The Authority’s revenue budget provides for day to day running costs as opposed to investment in major schemes.  You can view the Authority’s 2007/08 Revenue Budget by clicking here.  The budget was set at £55,722,250 and is summarised below:-

	£m
Employee Costs	46.4
Premises Related Costs	2.0
Transport Related Costs	2.0
Supplies and Services	3.3
Other Running Costs	4.0
	57.7
Grants	(0.9)
Income	(1.1)
TOTAL SPENDING	55.7

The Authority sets a budget in the context of the likely position of expenditure and funding available over the next three years.  This projection is contained within the Medium Term Financial Plan which you can see by clicking here.  In reaching its decision the Authority was aware that Fire Service funding is uncertain but with effect from 2007 onwards the Government intends to announce the level of grant it will give each local authority for each of the following three years rather than making an annual allocation as currently happens.  This will give all authorities greater certainty when committing to longer term plans.  In view of the uncertainty over funding the Authority committed to a limited development programme though when the Government’s plans are announced it intends to undertake a full review of its medium strategy.  You can view the Development Programme by clicking here.

Where the Money Comes From

In total the Authority will spend £57.7m in 2007/08.  Of this £2.0m will be funded from specific grants, a variety of chargeable services and interest income.  The balance of £55.7m will be funded by Government Grant and Business Rates (£34.2m), Council Tax Income (£20.5m) and a contribution from the Authority’s reserves (£1.0m).

Our Plans for Capital Investment

The Authority approves a three year Capital Programme to fund its major projects.  You can view the Capital Programme by clicking here.  It is summarised as follows:-

	2007/08 £000	2008/09 £000	2009/10 £000
EXPENDITURE
Premises	6,627.9	3,223.0	1,089.0
Appliance and Vehicles	3,177.4	1,749.9	689.2
Information and Communication	575.0	25.0
Operational Equipment and Hydrants	331.0	15.0	15.0
	10,711.3	5,012.9	1,793.2
FUNDING
Capital Receipts	3,704.7	1,850.0
Required Borrowing	7,006.6	3,162.9	1,793.2
	10,711.3	5,012.9	1,793.2

The following major schemes were added to the Capital Programme:-

	£m
Appliance Replacement 2008/09	1.37
3 Year Programme of Rectification Works	0.45
CHQ Enhancements	0.35
Replacement Flexi Duty Cars	0.44
Mobile Incident Command Facility	0.25

Capital is funded by borrowing and by capital receipts generated from the sale of the capital assets. Interest and repayment costs are provided for in the Revenue Budget above.

In September 2006 the Audit Commission produced an Annual Governance Report which can be viewed by clicking here.

Click here to view our Anti Fraud & Corruption Strategy.