Simple Guide to the ResourceReview and the Localisation of NNDR
Kieran TimminsDeputy Chief
ExecutiveMerseyside FRA.
Plan For Today
• What do you really need to know ?• Remind you of the cash headlines• What is the current system?• What is the proposal?
Reduction £207m2010/11 2011/12 2012/13 2013/14 2014/15
0
200
400
600
800
1000
1200 1,057996 989
899 850
National Fire Control Total
-5.8% -0.7% -9.1% -5.5%
Extra Cuts
• £5m for Chancellor Pay assumption• £7m for Safety Net & Capitalisation• Further 1.5% on baseline
Current System – 4 Block Model
Relative Needs
Current System – 4 Block Model
Relative Needs
Population
• Coastline• Population density• Risk Index• COMAH Sites• Property & Societal Risk• Community Fire Safety
Current System – 4 Block Model
Relative Needs
Relative Resources
Central Allocation
Floor DampingMinisterial Discretion
New System
1. Get a share of Local Rates2. Compare that share to “Baseline” 3. Either Get a “Top Up” back to “baseline” or
pay a “Tariff”
Example - Merseyside
• Total Rates = £399m• 50% Local Share = £200m
Fire gets 2% Local Share
50% to GovernmentCentral Share
£4m
Example - Merseyside
• Compare to Baseline
Example - Merseyside
Local Share£4m
Baseline£42M
Example - Merseyside
Local Share£4m
Baseline£42M
Top Up£38M
Example - Merseyside
Local Share£4m
Top Up£38M
RPI
Local Rates
But Sticking to Spending Control Totals for now
Critical Thing is Baseline Set!
Local Share£4m
Baseline£42M
Top Up£38M
How do we set the Baseline?
• Rerun the formula!
With Some Potential Changes• Sparsity• Resource Equalisation• Update all Data - Population
How do we set the Baseline?
• Rerun the formula!
With Some Potential Changes• Sparsity• Resource Equalisation• Update all Data - Population
Ministerial Discretion
Summary
• Service to save £200m approx from Grant Cuts• Pressure on Pay Awards already• Flexibility on Council Tax restricted• Council Tax Benefit Localisation
Risk of the Perfect StormGrant
Cut £207m
Pay AwardsCouncil Tax benefit
Localisation
Pensions?
Years 5&6
Questions?
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