Keeping Scotland Safe and Strong - A Consultation on Reforming Police and Fire and Rescue Services in Scotland: Analysis of Consultation Responses

12. FUNDING

Question 19: What are your views on the proposed new funding and financial accountability arrangements set out?

Summary of proposals in the consultation document:

• Funding paid directly to the SFRS including revenue and capital.
• The Board of the SFRS and Chief Officer to agree the split of funding between national and local priorities and appropriate shared services.
• Allocation of resources to each local designated officer to be transparent and central to the development of the local plan.

12.1 58 respondents from the following respondent categories addressed this question.

Note: Abbreviations used in the above table are described in Table 1.

12.2 9 respondents representing a range of sectors expressed their broad support for the proposals which were variously described as "logical" (LA), "appropriate" (Fire Org) and bringing "greater coherence and focus to budgetary arrangements" (Oth). However, one local authority view was that the funding and financial accountability issues raised were too technical and complex to be considered as part of this consultation exercise and required further debate.

Role of local authorities in budget setting

12.3 The topic attracting most comment by respondents was what many perceived to be the absence of information on the establishment of local budgets, and specifically, the role of local authorities in the scrutiny of budgets. 22 respondents raised these issues with additional concerns including:

• Allocation of local budgets should start with local engagement around priorities, risks, demand factors (such as rurality) and should not be a top-down process.
• Some degree of local autonomy and discretion over budgets should be built in.
• Local councils should not be worse off as a result of the proposals and initial budgets should allow for continuity of current local initiatives.

12.4 5 respondents commented that currently local income can be generated to fund additional operational capacity, and they requested clarity on whether this practice will be permissible under the reform arrangements.

Role of Local Senior Officers (LSOs)

12.5 2 respondents (LA, CPP) welcomed what they considered to be the "well defined role" for LSOs in the proposed funding arrangements. However, 9 others perceived there to be a lack of clarity around LSOs' level of discretion to allocate funds to local initiatives and interventions. One fire organisation summed up the views of many in identifying a potential tension between centralised budgetary control and LSOs in meeting local funding expectations.

Role of Scottish Parliament and Ministers

12.6 2 respondents commented that the proposals contained no outline on how Ministers will reach their funding settlement for the Fire and Rescue Service (FB, LA). 6 respondents expressed their concern that:

"the National Board, Ministers and Parliament are too remote to bring effective scrutiny specifically in relation to local fire and rescue plans".

Role of Chief Officer

12.7 A comment, largely held by local authority and Community Planning Partnerships responding to this question, was that there needed to be a transparent framework, based on robust evidence, for the allocation of resources to deliver national and local plans. The proposals were viewed as lacking detail in this respect.

12.8 6 respondents emphasised that funding allocations should be equitable, taking account of demand factors, with rural areas not losing out to the central belt and other urban locations.

12.9 2 respondents (FB, Oth) called for the Chief Officer to be given flexibility to use resources in ways designed to achieve Best Value.

Other concerns

12.10 A number of other concerns were raised:

• Clarity is required on whether the single service will be liable for VAT. If so, this could have significant financial implications (8 respondents).

• Information is needed on how current reserves will be managed in the transition and post reform (8 respondents).
• Clarity is required on whether prudential borrowing will still be permissible post reform (6 respondents).
• Current liabilities will need to be taken into account in funding arrangements (6 respondents).
• Will the current streamlined procurement procedures remain post reform? (4 respondents)
• Information on post reform pension arrangements is required (3 respondents).
• Clarity is required on the situation regarding insurance of the single service (3 respondents).
• Predicted savings may not be realised, at least not in the short term (2 respondents).
• Will there be a requirement to consider equality in financial decision-making? Is a mainstreamed approach to equality intended? (1 respondent)

12.11 Summary

• Broad support was expressed for the proposed new funding and financial accountability arrangements which were viewed as logical and appropriate.
• There was a common perception that information is lacking on the establishment of local budgets, and in particular, local authorities' role in scrutinising these.
• Many respondents stressed the need for transparency in the way funds are allocated to support local plans, with several urging that rural communities should not lose out at the expense of the central belt.