Responses

A total of 318 full or partial responses were received and analysed. The largest group responding to the consultation were representatives from the fire and rescue service, who contributed over a third of responses, followed by representatives from the police (including PCCs and members of Police and Crime Panels) who contributed over a fifth of all responses. Responses classified in the ‘other’ group included academic institutions, charities and private companies.

1 Unions Responses by type 1% Industry Ambulance bodies 3% 4% Others 4%

Members of Fire the public 36% 12%

Local authority 18%

Police 22%

1 Includes online and individual responses sent via email/post. Those respondents who did not state an organisation have been excluded from these figures, although they have been included in the analysis of responses.

List of Organisations Responding

Organisations which responded to the consultation included:

ADS Group Limited Asian Fire Service Association Association of Ambulance Chief Executives Association of Police and Crime Commissioners Association of Policing and Crime Chief Executives Association of Principal Fire Officers Avon and Somerset Constabulary Avon and Somerset Police and Crime Commissioner Avon Fire and Rescue Authority Barnsley Council Bedfordshire Fire and Rescue Service Bedfordshire Police Bedfordshire Police and Crime Commissioner Bedfordshire Fire and Rescue Authority Bentley Parish Council Billingshurst Parish Council Birmingham City Council, Resilience Team Borough of Poole Bristol City Council British Heart Foundation Buckinghamshire and Milton Keynes Fire Authority Cambridgeshire Constabulary Cambridgeshire Fire and Rescue Authority Cheshire Fire Authority Cheshire Police and Crime Commissioner Chief Fire Officers Association Chief Police Officers Staff Association City of London Corporation and the City of London Police Cleveland Fire and Rescue Authority Colchester Borough Council College of Paramedics College of Policing Cornwall Council County Durham and Darlington Fire and Rescue Authority Cumbria Constabulary Cumbria Police and Crime Commissioner Derbyshire Constabulary Derbyshire Fire and Rescue Authority Derbyshire Police and Crime Commissioner Devon and Cornwall Police of behalf of LRF chairs within the South West Region Devon and Somerset Fire and Rescue Authority

22 Devon, Cornwall and the Isles of Scilly, Office of the Police and Crime Commissioner Dorchester Council Dorset Fire Authority Dorset Office of the Police and Crime Commissioner Durham Police and Crime Commissioner Durham Resilience Forum East Midlands Ambulance Service NHS Trust East of England Ambulance Service NHS Trust East Sussex Fire and Rescue Authority Edge Hill University Emergency Planning Society, West Midlands Branch Enfield Community Safety Essex Fire and Rescue Authority Essex Police Force Fareham Borough Council Fire Brigades Union Fire Officers Association Fire Sector Federation Five Tees Valley Authorities Gateshead Council Gloucestershire Constabulary Gloucestershire Fire and Rescue Authority Greater London Authority Greater Manchester Combined Authority Hampshire and the Isle of Wight Local Resilience Forum Hampshire and the Isle of Wight Office of the Police and Crime Commissioner Hampshire Constabulary Hampshire Fire and Rescue Authority Hartlepool Borough Council Health and Safety Executive Hereford and Worcestershire Fire and Rescue Authority Hertfordshire Constabulary Hertfordshire County Council (FRA) Hertfordshire Local Resilience Forum Hertfordshire Police and Crime Commissioner Humber Local Resilience Forum Humberside Fire and Rescue Authority Humberside Police and Crime Commissioner Inclusion London Independent Police Complaints Commission Institute of Community Safety Isle of Scilly Council Isle of Wight Fire and Rescue Authority Keele University Kent and Medway Fire and Rescue Authority Kent County Council Kent Police

23 Kent Police and Crime Commissioner Kingston Borough Council Lancashire Combined Authority Lancashire County Council Lancashire Police Lancashire Police and Crime Commissioner Lancashire Resilience Forum Leicestershire Fire and Rescue Authority Lincolnshire Community Safety Partnership Lincolnshire County Council Lincolnshire Police and Crime Commissioner Local Government Association London Ambulance Service NHS Trust London Assembly London Councils London Borough of Ealing London Fire Brigade London Resilience Forum Lowland Rescue Merseyside Fire and Rescue Authority Merseyside Police and Crime Commissioner Merseyside Police and Crime Panel Metropolitan Police Service National Police Chiefs’ Council National Trust New Forest District Council Norfolk Constabulary Norfolk Fire and Rescue Authority Norfolk Police and Crime Commissioner North East Ambulance Service NHS Foundation Trust North Yorkshire County Council North Yorkshire Fire Authority North Yorkshire Police and Crime Commissioner Northamptonshire Fire and Rescue Authority Northamptonshire Fire and Rescue Service Northumberland County Council Northumbria Police Northumbria Police and Crime Commissioner Nottingham Trent University Nottinghamshire Fire and Rescue Authority Nottinghamshire Fire and Rescue Service Nottinghamshire Police Osman Consulting Ltd Oxfordshire County Council (as FRA) Police and Crime Commissioners Treasurer's Society Police Federation Police Superintendents Association

24 Reading Borough Council Retained Firefighters Union Royal Berkshire Fire and Rescue Authority Royal College of Emergency Medicine Royal College of Nursing Safer Stronger Doncaster Partnership Salisbury City Council Shadow Dorset and Wiltshire Fire and Rescue Authority Shropshire and Wrekin Fire Authority South East Coast Ambulance Service NHS Foundation Trust South Tyneside Council South West Local Resilience Forums South Western Ambulance Service NHS Foundation Trust South Yorkshire Fire and Rescue Authority South Yorkshire Local Resilience Forum South Yorkshire Police and Crime Commissioner Southampton City Council Staffordshire County Council Staffordshire Local Resilience Forum Staffordshire Police Staffordshire Police and Crime Commissioner Staffordshire Police and Crime Panel Staffordshire University Stoke-on-Trent and Staffordshire Fire and Rescue Authority Stoke-on-Trent City Council Suffolk Constabulary and Police and Crime Commissioner Suffolk Fire Authority Suffolk Local Resilience Forum Suffolk Police and Crime Panel Sunderland City Council Surrey County Council (FRA) Surrey Police and Crime Commissioner Sussex Local Resilience Forum TechUK Telford and Wrekin Council Telford and Wrekin Council Civil Resilience Team Thames Valley Police and Crime Commissioner The Institute of Civil Protection and Emergency Management Trades Union Congress UNISON UNISON LFEPA Unite the Union Victoria University (Australia) Warrington Borough Council Warwickshire County Council (FRA) Warwickshire Police and Crime Commissioner

25 Warwickshire Police and Crime Commissioner Weightmans LLP, Solicitors West Mercia Police and Crime Commissioner West Midlands Ambulance Service NHS Foundation Trust West Midlands Fire and Rescue Authority West Midlands Local Resilience Forum West Sussex County Council (FRA) West Yorkshire Police West Yorkshire Police and Crime Commissioner Williams Training and Consultancy Wiltshire Police and Crime Commissioner Wokingham Borough Council Wokingham's Community Safety Partnership Wyre Forest District Council Yorkshire Ambulance Service NHS Trust

26 AGENDA ITEM 6.3 CLEVELAND FIRE AUTHORITY 12 FEBRUARY 2016

COMMUNITY INTEGRATED RISK MANAGEMENT

PLAN (CIRMP) ANNUAL REVIEW - ALTERNATIVE PROPOSAL: THREE SHIFT DUTY SYSTEM

REPORT OF THE CHIEF FIRE OFFICER For Information

1. PURPOSE OF REPORT

1.1 To inform Elected Members of the progress on the proposal to amend the Community Integrated Risk Management Plan (CIRMP) 2014 -18 by introducing a three shift duty system to achieve the relevant financial efficiencies but without the necessity to implement all of the previously agreed components of the CIRMP.

1.2 To advise Elected Members of any implications or matters arising from the outcome of the NJC Technical Advisory Panel (TAP) on the implementation of the CIRMP.

2. RECOMMENDATIONS

2.1 Members are asked to:

 note the contents of the report

 note the findings and recommendations of the Independent Expert on behalf of the NJC Technical Advisory Panel (Appendix A); and

 consider and provide strategic guidance on any matters impinging on the implementation of the CIRMP;

3. BACKGROUND

3.1 On 7th March 2014 the Authority finalised and approved its Community Integrated Risk Management Plan (CIRMP) 2014 -18 which sets out the Authority’s:

 operating environment  vision, strategic goals, aims and associated outcomes;  medium term financial position  community risk assessment model  risk assessment outcomes; and  organisational, risk management, prevention, protection and emergency response proposals to 2018.

3.2 In April 2014, the CIRMP 2014/18 was published. Subsequently, on 1 April 2016 the Fire Authority will publish the approved Service Plan 2016/17 to outline the priorities for the forthcoming year and reflect the third year of the CIRMP 2014/18.

CLEVELAND FIRE AUTHORITY 12 FEBRUARY 2016

3.3 The CFA had resolved to review the CIRMP annually in the consideration of the Medium Term Financial Strategy, the changing risk and demography, and the local community demands and service needs. Such reviews ensure that the CFA considers alternative configurations, proposals and collaborative opportunities to achieve improvements in public safety; maximise efficiency; and maintain, if not strengthen, the front-line delivery service.

3.4 As an alternative to the existing CIRMP proposals, Brigade Management have proposed the introduction of a three shift duty system which achieves the relevant financial efficiencies but without the necessity to implement all of the components of the CIRMP 2014/18.

4. THREE SHIFT DUTY SYSTEM

4.1 As opposed to the current 2-2-4 duty system arrangement i.e. 2 days – 2 nights – 4 rota days shift pattern wherein dayshifts are 10½ hours in duration (09:00 – 1930) and nightshifts are 13½ hours in duration (19:30 – 09:00), the proposed three shift duty system utilises three shifts providing a recurring pattern of two twenty-four hours on duty followed by ninety-six hours rota. The start and finish time for the three shift duty system is 09:00 hours.

4.2 During each twenty-four hour period, three hours are specified for meal breaks. In addition, subject to operational activities, firefighters will stand down every night between 21:00 and 09:00 hours and are expected to take suitable rest within the recovery areas (dormitories).

4.3 The main benefits of the proposed three shift duty system and the associated changes to the whole- time fire-fighter establishment are:

 operational resilience and incident command systems will be safeguarded by maintaining an effective and immediate 24/7 emergency response capability staffed with a greater number of professional whole-time fire-fighters

 Implementing the three watch duty system will not increase the predicted fatality rate as those appliances due to be staffed by on call firefighters will remain wholetime staffed.

 safeguarding the CFA’s commitment to prevention and protection services

 additional safeguarding to the resilience in the availability of fire appliances staffed with on-call firefighters

 alleviating the necessity, and associated costs, of recruiting and selecting firefighters to staff the fire appliances on an on-call duty system basis

 maintaining, if not improving, the planning and delivery of the current training programme and competency framework

COMMUNITY INTEGRATED RISK MANAGEMENT PLAN (CIRMP) ANNUAL REVIEW ALTERNATIVE PROPOSAL: THREE SHIFT DUTY SYSTEM 2 CLEVELAND FIRE AUTHORITY 12 FEBRUARY 2016

 greater empowerment and flexibility for watch managers to plan and manage workloads

 enhancing health and safety arrangements for operational crews particularly around cognitive recovery

 supporting family friendly practices through a compressed hours working format

 improving lines of communication

 a single crew changeover in a 48 hour period.

4.4 CFA has publicly acknowledged that the proposed three shift duty system is currently outside the duty system principles as detailed within the National Joint Council (NJC) for Local Authority Fire and Rescue Services Scheme of Conditions of Service (Grey Book) Section 4 Part A Para. 3 Hours of Duty and Duty Systems paras (1) and (3) and the EC Working Time Regulations 1998 (WTR) Reg 4 (relating to the maximum weekly working time) Reg 6 (relating to length of night work) and Reg 10 (relating to the rest period of not less than eleven consecutive hours in each 24-hour period).

4.5 Consequently, through local negotiation CFA, via its Brigade Management, has sought to reach a collective or workforce agreement with the recognised representative body, the Fire Brigades’ Union, to enable the modification or exclusion of the application of regulations 4, 6 (1) to (3) and (7) and 10 (1) of the Working Time Regulations. The proposed three shift duty system would therefore satisfy para (3) of the NJC Duty System principles and be compliant with the Regulations.

4.6 To compensate firefighters who undertake the three shift system and the additional weekly hours (14 hours per week), firefighters will be paid an increase in annual salary equivalent to 10% of each qualifying staff member’s annual salary. This will be pensionable and applied to the lump sum and enduring annual payment of pension.

4.7 For any additional hours and/or overtime the following enhancements to pay will apply:  all additional hours will be paid at NJC hourly rate +10%  all casual overtime will be paid at NJC hourly overtime rate +10%  all public holidays will be paid at NJC hourly overtime rate +10%

4.8 In addition, it was proposed by Brigade Management, that the partial transition to the three shift duty system would be implemented on a one-year trial basis, however, in addition, the system will be reviewed every six months to ensure its successful operation and to ensure that levels of service delivery meet the needs of the local community.

COMMUNITY INTEGRATED RISK MANAGEMENT PLAN (CIRMP) ANNUAL REVIEW ALTERNATIVE PROPOSAL: THREE SHIFT DUTY SYSTEM 3 CLEVELAND FIRE AUTHORITY 12 FEBRUARY 2016

4.9 To date the CFA and the recognised Fire Brigades’ Union have been unable to reach a negotiated settlement.

5. LOCAL NEGOTIATIONS

5.1 Brigade Management entered into negotiation with the FBU, in good faith, with the intention to reach a local agreement which varied the conditions of service for staff who volunteered to adopt the new three shift duty system. In addition, individual expressions of interest were invited to gauge the appetite of staff to volunteer for a one year trial.

5.2 On 6 November 2015, FBU Brigade Officials advised Brigade Management that there was no agreement to the three shift duty system proposal as the latest changes and improvements were insufficient to warrant an agreed solution. Brigade Management remained readily available to continue local negotiations however it was believed that the FBU’s stated position that it could never recommend acceptance of any duty system that did not comply with the four duty system principles1 contained within the National Joint Council for Local Authority Fire and Rescue Services Scheme of Conditions of Service (the “Grey Book”) has stymied the efforts to reach a locally negotiated settlement.

5.3 In addition, in accordance with the provisions in the Grey Book, the FBU has advised Brigade Management that it considers that external assistance i.e. the NJC Technical Advisory Panel (TAP) may assist in resolving the issue. Whilst Management do not believe that local negotiations have been exhausted it would not unreasonably withhold agreement to the request for external assistance albeit through the NJC Joint Secretaries and/or the Technical Advisory Panel. On December 2015, Brigade Management instigated the joint referral into the NJC TAP process.

5.4 The purpose of the NJC TAP is to seek to broker an agreement between the parties, but where that is not possible it will make recommendations. Those recommendations will ensure that the duty system follows the four principles set out in the Grey Book and is compatible with the deployment of resources that the Fire Authority has determined is necessary to implement its CIRMP. If the TAP achieves its primary purpose of brokering an agreement then it’s worth the effort, if, however the outcome is confined to simply illustrating that the proposed three shift system is non-compliant with the four duty system principles then this point has previously been conceded and no progress will have been achieved.

5.5 Brigade Management had previously received a significant positive response direct from staff (approximately 35%) and therefore it was the intention of Brigade Management to continue to pursue the introduction of the three shift duty system on a one year trial basis commencing on 1 April 2016. Clearly, the final determination to “go live” was subject to Fire Authority approval, full consideration of any Technical Advisory Panel’s recommendations, and most importantly converting all of those positive expressions of interest into a local agreement with the FBU, to operate the new duty system.

COMMUNITY INTEGRATED RISK MANAGEMENT PLAN (CIRMP) ANNUAL REVIEW ALTERNATIVE PROPOSAL: THREE SHIFT DUTY SYSTEM 4 CLEVELAND FIRE AUTHORITY 12 FEBRUARY 2016

6. TECHNICAL ADVISORY PANEL

6.1 In a continued effort to reach a negotiated agreement, Brigade Management had stated its’ intention to refer the matter to the National Joint Council’s Technical Advisory Panel (TAP) in a final effort to broker a collective agreement. On Thursday 21 January 2015, Brigade Management and the local and regional officials of the FBU attended the NJC Technical Advisory Panel (TAP) in London.

6.2 The Panel, which was chaired by an Independent Expert and assisted by the Joint Secretaries, sought to broker an agreement between the parties, but where that was not possible it would make recommendations to ensure that the duty system follows the four principles set out at Section 4 Part A paragraph 3 of the Grey Book and is compatible with the deployment of resources that the Authority had determined is necessary to implement the CIRMP.

6.3 At the Panel Hearing, Brigade Management presented the Authority’s position including:

 the CFA’s medium term financial position;  the details of the CFA’s CIRMP and its current proposals;  a description of the current duty system in place within CFA;  the details of the proposed three shift duty system for CFA as an alternative to all the current approved CIRMP proposals;  a description of how the proposed three shift duty system meets, if not enhances, the requirements of the CIRMP;  a demonstration of how via individual opt-out agreements and/or a collective agreement with the FBU, Brigade Management could modify or exclude specific regulations of the Working Time Regulations and ensure compliance with the NJC duty system principles and the Regulations;  A demonstration of why, under the current stringent financial climate, the Brigade Management was unable to make an enhanced financial offer to address the issues of hourly rates of pay; and  A demonstration of how Brigade Management would address the FBU concerns regarding firefighter safety, family friendliness and equality and diversity.

6.4 The Technical Advisory Panel was asked to consider the proposed partial introduction of a three shift duty system on a one-year trial basis across part of the service as an alternative to the proposed shift system within CIRMP proposals and the current wholetime shift working arrangements (2/2/4).

6.5 In accordance with Section 4 Part A of the sixth edition of the Grey Book, the Panel sought to broker an agreement. However, despite the best efforts of the Chair and Joint Secretaries, the Panel was unable to broker an agreement between the respective parties. The Panel was therefore required to make recommendations to ensure that the proposed duty system followed the four principles set out in Section 4, Part A, Paragraph 3 of the Grey Book and is compatible with the deployment of resources that the Authority have determined is necessary to implement its IRMP.

COMMUNITY INTEGRATED RISK MANAGEMENT PLAN (CIRMP) ANNUAL REVIEW ALTERNATIVE PROPOSAL: THREE SHIFT DUTY SYSTEM 5 CLEVELAND FIRE AUTHORITY 12 FEBRUARY 2016

The Panel Chair recognised that Brigade Management had not only openly acknowledged that the new duty system infringed elements of both the Grey Book Principles and the Working Time Regulations but had proposed solutions to ensure compliance could be achieved. The findings of the Chair, in regard to compliance, were entirely consistent with Brigade management’s predictions and expectations. In addition, the Independent Expert issued the following recommendations (copy attached)

 For the three shift duty system to be compliant with Section 4, Part A, Paragraph 3 of the Grey Book, either the CFB would need to make fundamental changes to its proposals or the CFBU would need to agree to a collective agreement that would provide the necessary derogations under the Working Time Regulations;  The Panel recognised the severity of the financial challenges facing the CFB and appreciated that the changes that would be required to its proposals would mean that management would not make the level of identified savings through this proposal;  Equally, the Panel appreciated that the CFBU had expressed concerns about the safety implications it perceived of three shift working; believed that it would not be family friendly; and, had principled objections to moving away from national conditions of employment;  For these reasons, I am unable to recommend either of the two options above. I regret that resolution has not therefore proved possible through the TAP process but I remind the parties that the services of the National Joint Secretaries will remain available to assist should the local parties find that helpful.

6.6 The Panel’s recommendations come as no great surprise as this was the position Brigade Management had openly stated from the very start, however, we remain extremely disappointed that Brigade Management was unable to reach a negotiated settlement with the FBU that would enable a significant number of firefighters to volunteer to try the three shift duty system on a one-year trial basis.

7. CONCLUSION

7.1 As Brigade Management are unable to make fundamental changes to the three shift system proposals or the Fire Brigades’ Union are unable or unwilling to agree to a collective agreement, on behalf of the volunteering firefighters, that would provide the necessary derogations, under the Working Time Regulations, the Fire Authority and Brigade Management have no choice but to discontinue its efforts to introduce the three shift system proposal.

7.2 The Fire Authority cannot and should not attempt to impose the introduction of the three shift duty system as to do so would infringe UK law (i.e. the Working Time Regulations) as a collective agreement with the recognised trade union is a necessity to ensure legal compliance.

COMMUNITY INTEGRATED RISK MANAGEMENT PLAN (CIRMP) ANNUAL REVIEW ALTERNATIVE PROPOSAL: THREE SHIFT DUTY SYSTEM 6 CLEVELAND FIRE AUTHORITY 12 FEBRUARY 2016

7.3 Consequently, the Authority has little option but to implement the previously agreed CIRMP 2014 – 2018, and consider proceeding with: the closure of the Marine Fire Station and the associated relocation of staff and appliances; the withdrawal of the Hydraulic Platform from the operational fleet; and the commencement of the transition of wholetime-staffed appliances to the retained (on-call) duty system.

IAN HAYTON KAREN WINTER CHIEF FIRE OFFICER DIRECTOR OF CORPORATE SERVICES

COMMUNITY INTEGRATED RISK MANAGEMENT PLAN (CIRMP) ANNUAL REVIEW ALTERNATIVE PROPOSAL: THREE SHIFT DUTY SYSTEM 7 NATIONAL JOINT COUNCIL FOR LOCAL AUTHORITY FIRE AND RESCUE SERVICES

TECHNICAL ADVISORY PANEL (TAP)

PARTIES: THE CLEVELAND FIRE BRIGADE (CFU) & THE CLEVELAND FIRE BRIGADES UNION (CFBU)

In attendance: Steve Hodder TAP Chair Gill Gittins Employers’ Side Joint Secretary Andy Dark Employees Side Joint Secretary Ian Hayton Chief Fire Officer Phil Lancaster Director of Community Protection Karen Winter Director of Corporate Services Davy Howe Cleveland FBU Brigade Secretary & NE Region Chair Brian Gibson Cleveland FBU Brigade Chair Peter Wilcox FBU North East Regional Secretary Andy Noble FBU North East Regional Executive member

1. Introduction:

1.1 The TAP was asked to consider the proposed partial introduction of a three shift duty system on a one-year trial basis across part of the service as an alternative to the proposed shift system within CIRMP proposals and the current wholetime shift working arrangements (2/2/4). This was a joint referral made by the Cleveland Fire Brigade and the Cleveland FBU.

1.2 In accordance with Section 4 Part A of the sixth edition of the Grey Book, the Panel sought to broker an agreement. However, despite the best efforts of the Chair and Joint Secretaries, this did not prove possible. The Panel was therefore required to make recommendations to ensure that the proposed duty system followed the four principles set out in Section 4, Part A, Paragraph 3 of the Grey Book and is compatible with the deployment of resources that the Authority have determined is necessary to implement its IRMP.

2. Findings:

Principle (1): Basic working hours should average forty-two per week (inclusive of three hours of meal breaks in every twenty-four hours) for full-time employees. Hours of duty should be pro-rata for part-time employees.

2.1 The CFB acknowledged that the proposed three shift duty system infringed Principle (1) and therefore sought a collective agreement to comply with the aforementioned principle.

2.2 The CFBU agreed the three shift duty system infringed Principle (1). In addition, both parties noted that the proposed three shift duty system would also require individual opt outs from the 48 hour weekly maximum to comply with Reg. 4(2) of the Working Time Regulations.

2.3 I agree with the parties and find that the proposed three shift duty system, in its present form, is not compliant with Principle1.

Principle (2): There should be at least two periods of twenty-four hours free from duty each week.

2.4 Both parties accepted that the proposed three shift duty system did provide two periods of twenty-four hours from duty each week.

2.5 I agree and find that the proposed duty system is compliant in this regard.

Principle (3): It should comply with relevant United Kingdom and European law, including the Working Time Regulations 1998, and Health, Safety and Welfare at Work legislation.

2.6 The CFB acknowledged that the proposed three shift duty system infringed principle (3) in respect of Regulation (4) Maximum Weekly Working Time (unless, in accordance with the legislation, individual opt outs from the 48 hour weekly maximum were agreed); and Regulation (10) Daily Rest of the Working Time Regulations and sought a collective agreement to accommodate compliance with the legislation.

2.7 The CFBU also recognised that the employers’ proposals did include recognition of the need for individual opt-out in respect of regulation (4), and did not meet the requirements of the legislation in respect of Regulation (10) but considered that the proposals additionally failed to comply with Regulation (6) Length of Night Work.

2.8 Irrespective of the difference of view in respect of compliance with Regulation 6, the parties were in no doubt that the proposed three shift duty system would require a collective agreement for it to meet the requirements of the Working Time Regulations.

2.9 I agree and find that the proposed duty system is not compliant with Principle (3) of Section 4 Part A of the Grey Book. Compliance could be achieved via a derogation achieved through a collective agreement. I note that any such agreement would additionally require an individual opt out by any employee undertaking the duty system.

Principle (4): It should have regard to the special circumstances of individual employees and be family friendly.

2.10 The CFB considered that the proposed three shift duty system was in line with the principle within the Grey Book that a duty system must be people and family–friendly. It explained that the duty system was entirely voluntary and allowed employees to remain on the existing system. It therefore gave a choice of a duty system better suited to an individual’s personal circumstances.

2.11 The CFB also noted that a significant number of staff (35% of the workforce) had expressed an interest in working the proposed duty system. Furthermore, the implementation of the proposed three shift system had been subject to an Equality Impact Assessment process to ensure that it does not negatively, disproportionately, or unfairly affect any group or individuals by virtue of their age, race, religion, gender, sexuality or disability.

2.12 The CFB proposed a partial transition to a three shift duty system implemented on a one-year trial basis, to be reviewed every six months to ensure its successful operation and to ensure that levels of service delivery met the needs of the local community.

2.13 However, the CFBU believed that finding child care to accommodate the new work pattern would be difficult, if not impossible, leaving staff with a significantly reduced choice of providers and would prove far more costly. Furthermore, it would cause particular problems for single parents and those who had sole or shared caring responsibilities for disabled children, spouses or other relatives.

2.14 CFBU stated that CFB in its written submission to the TAP had made clear its intention that the duty system may be rolled out across the whole of the service, subject to the trial results. Whilst CFB had recognised that it would have a facility for those not wishing to be assigned to the duty system this did not mean that jobs would be available at many fire stations.

2.15 CFBU pointed out that its consultation with members had been extensive and felt that it was important to note that in its view an expression of interest was very different to a request to volunteer or an expression of willingness to undertake the duty system. Furthermore, beyond the trial period and/or if the system was introduced extensively, they feel that with 65% of the employees not wishing even to go so far as expressing an interest, that a large proportion of employees may not consider it suitable for their circumstances.

2.16 CFBU were of the view that any members who might volunteer may be able to undertake the duty system but those whose family and other needs prevented them from doing so would be excluded from working at those stations where it was being trialled/ introduced.

2.17 The CFBU stated that, during its extensive consultation, its membership had consistently referred to concerns regarding the effect of the proposals on their individual family circumstances. Some had stated that the proposals were so incompatible with their circumstances that they would simply not be able to consider this change. In the view of the Union, their consultations had given the Union a clear mandate to oppose adoption of the changes.

2.18 I consider that, because the proposed duty system is voluntary, it must be considered to be family friendly for those who choose to opt to work the duty system and therefore complies with Principle 4 of the Grey Book.

2.19 Nevertheless, I remain concerned that some staff would feel unable to volunteer for the trial because of their domestic commitments

3. Recommendations

3.1 For the three shift duty system to be compliant with Section 4, Part A, Paragraph 3 of the Grey Book, either the CFB would need to make fundamental changes to its proposals or the CFBU would need to agree to a collective agreement that would provide the necessary derogations under the Working Time Regulations.

3.2 The Panel recognised the severity of the financial challenges facing the CFB and appreciated that the changes that would be required to its proposals would mean that management would not make the level of identified savings through this proposal. .

3.3 Equally, the Panel appreciated that the CFBU had expressed concerns about the safety implications it perceived of three shift working; believed that it would not be family friendly; and, had principled objections to moving away from national conditions of employment.

3.4 For these reasons, I am unable to recommend either of the two options above. I regret that resolution has not therefore proved possible through the TAP process but I remind the parties that the services of the National Joint Secretaries will remain available to assist should the local parties find that helpful.

4. Conclusion

4.1 I would like to thank the parties for their diligence in the preparation of their submissions and for their patience throughout the TAP process.

Steve Hodder TAP Chair January 2016

AGENDA ITEM 6.4 CLEVELAND FIRE AUTHORITY MEETING 12 FEBRUARY 2016

DRAFT SERVICE PLAN PRIORITIES 2016/17

REPORT OF THE CHIEF FIRE OFFICER

For Approval

1. PURPOSE OF REPORT

1.1 To seek Members views on and to approve the final draft Service Plan Priorities 2016/17 attached at Appendix 1.

2. RECOMMENDATIONS

2.1 That Members consider the draft Service Plan Priorities 2016/17 attached at Appendix 1.

2.2 That Members approve a final set of Priorities for 2016/17 to be included within the Authority’s Service Plan 2016/17.

2.3 That Members note that the Authority’s Service Plan 2016/17 will be published in April 2016.

3. THE BRIGADE’S BUSINESS YEAR

3.1 Each business year the Brigade’s Executive Leadership Team undertakes key strategic and integrated risk management and financial planning activities to ensure that the strategic direction is reviewed and remains appropriate and that annual priorities are set to ensure the delivery of that direction.

3.2 These planning activities for 2015/16 are now complete and have resulted in some new draft priorities for the year 2016/17.

4. DRAFT PRIORITIES 2016/17

4.1 The draft Priorities for 2016/17 stem from two main sources:

 Community Integrated Risk Management Plan (CIRMP) 2014 -18 Year 3 priorities which reflect the Authority’s current risk assessment outcomes, the outcomes from the CIRMP consultation exercise and the medium term financial position including the use of the Authority’s reserves; and

Page 1

CLEVELAND FIRE AUTHORITY MEETING 12 FEBRUARY 2016

 Corporate priorities identified by the Brigade’s Executive Leadership Team as a result of a strategic risk assessment (the opportunities that will support or the threats that will prevent the achievement of the Authority’s strategic outcomes).

4.2 The draft priorities are attached at Appendix 1 for Members’ consideration. The final approved priorities will be published in April 2016 within the Authority’s Service Plan 2016/17.

IAN HAYTON KAREN WINTER CHIEF FIRE OFFICER DIRECTOR OF CORPORATE SERVICES

DRAFT SERVICE PLAN PRIORITIES 2016/17 Page 2

Appendix 1

Our Priorities 2016/2017

Our priorities 2016/17 stem from two main sources:

1. CIRMP 2014 -18 Year 3 proposals which reflect the Authority’s current risk assessment outcomes, the outcomes from the CIRMP consultation exercise and the medium term financial position including the use of the Authority’s reserves.

and

2. Corporate proposals identified by the Brigade’s Executive Leadership Team as a result of a strategic risk assessment (the opportunities that will support or the threats that will prevent the achievement of the Authority’s strategic outcomes).

DRAFT SERVICE PLAN PRIORITIES 2016/17 1 CIRMP 2016-17 Year 3 Priorities

OD12: New Complex on Queens Meadow Business Park Consisting of Administrative Headquarters, Fire Control, Learning and Development Centre and Asset Resource Centre

As part of our continued estates efficiency programme, construction of our new Training and Administration Hub building and Technical Workshops Centre at the Queens Meadow will be completed and open for business in 2016/17. This will secure efficiencies that will safeguard essential public services into the future including:

 reduced utilities/energy consumption  reduced running costs, lifecycle costs  removal of significant backlog maintenance  use of sustainable energy and improved environmental impacts  better use of space and facilities  reduced journeys and fixed work stations  potential income from new assets such as the incident command training suite

Milestones  complete the build of the new Technical Hub by May 2016  complete the build of the new Training and Administration Hub building by Jun 2016  demolish the current headquarters building by Oct 2016  commence the construction of the external training facilities by Nov 2016

Lead: Ray Khaliq, Director of Technical Services

DRAFT SERVICE PLAN PRIORITIES 2016/17 2 OD15, 16: Revenue Budget 2016/17

Implement the necessary Revenue Budget Management, including ensuring that the reductions as detailed within the CIRMP 2014/18 and the Medium Term Financial Strategy, are made in order to ensure a balanced budget for 2016/17.

The reductions are in relation to audit fees (£0.010m),non-pay budgets (£0.021m), occupancy levels (£0.364m) closure of the Marine Fire Station and the associated reduction to the establishment of 20 fire-fighter posts (£0.835m); the de-staffing of the Hydraulic Platform and the associated reduction to the establishment of 8 fire-fighter posts (£0.259m –(2016/17))

Milestones  undertake budget adjustments to reflect implementation of savings from audit fees; non-pay budgets; occupancy levels; closure of the Marine Fire Station; de-staffing of the Hydraulic Platform; and use of transformation funding by Apr 2016  manage the transformational bid revenue monies to support the transition of whole-time-staffed appliances to the retained (on- call) duty system by Apr 2016

Lead: Karen Winter, Director of Corporate Services

DRAFT SERVICE PLAN PRIORITIES 2016/17 3 ER1: Emergency Response: Industrial and Commercial

We have an existing concept of operation for dealing with incident in high hazard industry, however this requires review.

The current worst case planning scenario for the Brigade is 2 concurrent 10 pump incidents occurring in Industry. This, linked to our risk maps for domestic, road, neighbourhoods and national resilience matters is the primary rationale for Brigade configuration, although using the number of pumps sent to an industrial incident may be a blunt measurement.

Further investigations are required to establish the optimum number of staff and the specialist equipment they require to undertake effective industrial fire-fighting. These investigations may lead to a conclusion that develops metrics in terms of people and resources rather than pumps.

It is unlikely that the results will change the overall principle of 2 substantial incidents occurring concurrently in industry and it is likely that the equipment and appliance configuration may change as a result of the work.

Milestones  produce a project scope and project plan that details timelines and resources for the industrial fire-fighting review by Apr 2016

 undertake a baseline review of the Brigade’s industrial and commercial risks and response arrangements; people, equipment, skills, technology and other resources by May 2016

 provide future options for the Authority’s approach to industrial fire-fighting that demonstrates improvement and associated cost benefits by July 2016

 provide preferred option report and concept of operation for implementation from August 2016

Lead: Phil Lancaster, Director of Community Protection

DRAFT SERVICE PLAN PRIORITIES 2016/17 4 ER3: Major Estate Rebuild and Refurbishment Programme

We want to make our buildings an integral part of the community to enhance cohesion and engagement. Equally, as an employer, we seek to create the right working environment for all our staff.

The deterioration of the Authority’s Estate presents significant risks to service continuity. A premises backlog maintenance amounting to approximately £11m is placing increasing pressures on current revenue budgets and left unaddressed critical failures will cause reactive maintenance costs to spiral out of control.

To manage risk and secure efficiencies we have embarked on a major estate rebuild and refurbishment programme. In 2016/17 we will undertake the following estates projects:

ER3 (iii): Build a New Community Fire Station at Thornaby

We will build a new Community Fire Station at Thornaby

Milestones  complete public consultation on the design of the Thornaby Fire Station by Apr 2016  secure the necessary planning permission from the Local Council by Jun 2016  commence build of new Thornaby Fire station by Jul 2016

Lead: Ray Khaliq, Director of Technical Services

ER3 (iv): Build a New Community Fire Station at Grangetown

We will build a new Community Fire Station at Grangetown

Milestones  complete public consultation on the design of Grangetown Fire Station by Apr 2016  secure the necessary planning permission from the Local Council by Jun 2016  commence build of new Grangetown Fire station by Jul 2016

Lead: Ray Khaliq, Director of Technical Services

DRAFT SERVICE PLAN PRIORITIES 2016/17 5 ER3 (v): Refurbish Stranton Community Fire Station

We will refurbish Stranton Community Fire Station.

Milestones  develop works specification and undertake procurement by Apr 2016  appoint primary contractor to complete refurbishment works by Jun 2016  plan and implement temporary accommodation requirements on site by Jun 2016  commence refurbishment works by Jul 2016  complete refurbishment and re occupy Stranton fire station by Nov 2016

Lead: Ray Khaliq, Director of Technical Services

ER3 (vi): Refurbish Guisborough Community Fire Station

We will refurbish Guisborough Community Fire Station.

Lead: Ray Khaliq, Director of Technical Services

ER3 (vii): Refurbish Loftus Community Fire Station

We will refurbish Loftus Community Fire Station.

Lead: Ray Khaliq, Director of Technical Services

DRAFT SERVICE PLAN PRIORITIES 2016/17 6 ER6: Introduce Combined Aerial Rescue Pumps into the Brigade’s Fleet

Combined Aerial Rescue Pumps (CARPS) are multi-functional fire engines that can be used in the same way as a standard fire engine but provide capabilities for rescue from height and for applying large volumes of water and/or foam to major fires.

Our area has a large industrial and commercial risk and being able to deploy this type of appliance at large fires is essential for reducing fire damage and bringing incidents to a swift conclusion.

In 2015 we purchased two CARPS (Multistars) to enhance our capability and provide resilience to our working at height services; these are located at Saltburn and Stockton and are staffed by on-call fire-fighters.

Multistars are staffed by a minimum crew of four fire-fighters and can respond to a wide variety of incident types including those that a standard fire engine would attend. As a result we are able to de-staff the special purpose Hydraulic Platform currently located at Middlesbrough removing four whole- time crew manager and four whole-time fire-fighter posts

Milestones  commission Multistars to operational service at Saltburn and Stockton staffed by on-call fire-fighters by Mar 2016  remove four whole-time crew managers and four whole-time fire-fighter posts from the Brigade’s establishment (Middlesbrough) Apr 2016  transfer personnel from the above posts at Middlesbrough to other whole- time fire-fighting positions within the Brigade by Apr 2016  remove HPs from operational fleet and prepare for disposal by Mar 2017  evaluate the change of use to Multistars by Mar 2017

Lead: Phil Lancaster, Director of Community Protection

DRAFT SERVICE PLAN PRIORITIES 2016/17 7 ER7: De-staff Marine Fire Station

Marine Fire Station is located within the District of Middlesbrough to the south of the Cleveland Fire Authority Area. In 2016/17 we will de-staff Marine Fire Station as a result of a number of factors:

 our community risk assessment model shows 3 out of the 20 wards (15%) in the Middlesbrough district are categorised as being high and therefore this is where we target our community safety activities

 our service demand over the last five years, 13 out of the 20 wards (65%) in the Middlesbrough district are categorised as low risk. There is only one high risk ward, North Ormesby in Middlesbrough District

 incidents in Marine fire station area are very low

 Marine Fire Station is located in close proximity to the five fire stations at Middlesbrough, Grangetown, Stockton, Thornaby and Coulby Newham

Full details of the risk assessment factors surrounding this proposal were outlined in our CIRMP 2014-18 that was subject to consultation.

Milestones  remove four whole-time watch manager, four whole-time crew manager and twelve whole-time fire-fighter posts from the Brigade’s establishment (Marine) by Apr 2016  transfer personnel from the above posts at Marine to other whole-time fire-fighting positions within the Brigade by Apr 2016  provide options for alternative use of Marine Fire Station by Jun 2016  de-commission Marine Fire Station in conjunction with the Treasurer by Aug 2016

Leads: Ray Khaliq, Director of Technical Services Phil Lancaster, Director of Community Protection

DRAFT SERVICE PLAN PRIORITIES 2016/17 8 ER9: Prepare for the Introduction of On-Call Crewing Arrangements for the Second Fire Engine at either Thornaby, Grangetown or Redcar Fire Stations

Currently we have 15 community fire stations staffed according to local risk and activity levels. There are:

 nine whole-time stations in the main urban areas with crews working 10.5 hour day and 13.5 hour night shifts to provide 24/7 cover

 six on-call stations mainly in rural areas with on-call staff living or working within five minutes of the station. These are alerted to respond to any emergency via a pager day and night

The whole-time Fire Stations at Middlesbrough, Stockton, Redcar, Grangetown, Thornaby and Hartlepool cost between £2.0 and £2.4m each year to run.

The whole-time Fire Stations at Coulby Newham, Billingham and Marine cost approximately £1.2m each year to run. The on-call fire stations at Headland, Yarm, Guisborough, Saltburn, Skelton and Loftus each cost around £150,000 each per year.

As part of our integrated risk management planning process, we have carried out an extensive review of our fire and emergency response arrangements. The review looked at our current firefighting resources balanced against the revised levels of risk and took into account both the significant fall in the number of incidents we need to attend and the increased pressures on our funding. The proposals recognise that we can no longer support as many whole-time fire engines or firefighters as we do currently.

Fire-fighters will always represent the largest part of the workforce and their safety is of paramount importance. We will therefore continue to provide training and development programmes designed to ensure that they have the necessary fire-fighting and rescue skills and technical knowledge to be able to carry out their many roles effectively and safely.

In 2016/17 we will commence preparations for the introduction of on-call crewing arrangements for the Second Fire Engine at either Thornaby, Grangetown or Redcar fire stations.

DRAFT SERVICE PLAN PRIORITIES 2016/17 9 Milestones  determine prioritisation of station transitions by Apr 2016  produce an operational implementation plan for second appliance transition by May 2016  produce a workforce transition plan in line with the above by Jun 2016  introduce on-call arrangements by Jan 2017  go ‘live’ on final on-call arrangements by Mar 2017

Leads: Phil Lancaster, Director of Community Protection Karen Winter, Director of Corporate Services

DRAFT SERVICE PLAN PRIORITIES 2016/17 10 Corporate Priorities

C1: Emergency Services Collaboration

The national review of efficiencies and operations in fire and rescue authorities in England (‘Facing the Future’, Sir Ken Knight, May 2013) and the Tobias Ellwood MP report on Improving Efficiency, Interoperability and Resilience of our Blue Light Services’ raised a number of issues and challenges that the fire and rescue service must consider in the face of continued public sector austerity and significant financial reductions.

In the context of the continued need for spending restraint, changing demography and rising local need, over the last year the Authority has been considering alternative governance arrangements and collaborative opportunities to ensure that the Brigade continues to achieve improvements in public safety; maximises efficiency; maintains, if not strengthens, the frontline delivery service; and manages its financial pressures without recourse to cutting front-line prevention, protection and emergency response services, and consequently reducing fire-fighters and corporate support staff.

The Authority’s collaborative work continues to be prioritised for 2016/17 as follows:

DRAFT SERVICE PLAN PRIORITIES 2016/17 11 C1.1 Collaboration with Cleveland Police (CP) In January 2015, the Authority signed a Memorandum of Understanding with CP and the Police and Crime Commissioner (PCC) to set out a framework on the way the respective Parties would work together. Examples of collaborative opportunities that are now either being explored or implemented are:

 shared estate  shared assets and fleet management  community safety programmes  integrated service support teams  procurement  leadership and management structures

On 5th January 2016 the Prime Minister announced that ministerial responsibility for fire and rescue policy was to transfer to the Home Office from the Department for Communities and Local Government with immediate effect in order to support a radical transformation for police and fire and rescue services to work together.

On 26th January 2016 Rt Hon Mike Penning MP, Minister of State for Policing, Fire, Criminal Justice and Victims, wrote to Fire and Rescue Authorities with the Government’s response to the ‘Enabling Closer Working Between the Emergency Services’ consultation which had been undertaken in the previous year.

The minister advised that the Government is committed to supporting collaborative working between all three emergency services and acknowledged that the services already work highly effectively side by side in a wide range of situations; but believe this way of working must become standard practice to deliver a more efficient and effective service for the public. Therefore legislation is to be established to:

 introduce a high-level duty to collaborate on all three emergency services, to improve efficiency or effectiveness

 enable Police and Crime Commissioners to take on the functions and duties of fire and rescue authorities, where a local case is made

DRAFT SERVICE PLAN PRIORITIES 2016/17 12  further enable Police and Crime Commissioners to create a single employer for police and fire staff where they take on the responsibilities of their local fire and rescue service, and where a local case is made

 enable Police and Crime Commissioner to have representation on their local fire and rescue authority with voting rights in areas where they have not become responsible for fire and rescue and where the fire and rescue authority agrees; and

 abolish the London Fire and Emergency Planning Authority and give the Mayor of London direct responsibility for the fire and rescue service in London

Over the next year we will consider the impact of the Government’s proposed new legislation detailed above on the Authority’s governance arrangements and collaborative work. In addition we will continue to develop our collaborative working arrangements in service delivery, estates and assets and support services with Cleveland Police as per our current Memorandum of Understanding.

Milestones  evaluate the impact of the Government’s proposed new legislation detailed above on the Authority’s governance arrangements and collaborative work by Sep 2016  identify the Home Office programme of Police Reforms and assess the implications and opportunities arising for the Fire and Rescue Service by Sep 2016  develop our collaborative working arrangements in service delivery, estates and assets and support services with Cleveland Police as per our current Memorandum of Understanding by Mar 2017

Lead: Ian Hayton, Chief Fire Officer

DRAFT SERVICE PLAN PRIORITIES 2016/17 13 C61.2 North East Ambulance Service (NEAS) Partnership Demand on the Ambulance Service has increased by nearly 20 per cent since 2007. Over the last ten years, fire-fighters nationally have been attending fewer fires, thanks to their successful programmes of community safety work. At the same time the variety and complexity of rescue incidents fire-fighters respond to has broadened along with the specialist skills needed to meet these challenges.

In January 2016 NEAS and the four Fire and Rescue Services (FRS) based in the region launched a North East Emergency Medical Responder scheme on a six month trial basis with the aim of saving more lives in the North East.

Whilst the FRS is not funded to provide response to medical emergencies, it is already carried out in some FRSs by employees on a voluntary basis. The trial is part of a review of the terms and conditions of fire-fighters by the National Joint Council for Local Authority Fire and Rescue Services, looking at the current and future demands on the service and profession.

The trial itself involves trained fire-fighters attending incidents in areas where they can reach a casualty and maintain life or reduce suffering and anxiety until a paramedic arrives. CFB staff can complement and work alongside the professional healthcare staff at NEAS to improve patient care outcomes.

Emergency Medical Responders (EMRs) have been trained to enhance their existing medical care knowledge, including basic life support by managing a patient’s airway, giving oxygen therapy, including assisted ventilation, delivering cardio-pulmonary resuscitation and defibrillation using a semi- automatic external defibrillator and controlling blood loss.

EMRs are currently operating from our fire stations in East Cleveland. We will continue to implement emergency medical response on a station by station basis.

We will gather important information that will inform how the roles and responsibilities, and terms and conditions of fire-fighters develop in the coming years.

Milestones  implement, on a trial basis, the joint emergency medical response service across fire stations as commissioned by NEAS by Mar 2016

DRAFT SERVICE PLAN PRIORITIES 2016/17 14  evaluate the impact of the joint emergency response service in terms of patient outcomes and service impact in the pathway of care by Jul 2016  establish future strategy for collaborative work with NEAS, depending on outcomes from above trial by Mar 2017

Lead: Ian Hayton, Chief Fire Officer

DRAFT SERVICE PLAN PRIORITIES 2016/17 15 C61.3 Tees Valley Shadow Combined Authority

The Tees Valley Shadow Combined Authority will be created as soon as possible and a directly elected Mayor for Tees Valley will be established from May 2017. The Mayor will work as part of the Combined Authority subject to local democratic scrutiny, and in partnership with business, through Tees Valley Unlimited, the Local Enterprise Partnership for Tees Valley. (this devolution agreement will be conditional on the legislative process, agreement by the constituent councils, and formal endorsement by the Tees Valley Combined Authority shadow Leadership Board.)

The Devolution deal provides for the transfer of significant powers for employment and skills, transport, planning and investment from central government to the Tees Valley. It paves the way for further devolution over time and for the reform of public services to be led by Tees Valley.

In summary, a new, directly elected Mayor of Tees Valley will act as Chair to the Tees Valley Combined Authority and will exercise the following functions devolved to that Authority:

 responsibility devolved from Government for a consolidated transport budget, with a multi-year settlement to be agreed at the Spending Review

 creation of new Mayoral Development Corporations and leadership of a land commission to examine what publicly owned land and other key strategic sites should be vested in the development corporation

The establishment of the Tees Valley Combined Authority paves the way for further powers to transition over time and for the reform of public and emergency services to be led by the Combined Authority.

As the functions for the Combined Authority currently do not include those of a fire and rescue service, we will engage with and keep a watching brief on the development and work of this new Authority.

Milestones  engage with and support the development and work of the Tees Valley Combined Authority throughout 2016/17

Lead: Ian Hayton, Chief Fire Officer

DRAFT SERVICE PLAN PRIORITIES 2016/17 16 C61.4 Fire as a Health Asset

The NHS, public health and social care are facing the same challenge that the FRS did over a decade ago; demand outstripping resource and capacity to respond. However, they recognise the success the FRS has had in reducing demand through investment in prevention activity, and are now looking to colleagues in the fire sector to help them replicate this.

We know that a great many of the causes of poor health outcomes are the same as those that determine risk from fire. Frailty, poor mental health, obesity, smoking, alcohol and substance abuse – amongst other things – place major stress on health services and represent some of the key factors involved in fatal fires. We therefore have a fantastic opportunity to work together for mutual benefit.

The 30,000 targeted home fire safety checks that fire and rescue services undertake nationally are a unique and powerful opportunity to influence the lives and health outcomes of vulnerable people. The hugely positive and trusted fire and rescue service brand gives fire service staff a way across the threshold and a means to engage with some of the hardest to reach in our communities.

Ambulance services are under particular pressure, with enormous growth in demand and increasing expectations. Fire and rescue services have the capability to support and assist our blue light colleagues through co- responding, first responding and similar schemes, helping to free up highly skilled paramedics and technicians to deal with other more complex issues.

The benefits of this approach will clearly be mutual; by helping health services to tackle these issues we will also address some of our own risks and priorities. Of course there is also an opportunity to access the significant resources the NHS controls to support our efforts in relation to risk reduction.

Milestones  develop partnerships with health agencies to ensure that we work together to use our collective capabilities and resources more effectively to enhance the lives of the local communities by Sep 2016  produce and publish a health strategy that aligns to our Strategic Goal of ‘Safer Communities’ and its associated underpinning strategic outcomes by Sept 2016. The Strategy will include:

DRAFT SERVICE PLAN PRIORITIES 2016/17 17 o building relationships with local health and social care partners and the third sector to encourage closer collaboration and data and information sharing between fire and health o developing the design principles for and encourage the uptake of “Safe and Well” visits and the effective use of all fire and rescue service resources, building on the Home Safety Check and informed by existing good practice and ongoing evaluation o exploring and developing other areas where we can improve health outcomes, by drawing on best practice, harnessing and spreading the use of new technology and diseminating existing guidance for the public, such as the Healthy Ageing Guide o exploring and developing other areas where we can improve health outcomes, by drawing on best practice, utilising new technology and investing in upstream prevention activity o working with health partners to improve the fire safety of the health and care premises where where vulnerable people are at risk, and reduce numbers of avoidable incidents that impact on the availability of our resources o developing an evaluation framework to assess the impact of our involvement in:

o reducing injuries from slips, trips and falls o reducing excess winter deaths o improving community response to cardiac arrest

Lead: Ian Hayton, Chief Fire Officer

DRAFT SERVICE PLAN PRIORITIES 2016/17 18 C2: Leadership, Culture and Valuing our Workforce

The Fire and Rescue Service is experiencing unprecedented demands and challenges, combined with unparalleled opportunities to take advantage of and create positive change. This is certainly true in Cleveland Fire Brigade. Boundaries between organisations, and between the roles of key personnel at all levels, are becoming ever more fluid as jobs and teams that were once separate are merged.

Following the protracted period of austerity, the impact of successive waves of re-structuring, reconfigurations and cuts to staff numbers is beginning to take hold and are likely to intensify. We are caught in the “perfect storm” of increasing public need, demand and expectation, coupled with decreasing resources and capacity which necessitates that we make changes to the way we effectively engagement with staff to deliver excellent community safety services by a highly professional, highly valued and highly motivated workforce.

In delivering our vision and strategic priorities it is important that we have the knowledge, skills and motivation to do our job well. It is also vital that we consider how we present ourselves, treat each other, lead our teams and manage performance.

Milestones  produce a high level scope detailing the associated actions, timelines and resources by Jun 2016  develop, in consultation with staff and partners, our core values, our expected professional standards of performance and behaviour, and our leadership style that reflect a modern 21st century fire and rescue service by Oct 2016  produce a draft Leadership and Culture Strategy that aligns to the Authority’s organisational goals of Safer Communities and Organisational Excellence by Jan 2017  communicate our expectations regarding our culture and values, our standards of performance, behaviour, and our leadership style by Mar 2017  produce an organisational development framework to build leadership and management capacity; and embed our desired culture and values by Mar 2017

Lead: Ian Hayton, Chief Fire Officer

DRAFT SERVICE PLAN PRIORITIES 2016/17 19 AGENDA ITEM 6.5 CLEVELAND FIRE AUTHORITY 12 FEBRUARY 2016

SAFEGUARDING CHILDREN, YOUNG PEOPLE AND VULNERABLE ADULTS POLICY & PROCEDURES

REPORT OF CHIEF FIRE OFFICER For Approval

1. PURPOSE OF REPORT

1.1 To seek Members approval of the Authority’s Safeguarding Children, Young People and Vulnerable Adults Policy, as attached at Appendix 1.

2. RECOMMENDATIONS

2.1 That Members consider the Authority’s Safeguarding Children, Young People and Vulnerable Adults Policy (Appendix 1) for approval, as recommended by the Executive Committee on 22 January 2016.

2.2 That Members note the Safeguarding Children and Young People Procedure at Appendix 2 and Safeguarding Vulnerable Adults Procedure at Appendix 3.

2.3 That Members approve the appointment of Councillor Jan Brunton to the role of Safeguarding Member Champion for the Authority for 2015/16, as recommended by the Executive Committee on 22 January 2016.

3. THE AUTHORITY’S SAFEGUARDING CHILDREN, YOUNG PEOPLE AND VULNERABLE ADULTS POLICY

3.1 Cleveland Fire Authority is committed to safeguarding all children, young people and vulnerable adults that come into contact with its work. The Authority believes that these people have an equal right to protection from abuse, harassment, violence and aggression regardless of their age, race, religion, ability, gender, language, background or sexual identity and considers the welfare of the child, young person or vulnerable adult as paramount.

3.2 The Policy will enable all Authority staff to make informed and confident decisions regarding safeguarding and implement appropriate interventions as outlined within the relevant legal framework. All suspicions and allegations of abuse, harassment, violence or aggression will be taken seriously and responded to swiftly and appropriately.

CLEVELAND FIRE AUTHORITY 12 FEBRUARY 2016

3.3 The Policy is underpinned and implemented through the following revised procedures:

 the Safeguarding Children and Young People Procedure  the Safeguarding Vulnerable Adults Procedure

3.4 At the Executive Committee meeting on 22 January 2016, Members considered the Safeguarding Children, Young People and Vulnerable Adults Policy and recommended it for approval by the Fire Authority.

Members agreed it would be good practice to establish a Safeguarding Member Champion for the Authority and recommended Councillor Jan Brunton be appointed to the role.

IAN HAYTON KAREN WINTER CHIEF FIRE OFFICER DIRECTOR OF CORPORATE SERVICES

SAFEGUARDING CHILDREN, YOUNG PEOPLE AND VULNERABLE ADULTS POLICY AND PROCEDURES Page 2

APPENDIX 1

Safeguarding Children, Young People and Vulnerable Adults

Policy No 48

Strategic

December 2015

People Area Attendance Policy Policy Process Detail

Authored by: Dave Turton: Head of Community Safety

ELT Approved: 22nd December 2015

FBU Consultation: 25th November 2015

Unison Consultation: 25th November 2015

Executive Committee: 22nd January 2016

CFA Approved: Scheduled 12th February 2016

Policy Register Review Date: December 2018

Implementing Officer: Dave Turton: Head of Community Safety

Safeguarding Policy - December 2015 2

1. Policy

1.1 Policy Statement Cleveland Fire Authority is committed to safeguarding all children, young people and vulnerable adults that come into contact with its work. The Authority believes that these people have an equal right to protection from abuse, harassment, violence and aggression regardless of their age, race, religion, ability, gender, language, background or sexual identity and considers the welfare of the child, young person or vulnerable adult as paramount.

1.2 As a key Partner of both the Teeswide Safeguarding Adults Board and the Local Safeguarding Children’s Boards, the Authority will take every reasonable step to promote wellbeing and ensure that children, young people and vulnerable adults are protected where our staff and partners are involved in the delivery of its work.

1.3 As an Employer, the Authority is committed to a safe workplace and will therefore work to protect its employees form harassment, violence or aggression from colleagues or the community.

1.4 The Authority will enable all of its staff and those who work with them to make informed and confident decisions regarding safeguarding. All suspicions and allegations of abuse, harassment, violence or aggression will be taken seriously and responded to swiftly and appropriately.

1.5 Policy Objectives Cleveland Fire Authority will:  actively promote its commitment to preventing abuse and safeguarding children, young people and vulnerable adults  report concerns of abuse  be proactive in its work with other agencies to stop abuse occurring  ensure that all members, staff, and volunteers are aware that the policy and procedures are in place, and are aware of their responsibility to report any relevant concerns of abuse to the Designated Officer  ensure that all personnel receive relevant training to enable them to fulfil their responsibilities under this policy and procedures

Safeguarding Policy - December 2015 3  ensure that all appropriate staff are checked through the Disclosure and Barring Service (DBS), which replaces the Criminal Records Bureau (CRB) in line with the Brigades DBS policy and procedures  support anyone who, in good faith, reports his or her concerns that a person is being abused or neglected or is at risk of abuse, neglect or harm, even if those concerns prove to be unfounded  work with other agencies as defined in the Teeswide Safeguarding Adults framework and Local Safeguarding Children Boards’ procedures  where a child, young person or vulnerable adult is in danger, is at risk or a serious crime has been committed, a decision may be taken to pass information to another agency without the persons consent  always pass information to the relevant local authority if there are concerns that a vulnerable adult may be at risk of harm from abuse or neglect  always inform the police where any person is at risk of serious injury or death due to violence, abuse or neglect  share information using the Caldicott principles (where it is possible, without jeopardising the safety of staff or the person who may be at risk, permission will be gained from adults before sharing information about them with another agency)  ensure that those staff who are in designated roles working with members of the public are suitable to carry out that work through appropriate pre-employment checks and ongoing supervision and training  promote an organisational culture in which everyone is treated with respect, that bullying or discrimination are appropriately challenged and in which everyone feels comfortable enough to point out inappropriate attitudes and behaviour

1.6 Scope This policy applies to all employees, managers and Elected Members covering both the strategic and tactical levels of the organisation.

1.7 Policy Category This policy is categorised as ‘Authority’ within the Policy and Strategy Framework.

Safeguarding Policy - December 2015 4

2. Organising

2.1 Cleveland Fire Authority (CFA) is responsible for :  approving the Children, Young People and Vulnerable Adults Policy  promoting safeguarding within Cleveland Fire Authority

2.2 The Brigade’s Executive Leadership Team is responsible for:  setting policies and strategies in relation to safeguarding children, young people and vulnerable adults  effectively promoting safeguarding within Cleveland Fire Brigade

2.3 The Director of Community Protection is responsible for:  leading on Safeguarding with Cleveland Fire Brigade  developing and implementing the Authority’s safeguarding arrangements

2.4 The Head of Community Safety is responsible for:  implementing the children, young people and vulnerable adult safeguarding arrangements  ensuring arrangements are in place to facilitate appropriate safeguarding training for all staff  representing the Authority on the Teeswide Safeguarding Adults and Local Safeguarding Children Boards  monitoring safeguarding referrals made by Cleveland Fire Brigade to the relevant statutory body, in respect of children, young people and vulnerable adults who may be at risk of abuse  providing an annual report to the Director of Community Protection, detailing the levels of safeguarding referrals made to relevant statutory bodies and the level of safeguarding training completed across the organisation  representing and providing all relevant evidence on behalf of Cleveland Fire Brigade, or in their absence the Hub Manager (Stockton & Hartlepool) at resulting Serious Case Reviews, as directed by the appropriate Authority

2.5 Designated Officers are responsible for:  assessing information provided to them relating to safeguarding by staff  ensuring that:

Safeguarding Policy - December 2015 5 o any action needed to protect the immediate safety of any person at risk of abuse is taken – e.g. contact the police or emergency health services o the police are informed of any death or serious harm to a vulnerable adult o if there is an urgent and immediate risk to a vulnerable adult, a referral is made to the local authority in which the vulnerable adult resides using the emergency duty team/out of hours service o a report is made of any referral made to a relevant statutory body, and maintained in the appropriate secure location o if a referral is not appropriate, ensuring that information about an adult at risk is recorded on the Community Safety Database

2.6 Managers are responsible for:  embracing and supporting the ethos of safeguarding  reporting cases of abuse as per this procedure  ensuring that staff for whom they are responsible undertake training as appropriate to their role

2.7 Individuals are responsible for:  embracing and supporting the ethos of safeguarding  reporting cases of abuse as per this procedure  undertaking training as appropriate to their role

2.8 Trade Unions are responsible for:  embracing and supporting the ethos of safeguarding

3. Planning and Implementing

3.1 This policy is underpinned and implemented through two procedures:

 the Safeguarding Children and Young People procedure  the Safeguarding Adults procedure . All documents should be read in conjunction with each other.

3.2 The Procedure is also supported by Cleveland Fire Brigade’s:

 Disclosure and Barring Policy (July 2015)

Safeguarding Policy - December 2015 6  Data Protection Policy (2013)  Equality and Diversity Policy (2013)  Information Sharing Policy (2013)

3.3 All new staff will be required to read this Safeguarding Policy and its associated procedure as part of their induction.

3.4 Existing staff will be informed of this policy and procedure as per the accepted policy framework procedure and it will be made available on the Brigade’s intranet.

3.5 All staff are required to successfully complete the Safeguarding Adults and Awareness of Child Abuse and Neglect e-learning modules provided by the Virtual College, which have been quality assured by the Teeswide Safeguarding Adults Board and the Hartlepool Safeguarding Children’s Board, on induction and subsequently at 3 yearly intervals, commencing in 2016.

3.6 Designated Officers and Hub Managers are also required to complete Safeguarding Intermediate Training, provided via the Teeswide Safeguarding Adults Board, on induction and subsequently at 3 yearly intervals, commencing in 2016

3.7 The Safeguarding Policy and its associated procedures will be reviewed and implemented together to ensure that developments in the Brigade’s safeguarding arrangements are comprehensively communicated to staff, managers and Elected Members.

4. Resource Implications

4.1 The cost of the e-learning Awareness of Child Abuse and Neglect module for all staff will be £4,875 + VAT per annum. There is no cost associated with the Safeguarding Adults e- learning package.

5. Equality Impact Assessment

5.1 In accordance with the requirements of the Equality Duties and Equality Act and other relevant legislation, this policy has been Equality Impact Assessed (EIA). It is believed that all staff should be able to comply with this policy without affecting their diversity. Where possible, appropriate and applicable the Brigade will try and meet the specific needs of individuals.

Safeguarding Policy - December 2015 7 6. Monitoring

6.1 The Risk and Performance Team will ensure the central monitoring of this policy and associated procedure and ensure that it is added to the Brigade’s register of policies and strategies and reviewed in line with timelines specified.

7. Audit

7.1 This Policy will be audited in accordance with the procedure detailed within the Brigade’s policy framework.

8. Review

8.1 The Director of Community Protection will undertake a review of this policy in December 2018 to ensure it is taking account of any new or emerging political, economic, social, technological, legislative, environmental, competitive, citizen or reputational factors.

Safeguarding Policy - December 2015 8 APPENDIX 2

Safeguarding Children and Young People

Procedure 48.1

Dec 2015

Strategic Area Safeguarding Children, Young People and Vulnerable Adults

Policy Process Detail

Authored by: Dave Turton: Head of Community Safety

ELT Approved: 22nd December 2015

FBU Consultation: 25th November 2015

Unison Consultation: 25th November 2015

Executive Committee: Not Applicable

CFA Approved: Not Applicable

Policy Register Review Date: December 2018

Implementing Officer: Dave Turton: Head of Community Safety

The Designated Officers in Cleveland Fire Brigade for safeguarding children are: Head of Community Safety Hub Manager (Stockton and Hartlepool Hub) Duty Officers

They should be contacted for support and advice on implementing this procedure.

This Safeguarding Children and Young People Procedure intrinsically underpins and implements the Authority's Children, Young People and Vulnerable Adults Policy. Both documents should be read in conjunction with each other.

2 Safeguarding Children Procedure: December 2015 1. Introduction

Safeguarding is ‘everyone’s business’

1.1 The Children Act 1989 and 2004 requires that Safeguarding Children Boards assure themselves that local safeguarding arrangements are in place across their locality and that their partners act appropriately to help and protect children from abuse and neglect. Whilst protecting children at risk of abuse or harm will always be the main priority of Local Safeguarding Children Boards, the Boards also recognise the importance of raising awareness in order to prevent abuse and neglect and that partner’s share collective responsibility for ensuring that all efforts to keep children safe are effective and well-co- ordinated.

1.2 A child is defined in the Children Act 2004 as someone who has not yet reached their 18th birthday

1.3 Safeguarding duties apply to any child who:

 is experiencing conditions or treatment that impairs their health or development  is experiencing, or at risk of, abuse, neglect or maltreatment

1.4 The child experiencing, or at risk of abuse, neglect or maltreatment will hereafter be referred to as the child throughout this document.

The definition of children at risk of abuse or neglect includes:

 those who are disadvantaged due to social or economic circumstances  those who’s health and wellbeing may be impaired due to misuse of drugs or alcohol, either by themselves or their parents; early sexual activity or sexual exploitation, mental health problems, radicalisation, bullying or any other behaviours or circumstances to which a child may be subjected

3 Safeguarding Children Procedure: December 2015  those whose care is funded by Local Authorities or are privately fostered; and  those who run away from their families or institutions

1.5 Cleveland Fire Brigade works in partnership with the four Local Authority Safeguarding Children Boards (LSCBs) to safeguard and promote the well-being of children who are experiencing, or at risk of abuse, neglect or maltreatment and are living in the Boroughs of Hartlepool, Middlesbrough, Redcar & Cleveland and Stockton.

Legal Framework 1.6 This Procedure has been developed within the context of the law and guidance that seeks to protect adults including:

 Children Act 1989 and 2004  Working Together to Safeguard Children (2015)

2. Teeswide Arrangements

2.1 The Brigade is a member of the Local Safeguarding Children Boards (LSCBs) which are statutory bodies which set and agree the strategic direction of child safeguarding activity, including prioritising developments.

2.2 The Boards comprise of multi-agency representation and are independently Chaired. The primary function of LSCBs is set out in Section 14 of the Children Act 2004, and this includes determining how different agencies will co-operate to protect children, and ensuring the effectiveness of arrangements made by agencies to safeguard and promote the welfare of children.

4 Safeguarding Children Procedure: December 2015 3. Defining Safeguarding

3.1 The Working Together to Safeguard Children (2015) document notes that safeguarding and promoting the welfare of children is about people and organisations working together to prevent and stop both the risks and experience of abuse or neglect, while at the same time making sure that the child’s wellbeing is promoted. It recognises that the child’s needs are paramount and should be put first.

3.2 It should be emphasised however that safeguarding procedures are not a substitute for:  providers’ responsibilities to provide safe and high quality care and support;  commissioners regularly assuring themselves of the safety and effectiveness of commissioned services;  The Care Quality Commission (CQC) ensuring that regulated providers comply with the fundamental standards of care or by taking enforcement action  The core duties of the police to prevent and detect crime and protect life and property.

4. Abuse and Neglect

4.1 Abuse and neglect can take many forms and it is important that staff working in all organisations should not be constrained in their view of what constitutes abuse or neglect, and the circumstances of an individual case should always be considered. Making Safeguarding Personal (MSP) means that the safeguarding process should be person- led and outcome-focussed, enhancing the individual’s involvement and choice and control together with seeking to improve quality of life, wellbeing and safety.

4.2 Abuse or Neglect may be:

5 Safeguarding Children Procedure: December 2015  a single act or repeated acts  multiple in form  an act of neglect or a failure to act  deliberate  an opportunistic act or a form of serial abusing where the perpetrator seeks out and grooms the individual(s)

4.3 The Working Together to Safeguard Children (2015) document sets out the different types and patterns of abuse and neglect, though stresses that the list is not exhaustive, and describes the different circumstances in which they may take place.

4.4 Children are often abused by someone who is well known to them. An abuser may be:  A parent or relative  A paid carer or volunteer;  A friend or another child  A health, social care worker or other professional

4.5 In terms of determining where abuse takes place, this can be anywhere, including in people’s own homes, in the homes of family or friends, in a public place and in institutions such as schools and leisure and activity clubs

4.6 All partners are also aware that there are occasions when children are deliberately targeted in order to exploit or abuse them. In terms of those children at risk, the LSCBs will work collaboratively to ensure seamless processes are in place and the appropriate safeguarding route is taken.

6 Safeguarding Children Procedure: December 2015 5 Safeguarding Procedures

The Designated Officers in Cleveland Fire Brigade for safeguarding children are:

Head of Community Safety Hub Manager (Stockton and Hartlepool Hub) Duty Officers

They should be contacted for support and advice on implementing this procedure.

Duty to act 5.1 Cleveland Fire Brigade staff should not investigate any incident of abuse unless they have been designated a specific role through the LSCB. However you should always act on any concerns about:

 actual or potential harm to a child  any concerns that a child is at risk of serious injury or threat to their life

by following these procedures and making a report through the Community Safety Database or by contacting the Designated Officer before leaving work from the shift on which the concerns arise.

Noticing abuse or neglect 5.2 Fire service personnel may come across children who may be at risk of abuse, or who are being abused or neglected, in the course of their duties. For example; at the scene of a fire (e.g. children left alone), during home fire safety check or fire safety visits, during arson investigations, when working with young people or when giving talks to school and youth groups or to members of the public. You may not see the abuse but your concern may be raised by what you see (Appendix A: Good practice Guidance).

5.3 Don’t ignore your concerns – you don’t have to be certain that abuse is taking place – make a report using the appropriate mechanism.

Responding to people who are being abused

7 Safeguarding Children Procedure: December 2015 5.4 Where personnel are a witness to abuse or become aware that abuse has just taken place or that a child is at immediate risk e.g. unattended at a house fire, the priorities will be to:

 maintain the immediate safety of themselves, other staff or volunteers and members of the public  ensure that emergency health services are called if needed  call the Police (where appropriate)  preserve evidence  seek advice from the Designated Officer  complete the Community Safety database with as much information as possible before leaving work

Responding to reports of abuse 5.5 Any child communicating to a member of fire service personnel that they or someone else has experienced or are experiencing abuse must be taken seriously and the information must be acted on in line with these procedures

8 Safeguarding Children Procedure: December 2015 What do I do if I have concerns about a child?

Level 1 – Universal Services

5.6 The visit or planned activity has been completed without any cause for concern being raised; the brigade has completed the required task and supplied the appropriate level of information necessary.

9 Safeguarding Children Procedure: December 2015

Level 2 – Alert

5.7 If you become aware that a child or family may be vulnerable or in need of additional support whilst undertaking work in the community or attending an incident, try to sort out in your mind why you are worried, based on:  what you have seen  what you have heard  what has been said to you directly

5.8 Try to be as clear as you can about why you are worried but do not be afraid to listen to your instinct that something just does not seem to be right.

5.9 If the child or family are in need of additional support and there is no immediate or present danger to the child or any family members then:

 Offer the support of the Community Safety Advocate Team and encourage the person to accept a further visit by a member of the Community Safety Advocate Team; if they accept then -  Gather as much information as is appropriate in order to take further action e.g. names of those resident at the property, ages of the children and any details of support already in place.  Log your concerns with as much detail as possible on to the Community Safety database this will ensure the team are fully prepared when they visit.  If they refuse a further visit, you should still log your concerns on the Community Safety database so a record is kept which may be relevant at a future time.

5.10 Any actions that can be taken by yourself or other members of staff at the scene or following a visit or an incident with an identified vulnerable person should be taken. This could include fitting smoke alarms, completing a Home Fire Safety Visit, or the completion of an FSI (if a fire setter has been identified).

10 Safeguarding Children Procedure: December 2015 5.11 Details of the vulnerable person should be entered into the Community Safety System at the earliest opportunity, which can be found on FISH by clicking on ‘ICT Applications’ from the menu on the left hand side. The Community Safety System is accessible under the ‘Brigade Systems’ heading.

5.12 Entering a new Vulnerable Person’s case on the system will activate an email which is sent to the Station Manager and the Community Safety Advocate Team of the area the property is situated in. The case will then appear on the system and will be allocated to a Community Safety Team Advocate to be actioned within three working days.

5.13 It is good practice for records to be kept of any actions taken in regards to children for the following reasons:

 Efficient and accurate recording is vital to ensure the continuity of care for the service user as it facilitates rapid and appropriate response from other departments who may become involved and stops any duplication.  Accurate and timely recording is crucial if records pertaining to the individual are ever required in court or legal proceedings.  Resources can be allocated immediately and effectively.

5.14 The Community Safety Advocate Team will provide an individual, tailored service to those families who are identified as vulnerable. They endeavour to address the fire risk associated with the vulnerable person in the first instance, but also work in partnership with other agencies to improve the wellbeing of individuals and families. This work can include problem solving, onward referral, liaison with landlords and housing providers, attending multi agency meetings and the allocation of appropriate risk reduction equipment. All the work undertaken by members of the team in regards to individual cases is recorded securely.

11 Safeguarding Children Procedure: December 2015 5.15 When the case is closed it can be viewed by the Station Manager and the member of staff who raised the case initially. Please read the user guide for the ICT system on FISH for more details in regards to using the Community Safety system.

Level 3 - Refer

5.16 Abuse, neglect and maltreatment can cause direct harm to children – e.g. physical and emotional harm.

5.17 You may be the first to notice that a child needs help to stop abuse or neglect happening.

5.18 This referral stage involves bringing the concern regarding alleged abuse or potential abuse formally to the attention of Social Services and other authorities. This will happen if you are a witness to abuse or become aware that abuse has just taken place or that children are at immediate risk e.g. unattended at a house fire. The priorities will be to:

 Maintain the immediate safety of yourself, other staff or volunteers and members of the public  Ensure that emergency health services are called if needed  Call the Police if needed  Preserve evidence  Seek advice and provide information to the Designated Officer who will be responsible for making a referral to the appropriate Local Authority (contact details are contained in Appendix B of this document) using the form set out in Appendix C  Record all of your actions on the Community Safety database before leaving work.

12 Safeguarding Children Procedure: December 2015 Reporting to the Local Authority 5.19 The Designated Officer will make a Safeguarding Children Referral to the relevant local authority if they have a reasonable concern that any of these circumstances apply:  A child is at risk of their life or of serious harm due to abuse or neglect  there is a risk to other children or vulnerable people from the same perpetrator  there is neglect, abuse or maltreatment by the person or organisation responsible for the care of the child  where a child at risk of neglect, abuse or maltreatment has disclosed this to the Fire Service, or asked the Fire Service to help them prevent this from happening

5.20 The Designated Officer making the referral to the Local Authority should ideally have the following information to complete the referral form on which the referral must be made:

 name of the child  date of birth and age  address and telephone number  why the child is at risk of serious harm  whether consent has obtained for the referral, and if not the reasons e.g. the vulnerable child or there is an over-riding public interest  whether the police are aware of the allegation, and whether a police investigation is underway

5.21 The Designated Officer will maintain a copy of the completed referral form on the S Drive, in the designated folder under Safeguarding. This should be the only copy of the form retained by the Brigade.

5.22 The Designated Officer will notify the Head of Community Safety of his actions at the earliest opportunity. This will include notifying of occasions when concerns were raised by staff, and no referral was subsequently made.

13 Safeguarding Children Procedure: December 2015

5.23 In such cases, the Designated Officer should complete a brief summary of the event, and maintain a copy of the summary on the S Drive, in the designated folder under Safeguarding. This should be the only copy of the summary retained by the Brigade.

6 Confidentiality & Information sharing

6.1 All members of staff and volunteers should be aware of the utmost need for confidentiality in relation to someone who is experiencing abuse. The risk of abuse becoming more intense is often greatest at the time the victim or others start to challenge that abuse. Do not discuss your concerns with anyone who does not have a “need to know”.

6.2 All members of the organisation should be aware of standards for safety and confidentiality for all service users, for example:  asking for identification before the door is opened and offering to show identification even when not asked  not giving information about people to any one (including parents or relatives) without that person’s permission  ringing back telephone callers asking for information about others to check they are who they say they are.  confidential information received or sent by electronic email is secured by password or encrypted  confidential information stored on the Brigades computer network should be secure and where appropriate password protected.

6.3 Care should be taken to protect everyone’s safety and confidentiality, including that of staff where appropriate.

6.4 Cleveland Fire Authority accepts that informed consent to share information should be obtained but, if this is not possible and children are at risk, it may

14 Safeguarding Children Procedure: December 2015 be necessary to override this requirement. In these cases the Authority endorse the following, which reflect an understanding of Caldicott principles:

 information will only be shared on a ‘need to know basis’ when it is in the best interest of the child  confidentiality must not be confused with secrecy  it is inappropriate for agencies to give assurances of absolute confidentiality in cases where there are concerns about abuse, particularly in those situations when other children may be at risk  decisions about who needs to know and what needs to be known should be taken on a case by case basis, within the constraints of the legal framework

6.5 There is no single body of law that governs information sharing. However there are instances where legal powers can be instigated. This will be invoked and applied to safeguarding when it assists in preventing a crime. (Section 115, Crime and Disorder Act,1998).

7 Training

7.1 All staff will complete the training as detailed in the Safeguarding Children, Young People and Vulnerable Adults Policy. We recognise that, by nature of the subject of the training, and/or individuals varying experiences in respect of neglect and abuse, some staff may be distressed or emotionally affected by the training they are required to undertake.

7.2 Cleveland Fire Authority is committed to positively promoting the Health and Wellbeing of our staff. Should anyone feel that, having completed the training, they require support for their emotional wellbeing, staff are advised to speak to someone they trust, this may be a colleague or a Trade Union representative, or make a self-referral to Occupational Health; or present to their own GP if they prefer.

15 Safeguarding Children Procedure: December 2015 7.3 Once the training modules have been completed, staff must print 2 copies of the completed certificate and send a copy to Human Resources for retention in their personal files. The other copy must be uploaded to their PDRpro account (GREY BOOK)/PDR folder (Green Book)

7.4 Upon completion individuals should write an Training Reflection (Grey Book) or an Activity Statement (Green Book) to say they have completed the course and the date completed. This should be signed off by their Line Manager

7.5 Once the Manager has signed off the activity statement or reflection they should email 30 Enquiries at LDC with who has completed the courses and the date of completion. For operational personnel LDC will add these courses to their qualifications in PDRPro. Please note that only LDC staff should upload this information.

7.6 The Training Plan for 2015/16 is attached as Appendix D.

7.7 Details on how to access the Teeswide Virtual College can be found at Appendix E.

16 Safeguarding Children Procedure: December 2015

Appendix A

Good Practice Guidance

This document gives guidance on preventing child abuse, and what to do if you have concerns or knowledge that a child is at risk of abused or neglected.

Responding to Abuse or Neglect – Guidance for all Staff and Volunteers What You Need to Know

All concerns should be reported

Where a child is at risk of harm there is a responsibility on anyone coming into contact with them to make sure that they get help.

Remember:

Children have a right to be safe and well We all have a responsibility to safeguard children Your concerns are one small piece of the jigsaw Abuse and neglect are damaging If people are given help it can stop a child from being harmed Abuse and neglect continue because of the secrecy and silence that surround them An abuser may abuse many children who also have a right to protection

What You Need To Do Always prioritise the child’s safety.

Do not act on behalf of a child without consulting the Designated Person - unless the child is in immediate danger.

If someone is in immediate danger contact the Police (if needed).

17 Safeguarding Children Procedure: December 2015

Record what has happened as soon as you can on the Community Safety database, but always before you leave work. Be careful to record the facts – they may be important for agencies to take action to stop the abuse. Be clear about who gave you information if something you write is your opinion or belief then make it clear that this is this case.

What You Should NOT Do Do not dismiss any concerns because you make an assumption that the child is safe with parents or relatives or with people who are paid to care.

Do not talk about abuse or neglect in front of others involved in the child’s life.

Do not leave written information that might “tip off” a perpetrator that abuse has been disclosed.

Do not investigate the concerns or ask anyone any leading questions about those concerns – this is not your responsibility.

Do not confront or question the person who might be causing the abuse unless this is necessary for the immediate safety of any one at risk.

Getting help to people

The organisations best able to help a child at risk vary depending on the situation. The help is co-ordinated by Local Authorities. Many types of abuse are a crime and the police may take a lead role. Your responsibility is to give information to the Designated Persons within Cleveland Fire Brigade so that referrals can be made to the Local Authority and/or the police as soon as possible after you have raised a concern. You may be become concerned about abuse or neglect in several ways.

Someone tells you that they are being abused or neglected or asks for your help. Children choose who they tell about abuse for many reasons. It is often a sign

18 Safeguarding Children Procedure: December 2015 that they trust you to help them. Remember that your reaction is important. Take what you are told seriously.

If this happens make time for yourself and another staff member to see them on their own or with a person that they say they trust. If that is not appropriate at the time – for example you are dealing with an emergency situation and your work is needed elsewhere, try and make sure you go back to see them before you leave the situation.

They will have chosen to tell you for a reason and it is important that you are able to carry on speaking with you – even if it is appropriate for you to have someone else with you (e.g. your manager, a member of the Advocate team, a police officer). Find out what is wrong and what help they want.

Make sure the person knows that you cannot keep information about abuse and neglect confidential to yourself – you must tell the Designated Person. Record what they say.

You pick up signs of abuse or neglect.

Speak to the child and tell them why you are concerned and ask if they need any help. Offer the services of the Advocate team where appropriate by making a report through the Community Safety database before you leave work. If you are seriously concerned report your concerns to the Designated Person as soon as possible.

If more than one person might be at risk – for example several children in a household – you must report your concerns to the Designated Person as soon as possible.

Responding to Abuse or Neglect - Guidance for Designated Persons

Take any concerns raised by staff or volunteers seriously.

19 Safeguarding Children Procedure: December 2015 Ensure that any actions to respond to concerns of immediate safety have been taken.

If you believe the child is at serious risk of harm, make a referral to the police and the relevant Local Authority (see appendix B)

If the concerns do not warrant police or social service involvement then offer the services of the Advocate team. If they want help, ensure you have asked for permission to refer them onto the Advocate team.

If you need to seek advice about a situation where the child has not given consent, contact the Safeguarding Manager and discuss the issue on an anonymised basis.

Preventing Abuse – Guidance for all staff and volunteers

All Cleveland Fire Brigade staff are in a position of trust in relation to members of the public, and as such, they are in a position to support people to be safe. However, it is important to be aware that positions of trust can be abused.

Staff should always follow the Code of Conduct and treat all members of the public with respect and dignity.

Ensure there is a record for others to see of where you are expecting to be during work time. Keep clear records of your work appointments and a record of visits/meetings.

Keep information you have gained about a child through your work confidential to those who have a “need to know”.

Do not touch a child without their consent unless it is necessary to keep people safe in an emergency situation.

Any member of staff who becomes aware that a colleague is breaking professional codes or good practice should contact their manager.

20 Safeguarding Children Procedure: December 2015 Cleveland Fire Brigade provides support to employees and volunteers who “whistle- blow” in good faith.

21 Safeguarding Children Procedure: December 2015 Local Authority Social Service Contacts APPENDIX B

If you suspect that someone is being harmed and they are in immediate danger you should ring the Police on 999.

Middlesbrough

Access Team on 01642 726004. Password Protected email - [email protected]

Postal address: Middlesbrough Council Department of Social Care PO Box 505, Civic Centre, Middlesbrough TS1 9FZ

Stockton

Stockton on Tees First Contact Unit on 01642 527764 All completed forms can be emailed to [email protected]

Postal Address: Tithebarn House High Newham Court Hardwick Stockton-on-Tees TS19 8RH

Redcar and Cleveland

Main switchboard (Adult Services) Telephone: (01642) 771500 (ask to be put through to Duty Worker for Children Services) Email: [email protected]

Postal Address: Children’s Access Team Seafield House Kirkleatham Street Redcar TS10 1SP Minicom: 18001 01642 771500

Out of Hours Emergency Telephone Line Telephone: (08702) 402994 Minicom: 01642 602346

22 Safeguarding Children Procedure: December 2015 Hartlepool

Tel: 01429 284284 Secure email: [email protected]

Child and Adult Services, Hartlepool Borough Council, Level 4 Civic Centre, Victoria Road, Hartlepool, TS24 8AY

Contact details for the Out of Hours Child Protection Service can be obtained from Fire Control

23 Safeguarding Children Procedure: December 2015 Tees Multi Agency SAFER Referral Tool APPENDIX C Tees Multi Agency SAFER Referral Tool SAFER i.e. Situation, Assessment, Family, Expected response, Recording.

Section one: Situation SAFER For additional guidance on contacting children’s services, please refer to individual local authority websites I am completing this referral because: (please tick as appropriate):

I BELIEVE THIS CHILD IS AT RISK OF SIGNIFICANT HARM

I BELIEVE THIS CHILD IS IN NEED OR VULNERABLE

THIS CHILD HAS BEEN ASSESSED THROUGH THE COMMON ASSESSMENT FRAMEWORK AND I BELIEVE MAY BENEFIT FROM ADDITIONAL SUPPORT

I BELIEVE THIS CHILD MAY BENEFIT FROM SUPPORT THROUGH THE COMMON ASSESSMENT FRAMEWORK (For use only by those agencies who would not normally complete a CAF)

I BELIEVE THIS CHILD MAY BE VULNERABLE TO CHILD SEXUAL EXPLOITATION

1. About you This is (your name): I am a (job title): from (organisation): Police Event No. Postal address: Email address: Telephone: My relationship to the child concerned is:

Common Assessment Framework (CAF)

. The CAF process has/has not been followed

. If the CAF has been followed when was it completed and sent to the CAF Co-ordinator (date)? ______.

Please attach a copy of the latest assessment and go to Section 4.

. If it has not been followed, please outline why and complete the following sections;

24 Safeguarding Children Procedure: December 2015

2. About the child I am calling about a male / female* child called: Child’s address: Postcode: Date of birth: The child does/does not have a disability

3. Child’s ethnicity and language White Black or Black British Asian or Asian British White British African Bangladeshi White Irish Caribbean Indian Gypsy/Roma Any other Black Pakistani Traveller of Irish background Any other Asian heritage Please state ……………………… background Any other White Please state background ………………………..

Mixed/dual background Chinese and other Religion White and Asian Chinese ………………………………………….. White and Black African Any other ethnic group First Language White and Black Please state ……………………….. ………………………………………….. Caribbean Not given Any other mixed background Please state………………………….

4. Other services involved with the child are: Service Details (e.g. name, address) Telephone

25 Safeguarding Children Procedure: December 2015 GP Early years School Other (specify) Other (specify) Other (specify) Other (specify) 5. Details of parents/guardians

. Parent/guardian 1 Name: D.O.B. Relationship to child Do they have Yes No concerned: parental Don’t Know responsibility? Address: Postcode Telephon e:

. Parent/guardian 2 Name: D.O.B. Relationship to Do they have Yes No child concerned: parental Don’t Know responsibility? Address: Postcode Telephone:

The child’s parents/guardians are/are not aware of the referral

. If the parent(s) or guardian(s) are aware of this referral, what are their views?

. If the parent(s) or guardian(s) are not aware of this referral please explain why

26 Safeguarding Children Procedure: December 2015

6. Current family and home situation Who else lives with the child or plays a significant role in their life, e.g. siblings or grandparents

Name Date of birth Relationship to child Living with child?

Section two: Assessment and actions SAFER

Tick the appropriate statement and provide further details below I have assessed the child personally and the specific concerns are… I am concerned for the child’s safety / wellbeing because… I have not been able to assess the child but I am concerned because… (Provide specific facts – what you have seen, heard and/or been told and when you last saw the child and parents)

There has been a change since I last saw the child ___ days/weeks/months ago The child is now (describe current conditions and whereabouts):

27 Safeguarding Children Procedure: December 2015

I have taken the following actions to make the child safe:

Section three: Family factors SAFER

Specific family factors making this child at risk of significant harm are as follows: (please include any information with regard to the incidence of substance misuse, domestic abuse, and parental mental health, learning difficulties or any other factors and how they affects parenting)

Additional factors creating vulnerability are:

The strengths in the family situation are:

There might be risks to staff visiting the child’s family, they are:

28 Safeguarding Children Procedure: December 2015

Section four: Expected response SAFER

In line with Working Together to Safeguard Children, NICE guidance and the Children Act 1989, I recommend that the following action is taken: An urgent assessment as a child in need of protection. For further assessment as a child in need. For further support under Common Assessment Framework. For information sharing purposes. What services do you think will make things better / safer for the child?

What services will you continue to provide for the child?

If you have made a telephone call regarding this referral, record outcome of the discussion here:

7. About the member of staff taking the referral

Their name is:

Their job title is:

29 Safeguarding Children Procedure: December 2015

Section five: Referral and recording SAFER

All referrals to Children’s Services must be followed up in writing using the Safer Referral template. Urgent child protection referrals must be made via a telephone call and followed up in writing within 24 hours. For less urgent situations it will be expected that the information is recorded in writing prior to any contact with Children’s Services. At any stage, however, Children’s Services can be contacted for advice and guidance with regard to how to progress referral.

Once a referral is accepted by Children’s Services the person making the referral will receive a feedback letter detailing the action taken.

Children’s Services Office hour Out of hours Fax Email Hartlepool 01429 08702 N/A [email protected] 284284 402994 Middlesbrough 01642 08702 N/A [email protected] 726004 402994

Redcar & Cleveland 01642 08702 01642 [email protected] 771500 402994 771535 Stockton-on-Tees 01642 08702 01642 [email protected] 527764 402994 527756 North Yorkshire 0845 01609 01609 0349410 0349417 532009 Durham 0845 0845 0191 8505010 8505010 3835752

Please sign and date this form

Signature ______

Print Name ______

Date Signed ______

Confidentiality Notice – This information is shared in accordance with Tees LSCB’s Information Sharing Protocol, if received in error please contact the referring organisation.

30 Safeguarding Children Procedure: December 2015 APPENDIX D Training Plan 2015/16

Date 5th May Completed Name of Agency: Cleveland Fire Brigade Completed: 2015 By: D Turton

FOUNDATION LEVEL:

Training Applicable Current Method of Number Requiring Staff Group Status Delivery Training Please list for your organisation Please select E-Learning, from the Work Book, (If Applicable) drop-down Taught Approximate list Course etc. Safeguarding awareness for all: Frontline Delivery Staff, i.e. Firefighters, E-Learning, includes types of abuse, Community Safety Staff, Fire Safety Enforcement Officers, Learning and Development Advisors. All Managers of Required 400 Signs of abuse and information these Departments up to but not including on how to make an alert Director Level

Safeguarding Children Frontline Delivery Staff, i.e. Firefighters, E-Learning Community Safety Staff, Fire Safety Enforcement Officers, Learning and Required 400 Development Advisors. All Managers of these Departments up to but not including Director Level

31 Safeguarding Children Procedure: December 2015

INTERMEDIATE LEVEL:

Training Applicable Current Method of Number Requiring Staff Group Status Delivery Training Please list for your organisation Please select E-Learning, from the Work Book, drop-down Taught (If Applicable) list Course etc. Approximate Safeguarding Intermediate Duty Officers, Hub Managers Taught Training Required Course 10

STRATEGIC MANAGEMENT LEVEL: Training Applicable Current Method of Number Requiring Staff Group Status Delivery Training Please list for your organisation Please select E-Learning, from the Work Book, drop-down Taught Course etc. (If Applicable) list Approximate Director of Community Protection, Head Taught of Community Safety, Stockton District Required 3 Course TSAB Board Member Training Hub Manager

32 Safeguarding Children Procedure: December 2015

APPENDIX E

Virtual College Registration

To log onto the Virtual College to complete the Safeguarding Adults at Risk & the Awareness of Childabuse & Neglect modules click on the following link or copy and paste it into your browser https://tsab.virtual-college.co.uk/ The following screen will appear

Click on register In the registration screen click on the dropdown box and select Cleveland Fire Brigade In the work area select All Staff

Then click register

You will then be asked which module you wish to complete (Only one module can be completed at a time). Once you have selected the appropriate module you will then be taken to the registration screen. Please ensure that the email address you register with is Cleveland Fire Brigade’s email e.g. [email protected] You will be asked for a user name. Please use your initial, surname and brigade number e.g. jbloggs999 Once you have registered successfully who will get the following message

You have now registered successfully with the college. You will receive an email as follows

Sickness Absence Management Procedure Version 6: June 2014 34

Click on the link which will take you to the login page of the college Enter your user name and password supplied in the email in the appropriate boxes

You will be asked to confirm that your name is correct as this is what will be printed on any certificates

Select yes if ok or no to update You will then have access to your learning portal.

Sickness Absence Management Procedure Version 6: June 2014 35

At this stage you can either click on module or click on the action button They will both take you to the same screen

You can now start your module

Sickness Absence Management Procedure Version 6: June 2014 36

APPENDIX 3

Safeguarding Vulnerable Adults

Procedure 48.2

Dec 2015

Strategic Area Safeguarding Children, Young People and Vulnerable Adults

Policy Process Detail

Authored by: Dave Turton: Head of Community Safety

ELT Approved: 22nd December 2015

FBU Consultation: 25th November 2015

Unison Consultation: 25th November 2015

Executive Committee Approved: Not applicable

CFA Approved: Not applicable

Policy Register Review Date: December 2018

Implementing Officer: Dave Turton: Head of Community Safety

The Designated Officers in Cleveland Fire Brigade for safeguarding adults are: Head of Community Safety Hub Manager (Stockton and Hartlepool Hub) Duty Officers

They should be contacted for support and advice on implementing this Procedure.

This Safeguarding Vulnerable Adults Procedure intrinsically underpins and implements the Authority's Safeguarding Children, Young People and Vulnerable Adults Policy. Both documents should be read in conjunction with each other

2 Adult Safeguarding Procedure: December 2015

1. Introduction

Safeguarding is ‘everyone’s business’

1.1 The Care Act 2014 requires that Safeguarding Adults Boards assure themselves that local safeguarding arrangements are in place across their locality and that their partners act appropriately to help and protect adults from abuse and neglect. Whilst protecting adults at risk of abuse or harm will always be the main priority of the Teeswide Safeguarding Adults Board, the Board also recognises the importance of raising awareness in order to prevent abuse and neglect and that partner’s share collective responsibility for ensuring that all efforts to keep people safe are effective and well-co-ordinated.

1.2 Safeguarding duties apply to any adult who:  has needs for care and support (whether or not the Local Authority is meeting any of those needs) and  is experiencing, or at risk of, abuse or neglect; and  as a result of those care and support needs is unable to protect themselves from either the risk of, or the experience of abuse or neglect.

1.3 The adult experiencing, or at risk of abuse or neglect will hereafter be referred to the adult throughout this policy document. This definition of adults at risk of abuse or neglect includes:  those who are at a greater risk of suffering abuse or neglect because of physical, mental, sensory, learning or cognitive illnesses or disabilities; and substance misuse or brain injury  those who purchase their care through personal budgets  those whose care is funded by Local Authorities and/or health services; and  those who fund their own care

3 Adult Safeguarding Procedure: December 2015  informal carers, family and friends who provide care on an unpaid basis 1.4 Cleveland Fire Brigade works in partnership with Teeswide Safeguarding Adults Board (TSAB) to safeguard and promote the well-being and independence of adults who are experiencing, or at risk of abuse or neglect and are living in the Boroughs of Hartlepool, Middlesbrough, Redcar & Cleveland and Stockton.

Legal Framework 1.5 This Procedure has been developed within the context of the law and guidance that seeks to protect adults including:

 The Care Act 2014  Care Act: Care and Support Statutory Guidance  The Mental Capacity Act 2005 (including Deprivation of Liberty Safeguards)  The Human Rights Act 1998  The Equality Act 2010  Mental Health Act 1983 and the New Code of Practice 2015

2. Teeswide Arrangements

2.1 The Brigade is a member of the TSAB which sets and agrees the strategic direction of adult safeguarding work including prioritising developments.

2.2 The Board comprises of multi- agency representation and oversees the implementation of work undertaken by each of its sub groups. Each of the sub groups have clear terms of reference. A reference group comprising service users and carers also informs and guides the work of the Board. In addition there are four locality adult

4 Adult Safeguarding Procedure: December 2015 safeguarding committees who lead and ensure the operational delivery of the adult safeguarding framework.

2.3 The Board also has strong links with a number of local partnerships including community safety, domestic violence (including forced marriage and honour-based violence), public protection, and safeguarding children’s boards.

2.4 Teeswide Safeguarding Adults Board’s Terms of Reference and Governance Arrangements can be found on the TSAB website

3. Defining Safeguarding

3.1 The Care Act 2014 Guidance states that safeguarding is about people and organisations working together to prevent and stop both the risks and experience of abuse or neglect, while at the same time making sure that the adult’s wellbeing is promoted including, where appropriate, having regard to their views, wishes, feelings and beliefs in deciding on any action. Within this context, the guidance recognises that adults sometimes have complex interpersonal relationships and may be ambivalent, unclear or unrealistic about their personal circumstances.

5 Adult Safeguarding Procedure: December 2015

4. Abuse and Neglect

4.1 Abuse and neglect can take many forms and it is important that staff working in all organisations should not be constrained in their view of what constitutes abuse or neglect, and the circumstances of an individual case should always be considered. Making Safeguarding Personal (MSP) means that the safeguarding process should be person-led and outcome-focussed, enhancing the individual’s involvement and choice and control together with seeking to improve quality of life, wellbeing and safety.

4.2 Abuse or Neglect may be:  a single act or repeated acts  multiple in form  an act of neglect or a failure to act  deliberate  an opportunistic act or a form of serial abusing where the perpetrator seeks out and grooms the individual(s)

4.3 The Department of Health Care and Support Statutory Guidance issued under the Care Act 2014 sets out the different types and patterns of abuse and neglect though stresses that the list is not exhaustive, and describes the different circumstances in which they may take place.

4.4 More often they are abused by someone who is well known to them. An abuser may be:  A paid carer or volunteer;  A partner, relative, friend or child  A health, social care worker or other professional

6 Adult Safeguarding Procedure: December 2015

4.5 Abuse can occur in any relationship. It often occurs where the person who is abusing is in a more powerful position than the person who is being abused. It may be that the abuser is more able than the person they are abusing, or that the adult at risk is dependent on the abuser in some way. In some instances the abuser themselves may also be an adult at risk.

4.6 In terms of determining where abuse takes place, this can be anywhere, including in people’s own homes, in the homes of family or friends, in a public place and in care settings such as hospitals, care homes, places of work, colleges and GP surgeries.

4.7 All partners are also aware that there are occasions when vulnerable people are deliberately targeted in order to exploit or abuse them. In terms of those adults at risk, the TSAB will work collaboratively to ensure seamless processes are in place and the appropriate safeguarding route is taken.

4.8 The Nature and Types of Abuse are detailed at Appendix A.

5. Key Principles Underpinning Safeguarding Work

5.1 The following six principles apply to all sectors and settings and should inform the ways in which professionals and other staff work with adults.

Empowerment: People being supported and encouraged to make their own decisions and informed consent. “I am asked what I want as the outcomes from the safeguarding process and these directly inform what happens.”

Prevention: It is better to take action before harm occurs. “I receive clear and simple information about what abuse is, how to recognise the signs and what I can do to seek help.”

7 Adult Safeguarding Procedure: December 2015 Proportionality: The least intrusive response appropriate to the risk presented. “I am sure that the professionals will work in my interest, as I see them and they will only get involved as much as needed.”

Protection: Support and representation for those in greatest need. “I get help and support to report abuse and neglect. I get help so that I am able to take part in the safeguarding process to the extent to which I want.”

Partnership: Local solutions through services working with their communities. Communities have a part to play in preventing, detecting and reporting neglect and abuse. “I know that staff treat any personal and sensitive information in confidence, only sharing what is helpful and necessary. I am confident that professionals will work together and with me to get the best result for me.”

Accountability: Accountability and transparency in delivering safeguarding. “I understand the role of everyone involved in my life and so do they.

6 Safeguarding Procedures

The Designated Officers in Cleveland Fire Brigade for safeguarding adults are:

Head of Community Safety Hub Manager (Stockton and Hartlepool Hub) Duty Officers

They should be contacted for support and advice on implementing this Policy and Procedures.

8 Adult Safeguarding Procedure: December 2015 Duty to act 6.1 Cleveland Fire Brigade staff should not investigate any incident of abuse unless they have been designated a specific role through the TSAB. However you should always act on any concerns about:

 actual or potential harm to a vulnerable adult  any concerns that any adult is at risk of serious injury or threat to their life by following these procedures and making a report through the Community Safety Database or by contacting the Designated Officer before leaving work from the shift on which the concerns arise.

Noticing abuse or neglect 6.2 Fire Service personnel may come across adults who may be at risk of abuse, or who are being abused or neglected, in the course of their duties. For example; at the scene of a fire (e.g. dependent adults alone), during home fire safety check or fire safety visits, during arson investigations, when working with young people or when giving talks to school and youth groups or to members of the public. You may not see the abuse but your concern may be raised by what you see (Appendix 2: Good Practice Guidance).

6.3 Don’t ignore your concerns – you don’t have to be certain that abuse is taking place – make a report using the appropriate mechanism.

Responding to people who are being abused 6.4 Where personnel are a witness to abuse or become aware that abuse has just taken place or that a vulnerable adult is at immediate risk e.g. unattended at a house fire, the priorities will be to:

9 Adult Safeguarding Procedure: December 2015  preserve evidence  seek advice from the Designated Officer  complete the Community Safety database with as much information as possible before leaving work

Responding to reports of abuse 6.5 Anyone communicating to a member of fire service personnel that they or someone else has experienced or are experiencing abuse must be taken seriously and the information must be acted on in line with these procedures.

What do I do if I have concerns about an adult at risk or a family?

10 Adult Safeguarding Procedure: December 2015

Level 1 – Universal Services 6.6 These visits have been completed without any cause for concern being raised; the brigade has completed the visit or interaction and supplied the appropriate level of information necessary.

Level 2 – Alert

6.7 If you become aware that a person or family may be vulnerable or in need of additional support whilst undertaking work in the community or attending an incident, try to sort out in your mind why you are worried, based on:  what you have seen  what you have heard  what has been said to you directly

6.8 Try to be as clear as you can about why you are worried but do not be afraid to listen to your instinct that something just does not seem to be right.

6.9 If the adult or family are in need of additional support and there is no immediate or present danger to the adult or any family members then:

 offer the support of the Community Safety Advocate Team and encouraging the person to accept a further visit by the Community Safety Advocate, if they accept then  gather as much information as is appropriate in order to take further action e.g. names of all those resident at the property, ages of the children and any details of support already in place

11 Adult Safeguarding Procedure: December 2015  log your concerns with as much detail as possible on to the Community Safety database this will ensure the team are fully prepared when they visit.

6.10 Any actions that can be taken by yourself or other members of staff at the scene or following a visit or an incident with an identified vulnerable person should be taken. This could include fitting smoke alarms, completing a Home Fire Safety Visit, or the completion of an FS1 (if a fire setter has been identified).

6.11 Details of the vulnerable person should be entered into the Community Safety System at the earliest opportunity, which can be found on FISH by clicking on ‘ICT Applications’ from the menu on the left hand side. The Community Safety System is accessible under the ‘Brigade Systems’ heading.

6.12 Entering a new Vulnerable Person’s case on the system will activate an email which is sent to the Station Manager and the Community Safety Advocate Team of the area the property is situated in. The case will then appear on the system and will be allocated to a Community Safety Team Advocate to be actioned within three working days.

6.13 It is good practice for records to be kept of any actions taken in regards to vulnerable persons for the following reasons:  efficient and accurate recording is vital to ensure the continuity of care for the service user as it facilitates rapid and appropriate response from other departments who may become involved and stops any duplication  accurate and timely recording is crucial if records pertaining to the individual are ever required in court or legal proceedings  resources can be allocated immediately and effectively.

12 Adult Safeguarding Procedure: December 2015 6.14 The Community Safety Advocate Team provide an individual, tailored service to those people who are identified as vulnerable. They endeavour to address the fire risk associated with the vulnerable person in the first instance, but also work in partnership with other agencies to improve the wellbeing of individuals and families. This work can include problem solving, onward referral, liaison with landlords and housing providers, attending multi agency meetings and the allocation of appropriate risk reduction equipment. All the work undertaken by members of the team in regards to individual cases is recorded securely.

6.15 When the case is closed it can be viewed by the station manager and the member of staff who raised the case initially. Please read the user guide for the ICT system on FISH for more details in regards to using the Community Safety system.

Level 3 - Refer

6.16 Abuse and neglect can cause direct harm to people – e.g. physical and emotional harm. Financial abuse, discrimination and neglect can cause harm because they stop people getting essentials such as food, warmth, health and social services and “meaningful activities”. Emotional abuse and bullying make people isolated, cause mental and emotional harm and stop people living a fulfilling life.

6.17 You may be the first to notice that someone needs help to stop abuse or neglect happening.

6.18 The referral stage involves bringing the concern regarding alleged abuse or potential abuse formally to the attention of Social Services and other authorities. This will happen if you are a witness to abuse or become aware that abuse has just taken place or that vulnerable adults are at immediate risk e.g. unattended at a house fire, the priorities will be to:

13 Adult Safeguarding Procedure: December 2015  maintain the immediate safety of yourself, other staff or volunteers and members of the public  ensure that emergency health services are called if needed  call the Police if needed  preserve evidence  seek advice and provide information to the Designated Officer who will be responsible for making a referral to the appropriate Local Authority (contact details are contained in Appendix C of this document) using the form set out in Appendix D  record all of your actions on the Community Safety database before leaving work

Reporting to the Local Authority 6.19 The Designated Officer will make a Safeguarding Adults Referral to the relevant local authority if they have a reasonable concern that any of these circumstances apply:  an adult is at risk of their life or of serious harm due to abuse or neglect  there is a risk to other vulnerable people from the same perpetrator  the abuse is being carried out by a person working or volunteering for an organisation that works with vulnerable adults  there is neglect by the person or organisation responsible for the care of the vulnerable adult  where an adult at risk of abuse has asked the Fire Service to help them start the safeguarding adults procedures

6.20 The Designated Officer making the referral to the Local Authority should ideally have the following information to complete the referral form on which the referral must be made:  name of the vulnerable adult  date of birth and age  address and telephone number  why the adult is considered vulnerable

14 Adult Safeguarding Procedure: December 2015  whether consent has obtained for the referral, and if not the reasons e.g. the vulnerable adult may not have the capacity to consent  adult lacks mental capacity or there is an over-riding public interest (e.g. where other vulnerable adults are at risk)  whether there are any concerns or doubts about the mental capacity of the vulnerable Adult  whether the police are aware of the allegation, and whether a police investigation is underway

6.21 The Designated Officer will maintain a copy of the completed referral form on the S Drive, in the designated folder under Safeguarding. This should be the only copy of the form retained by the Brigade.

6.22 The Designated Officer will notify the Head of Community Safety of his actions at the earliest opportunity. This will include notifying of occasions when concerns were raised by staff, and no referral was subsequently made.

6.23 In such cases, the Designated Officer should complete a brief summary of the event, and maintain a copy of the summary on the S Drive, in the designated folder under Safeguarding. This should be the only copy of the summary retained by the Brigade.

7 Confidentiality & Information sharing

7.1 All members of staff and volunteers should be aware of the utmost need for confidentiality in relation to someone who is experiencing abuse. The risk of abuse becoming more intense is often greatest at the time the victim or others start to challenge that abuse. Do not discuss your concerns with anyone who does not have a “need to know”.

7.2 All members of the organisation should be aware of standards for safety and confidentiality for all service users, for example:

15 Adult Safeguarding Procedure: December 2015  asking for identification before the door is opened and offering to show identification even when not asked  not giving information about people to any one (including relatives/ spouses) without that person’s permission  ringing back telephone callers asking for information about others to check they are who they say they are.  confidential information received or sent by electronic email is secured by password or encrypted  confidential information stored on the Brigades computer network should be secure and where appropriate password protected.

7.3 Care should be taken to protect everyone’s safety and confidentiality, including that of staff where appropriate.

7.4 Cleveland Fire Authority accepts that informed consent to share information should be obtained but, if this is not possible and adults are at risk, it may be necessary to override this requirement. In these cases the Authority endorse the following, which reflect an understanding of Caldicott principles:

 information will only be shared on a ‘need to know basis’ when it is in the best interest of the adult  confidentiality must not be confused with secrecy  it is inappropriate for agencies to give assurances of absolute  confidentiality in cases where there are concerns about abuse, particularly in those situations when other vulnerable people may be at risk  decisions about who needs to know and what needs to be known should be taken on a case by case basis, within the constraints of the legal framework

7.5 There is no single body of law that governs information sharing. However there are instances where legal powers can be instigated.

16 Adult Safeguarding Procedure: December 2015 This will be invoked and applied to safeguarding when it assists in preventing a crime. (Section 115, Crime and Disorder Act,1998)

8 Training 8.1 All staff will complete the training as detailed in the Safeguarding Children, Young People and Vulnerable Adults Policy. We recognise that, by nature of the subject of the training, and/or individuals varying experiences in respect of neglect and abuse, some staff may be distressed or emotionally affected by the training they are required to undertake.

8.2 Cleveland Fire Authority is committed to positively promoting the Health and Wellbeing of our staff. Should anyone feel that, having completed the training, they require support for their emotional wellbeing, staff are advised to speak to someone they trust, this may be a colleague or a Trade Union representative, or make a self-referral to Occupational Health; or present to their own GP if they prefer.

8.3 Once the training modules have been completed, staff must print 2 copies of the completed certificate and send a copy to Human Resources for retention in their personal files. The other copy must be uploaded to their PDRpro account (GREY BOOK)/PDR folder (Green Book) 8.4 Upon completion individuals should write an Training Reflection (Grey Book) or an Activity Statement (Green Book) to say they have completed the course and the date completed. This should be signed off by their Line Manager

8.5 Once the Manager has signed off the activity statement or reflection they should email 30 Enquiries at LDC with who has completed the courses and the date of completion. For operational personnel LDC will add these courses to their qualifications in PDRPro. Please note that only LDC staff should upload this information.

17 Adult Safeguarding Procedure: December 2015

8.6 The Training Plan for 2015/16 is attached as Appendix E.

8.7 Details on how to access the Teeswide Virtual College can be found at Appendix F.

18 Adult Safeguarding Procedure: December 2015

APPENDIX A Types of Abuse and Neglect

Physical Abuse Financial or Material Abuse

Including assault, hitting, slapping, pushing, and Including theft, fraud, internet scamming, misuse of medication, restraint, or inappropriate coercion in relation to an adult’s financial physical sanctions. affairs or arrangements, including in connection with wills, property, inheritance or financial transactions, or the misuse or misappropriation of property, possessions or benefits. Sexual Abuse Psychological Abuse Including rape, indecent exposure, sexual Including emotional abuse, threats of harm or harassment, inappropriate looking or touching, abandonment, deprivation of contact, sexual teasing or innuendo, sexual humiliation, blaming, controlling, intimidation, photography, subjection to pornography or coercion, harassment, verbal abuse, cyber witnessing sexual acts, indecent exposure and bullying, isolation or unreasonable and sexual assault or sexual acts to which the adult unjustified withdrawal of services or has not consented or was pressured into supportive networks. consenting.

Modern Slavery Discriminatory Abuse Encompasses slavery, human trafficking, and Including forms of harassment, slurs or forced labour and domestic servitude. similar treatment; because of race, gender Traffickers and slave masters use whatever and gender identity, age, disability, sexual means they have at their disposal to coerce, orientation or religion. deceive and force individuals into a life of abuse, servitude and inhumane treatment.

Organisational Abuse Neglect and Acts of Omission Including neglect and poor care practice within Including ignoring medical, emotional or an institution or specific care setting such as a physical care needs, failure to provide access hospital or care home, for example, or in to appropriate health, care and support or relation to care provided in one’s own home. educational services, the withholding of the This may range from one off incidents to on- necessities of life, such as medication, going ill-treatment. It can be through neglect or adequate nutrition and heating poor professional practice as a result of the structure, policies, processes and practices within an organisation.

Self-neglect Domestic Violence

This covers a wide range of behaviour Including psychological, physical, sexual, neglecting to care for one’s personal hygiene, financial, emotional abuse; so called ‘honour’ health or surroundings and includes behaviour based violence. such as hoarding.

19 Adult Safeguarding Procedure: December 2015 APPENDIX B

Responding to Abuse or Neglect – Guidance for all Staff and Volunteers

All concerns should be reported. Where a vulnerable adult is at risk of harm there is a responsibility on anyone coming into contact with them to make sure that they get help. The same is true where an adult does not have mental capacity to be able to organise help for themselves and they are at risk of harm.

Remember: Vulnerable adults have a right to be safe and well We all have a responsibility to safeguard children and vulnerable adults Your concerns are one small piece of the jigsaw Abuse and neglect are damaging If people are given help it can stop a child or vulnerable adult from being harmed Abuse and neglect continue because of the secrecy and silence that surround them An abuser may abuse many adults who also have a right to protection

What You Need To Do Always prioritise the person’s safety.

Do not act on behalf of an adult without their consent (if they are able to give it), and without consulting the Designated Officer - unless the person is in immediate danger.

If someone is in immediate danger contact the Police and (if needed)

Record what has happened as soon as you can on the Community Safety database, but before you leave work. Be careful to record the facts – they may be important for agencies to take action to stop the abuse. Be clear about who gave you information and if something you write is your opinion or belief then make it clear that this is this case.

20 Adult Safeguarding Procedure: December 2015 What You Should NOT Do Do not dismiss any concerns because you make an assumption that people are safe with parents or relatives or with people who are paid to care for people or that no one would harm a vulnerable adult.

Do not talk about abuse or neglect in front of others involved in the person’s life unless you have checked with the person at risk, confidentially, that this is with their consent.

Do not leave written information that might “tip off” a perpetrator that abuse has been disclosed.

Do not investigate the concerns or ask anyone any leading questions about those concerns – this is not your responsibility.

Do not confront or question the person who might be causing the abuse unless this is necessary for the immediate safety of any one at risk.

Getting help to people The organisations best able to help a person at risk vary depending on the situation. The help is co-ordinated by Local Authorities. Many types of abuse are a crime and the police may take a lead role. Your responsibility is to give information to the Designated Officers within Cleveland Fire Brigade so that referrals can be made to the Local Authority and/or the police as soon as possible after you have raised a concern. You may be become concerned about abuse or neglect in several ways.

Someone tells you that they are being abused or neglected or asks for your help. Adults choose who they tell about abuse for many reasons. It is often a sign that they trust you to help them. Remember that your reaction is important. Take what you are told seriously.

21 Adult Safeguarding Procedure: December 2015 If this happens make time for yourself and another staff member to see them on their own or with a person that they say they trust. If that is not appropriate at the time – for example you are dealing with an emergency situation and your work is needed elsewhere, try and make sure you go back to see them before you leave the situation.

Make sure the person knows that you cannot keep information about abuse and neglect confidential to yourself – you must tell the Designated Officer. Ask the person where, when and how it would be safe for you or the Community Safety Advocate Team to contact them. Ask if they are happy for you to tell other agencies about what is happening so that they can help – for example the police and social services. Record what they say.

You pick up signs of abuse or neglect. Speak to the person and tell them why you are concerned and ask if they need any help.

Offer the services of the Community Safety Advocate team and make a report through the Community Safety database before you leave work. Within the boundaries of respect for the person’s confidentiality, you will be able to access the database to find out the actions that have taken place. If the person does not have mental capacity to organise getting help to stop the abuse or neglect you must report your concerns to the Designated Officer as soon as possible.

If more than one person might be at risk you must report your concerns to the Designated Officer as soon as possible.

22 Adult Safeguarding Procedure: December 2015 Mental Capacity Mental Capacity is the ability to make a decision.

Mental capacity is specific to the particular decision – so for example a person may have capacity to decide whether they want a cup of tea or a cup of coffee but may not have capacity to organise their own finances.

Mental capacity is legally defined to include:

 holding information relevant to the decision that needs to be made  having the ability to weigh up the information and make a decision  having the ability to communicate the decision that they have made  having made the decision free from undue influence and coercion

A person does not have mental capacity in relation to safeguarding themselves if they are not mentally capable to decide whether or not they want help to stop the abuse. This is a complex area and if you think someone may not be able to decide what to do about abuse or neglect you must contact the Designated Officer who will be able to contact those with the relevant expertise to help. Assessing for mental capacity is not your responsibility.

Responding to Abuse or Neglect - Guidance for Designated Officers Take any concerns raised by staff or volunteers seriously.

Ensure that any actions responding to concerns of immediate safety have been taken.

If you believe the vulnerable adult is at serious risk of harm, make a referral to the police and the relevant Local Authority (see Appendix D)

If you believe the person who may be at risk does not have mental capacity to decide what action they wish to be taken about abuse or neglect, make a referral to the relevant Local Authority (see Appendix E)

23 Adult Safeguarding Procedure: December 2015 If you believe other vulnerable adults are at risk from the same person/organisation make a referral to the Local Authority If you believe the person who may be at risk does have mental capacity to decide what action they wish to be taken about abuse or neglect arrange for them to be seen by the Community Safety Advocate team.

When arranging to see them ensure that you do not alert any person who might be causing harm

Ensure the person is seen in confidence – check with them first – in confidence - if they want anyone else with them

Ensure they are told why there are concerns and that they have the opportunity to say whether or not they want help. If they want help, ensure they are asked for permission to share information with other agencies – for example the police, social services, and voluntary organisations. They may be happy for information to be shared with one organisation but not others. Ensure they are asked if they give consent for a referral to be made to the multi-agency adult protection procedures so that help can be organised form a variety of services.

Staff carrying out such visits should work within the good practice guidance above. If you need to seek advice about a situation where the person has not given consent, contact the Hub Manager (Stockton and Hartlepool) or the Duty Officer and discuss the issue on an anonymised basis.

Preventing Abuse – Guidance for all staff and volunteers All Cleveland Fire Brigade staff are in a position of trust in relation to members of the public, and as such they are in a position to support people to be safe. However, it is important to be aware that positions of trust can be abused.

24 Adult Safeguarding Procedure: December 2015 Staff should always follow the Code of Conduct and treat all members of the public with respect and dignity.

Ensure there is a record for others to see of where you are expecting to be during work time. Keep clear records of your work appointments and a record of visits/meetings.

Keep information you have gained about a person through your work confidential to those who have a “need to know”.

Always ask consent to touch an adult. Do not touch someone without their consent unless it is necessary to keep people safe in an emergency situation. Any member of staff who becomes aware that a colleague is breaking professional codes or good practice should contact their manager. Cleveland Fire Brigade provides support to employees and volunteers who “whistle-blow” in good faith.

25 Adult Safeguarding Procedure: December 2015 APPENDIX C

Social Service Contacts

If you suspect that someone is being harmed and they are in immediate danger you should ring the Police on 999.

Middlesbrough

Access Team on 01642 726004. Password Protected email - [email protected] Postal address: Middlesbrough Council Department of Social Care PO Box 505, Civic Centre, Middlesbrough TS1 9FZ

Stockton

Stockton on Tees First Contact Unit on 01642 527764 to discuss and advise of this alert. All completed forms can be e-mailed to [email protected].

Redcar and Cleveland

The Adult Access Team Telephone: (01642) 771500 Minicom: 18001 01642 771500

Out of Hours Emergency Telephone Line Telephone: (08702) 402994 Minicom: 01642 602346

Hartlepool

Tel - 01429 523872 FAX - 01429 523907 Child and Adult Services, Hartlepool Borough Council, Civic Centre, Victoria Road, Hartlepool, TS24 8AY

Contact details for the Out of Hours Adult Protection Service can be obtained from Fire Control

26 Adult Safeguarding Procedure: December 2015

APPENDIX D

Inter-agency Safeguarding Adults Alert Form

STRICTLY CONFIDENTIAL Date of the Alert: Time of the Alert:

1 DETAILS OF PERSON RAISING ALERT Name: Job Title:

Organisation (if applicable):

Contact address: Telephone No:

Relationship to the alleged victim: (please see list of options at the end of this form) Date completed:

2 DETAILS OF ALLEGED VICTIM Name: Gender:

DOB:

Home address:

Contact address:

Telephone No:

Ethnic Origin/Nationality: Religion:

Primary Client Group (please see list of options at the end of this form):

Communication and access needs:

Is the alleged victim aware of the referral? Yes No If No, why not?

27 Adult Safeguarding Procedure: December 2015 3 DETAILS OF CONCERN BEING RAISED Location of alleged incident/concern Date and Time of alleged (please see list of options at the end of this form): incident/concern: Date: Time:

Brief factual details of the alleged incident/concern: This should include a clear factual outline of the concern being raised with details of times, dates, people and places where appropriate. (Please continue on a separate sheet if required).

Please indicate the type of abuse suspected (please tick more than one if appropriate):

Neglect Emotional Financial Institutional

Physical Sexual Discrimination

4 DETAILS OF CURRENT SITUATION Where is the alleged victim now in relation to the alleged perpetrator?

Is the victim in immediate danger of further Abuse? Yes/No

Have any immediate actions been identified to reduce the potential for further abuse? Yes/No

Are there other people who may be at risk of harm? Yes No Not Known If Yes, please describe the risk that remains and names of others potentially at risk (please only refer to identified risk that relates directly to the concern)

In your opinion, does the alleged victim have the mental capacity to understand what has happened to them?

Yes No Not Known

28 Adult Safeguarding Procedure: December 2015 If criminal activity is suspected have police been contacted? Yes No If Yes, what was the outcome?

Police Crime/Ref No:

5 DETAILS OF ALLEGED PERPETRATOR Name: Gender:

DOB:

Address:

Occupation/Position/Title/Organisation:

What is the relationship of the alleged perpetrator to the alleged victim? (please see list of options at the end of this form)

Does the alleged perpetrator live with the alleged victim? Yes No

Is this alleged perpetrator considered to be a vulnerable person? Yes No Not Known

Is the alleged perpetrator the main family carer? Yes No

Are they aware of this alert? Yes No If Yes, what is their response, and are there any hazards to be aware of?

6 FAMILY DETAILS OF ALLEGED VICTIM Name:

Relationship to vulnerable person:

Are they a carer? Yes No

Are they aware of this alert? Yes No

Contact address: Telephone No:

OTHER INVOLVEMENT

29 Adult Safeguarding Procedure: December 2015 Who else has been informed of this concern? Are there any other relevant agencies/individuals involved? Please give details.

TO BE COMPLETED BY DESIGNATED MANAGER: Is the vulnerable person’s service funded by? Local Authority Self Funded Have there been any previous Safeguarding alerts/referrals about this vulnerable person? Yes No Decision made by designated Safeguarding Manager following alert:

A) Progress to further action under Safeguarding procedures NB: If this is now a Strategy discussion please complete the Strategy document

B) No Further Action under Safeguarding procedures (Please record alternative action taken)

Safeguarding Manager: Team:

Alert allocated to: SWIFT NO: (of vulnerable person) Have you advised the Alerter/Referrer of the Date of Decision: Decision? Yes No If progress to Safeguarding procedures (box A) is ticked this form should be sent by the Manager to the Safeguarding Administration Support Officer.

Guidance Notes for completing this form:

Primary Client Group: Please enter one of the following:

30 Adult Safeguarding Procedure: December 2015 Dementia Mental Health Dual Sensory Loss Physical Disability Frailty and/or Temporary Illness Substance Misuse Hearing Impaired Visual Impairment Learning Disability Other Vulnerable Person

Location of alleged incident/concern: Please enter one of the following: Own Home Community Hospital Care Home – Permanent Other Health Setting Care Home with Nursing - Permanent Supported Accommodation Care Home - Temporary Day Centre/Service Care Home with Nursing - Temporary Public Place Alleged Perpetrators Home Education/Training/Workplace Establishment Mental Health Inpatient Setting Other –Please specify Acute Hospital Not known

Relationship of the alleged perpetrator(s) to the vulnerable person: Please enter one of the following: Partner Other Social Care Staff Other family member Other Professional Health Care Worker Personal Assistant Volunteer/Befriender Other Vulnerable Adult Domiciliary Care Staff Neighbour/Friend Residential Care staff Stranger Day Care staff Not known Social Worker/Care Manager Other Self-Directed Care Staff

Details of the person making the alert/referral: Please enter one of the following:

Domiciliary Care Staff Self Referral Residential Care staff Family Member Day Care staff Friend/Neighbour Social Worker/Care Manager Other Service User Self-Directed Care Staff Care Quality Commission

31 Adult Safeguarding Procedure: December 2015 APPENDIX E Training Plan 2015/16

Date 5th May Completed Name of Agency: Cleveland Fire Brigade Completed: 2015 By: D Turton

FOUNDATION LEVEL:

32 Adult Safeguarding Procedure: December 2015

INTERMEDIATE LEVEL:

33 Adult Safeguarding Procedure: December 2015

APPENDIX F

Virtual College Registration

Click on register In the registration screen click on the dropdown box and select Cleveland Fire Brigade In the work area select All Staff

Then click register

You have now registered successfully with the college. You will receive an email as follows

Sickness Absence Management Procedure Version 6: June 2014 35

Click on the link which will take you to the login page of the college Enter your user name and password supplied in the email in the appropriate boxes

You will be asked to confirm that your name is correct as this is what will be printed on any certificates

Select yes if ok or no to update You will then have access to your learning portal.

Sickness Absence Management Procedure Version 6: June 2014 36

At this stage you can either click on module or click on the action button They will both take you to the same screen

You can now start your module

Sickness Absence Management Procedure Version 6: June 2014 37

AGENDA ITEM 6.6 CLEVELAND FIRE AUTHORITY MEETING 12 FEBRUARY 2016

INFORMATION PACK

REPORT OF THE CHIEF FIRE OFFICER

For Information

1. FIRE AND RESCUE SERVICE MONTHLY BULLETINS

Listed below are the Bulletins issued since our last meeting along with a summary of their contents. Full versions of the Bulletins are available from the CLG website, www.communities.gov.uk or by contacting the DMS Office.

Bulletin 61 7 December 2015

- Supporting Public Service Transformation - Fire and Rescue Statistical Release on Fire Incidents Response Times, April 2014 to March 2015 for England Published

Immediate Bulletin 22 18 December 2015

- Provisional Local Government Finance Settlement - Fire and Rescue Service

Immediate Bulletin 23 5 January 2016

- Machinery of Government Change – Fire and Rescue Policy transfer to Home Office

2. CAMPAIGN LAUNCHES

Kitchen Safety Campaign (8 – 29 February) – the Brigade will be launching this campaign supported by radio advertisements and press releases aimed at getting key kitchen safety messages out to busy families who get distracted while cooking and those who come in from a night out and start cooking.

3. FIRE BRIGADE LONG SERVICE AND GOOD CONDUCT MEDAL

Sixteen Fire Brigade employees have completed twenty years’ service and are therefore eligible for the Fire Brigade Long Service and Good Conduct Medal. The appropriate recommendations have been submitted to the Secretary of State.

IAN HAYTON KAREN WINTER CHIEF FIRE OFFICER DIRECTOR OF CORPORATE SERVICES

AGENDA ITEM 7.1 CLEVELAND FIRE AUTHORITY 12 FEBRUARY 2016

MEDIUM TERM FINANCIAL STRATEGY 2016/17 – 2019/20

REPORT OF THE TREASURER AND CHIEF FIRE OFFICER

For Approval

1. PURPOSE OF REPORT

1.1 To provide an update on the Medium Term Financial Strategy (MTFS) and to enable the Authority to consider the Executive Committees recommendations in relation to the 2016/17 Budget and Council Tax level.

2. RECOMMENDATIONS

2.1 It is recommended that Members approve the following recommendations referred from the Executive Committee:

i) Approve the use of one-off resources of £0.764m in 2017/18 and £0.258m in 2018/19 as part of the recommended strategy for managing the front loaded Government grant cuts over the period 2016/17 to 2019/20 and to note this will provide a longer lead time to implement permanent budget reductions.

ii) Approve the CIRMP savings proposals for the period 2016/17 to 2019/20 detailed in paragraph 6.7.

iii) Approve a 2016/17 Council Tax increase of 1.9%,which equates to a Band D Council Tax of £71.70 and supporting statutory calculations detailed in Appendix G, which includes the following Council Tax levels:

2016/17 Annual Weekly Annual Property Council Council increase Band Tax Tax £ £ £ A 47.80 0.92 0.89 Approximately 64% of B 55.77 1.07 1.05 households are in a Band A or B property C 63.73 1.23 1.19 D 71.70 1.38 1.34 E 87.63 1.69 1.63 F 103.57 1.99 1.94 G 119.50 2.30 2.23 H 143.40 2.76 2.68

iv) Approve indicative Council Tax increases of 1.9% for 2017/18, 2018/19 and 2019/20.

Page 1

CLEVELAND FIRE AUTHORITY 12 FEBRUARY 2016 Date XXX 2011

v) Approve the 2016/17 revenue budget as detailed in Appendix E, which includes the 2016/17 CIRMP savings proposals.

vi) Approve the updated capital programme for 2016/17 to 2018/19 as detailed in Appendix F, which underpins the continued implementation of the Asset Management Plan approved by the Authority on 25th July 2014.

vii) Note the financial impact of the net Council Tax and Business Rate Collection Fund deficit of £410,000, which is mainly owing to the impact of Rateable Value appeals which are back-dated to 1st April 2013. Approve the recommended strategy that this amount is funded from a combination of an increase in the Council Tax base and the establishment of a 2016/17 Occupancy Target of £364,000. To note that achievement of the 2016/17 Occupancy Target will be underwritten from the Un-earmarked General Fund Reserve.

viii) Authorise the Chief Fire Officer and Treasurer, in consultation with the Chair, to determine whether the Authority should apply for a 4 year settlement from the Government when more information of this arrangement is available.

3. BACKGROUND AND BUDGET HISTORY 2010/11 TO 2015/16

3.1 Over the last 5 years (i.e. 2011/12 to 2015/16) the Authority has faced significant financial challenges owing to the impact of sustained Government grant cuts and the restriction of Council Tax increases. The grant cuts have had a greater impact on this Authority owing to the higher dependency on Government grant. Prior to 2011/12 grant allocations reflected individual fire authorities’ ability to partly fund services from Council Tax and an assessment of need/risk, including high risk petro-chemical sites.

3.2 The amount of Government funding received by the Authority in 2015/16 is only £15.132m, compared to £22.555m in 2010/11, a cut of £7.423m. This equates to a cut of 32.9%, as summarised in the following table:

Table 1 – Core Revenue Grant 2010/11 to 2015/16

22 -8.2% -11.3% 20 -18%

18 -25.1% £'m 16 -32.9%

12 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 MEDIUM TERM FINANCIAL STRATEGY 2016/17 - 2019/20 2

CLEVELAND FIRE AUTHORITY 12 FEBRUARY 2016 Date XXX 2011

3.3 In April 2013 the Government implemented significant changes to the system for funding Local Authorities, including Fire authorities. As a result of these changes Government funding consists of two components:

 Revenue Support Grant; and  Top Up Grant.

3.4 The Government provided a two year funding settlement for Fire authorities in January 2014 covering 2014/15 and 2015/16.

3.5 The reductions in Government funding allocations since 2013/14 are summarised in the following table, which shows that Revenue Support Grant has been cut significantly in the last two years. In 2015/16 the Revenue Support Grant is £3.597m less than in 2013/14, which is a reduction of nearly 30%. The table also shows that there have been small annual increases in Top-Up Grant as this is funded from the Government’s share of Business Rates income.

Table 2 - Government Funding Cuts 2014/15 and 2015/16

2013/14 2014/15 Cut/(increase) from 2015/16 Cut/(increase) from previous year previous year £'m £'m £'m £'m Revenue Support 12.297 10.582 1.715 13.9% 8.700 1.882 17.8% Grant

Top-Up Grant 6.191 6.312 (0.121) (1.9%) 6.432 (0.120) (1.9%) 18.488 16.894 1.594 8.6% 15.132 1.762 10.4%

3.6 As detailed in previous MTFS reports the funding regime in place up until 2010/11 recognised risks within an individual fire authorities' area and the ability of individual authorities to fund services locally from Council Tax. Therefore, in 2010/11 Government grant funding accounted for 67% of Cleveland Fire Authority’s resources and Council Tax accounted for the remaining 33%. In the most affluent areas these percentages were reversed i.e. Council Tax accounted for two thirds of resources and Government grant only made up a third of funding.

3.7 As a result of this position the Authority has faced greater annual cuts in Government funding than Fire authorities serving more affluent areas and without the significant risks associated with the concentration of petro-chemical industries on Teesside. The Authority has not been able to offset Government grant cuts by increasing Council Tax as increases have been limited by Council Tax capping, or more recently Council Tax referendum limits.

3.8 As reported previously further significant cuts in Revenue Support Grant will be made over the next few years. This will have significant implications for the Authority as in 2015/16 Revenue Support Grant still accounts for approximately one third of the Authority’s total funding, as summarised in the following table:

MEDIUM TERM FINANCIAL STRATEGY 2016/17 - 2019/20 3

CLEVELAND FIRE AUTHORITY 12 FEBRUARY 2016 Date XXX 2011

Table 3 – 2015/16 Funding (total £27.897m)

Council Tax income £10.041m (36%) Revenue Support Grant £8.700m (31%) Top Up Grant £6.432m (23%) Business Rates Income £2.204m (8%) Local Resources £0.520m (2%)

3.9 The Government also introduced the Business Rates Retention system in April 2013 and the Fire Authority receives 1% of the Business Rates income generated in the area. In 2015/16 this amounts to £2.204m (including section 31 grants), which is approximately 8% of the Authority’s income. This change increases financial risk as the Authority bears 1% of any reduction in Business Rates income across the area. The Authority may also potentially benefit from increases in Business Rates income, however as detailed later in the report this is unlikely owing to current economic conditions in the area.

3.10 The Business Rates Retention system includes a ‘safety net’ regime which the Government has indicated protects individual authorities from excessive reductions in Business Rates income. When this threshold is exceeded the Government provides ‘safety net’ grant for the shortfall above the threshold. However, shortfalls below the threshold fall on the individual authority.

3.11 For 2015/16 the Authority’s ‘safety net’ threshold is approximately £638,000. This is 7.5% of £8.5m, which is the combined value of Top-up grant (£6.432m) plus the DCLG estimate of Business Rate income retained by the Authority (£2.068m). The ‘safety net’ threshold equates to approximately 30% of the Authority’s share of Business Rates income. Clearly, a reduction of this scale would mean the local economy was experiencing a serious economic downturn as the Business Rates loss across the 4 Tees Valley Authorities would be £64m. In practise the Authority is unlikely to ever breach the ‘safety net’ threshold and is therefore managing an annual financial risk in relation to Business Rates income. This risk is one of the risks managed by maintaining an adequate General Fund reserve.

3.12 At the start of the 2015 Spending Review process a letter was set to HM Treasury and the Department of Communities and Local Government outlining the Authority’s concerns and requesting the Government make a commitment to review the existing funding system for the Fire Service to provide a fair, needs based system of

MEDIUM TERM FINANCIAL STRATEGY 2016/17 - 2019/20 4

CLEVELAND FIRE AUTHORITY 12 FEBRUARY 2016 Date XXX 2011

funding that recognises the different risks and demographic pressures on individual Authorities. A copy of this letter in attached at Appendix A.

3.13 As outlined in previous MTFS update reports to the Executive Committee on 7th August 2015 and the full Fire Authority on 11th December 2015 the financial position for 2016/17 and future years was uncertain. Over the summer months the Government confirmed that public spending cuts will continue for the next 4 years (2016/17 to 2019/20) and invited government departments to set out plans to reduce revenue budgets by between 25% and 40%.

3.14 On the basis of the available information the previous reports advised Members that the Authority potentially faced annual cuts in Government funding of between 8% and 10% over the next 4 years. Cuts of this magnitude would have resulted in budget cuts over the next 4 years of between £4.208m and £4.988m, which would be in addition to the cuts implemented over the last 5 years (i.e. 2011/12 to 2015/16).

3.15 As detailed in the next section the Government has now issued funding allocations for 2016/17 and provisional allocations for the following 3 years. Whilst, the actual Government grant cuts are less than previously forecast, the Authority still faces significant further reductions in Government funding over the next 4 years.

4. PROVISIONAL LOCAL GOVERNMENT FINANCE SETTLEMENT 2016/17

4.1 Details of the provision Local Government Finance Settlement (LGF settlement) 2016/17 were presented to Parliament on 17th December 2015, the last Parliamentary working day before the Christmas recess. In a press release issued by the Government the Local Government Secretary, The Right Honourable Greg Clark MP, stated:

 “Today (17 December 2015) hailed a historic settlement for town halls as he ushered in a new era of long-term financial certainty for councils, while prioritising adult social care for the nation’s ageing population;

 Today the details of a revolutionary 4-year funding package for councils in England were published, in a move which transforms the relationship between central and local government;

 By the end of this decade town halls will be financed from revenues they raise locally, such as council tax and business rates, rather than central government grants. This is something local government has spent decades campaigning for.”

4.2 This report has had to be prepared before the final 2016/17 Local Government Finance Settlement is presented to Parliament. The Department of Communities and Local Government has indicated that the final settlement will be presented before Parliament goes into recess on 11th February 2016, although they have not given a date. Based on experience in previous years it is not anticipated there will be any significant changes in the grant allocations announced before

MEDIUM TERM FINANCIAL STRATEGY 2016/17 - 2019/20 5

CLEVELAND FIRE AUTHORITY 12 FEBRUARY 2016 Date XXX 2011

Christmas. If there are any changes a verbal update will be provided at the Committee meeting on 12th February 2016.

4.3 The following paragraphs detail the specific LGF settlement proposals impacting on the Fire Service announced in December 2015 and expected to be confirmed in February 2016.

4.4 Government Funding Allocations

4.5 The national headline comparisons provided by the Government show Core Spending Power of £44.501 billion in 2015/16 and £44.279 billion in 2019/20. On this basis the Government is stating this is a fair settlement for Local Authorities, including Fire authorities.

4.6 However, as highlighted in the following table the Government’s presentation of Core Spending Power figures hides the scale of the 31.8% cut to the Settlement Funding Assessment (which consists of a 67% cut in Revenue Support Grant from 2015/16 to 2019/20, net of an increase in inflation linked Top-up grant of 8.3%). The cuts to this funding means Local Authorities will have to make very difficult decisions over the next 4 years to balance their budgets and cuts in services will be required. As the efficiency measures implemented over the last 5 years cannot be repeated the cuts will increasingly have a visible impact.

4.7 The Core Spending Power table also includes the Government’s forecast that over the 4 years up to 2019/20 the national amount raised from Council Tax will increase by 24%. The Government forecasts assume that all Social Care Authorities will implement annual increases of 3.9% (inclusive of the 2% Social Care precept) and there will be continued growth in the Council Tax base (i.e. continued house building). The Authority’s MTFS forecast anticipates an increase in Council Tax income over the 4 years up to 2019/20 of 12%, which reflects forecast annual increases of 1.9% and forecast local housing growth.

4.8 The Core Spending Power table also details funding changes (i.e. Better Care Fund, New Homes Bonus and Rural Services Grant) which do not apply to the Fire Service.

4.9 The Government’s presentation of the position for Core Spending Power makes it difficult for the public to understand why Authorities will have to make cuts over the next 4 years. As highlighted previously it would be helpful if the Government was clear on the scale of Revenue Support Grant cuts and the impact on services.

MEDIUM TERM FINANCIAL STRATEGY 2016/17 - 2019/20 6

CLEVELAND FIRE AUTHORITY 12 FEBRUARY 2016 Date XXX 2011

Analysis for Core Spending Power figures for England 2015/16 and 2019/20

2015/16 2019/20 Increase/(cut) £'million £'million £'million Percentage Settlement Funding Assessment 21,250 14,500 (6,750) (31.8%)

Council Tax 22,036 27,314 5,278 24.0% #

Improved Better Care Fund 0 1,500 1,500 n/a

New Homes Bonus 1,200 900 (300) (25.0%)

Rural Services Grant 16 65 49 306.3%

Total 44,502 44,279 (223) (0.5%)

# The Government are forecasting an increase in Council Tax income of 24% by 2019/20, which includes the assumption that all Social Care Authorities will increase Council Tax by 3.9% (inclusive of the 2% Social Care precept).

4.10 With regard to the Settlement Funding Assessment allocations for the Fire Authority the Government’s recent announcement confirms that funding cuts will continue until 2019/20. Based on the provisional LGF settlement the Authorities Government Funding will reduce from £15.132m in 2015/16 to £12.270m in 2019/20, as reduction of £2.862m – which is a cut of 18.9%.

4.11 The following table details the annual cuts in Government funding for the next 4 years and shows that the cuts are front loaded in 2016/17 and 2017/18, as the cuts for these 2 years account for £2.082m of the total cuts of £2.862m.

Table 4 – Analysis of Cleveland Fire Authority Government Funding 2015/16 to 2019/20

2015/16 2016/17 2017/18 2018/19 2019/20

£m £m £m £m £m Revenue Support Grant 8.700 7.720 6.440 5.720 5.240 Top-Up Grant 6.432 6.490 6.610 6.810 7.030 Total Government Funding 15.132 14.210 13.050 12.530 12.270

Cut on previous year (£'m) 0.922 1.160 0.520 0.260 Percentage cut on previous year 6.1% 8.2% 4.0% 2.1%

4.12 The continuing cuts in Government funding mean the Authority will have faced 9 years of funding cuts, which is unprecedented, and by 2019/20 the amount of Government funding will only be £12.270m, compared to £22.555m in 2010/11, a cut of £10.285m. This equates to a cut of nearly 46%.

MEDIUM TERM FINANCIAL STRATEGY 2016/17 - 2019/20 7

CLEVELAND FIRE AUTHORITY 12 FEBRUARY 2016 Date XXX 2011

4.13 Whilst, the Authority will face continuing grant cuts for the next 4 years the grant allocation for 2019/20 of £12.270m is higher than the previous MTFS forecast, which anticipated a 2019/20 grant allocation of between £11.001m and 11.781m.

4.14 Over the 5 years up to 2015/16 the Authority’s Spending Power cuts were significantly higher than other Fire authorities and the Authority suffered either the highest or second highest annual Spending Power cuts. This position reflected the impact of Government grant cuts which had a greater impact on Fire authorities more dependent on Government grant and with less ability to fund services from Council Tax and Business Rates income.

4.15 As detailed in Appendix B this position is reversed over the next 4 years as Cleveland’s cumulative grant cut of 18.9% is the lowest and compares to an average cut of 29.2%. This position reflects a change in Government policy whereby grant cuts for the next 4 years reflect an individual authorities overall Spending Power (i.e. Government grant funding, plus Business Rates income, plus Council Tax income) and therefore results in a more equal share of Government grant cuts as a percentage of Spending Power. Under the arrangements for 2016/17 to 2019/20 grants cuts for all fire authorities' equate to 10% of their 2015/16 Spending Power. This is effectively the change the Authority has pressed the Government to make for a number of years, as it adds an element of resource equalisation back into the system. This was one of the specific proposals in the submission to the Government on 4th September (as detailed in Appendix A). Had the Government applied these arrangements over the last 5 years the Authority would have suffered lower grant cuts than has actually been the case.

4.16 The impact of the actual grant cuts on the MTFS is detailed later in the report.

4.17 Reform of Local Government Funding System

4.18 The LGF settlement confirms the Government’s intention that by the end of the current Parliament local government will retain 100% of business rates revenue to fund local services. Business rates revenue is currently shared between the Government (50%), Local Authorities (49%) and Fire authorities (1%). As part of this change Revenue Support Grant will be phased out. The system of top-ups and tariffs which redistributes resources between local authorities will be retained.

4.19 The Government has indicated that they will consult on this proposal during the early part of 2016 and further details of the potential financial impact will be reported to a future meeting.

4.20 As detailed in previous MTFS reports there are significant risk to this Authority from this change owing to the Authority’s continued dependency on Government Revenue Support Grant, which in 2019/20 is forecast to be £5.240m, based on the 2016/17 LGF settlement announcement.

4.21 On the basis that Fire authorities share of retained Business Rates increases from 1% to 2% from 2020/21 the Authority could potentially face a net income reduction of £3.250m made up as follows:

MEDIUM TERM FINANCIAL STRATEGY 2016/17 - 2019/20 8

CLEVELAND FIRE AUTHORITY 12 FEBRUARY 2016 Date XXX 2011

Table 5 – Potential Income Reduction 2020/21

£m Loss of Revenue Support Grant 5.240 Less Additional Share Business Rates income (1.990) Potential Income Reduction 2019/20 3.250

4.22 It will be essential that the Government recognise this issue when detailed proposals for reforming the Local Government funding system are developed and compensate the Authority fully by increasing the existing ‘tariff payment’.

4.23 4 Year Settlement Offer

4.24 The Government has stated in the LGF settlement announcement that it will offer any Authority that wishes to take it up a four year settlement to 2019/20. Authorities will need to request this and have an efficiency plan in place, although the Government has not provided any details of:

 What the formal application process is, or timescale;  Who from the Authorities can submit and whether a plan request can be rescinded if there is a political change at a local authority;  What such a plan should look like.

4.25 It is also important to note that the Government have qualified the offer by stating that final grant determinations in future years will still be subject to change to reflect the annual business rates multiplier, funding changes to reflect the transfer of functions, or changes arising from unforeseen events.

4.26 On 6th January 2016 the Local Government Secretary indicated that “he did not intend these to be heavy handed assessments.” The Local Government Association is proposing that applications for a 4 year settlement are based on Authorities medium term financial strategies.

4.27 As the position remains unclear it is recommended that the Chief Fire Officer and Treasurer, in consultation with the Chair, determine whether the Authority should apply for a 4 year settlement.

4.28 Council Tax Regime

4.29 The LGF settlement confirmed the Government will not be providing Council Tax freeze grant for 2016/17, which means the Government funded Council Tax freeze regime has ended.

4.30 For the majority of Authorities, including Fire authorities, the existing Council Tax referendum threshold of 2% will remain in place. This means any increases above this limit can only be implemented if supported by the local electorate.

MEDIUM TERM FINANCIAL STRATEGY 2016/17 - 2019/20 9

CLEVELAND FIRE AUTHORITY 12 FEBRUARY 2016 Date XXX 2011

4.31 Police and Crime commissioners and shire district councils which are in the lowest quartile by Council Tax level will be able to increase Council Tax by either 2% or £5 (on Band D properties) whichever is the higher.

4.32 Authorities with Social Care responsibilities will be able to implement a 2% Social Care precept on top of the existing referendum threshold. This effectively enables these authorities to increase Council Tax by up to 3.9%.

4.33 Apprenticeships Payroll Levy

4.34 From April 2017 the Government will introduce a 0.5% Apprenticeships Payroll Levy which will add up to £75,000 to the Authority’s payroll costs. The Apprenticeships levy will be used by the Government to pay for apprenticeships, although at this stage it is unclear what funding the Authority may receive back.

5. UPDATE MTFS FORECASTS 2016/17 TO 2019/20

5.1 As detailed in the previous section, additional significant Government grant cuts will be implemented over the next 4 years and this will require the Authority to make additional budget savings. In view of the measures implemented over the last 5 years it will become increasingly difficult to balance the budget.

5.2 The MTFS forecast also needs to reflect forecast local resources from Council Tax and Business Rates and these issues are reflected in the following paragraphs.

5.3 Collection Fund Surplus/Deficit

5.4 The MTFS forecasts anticipated the Authority’s share of the 4 Authorities Collection Funds would be a surplus of £60,000. The actual figures have recently been received and the aggregate deficit for the Business Rates and Council Tax Collection Funds is £350,000, consisting of the following:

 Business Rates Collection Fund Deficit £615,000

In 2015/16 two authorities declared surpluses and two declared deficits.

For 2016/17 all four authorities have declared deficits. This reflects the outcome of Business Rate appeals against the 2010 Rateable Values determined by the Valuation Office Agency (VOA) which have been resolved in the current financial year (i.e. 5 years after they were set) and estimates for future appeal outcomes. These changes are backed dated to 2010/11 and the Authority bears 1% of the financial impact for 2013/14 to 2015/16. These details have only recently been received from the 4 authorities, following completion of statutory calculations by 31st January deadline. The resolution of these long standing outstanding appeals should reduce financial risk in future financial years as reductions of this scale should not be repeated.

MEDIUM TERM FINANCIAL STRATEGY 2016/17 - 2019/20 10

CLEVELAND FIRE AUTHORITY 12 FEBRUARY 2016 Date XXX 2011

The deficits declared by the 4 authorities total £61.5m and this is apportioned on the following basis:

o 50% by the Government - £30.75m o 49% by the 4 Unitary Authorities (potentially partly funded from ‘safety net’ grant) - £30.135m; o 1% by the Fire Authority - £615,000. This reduction is below the ‘safety net’ limit of £638,000, therefore the Authority does not receive any Government ‘safety net’ grant and the whole financial burden falls on the Authority’s budget and resources.

The ongoing impact of the Rateable Values reductions determined by the VOA is reflected in the 2016/17 share of Business Rates income payable to the Authority of £1.919m, compared to £2.100m in 2015/16.

 Council Tax Collection Fund Surplus £265,000 All four authorities have declared a surplus for 2016/17, which reflects a combination of factors, including:

o Higher collection levels for Local Council Tax Support schemes than expected, which reflects effective collection arrangements; and o Higher growth in the 2015/16 Council Tax base arising from housing growth.

5.5 The position is summarised in the following table, which also includes the figures for 2015/16 as this demonstrates the volatility of these issues, particularly in relation to the Business Rates Collection Fund

2015/16 2016/17 Surplus/ Surplus/ (deficit) (deficit) £’000 £’000 271 Business Rates Collection Fund (615)

324 Council Tax Collection Fund 265

595 Net Surplus/(deficit) (350)

5.6 The MTFS forecast was based on a forecast net Collection Fund surplus of £60,000, which reflected information previously provided by the 4 Authorities before the outcome of Business Rates appeals were known. As the actual overall Collection Fund is a deficit the Authority now needs to manage a change of £410,000 (i.e. movement from a forecast surplus of £60,000 to a £350,000 deficit).

5.7 As the net Collection Fund deficit reflects one-off issues arising from decisions by the VOA to reduce Rateable Values which have applied since April 2010 it is recommended that this amount is funded on a one-off basis. This strategy will avoid having to identify additional budget reductions for 2016/17. It is recommended that the £410,000 shortfall is funded from a combination of the following factors:

MEDIUM TERM FINANCIAL STRATEGY 2016/17 - 2019/20 11

CLEVELAND FIRE AUTHORITY 12 FEBRUARY 2016 Date XXX 2011

£’000 2016/17 Occupancy Savings target 364  It is anticipated that in-year saving will be achieved in 2016/17 by holding posts vacant to help achieve the 2017/18 CRIMP savings target.

Additional Council Tax Base growth not allocated to support 46 2016/17 budget  Reflects final Council Tax base figures recently received.

Total 410

5.8 The recommended strategy for managing the Collection Fund deficit will enable the Authority to maintain the existing element of the General Fund Reserve allocated to manage ongoing Business Rates risks. In the event that the 2016/17 occupancy savings target is not fully achieved then any residual shortfall will be unwritten from this reserve. This risk has been assessed as low and the position will be managed carefully during 2016/17.

5.9 Council Tax and Business Rates Forecast 2016/17

5.10 The MTFS forecasts considered by the Executive Committee were based on provisional information provided by the 4 Teesside Authorities. In line with statutory requirements the final figures have recently been received and there will be a net increase in resources of £25,000 available to support the 2016/17 budget, as summarised below:

Forecast Actual Increase/ (decrease) £’000 £’000 £’000 Council Tax income 10,445 10,520 75

Business Rate income 1,923 1,919 (4)

Net increase in resources 12,368 12,439 71

Less allocated to offset Collection Fund (46) Deficit Resources allocated to support the core 25 2016/17 Revenue Budget

5.11 Council Tax Level 2016/17

5.12 As outlined earlier in the report the Government’s policy direction is to move Local Authorities, including Fire authorities, to a system of self funding based on locally raised Business Rates and Council Tax. Fire authorities have no direct control or influence over Business Rates and are simply allocated a share of income raised locally, currently 1%.

MEDIUM TERM FINANCIAL STRATEGY 2016/17 - 2019/20 12

CLEVELAND FIRE AUTHORITY 12 FEBRUARY 2016 Date XXX 2011

5.13 In relation to Council Tax Fire authorities have the ability to implement annual increases, subject to Council Tax Referendum arrangements. The sustainability of Council Tax income will become increasingly important as the Government continues to cut grant funding and moves to a self funding system for Local Authorities.

5.14 The MTFS forecasts anticipate small annual increases in the Council Tax base arising from house building in the area. As part of the 2015/16 budget the Authority approved an indicative 2016/17 Council Tax increase of 1.9%, which will generate additional income of £197,000 (reflecting the final 2016/17 Council Tax base). If this increase is not implemented additional budget cuts will need to be made to offset the loss of income.

5.15 Based on the Authority approving the recommended Council Tax increase of 1.9% the following table details the different Council Tax levels and shows that the approximately 64% of households will pay less than £1.07 per week for the Authority’s services.

Table 6 - Forecast 2016/17 Council Tax

2016/17 Annual Weekly Annual Property Council Council increase Band Tax Tax £ £ £ A 47.80 0.92 0.89 Approximately 64% of households B 55.77 1.07 1.05 are in a Band A or B property C 63.73 1.23 1.19 D 71.70 1.38 1.34 E 87.63 1.69 1.63 F 103.57 1.99 1.94 G 119.50 2.30 2.23 H 143.40 2.76 2.68

5.16 Comparative 2016/17 Council Tax levels for other Fire Authorities will not be available until all Authorities have set their budgets and Council Tax. Comparative 2015/16 Council Tax figures are as follows:

 £70.36 - Cleveland Fire Authority  £70.00 - Combined Fire Authority Average  £74.62 – Tyne and Wear Authority  £93.96 – Darlington and Durham Fire Authority

5.17 Updated Budget Savings 2016/17 to 2019/20

5.18 After reflecting the continuing Government grant cuts over the next 4 years and forecast local Council Tax and Business Rates income the Authority will need to make budget savings over the next 4 years of £3.982m, as summarised below and proposals for managing this position are detailed in the next section.

MEDIUM TERM FINANCIAL STRATEGY 2016/17 - 2019/20 13

CLEVELAND FIRE AUTHORITY 12 FEBRUARY 2016 Date XXX 2011

2016/17 2017/18 2018/19 2019/20 WHAT WE NEED £'000 £'000 £'000 £,000 Budget before inflation/cost pressures 27,897 26,967 26,195 25,945 Pay Inflation - 1% from 2016/17 onwards 300 271 250 251 Non Pay inflation - 2% from 2016/17 onwards 115 115 110 110 Injury Pension Awards 0 0 0 0 National Insurance 280 0 0 0 Reinstatment of Turnover/occupancy allowance 0 0 66 100 Total Budget 28,592 27,353 26,621 26,406 WE NEED

2016/17 2017/18 2018/19 2019/20 SAVINGS WE NEED TO FIND £'000 £'000 £'000 £'000 Total Budget 28,592 27,353 26,621 26,406 WE NEED

Funding Revenue Support Grant 7,720 6,440 5,720 5,240 Top up grant 6,490 6,610 6,810 7,030 Total Government Funding 14,210 13,050 12,530 12,270

Business Rates income 1,919 1,954 1,990 1,990 Section 31 Grant/Funding Adjustment 104 104 104 104 Council Tax - existing base with 1.9% annual increases 10,012 10,202 10,395 10,593 Council Tax - forecast growth in tax base 508 625 666 666 Council Tax/Business Rates Collection Fund Surplus/(Deficit) (350) 60 60 60 2016/17 Occupancy Target - allocated to offset 2016/17 364 0 0 0 Collection Fund Deficit Commissioned Services income/reserve 200 200 200 200 Use of Transformational Funding 0 0 0 0 Contribution From Reserves 0 0 0 0 Total Funding 26,967 26,195 25,945 25,883 WE HAVE

Gross Budget Shortfall/Savings to be Identified each Year 1,625 1,158 676 523 WE NEED TO FIND Cumulative Budget Shortfall/Savings to be Identified 1,625 2,783 3,459 3,982

6. STRATEGY FOR MANAGING REVISED FORECAST DEFICITS 2016/17 TO 2019/20

6.1 The existing MTFS and CIRMP reflected information available at the time and were designed to address the budget deficits arising from forecast cuts in Government funding up to 2017/18. As Government grant cuts will continue until 2019/20 the CIRMP has been reviewed and revised proposals developed to address the budget savings required over the next 4 years.

6.2 As Members are aware the Chief Fire Officer has been exploring various options to identify the budget savings required over the next 4 years to meet the requirements of the Community Integrated Risk Management Plan (CIRMP). One of these options was based on the potential adoption of a 3 shift system. Following the outcome of negotiations with the FBU, which have been facilitated with external assistance from the Technical Advisory Panel, this option is no longer being explored for 2016/17.

MEDIUM TERM FINANCIAL STRATEGY 2016/17 - 2019/20 14

CLEVELAND FIRE AUTHORITY 12 FEBRUARY 2016 Date XXX 2011

6.3 Detailed proposals for achieving savings of £3.982m are detailed in paragraph 6.7. As indicated previously owing to the scale of the Government grant cuts and the front loading of these reductions in 2016/17 and 2017/18 it is recommended that implementation of the recommended savings is supported by the use of one-off resources. This will help ensure the necessary changes can be implemented safely and to ensure staff and the public are not exposed to higher risks.

6.4 As reported previously in recognition of the financial challenges facing the Authority over the next 4 years the Chief Fire Officer has continued to manage resources (both budgets and staffing resources) to help manage these challenges. As a result of these actions and the final favourable 2014/15 outturn the Authority has one-off resources of £1.507m, from the following areas:

 Uncommitted 2014/15 Outturn - £364,000

Following closure of the 2014/15 accounts uncommitted revenue resources of £364,000 are available to support the budget in 2016/17 and future years. This amount consists of the following items:

o £91,000 - final year end uncommitted outturn – which reflected the final under spend against the 2014/15 budget; and

o £273,000 – the planned contribution from the General Fund Reserve to support the 2014/15 budget was not needed. At the time the 2014/15 budget was set the level of Business Rates income to be received was uncertain owing to the position of a major Business Ratepayer. Therefore, to address this position it was anticipated that this amount would need to be taken from the General Fund Reserve. This has not been necessary. This issue was only confirmed when finalising the 2014/15 accounts and year end outturns received from the 4 Teesside Authorities. Therefore, this amount has not previously been reflected in the Authority’s MTFS.

 Forecast 2015/16 Outturn - £1,143,000

The forecast outturn for the current financial year reflects action taken by the Chief Fire Officer to manage the budget and mainly reflects lower occupancy levels as a result of retirements not being replaced to facilitate the implementation of the CIRMP. The forecast outturn is after making provision to fund:  Smoke Alarms - £172,000;

 The purchase of specialist operational equipment to maintain operational effectiveness - £250,000. As this equipment will not now be purchased before the end of the financial year these resources will be carried forward within the Capital Investment Programme reserve; and

MEDIUM TERM FINANCIAL STRATEGY 2016/17 - 2019/20 15

CLEVELAND FIRE AUTHORITY 12 FEBRUARY 2016 Date XXX 2011

 Staff Training and Development 2016/17 and 2017/18 - £100,000 (i.e. £50,000 per year). The Authority has undergone significant change over the last few years and this will continue for the next 2 years and beyond. As a result there is an ongoing training requirement to ensure operational staff have the required skills to deliver safe and effective fire and rescue service reflecting the Brigades operational environment.

6.5 The use of one-off resources provides a slightly longer lead time to address the impact of the front loaded Government grant cuts. The recommended strategy does not commit all the available one-off resources. It is recommended that the residual balance of £0.485m is transferred to the General Fund to manage future financial risks, including the impact of Business Rates risks. The following table summarises the recommended allocation of the available one-off resources.

Table 7 – Use of One-off Resources to support CIRMP

£’000 Available one-off resources 1,507 Less - Support 2017/18 CIRMP (764) Less - Support 2018/19 CIRMP (258) Uncommitted one-off resources to transfer to General Fund to 485 manage future financial risks

6.6 The recommended CIRMP also uses £500,000 of the approved Transformation Grant in 2016/17 to facilitate the achievement of recurring savings.

6.7 With regard to the detailed recommended savings over the next 4 years these are summarised below:

Table 8 – Summary of proposed CIRMP Savings 2016/17 to 2019/20

The shaded line shows the proposed annual savings net of the use of reserves which enables the total savings of £3.982m to be phased over a longer period and therefore provide a more manageable position. The un-shaded line shows what the phasing of the savings would have been without the one-off resources.

2016/17 2017/18 2018/19 2019/20 Total £'000 £'000 £'000 £'000 £'000 Savings to be Identified each Year 1,125 894 1,182 781 3,982 net of use of one-off resources

Savings to be Identified each Year 1,625 1,158 676 523 3,982 if no use of one-off resources

MEDIUM TERM FINANCIAL STRATEGY 2016/17 - 2019/20 16

CLEVELAND FIRE AUTHORITY 12 FEBRUARY 2016 Date XXX 2011

6.8 The detailed annual savings proposals are summarised below:

Table 9 – How we find the savings 2016/17 to 2019/20

2016/17 2017/18 2018/19 2019/20 £'000 £'000 £'000 £'000 External Audit fee reduction 10 De-staff HPs remove 4CM and 4FF 259 70 ER11 SFUs remove 4CM and 8FF 0 485 ER7 Close Marine 835 OD15 Estates 51 50 Retained Firefighters (300) (150) ER9 Retain 2nd Pump 4CM and 12FF 641 1,282 641 Pensions Contribution Adjustments 22 Non Pay Budgets 21 Apprenticeship Payroll Levy (75) Efficiencies to be found 2019/20 140 Total Savings Identified 1,125 894 1,182 781

7. RESERVES REVIEW

7.1 Reserves are a key element of the Authority’s financial strategy and enable issues to be managed over more than one financial year, which avoids the need for in-year budget cuts when unexpected events occur. The Authority’s Reserves are held to partly fund the Capital Investment Programme, to support the revenue budget and to manage financial risks, as summarised below:

Table 10 - Forecast Reserves 31.03.16

Capital Investment Programme reserve (£10.263m) General Fund Balance (£1.549m)

CIRMP Implementation Reserve (£1.022m)

Earmarked Revenue Reserves (£2.241m)

MEDIUM TERM FINANCIAL STRATEGY 2016/17 - 2019/20 17

CLEVELAND FIRE AUTHORITY 12 FEBRUARY 2016 Date XXX 2011

7.2 An annual review of reserves has been completed to ensure the Authority retains adequate reserves to fund approved capital commitments and to manage financial risks. The review also confirms that one-off resources can be allocated to support the phased implementation of the CRIMP.

7.3 The review is based on the assessment of five key areas recommended by the Audit Commission in their 2013 national report on Local Authority reserves. These issues and the Authority’s approach are summarised below:

i) How much is held in reserves;

ii) What are reserves held for, including information provided to Members;  Appendix C provides details in respect of these areas and further details are provided in the paragraphs 7.4 and 7.5. In summary the Authority plans to use £14.5m (i.e. 88%) of these reserves over the period 2015/16 to 2019/20. This includes the planned use of £12.704m of the Capital Investment Programme Reserve and £1.022m to support the implementation of the CIRMP over the next 4 years.

iii) Does the Authority hold any contingency fund other than reserves to protect against unplanned costs;  The Authority does not hold any contingency funds other than reserves. The Authority will manage any unplanned costs which may arise through a combination of robust budget management and the available Un-earmarked General Fund Reserve.

iv) The relationship between reserves and Council Tax;  The Authority recognises that reserves are one-off resources and the strategy for using reserves reflects this position. Decisions in relation to Council Tax reflect the need for the Authority to sustain its own resource base at a time of continuing cuts in Government funding.

v) Unplanned movements on reserves.  The Authority monitors the use of reserves on a regular basis. Reserves are reviewed on an annual basis as part of the MTFS process to integrate the use of reserves within the overall financial strategy and ensure the use of these resources underpins the strategic aims of the Authority as detailed in this report.

7.4 The Capital Investment Programme Reserves - was approved by the Authority on 14th January 2010 and will be used over a number of years as the Asset Management Plan is implemented. At the 31st March 2015 this reserve amounted to £12.704m, which was 77% of the Authorities Reserves. It is planned to use this reserve over the period of the MTFS and the detailed use of this reserve continues to be managed to maximise the Authority’s financial flexibility as the Asset Management Plan is implemented and expenditure requires financing by:

 phasing annual usage to compliment the use of Capital Grants provided by the Government to ensure grants are used first; and  phasing the annual usage to compliment the timing of Prudential Borrowing.

MEDIUM TERM FINANCIAL STRATEGY 2016/17 - 2019/20 18

CLEVELAND FIRE AUTHORITY 12 FEBRUARY 2016 Date XXX 2011

7.5 Un-earmarked General Fund Reserve - details of the financial risks this reserve is held to manage are detailed in Appendix D.

8. 2016/17 to 2018/19 CAPITAL PROGRAMME

8.1 The Asset Management Plan (AMP) was approved by the Authority on 25th July 2014 and covers capital investment for the financial years 2014/15 to 2024/25. The AMP is designed to ensure the Authority has the necessary capability in terms of properties, vehicles and equipment to deliver Fire and Rescue Services.

8.2 The total planned capital investment is approximately £30.5m, of which £21.9m (72%) is funded from Government Capital Grants and the Capital Investment Reserve. The remaining investment is funded from Prudential Borrowing.

8.3 On 13th February 2015 the Authority approved the detailed capital programme for the period 2015/16 to 2017/18. Based on the approved AMP the detailed capital programme has been updated to reflect actual progress to date and also rolled forward to include 2018/19. The detailed capital programme is included at Appendix F.

9. ROBUSTNESS ADVICE

9.1 The Local Government Act 2003 introduced a formal requirement on Local Authorities to consider the proposed level of reserves and the advice of the Treasurer on the level of reserves. If Members ignore this advice the Act also requires the Authority to record this position. This latter provision is designed to recognise the statutory responsibilities of Treasurers.

9.2 I would advise Members that in my opinion the budget forecasts and the proposed level of reserves recommended in this report for 2016/2017 are robust. This opinion is based on consideration of the following factors:

 The work undertaken by the Chief Fire Officer and Brigade Officers regarding the preparation of detailed budget forecasts, including the costs and savings of implementing the CIRMP, income forecasts and future Pension forecasts;  Assurance from the Chief Fire Officer that no material issues have been omitted from the budget forecasts;  The level of Government Grant to be provided in 2016/2017;  A prudent view of the net costs of the Authority’s overall cash flow, including a prudent provision for the repayment of Prudential Borrowing;  The establishment of the Capital Funding Reserve to manage annual loan repayment costs over the period 2014/15 to 2028/29 arising from the implementation of the Asset Management Plan;  The establishment of at least a minimum level of reserves consistent with the identified specific risks faced by the CFA;  The use of one-off resources to support the implementation of the CIRMP over the next 4 years, whilst ensuring the necessary budget reductions are achieved by 2019/20.

MEDIUM TERM FINANCIAL STRATEGY 2016/17 - 2019/20 19

CLEVELAND FIRE AUTHORITY 12 FEBRUARY 2016 Date XXX 2011

9.3 The budget forecasts for 2016/2017 are based on the latest information available. At the end of 2015/16 it is anticipated that net un-earmarked reserves will be £1.549m. This level of reserves is around 5% of the annual budget and represents the minimum risk assessed requirement. Appendix D outlines these risks in greater detail.

10. CONCLUSIONS

10.1 Over the last 5 years (i.e. 2011/12 to 2015/16) the Authority has faced significant financial challenges owing to the impact of sustained Government grant cuts and the restriction of Council Tax increases. The grant cuts have had a greater impact on this Authority owing to the higher dependency on Government grant. Prior to 2011/12 grant allocations reflected individual Fire authorities ability to partly fund services from Council Tax and an assessment of need/risk, including high risk petro-chemical sites.

10.2 The LGF settlement confirms that further significant Government funding cuts will be implemented over the next 4 years. The provisional LGF settlement restores an element of resource equalisation within the funding system which means the Authority’s grant cuts are not as high as forecast.

10.3 However, by 2019/20 the Authority will only receive Government funding of £12.270m, compared to £22.555m in 2010/11 – this is a cut of £10.285m, which equates to a reduction of 46%, as summarised in the following table:

Table 11 – Summary of Total Funding 2010/11, 2016/17 and 2019/20

35.0

30.0 Grant Cut £10.285m - 46%

25.0

20.0 £'m Government 15.0 Funding Business Rates 10.0 Council Tax income 5.0

0.0 2010/11 2016/17 2019/20

10.4 Over the next 4 years the Authority will need to make further cuts of £3.982m. As the Government grant cuts are front loaded it is recommended that one-off resources are used to support the budget in 2016/17, 2017/18 and 2018/19, this will provide a slightly longer lead time to implement the necessary budget reductions.

MEDIUM TERM FINANCIAL STRATEGY 2016/17 - 2019/20 20

CLEVELAND FIRE AUTHORITY 12 FEBRUARY 2016 Date XXX 2011

10.5 It needs to be recognised that using one-off resources does not provide a permanent solution to address the impact of ongoing additional Government grant cuts. This proposal is only recommended on the basis that Members approve the CIRMP proposals to balance the budget and support the Chief Fire Officer’s implementation of these changes over the next few years.

10.6 The report also details the financial impact of the overall Collection Fund deficit of £410,000. This is mainly owing to the impact of Rateable Value appeals determined by the Valuation Office Agency against the 2010 Rateable Value which they had set. These changes are backed dated to 2010/11 and the Authority bears 1% of the financial impact for 2013/14 to 2015/16. These details have only recently been received from the 4 authorities, following completion of statutory calculations by 31st January deadline. The report recommends that this amount is funded from a combination an increase in the Council Tax base and the establishment of a 2016/17 Occupancy Target of £364,000. The achievement of the 2016/17 Occupancy Target will be underwritten from the Un-earmarked General Fund Reserve.

10.7 The LGF settlement also confirms the Government’s intention to move to a system of ‘self-funding’ for Local Authorities, including Fire authorities, whereby Revenue Support Grant will be fully phased out and 100% of Business Rates income retained by Local Authorities. This increases financial risk and reliance on local resources. For the Fire Authority the most important local resource is Council Tax income which by 2019/20 will account for 43% of total resources, compared to 30% in 2010/11.

10.8 As Council Tax income will become increasingly important the Authority needs to maintain the real term value of this income. It is therefore recommended that for 2016/17 a Council Tax increase of 1.9% is implemented. Details of the impact on individual households are provided in paragraph 2.1.

IAN HAYTON CHRIS LITTLE CHIEF FIRE OFFICER TREASURER

MEDIUM TERM FINANCIAL STRATEGY 2016/17 - 2019/20 21

APPENDIX A

Mr C Little Treasurer Cleveland Fire Authority Endeavour House Stockton Road HARTLEPOOL TS25 5TB

When telephoning please ask for:

Mr C Little Tel: 01429 523003

E Mail: [email protected] www.clevelandfire.gov.uk

______

4 September 2015

The Correspondence and Enquiry Unit HM Treasury 1 Horse Guards Road London SW1 2 HQ

Department for Communities and Local Government 2 Marsham Street London SW1P 4DF

Dear Sir/Madam,

Spending Review 2015 – Submission from Cleveland Fire Authority

On behalf of Cleveland Fire Authority we welcome the opportunity to make representations in advance of the Spending Review 2015. We believe there are alternative approaches the Government can take in the Spending Review that would make a significant difference to Cleveland Fire Authority.

Before outlining these issues we think it is important to provide some background information and key financial information in relation to Cleveland Fire Authority, which reflects the diverse and probably unique nature of the area and the risks impacting on the delivery of fire and rescue services.

Cleveland Fire Authority – Background information  Provides fire and rescue services to an area covering 597 km2, population 558,300, and 247,600 dwellings;  High levels of deprivation – 38% (31) of the Authorities 82 wards fall within the worst 10% nationally

o 3rd most deprived Fire Authority in the country  Major production centre for chemical industry;  Nuclear power station;  Tees and Hartlepool ports – handle 50 million tonnes cargo per year – one of largest UK ports in terms of tonnage  33 ‘top tier’ CoMAH sites located in area – 12% of all national CoMAH sites (Control of Major Accidents and Hazards)

The high concentration of CoMAH sites within the Authorities area represents a significant and unique risk for the Authority. These sites and the associated number of road tanker movements on roads within the Authority’s area have a major impact on the resources (i.e. number of Fire Fighters and equipment) which the Authority needs to deploy to keep the local community safe. To put this into context one of the CoMAH sites contains hydrocarbon storage tanks that can hold in excess of 1,000,000 m3. That is more than 100 times the size of the tanks which exploded at Buncefield in 2005. Consequently, the Authority’s resource requirements are significant.

Key Financial Information

 Spending Power reductions - over the lifetime of the previous Parliament the Authority had to manage Spending Power Reductions which were significantly greater than the national average. Over the two financial years 2014/15 and 2015/16 the Spending Power for Cleveland was reduced by 9.44% - the joint highest out of 30 Combined and Metropolitan Fire authorities, where the average reduction was of 5.91%. Cleveland’s reduction was nearly three times the lowest Fire Authority Spending Power reduction of 3.4%.This situation means that Cleveland Fire Authority has had to make more significant changes to services than is the case in other areas, particularly Fire authorities with much lower Spending Power reductions.

 Proportion of Budget funded from Grant and Council Tax–Cleveland Fire Authority is only able to fund 35% of its budget from Council Tax, the joint lowest out of 30 Combined and Metropolitan Fire authorities where the average is 52%. This position reflects the greater levels of deprivation within the Cleveland area. The most affluent Fire and Rescue Authority funds 64% of its budget from Council Tax.

Appendix A provides details for Spending Power Reductions, and the proportion of Budget funded from Grand and Council Tax for all 30 Combined and Metropolitan Fire authorities.

Spending Review Proposals

We do not believe that allocating future funding cuts to the Fire Service on the basis of the existing (broken) funding system is tenable as this will adversely impact on Cleveland Fire Authority, and other Fire and Rescue Authorities serving more deprived communities. If this situation continues over the next four years this risks under-mining the national resilience of the Fire Service and the ability of individual Authorities to manage risk within their area and protect local communities.

Whilst, Cleveland Fire Authority has managed the funding cuts so far and accepts the Government will be making further cuts over the next four years we believe there are

alternative approaches the Government can take in the Spending Review that would make a significant difference. We would therefore request that the Government:

 Make a commitment to review the existing funding system for the Fire Service to provide a fair, needs based system of funding that recognises the different risks and demographic pressures on individual Authorities;

 Does not allocate future Government funding cuts on the current (broken) system;

 Recognises resource equalisation as a core principle of a fair funding system for the Fire Service, as the continued erosion since 2013/14 is unfair and one of the main causes of extra funding cuts to deprived areas with low Council Tax bases;

 Focus on the delivery of a fairer and more transparent approach to the allocation of funding across all Fire authorities that addresses the current disparities and disproportionate impacts. This could be achieved with an equal change in percentage spending power for all Fire authorities, such as a fixed amount per resident. This approach would be more sustainable over the lifetime of the current Parliament and avoid repeating the situation of the last two years where Cleveland Fire Authority has borne a Spending Power cut 60% higher than the national Fire average (i.e. 9.44% compared to an average of 5.91%) and nearly 3 times more than the lowest Fire Authority Spending Power reduction;

 Bring stability into the funding system by introducing multi-year revenue and capital settlements to enable Fire authorities to undertake proper financial planning;

 Exempt Fire authorities from Council Tax referendum arrangements. The rational for this proposal is that the Fire Authority element of Council Tax is very small, typically around 4% of the overall Council Tax bill. The costs of holding a referendum, compared to the additional Council Tax income, effectively cap Council Tax for Fire authorities. Furthermore, in many areas the Council Tax for Fire is significantly less than Council Tax for town and parish councils, which are currently outside the referendum arrangements, although the Authority understands the Government is reviewing this position;

 Alternatively, if Fire authorities are not exempted from Council Tax referendum arrangements, higher limits should be applied to Fire authorities and set for multiple financial years.

We hope the above suggestions are helpful and the Government is able to provide a fairer financial settlement for all Fire authorities for the next four years, which adequately recognises risks, particularly the specific risks facing Cleveland Fire Authority in relation the high concentration of CoMAH sites (i.e. 12% of national total).

Yours sincerely,

IAN HAYTON CHRIS LITTLE CHIEF FIRE OFFICER TREASURER

Table 1 – Spending Power cuts 2014/15 and 2015/16

10% 2014/2015 2015/2016 9% 8% 7% 6% 5% 4% 3% 2% 1%

Average

MerseysideFire

Kent FireAuthority

AvonFire Authority

West Midlands Fire

WestYorkshire Fire

Tyneand WearFire

EssexFire Authority

Dorset Authority Fire

NottinghamshireFire…

SouthYorkshire Fire

BuckinghamshireFire…

Durham Authority Fire

Wiltshire Authority Fire

Cheshire Authority Fire

Devon& Somerset Fire…

BerkshireFire Authority

ClevelandAuthority Fire Herefordand Worcester…

GreaterManchester Fire

HampshireFire Authority DerbyshireFire Authority ShropshireFire Authority

LancashireFire Authority

HumbersideFire Authority

EastSussex Fire Authority

Bedfordshire Bedfordshire Authority Fire Staffordshire Authority Fire

Leicestershire Fire Authority NorthYorkshire Fire Authority CambridgeshireFire Authority

Table 2 – 2015/16 Proportion of Budget funded from Grant and Council Tax

Grant % Council Tax % 100% 90% 80% 70% 60% 50% 40% 30% 20% 10%

Average

Merseyside Fire Merseyside

Kent Fire Authority Fire Kent

Avon Fire Authority Fire Avon

West Midlands Fire Midlands West

West Yorkshire Fire Yorkshire West

Tyne and Wear Fire Wear and Tyne

Essex Fire Authority Fire Essex

Dorset Fire Authority Fire Dorset

South Yorkshire Fire Yorkshire South

Durham Fire Authority Fire Durham

Wiltshire Fire Authority Fire Wiltshire

Cheshire Fire Authority Fire Cheshire

Devon & Somerset Fire… Somerset & Devon

Berkshire Fire Authority Fire Berkshire

Cleveland Fire Authority Fire Cleveland

Greater Manchester Fire Manchester Greater

Derbyshire Fire Authority Fire Derbyshire Hampshire Fire Authority Fire Hampshire

Shropshire AuthorityFire

Lancashire Fire Authority Fire Lancashire

Humberside Fire Authority Fire Humberside

East Sussex Fire Authority Fire Sussex East

Staffordshire Fire Authority Fire Staffordshire Authority Fire Bedfordshire

Leicestershire Fire Authority Fire Leicestershire

Hereford and Worcester Fire… Worcester and Hereford

North Yorkshire Fire Authority Fire Yorkshire North

Cambridgeshire Fire Authority Fire Cambridgeshire Nottinghamshire Fire Authority Fire Nottinghamshire Buckinghamshire Fire Authority Fire Buckinghamshire

APPENDIX B

COMPARISON OF GOVERNMENT GRANT CUTS 2016/17 TO 2019/20

45%

40%

35%

30%

25%

20%

15%

10%

…

Merseyside Fire Merseyside

Kent Fire Authority Fire Kent

Tyne and Wear Fire Wear and Tyne

West Midlands FireMidlands West

West Yorkshire Fire Yorkshire West

Avon Fire Authority Fire Avon

Essex Fire Authority Fire Essex

South Yorkshire Fire Yorkshire South

Durham Fire Authority Fire Durham

Cheshire Fire Authority Fire Cheshire

Berkshire Fire Authority Fire Berkshire

Cleveland Fire Authority Fire Cleveland

Greater Manchester Fire Manchester Greater

Lancashire Fire Authority Fire Lancashire

Shropshire Fire Authority Fire Shropshire

Hampshire Fire Authority Fire Hampshire

Derbyshire Fire Authority Fire Derbyshire

East Sussex Fire Authority Fire Sussex East

Humberside Fire Authority Fire Humberside

Bedfordshire Fire Authority Fire Bedfordshire

Staffordshire Fire Authority Fire Staffordshire

Leicestershire Fire Authority Fire Leicestershire

Hereford and Worcester Fire Fire Worcester and Hereford

Cambridgeshire Fire Authority Fire Cambridgeshire

North Yorkshire Fire Authority Fire Yorkshire North

Nottinghamshire Fire Authority Fire Nottinghamshire Buckinghamshire Fire Authority Fire Buckinghamshire Devon & Somerset Fire Authority Fire Somerset & Devon

SCHEDULE OF FORECAST RESERVES AT 31.03.16 AND PLANNED USE APPENDIX C

Planned Use of Reserves Balance Notes Balance at Contribution Forecast use Forecast 2016/17 2017/18 2018/19 2019/20 Future allocated 1/4/2015 from 2015/16 in 2015/16 Balance Years to manage Managed 31/03/16 ongoing under spend risks

£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Earmarked Capital Reserves Capital Investment Programme (a) 12,704 250 (2,691) 10,263 (8,147) (1,801) (65) (250) 0 0 Capital Receipts Reserve (a) 15 0 (15) 0 0 0 0 0 0 0 Earmarked General Fund Reserve Budget Support Fund 2015/16 (b) 155 0 (155) 0 0 0 0 0 0 0 CIRMP 2017/18 and 2018/19 Implentation Reserve (c) 1,022 0 1,022 0 (764) (258) 0 0 0 Earmarked Revenue Reserves Insurance Fund (d) 200 0 0 200 0 0 0 0 0 200 Breathing Apparatus (e) 125 0 0 125 (125) 0 0 0 0 0 Innovation Fund (f) 394 172 0 566 (140) (140) (140) (146) 0 0 Organisational implementation/transitional costs (g) 750 0 750 (250) (250) (250) 0 0 Capital Phasing Reserve (h) 300 0 0 300 0 0 0 0 (300) 0 Commissioned Services (i) 200 0 0 200 0 0 0 0 0 200 Staff Training and Development (j) 0 100 0 100 (50) (50) 0 0 0 0 Total Earmarked Reserves - Other 1,969 272 0 2,241 (315) (440) (390) (396) (300) 400 Total Earmarked Reserves 14,843 1,544 (2,861) 13,526 (8,462) (3,005) (713) (646) (300) 400

Unearmarked Reserves General Fund Balance (k) 1,646 121 (218) 1,549 0 0 0 0 0 1,549 Total Unearmarked General Fund 1,646 121 (218) 1,549 0 0 0 0 0 1,549

Total All Reserves 16,489 1,665 (3,079) 15,075 (8,462) (3,005) (713) (646) (300) 1,949

(a) Capital Investment Programme Reserve and Capital Receipts Reserve- are earmarked to partly fund the Authority's Asset Management Plan which is designed to address operational requirements covering building and operational fire fighting and rescue vehicles. These resources will be used over a number of years to reflect the phasing of the Asset Management Plan.

(b) Budget Support Fund 2015/16 - is earmarked to support the MTFS in 2015/16 and was funded from prior years managed budget under spends.

(c) CIRMP 2017/18 and 2018/19 Implementation Reserve - is earmarked to support the MTFS in 2017/18 and 2018/19. This reserve was funded from 2015/16 managed budget under spend. (d) Insurance Fund - is earmarked to fund payments that fall within the Authority's insurance policy excesses. As the timing of insurance claims/settlement is unknown no usage if shown. However, as this reserve is committed it will need to be topped back up to ensure funds are available for future insurance claims.

(e) Breathing Apparatus Reserve -is earmarked to fund the replacement of breathing apparatus in line with the replacement programme included in the Asset Management Plan.

(f) Innovation Fund - is earmarked to fund domestic smoke alarms.

(g) Organisational Implementation/transitional costs Reserve - is earmarked to fund one-off redundancy/early retirement costs arising as a result of continuing funding reductions. The Authority will seek to avoid compulsory redundancy and early retirement situations where this can be achieved.

(h) Capital Phasing Reserve - is earmarked to smooth the interest and loan repayment costs which are charged to the annual budget. The reserve recognises that the annual charges, which arise from the use of Prudential Borrowing to fund part of the approved Asset Management Plan, are uneven and therefore avoids temporary increases/decreases in the annual charge to the revenue budget. Owing to the phasing of the Asset Management Plan no use will be made over the period 2016/17 to 2018/19. Commitments against this reserve will begin in 2021/22 and then continue in future years.

(i) Commissioned Serves Reserve - is earmarked to manage income volatility and to provide a longer lead time to manage temporary income reductions.

(j) Staff Training and Development reserve - is earmarked to address ongoing training requirements to ensure operational staff have the required skills to deliver safe and effective fire and rescue services reflecting the Bridages operational environment.

(j) General Fund Balance - details of the risks this reserve is earmarked to manage are provided in Appendix D.

APPENDIX D Unearmarked General Fund Balance - Summary of Budget Risks

Budget Risk Value Risk Minimum Reserves

Fire-fighter’s Pensions The CFA is required to meet the cost of Ill Health retirements. A prudent estimate of these Average cost of £170,000 costs has been provided within the base budget. Ill Health Whilst the Authority has significant experience of managing Ill Health retirements within retirements is the base budget over a sustained period, there is still a potential risk that actual costs £85,000. exceed the base budget. This reserve equates to the cost of two additional average Ill Health retirements over the base budget and provides resources to manage one-off variances in the number of Ill Health retirements.

Council Tax Capping The MTFS is based on the annual Council Tax referendum threshold remaining at 2%. It £100,000 per £300,000 would be prudent to retain adequate reserves to deal with the annual referendum 1% threshold being reduced to 1% in each of the three years, commencing 2017/18. This change in reserve would then provide a longer lead time to identify further savings to bring Council expenditure back to a sustainable level. Tax.

Future Grant Settlement The Government has provided indicative funding allocations for 2017/18 to 2019/20 and 1% Government £240,000 indicated the circumstances which would result in these allocations being reviewed. As funding the global economic outlook remains uncertain and the UK will be impacted if the global reduction from economy deteriorates over the next 3 to 4 years it would be prudent for the CFA to retain 2017/18 adequate reserves to deal with a further reduction in grant over this period. This will give equates to the Authority some financial flexibility if it is necessary to reduce budgets by more than £80,000 per forecast in 2017/18 to 2019/20 and to phase these reductions over a slightly longer annum. period.

Pay Increases The annual budget provides for a 1% increase in pay for 2016/17 to 2019/20. It would be 1% additional £250,000 prudent, in view of pay restraint reducing wages in real terms over the six years up to and pay increase including 2015/16, to make provision in the minimum reserves for the impact of a potential equates to increase in the pay bill of 1% over the period 2016/17 to 2019/20. around £250,000

Business Rate income shortfall Following changes to the Local Government Funding system introduced in April 2013 the £589,000 Fire Authority receives 1% of the Business Rates collected in the area and bears a share of the financial risk if there is a reduction in the amount collected below the ‘Safety Net’ threshold. The maximum annual financial risk is £0.638m. Shortfalls above this amount are covered by Government ‘Safety Net’ grant.

In addition, the Government have indicated that further reforms of the Local Government Funding system will be implemented which will increase the proportion of Business Rates retained by the sector to 100%. The impact on the Fire Authority is not yet known. However, if the Fire Services share of Business Rates income increases from 1% to 2%, the financial risk to individual organisation may double. It is therefore prudent to retain a reserve to manage these financial risks. Forecast Balance at 31.03.16 £1,549,000

APPENDIX E

FIRE BRIGADE BEST VALUE BUDGET 2016/2017 - BEST VALUE FORMAT

Staff Budget Staff Budget F.T.E. 2015/16 F.T.E. 2016/17 £ £ COMMUNITY FIRE SAFETY 11.00 483,330 INSPECTION (STATUTORY WORK/ENFORCEMENT) 11.00 496,870 6.00 410,970 PREVENTION & EDUCATION 6.00 368,830 1,765,550 PREVENTION & EDUCATION - NOTIONAL STNS SPLIT 981,670 4.00 228,580 ARSON TASK FORCE 4.00 235,490 4.00 112,400 ADVOCATES 4.00 114,700 9.00 262,080 HOME FIRE SAFETY 9.00 269,220 7.00 30,340 YOUTH ENGAGEMENT 7.00 92,190 1.00 27,840 LEARN AND LIVE 1.00 28,700 42.00 3,321,090 TOTAL COMMUNITY FIRE SAFETY 42.00 2,587,670

FIREFIGHTING & RESCUE OPERATIONS 8.00 552,760 DISTRICT/LOCALITY MANAGEMENT 8.00 601,520 228,780 OPERATIONAL EQUIPMENT 233,780 53.46 1,847,370 MIDDLESBROUGH FIRE STATION 45.87 1,944,760 73.54 2,073,850 STOCKTON FIRE STATION 73.54 2,241,250 45.54 1,698,400 GRANGETOWN FIRE STATION 45.54 1,811,630 45.54 1,723,120 REDCAR FIRE STATION 45.54 1,851,150 44.54 1,697,040 THORNABY FIRE STATION 44.54 1,813,700 20.41 801,330 MARINE FIRE STATION 0.00 82,180 28.43 1,089,940 BILLINGHAM FIRE STATION 28.43 1,185,010 36.00 1,389,500 COULBY NEWHAM FIRE STATION 36.00 1,484,340 53.54 2,023,860 STRANTON FIRE STATION 53.54 1,996,850 12.00 142,390 HEADLAND RETAINED FIRE STATION 12.00 134,690 12.00 134,780 YARM RETAINED FIRE STATION 12.00 140,030 12.25 221,160 GUISBOROUGH RETAINED FIRE STATION 12.25 246,360 12.25 181,520 SALTBURN RETAINED FIRE STATION 12.25 190,900 12.25 190,510 SKELTON RETAINED FIRE STATION 12.25 198,270 12.25 182,170 LOFTUS RETAINED FIRE STATION 12.25 231,210

20.00 1,135,930 MOBILISATION & COMMUNICATION 20.00 1,179,050 (EX SUPPORT COSTS)

3.00 138,940 WATER 3.00 141,580

505.00 17,453,350 TOTAL FIREFIGHTING AND RESCUE 477.00 17,708,260

MANAGEMENT & SUPPORT SERVICES 410,710 HEADQUARTERS AND CENTRAL SUPPORT 406,560 838,100 CAPITAL FINANCING COSTS 838,100 3.00 140,710 BUSINESS DEVELOPMENT 3.00 144,410 267,700 INSURANCES 262,000 8.00 543,150 ICT 8.00 585,460 6.00 855,880 CFA MANAGEMENT & SECRETARIAT 6.00 898,060 5.00 383,790 FINANCE/PAYROLL 5.00 392,220 6.15 260,470 CORPORATE SUPPORT SERVICES 6.15 258,570 6.58 351,000 HUMAN RESOURCES 6.58 351,570 145,000 OCCUPATIONAL HEALTH 145,000 (113,730) SECONDMENTS (123,620) 15.00 1,242,250 LEARNING AND DEVELOPMENT 15.00 1,208,750 190,000 PENSIONS INJURY AWARDS 190,000 6.50 244,560 RISK AND PERFORMANCE 6.50 248,500 33,000 LEGAL SERVICES 33,000 5.50 279,230 HEALTH & SAFETY/OPS ASSURANCE 5.50 269,700 5.00 144,610 LOGISTICS/STORES 5.00 148,830 3.50 119,760 PROCUREMENT 3.50 123,280 3.00 108,260 PROPERTY SERVICES 3.00 111,630 6.00 498,590 TRANSPORT MAINTENANCE 6.00 524,590 1.00 25,070 EMERGENCY PLANNING 1.00 28,200 (75,200) NEW DIMENSION/CBRN (75,110) 80.23 6,892,910 TOTAL MANAGEMENT & SUPPORT SERVICES 80.23 6,969,700

FIREFIGHTERS PENSIONS 10,987,380 ONGOING PENSION PAYMENTS 11,201,550 1,806,400 LUMP SUM PAYMENTS 1,602,930 (8,798,110) PENSION DEFICIT GRANT (9,197,090) (70,000) TRANSFER VALUES/ILL HEALTH CHARGES (260,000) (3,925,670) PENSION CONTRIBUTIONS (3,347,390) 0.00 0 TOTAL PENSIONS 0.00 0

3.00 229,650 CORPORATE EXPENSES 3.00 201,370 3.00 229,650 TOTAL CORPORATE EXPENSES 3.00 201,370

630.23 27,897,000 NET BUDGET REQUIREMENT FOR SERVICES 602.23 27,467,000 APPENDIX F CAPITAL PROGRAMME - SCHEMES TO START 2016/17

Funding GL/Project Financed Estimate Prudential Reserves Total Item Ref Description Code Over 2016/2017 Borrowing Years £ £ £ £ 004120000/ Guisborough Fire 1 15 179,153 179,153 179,153 0001 Station 004080000/ 2 Stranton Fire Station 20 796,514 796,514 796,514 0001 004160000/0 Queens Meadow 40 3,955,607 3,955,607 3,955,607 3 001 Complex 004150000/ 4 Loftus Fire Station 20 99,332 99,332 99,332 0001 004030000/ Grangetown Fire 5 40 1,685,000 1,685,000 1,685,000 0001 Station 004050000/ Thornaby 40 1,584,430 1,584,430 1,584,430 6 0001 004201009/ Breathing Apparatus 7 15 125,000 125,000 125,000 0003 Telemetry 004210000/ 4 Water Tenders 8 15 420,000 420,000 420,000 0004 stage 2 004210000/ 4x4 Water Rescue 9 15 75,000 75,000 75,000 0004 Unit 004220000/ 10 4x4 Specialist Vehicle 12 70,000 70,000 70,000 0004 004600000/ Structured Cabling, 11 5 35,000 35,000 35,000 0003 VOIP, Infrastructure

TOTAL SCHEMES TO START 2016/17 9,025,036 878,485 8,146,551 9,025,036

CAPITAL PROGRAMME - SCHEMES TO START 2017/18

Funding GL/Project Financed Estimate Prudential Reserves Total Item Ref Description Code Over 2017/2018 Borrowing Years £ £ £ £ 004160000/0 Queens Meadow 40 1,000,000 1,000,000 1,000,000 1 001 Complex 004030000/0 40 1,250,000 449,219 800,781 1,250,000 2 001 Grangetown Fire Station 004050000/0 40 1,050,000 1,050,000 1,050,000 3 001 Thornaby Fire Station 004210000/ 4 3 Water Tenders 15 630,000 630,000 630,000 0004 004720000/ 5 MDT Fixed 5 148,000 148,000 148,000 0003

TOTAL SCHEMES TO START 2017/18 4,078,000 2,277,219 1,800,781 4,078,000 CAPITAL PROGRAMME - SCHEMES TO START 2018/19

Funding GL/Project Financed Estimate Prudential Reserves Total Item Ref Description Code Over 2018/2019 Borrowing Years £ £ £ £ 004020000/ 1 Stockton Fire Station 20 495,667 495,667 495,667 0001 004220000/ 2 Outboard Engine 5 7,000 7,000 7,000 0004 004220000/ 7 Departmental 3 9 77,680 77,680 77,680 0004 Vehicles 004760000/ Fireground Radios/BA 4 3 66,000 66,000 66,000 0003 Comms

TOTAL SCHEMES TO START 2018/19 646,347 580,347 66,000 646,347 APPENDIX G

2016/17 COUNCIL TAX RESOLUTION FOR 1.9% INCREASE

The Authority is recommended to approve as follows:

1. For the purpose of Section 42 A, B of the Local Government Finance Act 1992, the following amounts in respect of 2016/17:

(a) The Council Tax Base for 2016/17 as 146,724.4 as notified by the relevant billing authorities.

2. That the Council Tax requirement for the Authority’s own purposes for 2016/17 is £10,520,175.

3. That the following amounts be calculated by the Authority for 2016/17 in accordance with Sections 42 to 48 of the Local Government Finance Act 1992 and relevant regulations:-

(a) £26,299,810 Being the aggregate of the amounts which the Authority estimates for the items set out in Section 42 to 48 of the Local Government Finance Act 1992 and relevant regulations.

(b) £15,779,635 Being the aggregate of the sums which the Authority estimate will be payable to it in respect of Revenue Support Grant £7,720,000, Top Up Grant of £6,490,000 and Business Rates income of £1,919,863, and the estimate to be paid to the Collection Funds of the billing authorities of £350,228 as at 31st March 2016, in accordance with Section 99 (3) (b) of the Local Government Finance Act 1988 and the Local Government Charges for England (Collection Fund Surpluses and Deficits) Regulations 1995 amended.

(c) £10,520,175 Being the amount by which the aggregate at 3(a) above exceeds the aggregate at 3(b) above, calculated by the Authority in accordance with Section 42B (1) (2) of the Act as its Council Tax requirement for the year.

(d) £71.70 Being the amount calculated by the Authority in accordance with Section 44 of the Local Government Finance Act 1992, as the basic amount of Council Tax for the year.

4. That the Authority, in accordance with Section 47 of the Local Government Finance Act 1992, hereby sets the aggregate amounts shown in the tables below as the amounts of Council Tax for 2016/17 for each of the categories of dwellings: Property Band Council Tax (£) A 47.80 B 55.77 C 63.73 D 71.70 E 87.63 F 103.57 G 119.50 H 143.40

5. The precept payable by each billing authority in accordance with Section 48 of the 1992 Act, as follows:-

Billing Authority £ Hartlepool 1,668,152 Middlesbrough 2,306,517 Redcar and Cleveland 2,716,333 Stockton 3,829,173

6. Approve that the Authority’s basic amount of Council Tax for 2016/17 is not excessive in accordance with the principles approved under section 52ZB Local Government Finance Act 1992 and that no local referendum will be carried out in relation to Chapter 4ZA of the Local Government Finance Act 1992.

AGENDA ITEM 8.1 CLEVELAND FIRE AUTHORITY 12 FEBRUARY 2016

TREASURY MANAGEMENT STRATEGY 2016/17

REPORT OF THE TREASURER __ For Approval

1. PURPOSE OF REPORT

1.1 To enable the Fire Authority to approve the recommended Treasury Management Strategy for 2016/17.

2. RECOMMENDATIONS

It is recommended that Members note the report and the recommendation from Audit and Governance Committee to approve the following detailed recommendations for the 2016/17 Treasury Management Strategy and related issues:

i) Investment Strategy

a. Approve the use of Government Treasury Bills/Gilts and the appointment of King and Shaxson as custodian. b. Approve the addition of Svenska Handelsbanken to the counterparty list with a limit of £1m and time limit of three months. c. Approve the Counterparty limits as set out in Appendix 1 paragraph 9.8.

ii) Minimum Revenue Provision (MRP) Statement

Recommend to the Authority the approval of the MRP statement outlined in Appendix 1 paragraph 10.2.

iii) Prudential Indicators 2016/17 Approve the prudential indicators detailed in Appendix 2.

3. SUMMARY OF ISSUES

3.1 The Local Government Act 2003 requires the Fire Authority to ‘have regard to’ the CIPFA Prudential Code and to set prudential indicators for the next three years to ensure that the Authority’s capital investment plans are affordable, prudent and sustainable.

3.2 The Act therefore requires the Authority to determine a Treasury Management Strategy for borrowing and to prepare an Annual Investment Strategy, which sets out the Authority’s policies for managing investments and for giving priority to the security and liquidity of those investments. The Secretary of State issued Guidance on Local Government Investments which came into force on 1st April, 2004. This

Page 1

CLEVELAND FIRE AUTHORITY 12 FEBRUARY 2016 Date XXX 2011

guidance recommends that all Authorities produce an Annual Investment Strategy that is approved by full Fire Authority, which is also included in this report.

3.3 The Authority is required to nominate a body to be responsible for ensuring effective scrutiny of the Treasury Management Strategy and policies, before making recommendations to the Fire Authority. This responsibility has been allocated to the Audit and Governance Committee.

3.4 The recommended Treasury Management Strategy was considered by the Audit and Governance Committee on the 13th November 2015 and this report is attached as Appendix 1.

3.5 The Audit and Governance Committee carefully scrutinised the proposed Treasury Management strategy and approved that the recommended strategy be referred to full Fire Authority.

3.6 At the time of the Audit and Governance Committee it was not possible to calculate supporting Prudential Indicators as this is reliant on Government Capital and Revenue Allocations which had not been issued. However, as the Treasury Management Strategy outlines the key principles covering the operation of the Authority’s borrowing and investment strategy the unavailability of this information did not prevent the Audit and Governance Committee from considering and scrutinising the proposed strategy.

3.7 Prudential indicators and other regulatory information have now been completed and are attached as Appendix 2 and cover the following:

 Prudential Indicators;  Capital Expenditure and Financing Requirement;  Affordability Prudential Indicators;  Borrowing Prudential Indicators;  Investment Prudential Indicators and Other Limits on Treasury Activity.

CHRIS LITTLE TREASURER TO THE AUTHORITY

TREASURY MANAGEMENT STRATEGY 2016/17 Page 2 APPENDIX 1 AUDIT & GOVERNANCE COMMITTEE 13 NOVEMBER 2015

TREASURY MANAGEMENT STRATEGY 2016/17

__ REPORT OF THE TREASURER For Recommendation

1. PURPOSE OF REPORT

1.1 The purpose of the report is to enable the Audit and Governance Committee to scrutinise the recommended 2016/17 Treasury Management Strategy before it is referred to the full Fire Authority for approval.

2. RECOMMENDATIONS

It is recommended that Members consider the recommended 2016/17 Treasury Strategy and note that if Members are content the following recommendations will be referred to the full Fire Authority for approval:

i) Note the 2014/15 Treasury Management outturn detailed in section 5 and Appendix A.

ii) Note the 2015/16 Treasury Management mid-year position detailed in section 6 and approve the revised Operational Borrowing Limit of £7.5m.

iii) Note that detailed prudential indicators for 2016/17 and future years will be reported to full Fire Authority in February 2016.

iv) Investment Strategy 2016/17 a. Approve the use of Government Treasury Bills/Gilts and the appointment of King and Shaxson as custodian. b. Approve the addition of Svenska Handelsbanken to the counterparty list with a limit of £1m and time limit of three months. c. Approve the Counterparty limits as set out in paragraph 9.8.

v) Minimum Revenue Provision (MRP) Statement Recommend to the Authority the approval of the MRP statement outlined in paragraph 10.2.

3. BACKGROUND

3.1 The Treasury Management Strategy covers:  The strategy for the Authority’s borrowing requirement arising from historic capital expenditure and the element of the approved Asset Management Plan funded from Prudential borrowing; and  The annual investment strategy relating to the Authority’s cash flow.

Page 1

AUDIT & GOVERNANCE COMMITTEE 13 NOVEMBER 2015 Date XXX 2011

3.2 The Local Government Act 2003 requires the Authority to ‘have regard to’ the CIPFA (Chartered Institute of Public Finance and Accountancy) Prudential Code and to set prudential indicators for the next three years to ensure that the Authority’s capital investment plans are affordable, prudent and sustainable.

3.3 The Act therefore requires the Authority to set out a Treasury Management Strategy for borrowing and to prepare an Annual Investment Strategy, which sets out the policies for managing investments and for giving priority to the security and liquidity of those investments. The Secretary of State has issued Guidance on Local Government Investments which came into force on 1st April, 2004. This guidance recommends that all Local Authorities produce an Annual Investment Strategy that is approved by the Authority.

3.4 The Authority is required to nominate a body to be responsible for ensuring effective scrutiny of the Treasury Management Strategy and policies, before making recommendations to the full Authority. This responsibility has been allocated to the Audit and Governance Committee.

3.5 This report covers the following areas:

 Economic background and outlook for interest rates  Treasury management outturn position for 2014/15  Treasury Management Strategy 2015/16 mid-year review  Treasury Management Strategy 2016/17  Minimum Revenue Provision and Interest Cost and Other Regulatory Information 2016/17

4. ECONOMIC BACKGROUND AND OUTLOOK FOR INTEREST RATES

4.1 At the time the 2015/16 Treasury Management Strategy was proposed most economists anticipated that interest rates in the USA and the UK would begin to increase during 2015. This position reflected underlying economic conditions and statements from both the Federal Reserve and the Bank of England.

4.2 Members will recall from previous years that the Chairman of the Bank of England issued ‘forward guidance’ and set a number of tests for determining the time of interest rate increases. However, ‘forward guidance’ has been overtaken by world economic events and changes in the pattern of UK economic indicators. For example, initial forward guidance stated that the Bank rate of 0.5% would be reconsidered when unemployment reduced to 7%. This was almost immediately revoked and although unemployment has fallen to 5.4% the Bank rate has not changed. Guidance has since become much more fluid and not based on exact targets, but aims to influence ongoing market and consumer activity.

4.3 As a result of these changes most economists are now forecasting that the Bank rate increase will be delayed further. The timing of interest rate increases will need careful management by central banks as there is a risk that higher rates may be required if rate increases are delayed too long. The following paragraphs provide more detailed information.

TREASURY MANAGEMENT STRATEGY 2016/17 Page 2

AUDIT & GOVERNANCE COMMITTEE 13 NOVEMBER 2015 Date XXX 2011

4.4 The Global Economy

4.5 U.S.A. economy – Following slow growth in the first quarter of 2015 the US economy rebounded very strongly in quarter two and strong growth was forecast to continue. This led to the expectation that the Federal Reserve might raise interest rates by September 2015. However, owing to the slowdown in Chinese growth the decision was taken not to increase rates. Following further disappointing economic data, expectations of the first rate rise in USA interest rates have now been pushed back from 2015 to 2016.

4.6 Eurozone economy – In an effort to stimulate the Eurozone economy the European Central Bank (ECB) initiated a €1.1 trillion quantitative easing (QE) programme in January 2015, buying up high quality government debt of selected Eurozone countries. This programme is expected to run until September 2016 and already appears to have had a beneficial impact in improving confidence and sentiment. European growth has increased marginally (0.4% in the first and second quarters of 2015). The ECB has also stated that it would extend its QE programme if inflation failed to return to the target of 2% by September 2016.

4.7 During July 2015 Greece agreed to implement further austerity and is now fully cooperating with EU demands and a third bailout package has since been agreed. A surprise general election in September gave the Syriza Government a mandate to stay in power to implement austerity measures. However there are major doubts as to whether the size of the cuts and the degree of reforms required can be fully implemented. Therefore a Greek exit from the Euro may only have been delayed by this latest bailout.

4.8 China – Government action in 2014 to stimulate the economy did not work as well as expected. The Chinese Government has continued to be very active in 2015 in implementing stimulus measures to try to ensure the economy hits the growth target of 7% for 2015 and to bring some stability after the major fall in the Chinese stock market in August 2015. Many commentators are concerned that recent growth figures have been “massaged” to hide a downturn to a lower growth figure. There are also major concerns as to the creditworthiness of Chinese bank lending and the sustainability of house prices. Overall the Chinese economy is still expected to achieve growth that is much stronger than the EU. However confidence in the Chinese economy remains fragile and lower growth is having a negative impact on the world economy.

4.9 The UK Economy

4.10 The economy grew in 2013 by 2.2% and in 2014 by 2.9%. The 2014 growth rate was the strongest UK rate since 2006. It is possible that the UK growth rate for 2015 will again lead the G7 (i.e. seven largest economies) and equal that of the US. However the first quarter was weak at 0.4% with the second quarter being slightly better at 0.7%. The Bank of England’s August Inflation Report included a forecast for growth to remain around 2.4% to 2.8% over the next three years. However subsequent economic data has indicated a likely slowdown in the overall rate of GDP growth. This reflects the appreciation of Sterling against the Euro and weak growth in the EU, China and emerging markets which has caused difficulties for UK

TREASURY MANAGEMENT STRATEGY 2016/17 Page 3

AUDIT & GOVERNANCE COMMITTEE 13 NOVEMBER 2015 Date XXX 2011

exporters. Falls in business and consumer confidence in September owing to concerns over the economic outlook could also contribute to dampening growth through weakening investment and consumer expenditure. For the recovery to become more balanced and sustainable in the longer term, dependence on consumer expenditure and the housing market must reduce and move to manufacturing and investment expenditure. Economic growth since 2012 has resulted in unemployment falling over the last few years although part of this increase has been reversed.

4.11 In August the Bank of England forecast that inflation would barely get to the 2% target within the next 2-3 years. However, with the price of oil again reducing there could be several more months of low inflation, especially as world commodity prices have generally been depressed by the Chinese economic downturn.

4.12 Therefore there are considerable risks around whether inflation will rise in the near future as strongly as had previously been expected. This will make it more difficult for central banks in the UK and USA to raise rates as soon as previously forecast. The recent major concerns around the slowdown in Chinese growth, falling oil and commodity prices and volatility in equity and bond markets may delay interest rate increases. On the other hand, there are also concerns around the fact that the central banks of the UK and USA have few monetary policy options left to them, given that central rates are near to zero and huge Quantitative Easing is already in place. There are therefore arguments that they will need to raise rates sooner rather than later. However, they are unlikely to raise interest rates until they are sure that growth is securely embedded and zero/negative inflation is not a significant economic threat.

4.13 The forecast for the first increase in Bank Rate has therefore progressively been pushed back from quarter four 2015 to quarter two 2016. Increases after that are likely to be slower paced and to a lower levels than prevailed before 2008, as increases in the Bank Rate will have a much bigger effect on heavily indebted businesses and households than they did before 2008.

4.14 Interest Rate Forecasts

4.15 As indicated above forecasting future interest rates remains extremely challenging as the Base Rate has remained unchanged for significantly longer than most economists initially forecast. Capita Asset Services (the Authority’s Treasury Management advisors) continue to update their forecasts to reflect statements by the Governor of the Bank of England and changes in the economy. The latest forecasts up to June 2018 are provided in the following graph.

TREASURY MANAGEMENT STRATEGY 2016/17 Page 4

AUDIT & GOVERNANCE COMMITTEE 13 NOVEMBER 2015 Date XXX 2011

Interest Rate Forecast up to June 2018

5. TREASURY MANAGEMENT OUTTURN POSITION 2014/15

5.1 Capital Expenditure and Financing 2014/15

5.2 The Authority’s approved capital programme was funded from a combination of capital grants, revenue contributions and prudential borrowing.

5.3 Part of the Authority’s treasury management strategy is to address the prudential borrowing need, either through borrowing from external bodies, or utilising temporary cash resources within the Authority. The wider treasury activity also includes managing the Authority’s day to day cash flows, its previous borrowing activities and the investment of surplus funds. These activities are structured to manage risk foremost, and then optimise performance.

5.4 Actual capital expenditure forms one of the required prudential indicators. As shown at Appendix A, the total amount of capital expenditure for the year was £5.656m, of which £0.520m was funded by prudential borrowing. The balance was funded by a mix of Capital Receipts, Government Grants and planned revenue contributions.

5.5 The Authority’s underlying need to borrow is called the Capital Financing Requirement (CFR). This figure is the accumulated value of capital expenditure which has been financed from Prudential Borrowing. Each year the Authority is required to apply revenue resources to reduce this outstanding balance.

TREASURY MANAGEMENT STRATEGY 2016/17 Page 5

AUDIT & GOVERNANCE COMMITTEE 13 NOVEMBER 2015 Date XXX 2011

5.6 Whilst the Authority’s CFR sets a limit on underlying need to borrow, the Authority can manage the actual borrowing position by either:

 borrowing externally to the level of the CFR; or  choosing to use temporary internal cash flow funds instead of borrowing; or  a combination of the two.

5.7 The Authority’s CFR for the year was £4.535m as shown at Appendix A.

5.8 The Authority can also borrow for future planned increases in the CFR up to 3 years in advance, when this is deemed to be appropriate. In line with the approved Treasury Management Strategy a decision was made to lock out borrowing to cover the forecast borrowing requirement up to and including 2016-17. In December 2014 long term (40 year) PWLB rates fell below 3.5%, their lowest level since 1994 (the earliest date for available PWLB data). Interest rate forecasts indicated a rate rise in late 2015 so a watching brief was kept on rates as the exceptionally low rates available were a good opportunity to secure the business case for the Asset Management Plan at the lowest possible cost.

5.9 In late January 2015 rates fell below 3%. A decision was initially taken to lock out £1.5m borrowing to address existing under-borrowing as rates fell to 2.94%, followed by a further £1.5m a few days later as rates rose to 2.97% to secure the forecast borrowing requirement for 2014-15 and 2015-16. Rates continued to be monitored and as an upward trend developed a final tranche of borrowing of £2m at 3.3% secured the forecast borrowing for 2016-17. Since this borrowing was undertaken long term interest rates have remained above 3.0% and are forecast to increase over the next three years.

5.10 In total £5m has been borrowed at an average rate of 3.04%. The following graph shows long term PWLB rates from 1994 to present and includes the average rate for that period (approximately 5.3%), the current forecast rates and timing of borrowing undertaken outlined above.

TREASURY MANAGEMENT STRATEGY 2016/17 Page 6

AUDIT & GOVERNANCE COMMITTEE 13 NOVEMBER 2015 Date XXX 2011

Interest Rates for 40 Year PWLB Loans 1994 to 2015 and Forecast to 2018 9.5 9 8.5 8 7.5 7 6.5 6 5.5 5 4.5 4 3.5 1st tranche of borrowing £1.5m at 2.94%, 2nd £1.5m at 2.97% 3 & 3rd £2m at 3.3% 2.5 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 40 Year PWLB Rates Forecast40 Year PWLB Rates Average 40 Year PWLB rate 1994 to 2014

5.11 The Authority’s total long term external borrowing as at 31st March, 2015 was £7.3m, which funds the CFR up to 2016/17.

5.12 Prudential Indicators and Compliance Issues 2014/2015

5.13 Details of each Prudential Indicator are shown at Appendix A. Some of the prudential indicators provide either an overview or specific limits on treasury activity. The key Prudential Indicators to report at outturn are described below.

5.14 The Authorised Limit is the “Affordable Borrowing Limit” required by Section 3 of the Local Government Act 2003. The Authority does not have the power to borrow above this level. Appendix A demonstrates that during 2014/2015 the Authority has maintained gross borrowing within the Authorised Limit.

5.15 The Operational Limit is set below the Authorised Limit to provide an early warning sign that the level of borrowing is approaching the Authorised Limit and may potentially require management intervention. The Operation Limit for 2014/15 was set on the basis that the Authority was continuing to net down investments/borrowings in the short term and therefore not expected to undertake new long term borrowing in 2014/15. However, as highlighted in the graph detailed in paragraph 5.10 long term interest rates continued to reduce during the final months of 2014/15 to historically low levels. This position and the future outlook for interest rates was monitored extremely closely, almost on a daily basis, and the decision taken to lock out long term borrowing to fund the Asset Management Plan borrowing requirements for the next three years. Whilst this borrowing was within

TREASURY MANAGEMENT STRATEGY 2016/17 Page 7

AUDIT & GOVERNANCE COMMITTEE 13 NOVEMBER 2015 Date XXX 2011

the Authorised Limit the Operation Limit was exceeded. This position reflected the decision taken to borrow earlier than anticipated to secure historically low fixed interest for the next 40 years and therefore does not require any corrective action to be taken by the Authority. The Operational Limit will be increased in 2015/16 to be more closely aligned with the Authorised Limit and will be set at £7.5m.

5.16 Net Borrowing and the CFR - In order to ensure that borrowing levels are prudent the Authority’s external borrowing, net of investments, must only be for a capital purpose. The Authority has complied with this Prudential Indicator.

5.17 The treasury position 31st March 2015

5.18 The table below shows the treasury position for the Authority as at the 31st March, 2015 compared with the previous year:

Treasury position 31st March 2014 31st March 2015

Principal Average Rate Principal Average Rate

Fixed Interest Rate Debt

- PWLB Nil N/A £5.3m 3.04%

- Market Loans (LOBOs) £2.0m 3.95% £2.0m 3.95%

Total Long Term Debt £2.0m 3.95% £7.3m 3.29%

Total Investments £16.0m 0.36% £19.7m 0.40%

Net Investment Position £14.0m £12.4m

5.19 A key performance indicator shown in the above table is the exceptionally low average rate of external debt of 3.29% for debt held as at 31st March, 2015, compared to historic PWLB rates.

5.20 The Authority’s investment policy is governed by Department of Communities and Local Government (DCLG) guidance, which has been implemented in the annual investment strategy approved by Authority on 14th February, 2014.

5.21 The Authority does not rely solely on credit ratings and takes a more pragmatic and broad based view of the factors that impact on counterparty risk. As part of the approach to maximising investment security the Authority has also kept investment periods short (i.e. in most cases up to 3 months but a maximum of 6 months). The downside of this prudent approach is that the Authority achieved slightly lower investment returns than would have been possible if investments were placed with organisations with a lesser financial standing and for longer investment periods. However, during 2014/15 the risk associated with these higher returns would not have been prudent.

5.22 A prudent approach will continue to be adopted in order to safeguard the Authority’s resources, although some changes are recommended later in the report.

TREASURY MANAGEMENT STRATEGY 2016/17 Page 8

AUDIT & GOVERNANCE COMMITTEE 13 NOVEMBER 2015 Date XXX 2011

5.23 Regulatory Framework, Risk and Performance 2014/15

5.24 The Authority’s treasury management activities are regulated by a variety of professional codes, statutes and guidance:

 The Local Government Act 2003 (the Act), which provides the powers to borrow and invest as well as providing controls and limits on this activity;  The Act permits the Secretary of State to set limits either on the Authority or nationally on all local authorities restricting the amount of borrowing which may be undertaken (although no restrictions have been made since this power was introduced);  Statutory Instrument (SI) 3146 2003, as amended, develops the controls and powers within the Act, and requires the Authority to undertake any borrowing activity with regard to the CIPFA Prudential Code for Capital Finance in Local Authorities;  The SI also requires the Authority to operate the overall treasury function with regard to the CIPFA Code of Practice for Treasury Management in the Public Services;  Under the Act the DCLG has issued Investment Guidance to structure and regulate the Authority’s investment activities;  Under section 238(2) of the Local Government and Public Involvement in Health Act 2007 the Secretary of State has taken powers to issue guidance on accounting practices. Guidance on Minimum Revenue Provision was issued under this section on 8th November, 2007.

5.25 The Authority has complied with all of the above relevant statutory and regulatory requirements which limit the levels of risk associated with Treasury Management activities.

6. TREASURY MANAGEMENT STRATEGY 2015/16 MID-YEAR REVIEW

6.1 The 2015/16 Treasury Management Strategy was approved on the 13th, February, 2015. The Authority’s borrowing and investment position as at 31st September 2015 is summarised as follows:

£m Average Rate LOBO Loans 2.0 3.95% PWLB Loans 5.3 3.05% Gross Debt 7.3 3.29% Investments 26.3 0.39% Net Investment 19.0

6.2 As part of the Treasury Strategy for 2015/16 the Authority set a number of prudential indicators. Compliance against these indicators is monitored on a regular basis. As a consequence of locking out borrowing to secure the exceptionally low rates available in late 2014/15 the Operational Limit for 2015/16 needs to be revised to £7.5m as detailed in paragraph 5.15. Borrowing remains within the Authorised limit.

TREASURY MANAGEMENT STRATEGY 2016/17 Page 9

AUDIT & GOVERNANCE COMMITTEE 13 NOVEMBER 2015 Date XXX 2011

7. TREASURY MANAGEMENT STRATEGY 2016/17

7.1 Owing to the timing of the Audit and Governance Committee meeting it is not possible to provide detailed prudential indicators as part of the Treasury Management Strategy for 2016/17 prior to this being reported to the full Fire Authority as part of the Medium Term Financial Strategy process. This is because detailed Capital Allocations have not yet been released by the Government, the Council Tax Base has not yet been set and the Net Revenue Budget has not yet been set. However this does not prevent the Committee from scrutinising the proposed Treasury Management Strategy which is presented below.

7.2 The key elements of the Treasury Management Strategy which Members need to consider are the Borrowing and Investment Strategies, detailed in section 8 and 9.

8. BORROWING STRATEGY 2016/17

8.1 Following the development and implementation of the Asset Management Plan (AMP) the Authority’s CFR has begun to rise and is forecast to continue to rise over the course of the Medium Term Financial Strategy. Therefore it was recognised that a proactive borrowing strategy would need to be adopted to finance the borrowing element of the AMP and to secure historically low interest rates.

8.2 As outlined in paragraph 5.8 to 5.10, owing to exceptionally low rates and a forecast rise in rates, a decision to borrow to the forecast CFR in 2016/17 has already been made.

8.3 This decision meets the key requirement outlined in the 2015/16 Treasury Management Strategy i.e. to ensure the borrowing costs associated with AMP are minimised in the long term and can be sustained within the existing revenue budget of £0.8m (including using the recommended Capital Funding Phasing Reserve) over:  the period of the current Medium Term Financial Strategy and Integrated Risk Management Plan; and,  the period beyond 2018/19 to ensure the longer term financial sustainability of the Authority.

8.4 No further borrowing decisions are expected in 2016/17. Capital expenditure in 2016/17 will funded from existing loans.

8.5 Impact of Capital Programme on the Revenue Budget

8.6 As previously reported detailed financial modelling has been undertaken to assess the impact of the capital programme on the revenue budget. This analysis indicated that in the short term, loan repayment costs will be less than the approved budget which reflects the phasing of the capital programme and the exceptionally low interest rates secured.

TREASURY MANAGEMENT STRATEGY 2016/17 Page 10

AUDIT & GOVERNANCE COMMITTEE 13 NOVEMBER 2015 Date XXX 2011

8.7 However, over the period 2020/21 to 2028/29 annual loan repayment costs will exceed the approved revenue budget. As outlined in the approved 2015/16 Strategy this position is being managed by establishing a Capital Phasing Reserve which will balance loan repayment costs over the period 2014/15 to 2028/29. The following graph summarises the contributions to/from the Capital Phasing Reserve over the period 2014/15 to 2028/29. The graph shows that the Capital Phasing Reserve enables loan repayment costs to be funded on a sustainable basis.

Contributions to/from the Capital Funding Reserve 2014/15 to 2028/29 800 700 600 500

400 £000 300 200 100 0

Year

Cumulative Surplus

9. INVESTMENT STRATEGY 2016/17

9.1 The Department for Communities and Local Government (CLG) issued investment guidance in 2010 and this forms the structure of the Authority’s policy. The key intention of the Guidance is to maintain the current requirement for authorities to invest prudently and that priority is given to security and liquidity before interest return. The Authority has adopted the CIPFA Treasury Management Code. In accordance with the Code, the Treasurer has produced Treasury Management Practices covering investment counterparty policy which requires approval each year.

TREASURY MANAGEMENT STRATEGY 2016/17 Page 11

AUDIT & GOVERNANCE COMMITTEE 13 NOVEMBER 2015 Date XXX 2011

9.2 The primary objectives of the Authority’s investment strategy in order of importance are:

 safeguarding the re-payment of the principal and interest of its investments on time;  ensuring adequate liquidity;  investment return.

9.3 Counterparty Selection Criteria

9.4 The Authority’s criteria for providing a pool of high quality investment counterparties uses the credit rating information produced by the three major ratings agencies (Fitch, Moody’s and Standard & Poor’s) and is supplied by our treasury consultants. All active counterparties are checked against criteria outlined below to ensure that they comply with the criteria. Any counterparty failing to meet the criteria would be omitted from the counterparty list. Any rating changes, rating watches (notification of a likely change), rating outlooks (notification of a possible longer term change) are provided to officers almost immediately after they occur and this information is considered on a daily basis before investments are made. For instance a negative rating watch applying to a counterparty at the minimum criteria will be suspended from use, with all others being reviewed in light of market conditions.

9.5 The lowest common denominator method of selecting counterparties and applying limits is used. This means that the application of the Authority’s minimum criteria will apply to the lowest available rating for any institution. For instance if an institution is rated by two agencies, one meets the Authority’s criteria, the other does not, the institution will fall outside the lending criteria

9.6 The Treasurer will continue to adopt a vigilant approach resulting in what is effectively a ‘named’ list. This consists of a select number of counterparties that are considered to be the lowest risk.

9.7 As the market continues to return to more “normal” conditions a review of the current counterparty list has been completed. The current counterparty list continues to be limited and the surplus cash flow continues to be invested with the Government’s Debt Management Office (DMO) which offers extremely low investment rates. It is therefore recommended that the following additions to the investment counterparty list are made:

 Use of Treasury Bills/Gilts It is possible to invest with the UK Government at a higher rate of interest through the purchase of Treasury Bills/Gilts. UK Treasury Bills/Gilts have the same credit rating (i.e. AAA/AA+) as deposits placed with the Government Debt Management Office (DMO). They are issued weekly for a duration of one, three or six months and in the case of Gilts, for longer periods. Treasury Bills/Gilts are Government debt whereby money is invested with the Government for a specified period of time at a fixed rate of interest and there is no risk to the principal invested.

TREASURY MANAGEMENT STRATEGY 2016/17 Page 12

AUDIT & GOVERNANCE COMMITTEE 13 NOVEMBER 2015 Date XXX 2011

The Authority cannot invest in these instruments directly without opening a ‘custody account’ which is required for purchasing these instruments, the costs of which range from £50,000 to £130,000. However access can be gained using a custodian who administer and manage Treasury Bills/Gilts on behalf of the Authority. The decisions regarding the investment of temporary cash in UK Treasury Bills/Gilts remains the Authority’s decision and on a day to day basis will be managed by myself as Treasurer to the Authority. It is recommended that the Authority approve the use of Treasury Bills/Gilts and engage King and Shaxson as a custodian. King and Shaxson, is regulated by the Financial Conduct Authority (FCA) and currently provide custody services to 235 local authorities, typically managing £4 billion of Local Authority investments.

The provision of the custodian account is free and the administrative cost of using the custodian account, which equate to 3 basis points (i.e. 0.03%) will be funded from the increased investment income earned from investing in UK Government Treasury Bills/Gilts.

 Additional Banking Counterparty As part of its 2015/16 Treasury Management Strategy Hartlepool Borough Council (which provides the Treasury Management Service to the Authority) added the Swedish Bank, Svenska Handelsbanken to their counterparty list. The Council has been satisfied with this new counterparty, whose ratings have remained strong throughout the financial crisis never falling below the Category A ratings in the table of investment criteria outlined below (Sweden has retained its AAA sovereign rating throughout the crisis). It is recommended that the Authority adds this bank to their counterparty list. Investments with this bank will be limited to £1m and for a maximum duration of three months or instant access.

9.8 The following table shows the proposed limits in 2016/17 for the Authority:

TREASURY MANAGEMENT STRATEGY 2016/17 Page 13

AUDIT & GOVERNANCE COMMITTEE 13 NOVEMBER 2015 Date XXX 2011

Category Fitch Moody’s Standard Proposed Proposed & Poor’s Counterparty Time Limit Limit A F1+/AA- P-1/Aa3 A-1+/AA- £5m 1 year B F1/A- P-1/A3 A-1/A- £3m 1 year C Debt Management Office/Treasury Bills/Gilts £14m 1 year D Nationalised Banks and Banks covered by UK £5m 1 year Government Guarantee E Other Local Authorities Individual Limits £15m 1 year per Authority: - £2m County, Metropolitan or Unitary Councils - £1m District Councils, Police or Fire Authorities. F Three Money Market Funds (AAA) with £4.5m Liquid (instant maximum investment of £1.5m per fund access)

G Svenska Handelsbanken £1m 3 months

9.9 Specified and Non-Specified Investments

9.10 CLG regulations classify investments as either Specified or Non-Specified. Specified Investment is any investment not meeting the Specified definition.

9.11 The investment criteria outlined above is different to that used to define Specified and Non-Specified investments. This is because it is intended to create a pool of high quality counterparties for the Authority to use rather than defining what its investments are.

9.12 Specified Investments are sterling investments of not more than one-year maturity, or those which could be for a longer period but where the Authority has the right to be repaid within twelve months if it wishes. These are low risk assets where the possibility of loss of principal or investment income is small. These would include investments with:

 The UK Government (such as the Debt Management Office, UK Treasury Bills or a Gilt with less than one year to maturity).  Other Local Authorities.  Pooled investment vehicles (such as Money Market Funds) that have been awarded a high credit rating (AAA) by a credit rating agency.  A body that has been awarded a high credit rating by a credit rating agency (such as a bank or building society). This covers bodies with a minimum rating of A- (or the equivalent) as rated by Standard and Poor’s, Moody’s or Fitch rating agencies. Within these bodies, and in accordance with the Code, the Authority has set additional criteria to set the time and amount of monies which will be invested in these bodies.

TREASURY MANAGEMENT STRATEGY 2016/17 Page 14

AUDIT & GOVERNANCE COMMITTEE 13 NOVEMBER 2015 Date XXX 2011

9.13 Non-specified Investments are any other type of investment (i.e. not defined as Specified above). The identification and rationale supporting the selection of these other investments and the maximum limits to be applied are set out below. Non- specified investments would include any investments with:

 Building societies not meeting the basic security requirements under the specified investments. The operation of some building societies does not require a credit rating, although in every other respect the security of the society would match similarly sized societies with ratings.  Any bank or building society that has a minimum long term credit rating of A- for deposits with a maturity of greater than one year (including forward deals in excess of one year from inception to repayment).

9.14 Benchmarking

9.15 A requirement in the revised Codes is the consideration and approval of security and liquidity benchmarks. Yield benchmarks are currently widely used to assess investment performance, however as outlined in paragraph 9.2, investment return is less important to the Authority than security and liquidity of investments. Security and liquidity benchmarks are new requirements and benchmarks in these areas are significantly less developed. The application of these is also more subjective in nature.

9.16 These benchmarks are simple targets (not limits) and the purpose of the benchmark is to assist monitoring and illuminate any changes to the strategy.

9.17 The benchmark for monitoring security is based on the historical risk of default associated with the credit rating of an organisation. The higher rated counterparties have a lower rate of historic default.

9.18 The following table sets out the historic default percentages for each type of credit rated institution and the period of deposit.

Maturity Period Years 1 2 3 4 5 AAA 0.04% 0.09% 0.17% 0.25% 0.34% AA 0.01% 0.03% 0.13% 0.28% 0.43% A 0.06% 0.20% 0.37% 0.58% 0.81% BBB 0.15% 0.50% 0.91% 1.43% 1.91% BB 0.71% 2.21% 3.94% 5.68% 7.20% B 3.15% 7.44% 11.46% 15.20% 18.40% CCC 22.21% 31.48% 37.72% 41.81% 45.20%

9.19 The Authority has an extremely cautious investment strategy and this has avoided investment default. As a result the Authority has never suffered investment loss. It is expected that the recommended changes to the investment strategy will avoid investment default. However the Authority still needs to set a formal limit. It is therefore suggested that the Authority will aim to ensure that the historic default probability of its investment portfolio will not exceed 0.2%.

TREASURY MANAGEMENT STRATEGY 2016/17 Page 15

AUDIT & GOVERNANCE COMMITTEE 13 NOVEMBER 2015 Date XXX 2011

9.20 An additional proposed benchmark is the average risk of default. This is based on the historic risk of default multiplied by the value of each investment. It does not constitute the actual expectation of loss. Rather it is intended to give a guide as to the relative security of investments. For the forthcoming year this is expected not to exceed £100,000.

9.21 To ensure adequate Liquidity the Authority maintains a bank overdraft facility of £0.5m. In addition the Authority will make use of call accounts to enable cash to be obtained with immediate notice. The proposed benchmark for monitoring liquidity is ‘Weighted Average Life’. This reflects the average number of days to maturity for investments and therefore gives an indication of the liquidity profile of investments held. For the forthcoming year because of the lack of value obtainable for deposits exceeding 12 months and the need to ensure maximum security this benchmark is expected to be 0.5 years, with a maximum of 1 year.

10. MINIMUM REVENUE PROVISION AND INTEREST COSTS AND OTHER REGULATORY INFORMATION 2016/17

10.1 There are two elements to the Authority annual loan repayment costs – the statutory Minimum Revenue Provision (MRP) and interest costs. The Authority is required to pay off an element of the CFR each year through a revenue charge called the Minimum Revenue Provision (MRP).

10.2 CLG Regulations require the Authority to approve an MRP Statement in advance of each year. This will determine the annual loan repayment charge to the revenue account. The budget strategy is based on the following MRP statement and the Authority is recommended to formally approve this statement:

 For capital expenditure incurred before 1st April, 2008 the Authority’s MRP policy is to calculate MRP in accordance with former CLG Regulations. This is 4% of the Capital Financing Requirement except where the Authority makes Voluntary Revenue Payments which is in excess of the amount required by these regulations, based on asset life;

 From 1st April, 2008 the Authority calculates MRP based on asset life for all assets or where prudential borrowing is financed by a specific annuity loan, MRP will be calculated according to the actual annuity loan repayments.

10.3 CIPFA Treasury Management Code of Practice

10.4 The Authority has adopted the CIPFA Treasury Management Code of Practice. Confirmation of this is the first prudential indicator.

10.5 Treasury Management Advisors

10.6 The Authority uses Capita Asset Services – Treasury as its external treasury management advisors.

TREASURY MANAGEMENT STRATEGY 2016/17 Page 16

AUDIT & GOVERNANCE COMMITTEE 13 NOVEMBER 2015 Date XXX 2011

10.7 The Authority recognises that responsibility for treasury management decisions remains with the organisation at all times and will ensure that undue reliance is not placed upon our external service providers.

10.8 It also recognises that there is value in employing external providers of treasury management services in order to acquire access to specialist skills and resources. The Authority will ensure that the terms of their appointment and the methods by which their value will be assessed are properly agreed and documented, and subjected to regular review.

11. CONCLUSION

11.1 Against the uncertain national background and the requirement to make significant budget reductions to balance the 2016/17 to 2018/19 budget the Authority has secured long term borrowing at historically low interest rates. This has secured the financing of the Asset Management Plan and has protected the authority against increases in longer term interest rates.

11.2 The report confirms the previously approved strategy for managing interest rate risks with the aim of ensuring the borrowing requirement can be funded from the available revenue budget of £0.8m and use of the Capital Funding Phasing reserve.

11. 3 In relation to the investment strategy the Authority has adopted an extremely prudent approach over the last few years. An updated assessment of potential risk has been completed and in response to reductions in investment counter parties it is recommended that the Authority approves the revised counterparty criteria as set out in paragraphs 9.7 and 9.8.

CHRIS LITTLE TREASURER TO THE AUTHORITY

TREASURY MANAGEMENT STRATEGY 2016/17 Page 17

AUDIT & GOVERNANCE COMMITTEE 13 NOVEMBER 2015 Date XXX 2011

Appendix A

Prudential Indicators 2014/15 Outturn

1. Ratio of Financing Costs to Net Revenue Stream

This indicator shows the proportion of the total annual revenue budget that is funded by the local tax payer and Central Government, which is spent on servicing debt. The outturn is lower than the estimate, mainly as a result of the very low rates of interest on and under borrowing against the CFR until the final quarter of the financial year.

2014/15 2014/15 Estimate Outturn

2.01% Ratio of Financing costs to net revenue 1.40% stream

2. Capital Expenditure

This indicator shows the total capital expenditure for the year and the outturn reflects the actual phasing of capital expenditure.

2014/15 2014/15 Estimate Outturn £'000 £'000

5,556 Capital Expenditure 5,656

3. Capital Expenditure Financed from Borrowing

This shows the borrowing required to finance the capital expenditure programme.

2014/15 2014/15 Estimate Outturn £'000 £'000

520 Capital Expenditure Financed by Borrowing 520

4. Capital Financing Requirement

CFR is used to determine the minimum annual revenue charge for capital expenditure repayments (net of interest). It is calculated from the Authority’s Balance Sheet and is shown below. Forecasts for future years are directly influenced by the capital expenditure decisions taken and the actual amount of revenue that is set aside to repay debt.

TREASURY MANAGEMENT STRATEGY 2016/17 Page 18

AUDIT & GOVERNANCE COMMITTEE 13 NOVEMBER 2015 Date XXX 2011

2014/15 2014/15 Estimate Outturn £'000 £'000

4,578 Capital Financing Requirement 4,535

5. Authorised Limit for External Debt

The authorised limit determines the maximum amount the Authority may borrow at any one time. The authorised limit covers both long term borrowing for capital purposes and borrowing for short term cash flow requirements. The authorised limit is set above the operational boundary to provide sufficient headroom for operational management and unusual cash movements. In line with the Prudential Code, the level has been set to give the authority flexibility to borrow up to three years in advance of need if more favourable interest rates can be obtained.

2014/15 2014/15 Limit Peak £'000 £'000

8,000 Authorised limit for external debt 7,320

Additional borrowing was undertaken during the year to secure certainty in relation to the ongoing cost of delivering the Asset Management Plan.

6. Operational Boundary for External Debt

The Operational Limit is set below the Authorised Limit to provide an early warning sign that the level of borrowing is approaching the Authorised Limit and may potentially require management intervention. The Operation Limit for 2014/15 was set on the basis that the Authority was continuing to net down investments/borrowings in the short term and therefore not expected to undertake new long term borrowing in 2014/15. However, as highlighted in the graph detailed in paragraph 5.10 long term interest rates continued to reduce during the final months of 2014/15 to historically low levels. This position and the future outlook for interest rates was monitored extremely closely, almost on a daily basis, and the decision taken to lock out long term borrowing to fund the Asset Management Plan borrowing requirements for the next three years. Whilst, this borrowing was within the Authorised Limit the Operation Limit was exceeded. This position reflected the decision taken to borrow earlier than anticipated to secure historically low fixed interest for the next 40 years and does therefore not require any correct action to be taken by the Authority.

2014/15 2014/15 Limit Peak £'000 £'000

6,000 Operational boundary for external debt 7,320

TREASURY MANAGEMENT STRATEGY 2016/17 Page 19

AUDIT & GOVERNANCE COMMITTEE 13 NOVEMBER 2015 Date XXX 2011

7. Interest Rate Exposures

This indicator is designed to reflect the risk associated with both fixed and variable rates of interest, but must be flexible enough to allow the Authority to make best use of any borrowing opportunities.

2014/15 2014/15 Limit Upper limits on fixed and variable interest Peak £'000 rate exposure £'000

100% Fixed Rates 100% 75% Variable Rates 0%

8. Maturity Structure of Borrowing

This indicator is designed to reflect and minimise the situation whereby the Authority has a large repayment of debt needing to be replaced at a time of uncertainty over interest rates, but as with the indicator above, it must also be flexible enough to allow the Authority to take advantage of any borrowing opportunities.

Upper Limit Lower Limit Actual by Actual by Maturity Date soonest call date Under 12 months 100% 0% 1% 1% 12 month to 2 years 100% 0% 3% 3% 2 years to 5 years 100% 0% 4% 31% 5 years to 10 years 100% 0% 4% 4% 10 years to 20 years 100% 0% 10% 10% 20 years to 30 years 100% 0% 14% 14% 30 years to 40 years 100% 0% 37% 37% 40 years to 50 years 100% 0% 0% 0% 50 years to 60 years 100% 0% 0% 0% 60 years to 70 years 100% 0% 27% 0%

The Authority’s current outstanding borrowing includes a LOBO (Lender Option Buyer Option) loan which provide fixed interest rates for defined periods and also defined dates for reviewing interest rates, known as ‘call dates’. A change to the Prudential Code requires that the call date is reflected in the Maturity Structure indicator above rather than maturity date. However the likelihood of a LOBO being ‘called’ at present is very low and both methods are presented above for completeness.

TREASURY MANAGEMENT STRATEGY 2016/17 Page 20

AUDIT & GOVERNANCE COMMITTEE 13 NOVEMBER 2015 Date XXX 2011

9. Investments over Maturing over One Year

This sets an upper limit for amounts invested for periods longer than 364 days. The limit was not exceeded as a prudent approach to investment has been taken owing to uncertainties in the economy, this is in line with the Treasury Management Strategy. Consequently all investments made during the year were limited to less than one year.

1 year 2 year 3 year £000 £000 £000

Maximum Limit 0 0 0 Actual 0 0 0

TREASURY MANAGEMENT STRATEGY 2016/17 Page 21

APPENDIX 2

TREASURY MANAGEMENT STRATEGY 2016/17 REGULATORY INFORMATION AND PRUDENTIAL INDICATORS

1. INTRODUCTION

1.1 The Audit and Governance Committee considered the Treasury Management Strategy for 2016/17 on 13th November 2015. The Audit and Governance Committee approved the recommended Borrowing and Investment Strategy. However, owing to the timing of funding announcements from the Government, it was not possible to present detailed prudential indicators to the Audit and Governance Committee. The Audit Governance Committee noted that these would be reported to the full Fire Authority and are detailed in this Appendix. The late announcement of this information does not impact on the recommended strategy as the capital funding announcements relate to capital grant allocations which fully fund defined Government capital spending priorities.

2. PRUDENTIAL INDICATORS

2.1 The Local Government Act 2003 requires the Authority to adopt the CIPFA Prudential Code and set prudential indicators. Each indicator either summarises the expected capital activity or introduces limits upon that activity.

2.2 The first prudential indicator is confirmation that the Authority has adopted the CIPFA Treasury Management Code of Practice, which the Treasury Management Strategy report confirms.

2.3 Details of the proposed prudential limits are set out in the following sections.

3. CAPITAL EXPENDITURE AND FINANCING REQUIREMENT

3.1 The Authority’s Borrowing Strategy is driven by the Capital Financing Requirement (CFR) and the Authority’s view of interest rates. The CFR is the total outstanding capital expenditure which has not yet been paid for from revenue budgets. It is essentially a measure of the Authority’s underlying borrowing need based on capital programmes approved by the Authority in previous years.

3.2 The Government no longer issues supported borrowing allocations. Consequently all borrowing is now made under the Prudential Borrowing Code. Capital spending decisions need to have regard to the following;

 Service objectives (e.g. strategic planning);  Stewardship of assets (e.g. asset management planning);  Value for money (e.g. option appraisal);  Prudence and sustainability (e.g. implications for external borrowing and whole life costing);  Affordability (e.g. implications for the Council Tax);  Practicality (e.g. the achievability of the forward plan).

3.3 The Authority ultimately needs to fund the CFR by borrowing money from the Public Works Loan Board (PWLB) or banks. The CFR is then repaid over a number of years reflecting the long term benefits of capital expenditure. In simple terms the CFR represents the Authority’s outstanding mortgage, although the legislation and accounting requirements are significantly more complex.

3.4 The estimated Capital Finance & Borrowing Requirement is shown in the following table:

Capital Financing & Borrowing 2015/16 2016/17 2017/18 2018/19 Requirement Revised Estimate Estimate Estimate £'000 £'000 £'000 £'000 CFR at 1st April 4,535 4,675 5,139 7,018 Capital Expenditure Financed by 561 878 2,277 580 Borrowing Less Repayment of CFR (421) (414) (398) (403) CFR at 31st March 4,675 5,139 7,018 7,195

3.5 As part of the Medium Term Financial Strategy the Authority is required to approve the 2016/17 capital programme summarised as follows:

Capital Expenditure 2015/16 2016/17 2017/18 2018/19 Revised Estimate Estimate Estimate £'000 £'000 £'000 £'000 Capital Expenditure 7,623 9,025 4,078 646 Financed by: Capital grants and contributions 4,371 0 0 0 Reserves 2,691 8,147 1,801 66 Prudential Borrowing 561 878 2,277 580 Total Funding 7,623 9,025 4,078 646

4. AFFORDABILITY PRUDENTIAL INDICATORS

4.1 The affordability of the approved Capital Investment Programme was assessed when the Asset Management Plan was approved and revenue costs are built into the Medium Term Financial Strategy. The ‘Affordability Prudential Indicators’ are detailed below and are intended to give an indication

of the affordability of the planned capital expenditure financed by borrowing in terms of the impact on Council Tax and the Net Revenue Stream.

4.2 Incremental Impact of Capital Expenditure on Council Tax

4.3 This indicator identifies the revenue costs associated with new schemes included in the three year Capital Programme recommended in the budget strategy report compared to the Authority’s existing approved commitments and current plans. The incremental impact of capital expenditure on Council Tax reflects the phasing of prudential borrowing.

Revised Forward Forward Forward Projection Projection Projection 2015/16 2016/17 2017/18 2018/19 £'000 £'000 £'000 £'000 CouncilTax - Band D £0.08 £0.13 £0.33 £0.08

4.4 Ratio of Financing Costs to Net Revenue Stream

4.5 This shows the net cost of capital borrowing as a percentage of the net budget and the forecast annual increases reflect the phasing of borrowing to partly fund the Asset Management Plan.

% 2015/16 2016/17 2017/18 2018/19 Revised Estimate Estimate Estimate Ratio 2.06% 2.13% 2.34% 2.45%

5. BORROWING PRUDENTIAL INDICATORS

5.1 Debt Projections 2015/16 – 2018/19

5.2 The table below sets out the Authority’s projected Capital Financing Requirement (CFR) and level of debt:

Debt and Investment Projections 2015/16 2016/17 2017/18 2018/19 Revised Estimated Estimated Estimated £'000 £'000 £'000 £'000 Long Term Borrowing 1 April 7,320 7,230 7,137 7,041 Expected change in Long Term Debt (90) (93) (96) 154 Debt at 31 March 7,230 7,137 7,041 7,195 CFR 4,675 5,139 7,018 7,195 Advance/(Under) Borrowing 2,555 1,998 23 0

5.3 The table shows that in the short term borrowing will exceed the CFR. This reflects the decision taken to fund capital expenditure in advance of need to secure exceptionally low long term interest rates of 3.04% as outlined in Appendix 1 paragraph 5.8 to 5.10

5.4 Limits to Borrowing Activity

5.5 Within the prudential indicators there are a number of key indicators to ensure the Authority operates its activities within well defined limits.

5.6 The Authority needs to ensure that total borrowing does not, except in the short term, exceed the total of the CFR in the preceding year plus the estimates of any additional CFR for 2016/2017 and the following two financial years. This allows some flexibility for limited early borrowing for future years, but ensures that borrowing is not undertaken for revenue purposes. The following table demonstrates that although borrowing will exceed the CFR in the short term it will not in the medium term. This reflects the decision taken to secure borrowing at exceptional low interest rates to fund future capital expenditure as outlined in Appendix 1.

External Debt 2015/16 2016/17 2017/18 2018/19 Revised Estimated Estimated Estimated £'000 £'000 £'000 £'000 Gross Borrowing 7,230 7,137 7,041 7,195 Capital Financing Requirement 4,675 5,139 7,018 7,195

5.7 The following table shows two key limits for the monitoring of debt. The Operational Limit is the likely limit the Authority will require and is aligned closely with the actual CFR on the assumption that cash flow is broadly neutral. The Authorised Limit for External Debt is a further key prudential indicator to control the overall level of borrowing. This represents a limit beyond which external debt is prohibited, and this limit needs to be set or revised by the Authority. In practice it needs to take account of the range of cash flows that might occur for the Authority in addition to the CFR. This also includes the flexibility to enable advance refinancing of existing loans.

Borrowing Limits 2015/16 2016/17 2017/18 2018/19 Estimated Estimated Estimated Estimated £'000 £'000 £'000 £'000 Operational Limit 7,500 10,000 10,000 10,000 Authorised limit 8,000 12,000 12,000 12,000

6. INVESTMENT PRUDENTIAL INDICATORS AND OTHER LIMITS ON TREASURY ACTIVITY

6.1 Investment Projections 2015/16 – 2018/19

6.2 The following table sets out the estimates for the expected level of resource for investment or use to defer long term borrowing.

2014/15 Year End Resources 2015/16 2016/17 2017/18 2018/19 Outturn Revised Estimate Estimate Estimate £'000 £'000 £'000 £'000 £'000 16,489 Balances and Reserves 14,771 5,635 3,226 2,811 163 Provisions 0 0 0 0 679 Collection fund Adjustment Account* 0 0 0 0 17,331 Total Core Funds 14,771 5,635 3,226 2,811 595 Working Capital** 600 600 600 600 17,926 Resources Available for Investment 15,371 6,235 3,826 3,411 2,785 (Under)/Advance borrowing 2,555 1,998 23 0 20,711 Expected Investments 17,926 8,233 3,849 3,411

* It is not possible to estimate the Collection Fund Adjustment Account balance owing to the uncertainty in relation to business rates. ** The working capital balance is an estimate of debtors and creditors at year end based on the average working capital over the last three years.

6.3 Sensitivity to Interest Rate Movements

6.4 Sensitivity to Interest Rate Movements is a prudential indicator that the Authority is required to disclose. The following table highlights the estimated impact of a 1% increase/decrease in all interest rates to the estimated treasury management costs/income for next year. These forecasts are based on a prudent view of a +/- 1% change in interest rates. As borrowing has been taken out to advance fund the Asset Management Plan there is no risk in relation to the impact of borrowing on revenue budgets for 2016/17. For investments they are based on a prudent view of the total amount invested.

Impact on Revenue Budgets 2016/17 2016/17 Estimated Estimated 1% -1% £'000 £'000 Interest on Borrowing 0 0 Investment income (82) 82 Net General Fund Borrowing Cost (82) 82

6.5 There are four further treasury activity limits and the purpose of these are to contain the activity of the treasury function within certain limits, thereby managing risk and reducing the impact of an adverse movement in interest rates.

6.6 The limits are:

i) Upper limits on variable interest rate exposure – This identifies a maximum limit for the percentage of the Authority’s borrowing and investments that are held with variable interest rates. The proposed limits are detailed in the following table.

Limits on Variable Interest Rates 2016/17 2017/18 2018/19 Upper Upper Upper £'000 £'000 £'000 Borrowing 7,500 7,500 7,500 Investments 20,000 15,000 10,000

ii) Upper limits on fixed interest rate exposure – Similar to the previous indicator this covers a maximum limit for the percentage of the Authority’s borrowing and investments that are held with fixed interest rates.

Limits on Fixed Interest Rates 2016/17 2017/18 2018/19 Upper Upper Upper £'000 £'000 £'000 Borrowing 10,000 10,000 10,000 Investments 30,000 25,000 20,000

iii) Maturity structure of borrowing – Limits for the ‘Maturity Structure of Borrowing’ are intended to reduce exposure to large fixed rate sums falling due for refinancing. In the opinion of the Treasurer limits on fixed and variable rates for borrowing are unhelpful and could lead to higher costs of borrowing. Previous experience has shown that it is possible to move from a position of predominantly fixed rate borrowing to variable rate borrowing and then back to fixed rate borrowing over a period of two years. In the Treasurer’s professional opinion this proactive management of investments and borrowing continues to provide the most cost effective strategy for the Authority, whilst not exposing the Authority to unnecessary risk. The Authority should ensure maximum flexibility to minimise costs to the revenue budget in the medium term. These limits are detailed in the following table:

Maturity Structure of fixed interest rate borrowing 2015/16 2015/16 2016/17 2016/17 £000 £000 £000 £000 Lower Limit Upper Limit Lower Limit Upper Limit Under 12 months 0 6,000 0 8,000 12 months to 2 years 0 7,500 0 10,000 2 years to 5 years 0 7,500 0 10,000 5 years to 10 years 0 7,500 0 10,000 10 years to 20 years 0 7,500 0 10,000 20 years to 30 years 0 7,500 0 10,000 30 years to 40 years 0 7,500 0 10,000 40 years to 50 years 0 7,500 0 10,000 50 years to 60 years 0 7,500 0 10,000 60 years to 70 years 0 7,500 0 10,000

The limits allow for borrowing up to the Capital Financing Requirement at either variable or fixed rates. The intention is to move to fixed rate borrowing when rates are at an appropriate level and may require the temporary use of variable rate borrowing in the interim.

iv) Maximum principal sums invested – Total principal funds invested for greater than 364 days – These limits are set with regard to the Authority’s liquidity requirements and reflect the current recommended advice that investments are limited to short term investments i.e. up to 1 year.

Limit for Maximum Pincipal Sums Invested > 364 days 1 year 2 years 3 years £000 £000 £000 Maximum 10,000 0 0

6.7 Performance Indicators

6.8 The Code of Practice on Treasury Management requires the Authority to set performance indicators to assess the adequacy of the treasury function over the year. These are distinct historic indicators, as opposed to the prudential indicators, which are predominantly forward looking. The Authority will produce the following performance indicators for information and explanation of previous treasury activity:

 Average rate of borrowing for the year compared to average available  Debt – Average rate movement year on year  Investments – returns compared to the 7 day LIBID rate