The Scottish Fire and Rescue Service (published 21 May 2015) – podcast transcript
I’m speaking today with Michael Duff, audit manager on Audit Scotland’s latest report, which looks at the Scottish Fire and Rescue Service.
Michael, what is this report about?

The Scottish Fire and Rescue Service started work on the 1st April 2013, replacing the eight former fire and rescue services and the Scottish Fire Services College. In its first year, the Service employed around 9,000 people and had a budget of nearly £273million.

We are reporting how the merger of the eight Scottish fire and rescue services was managed, and the progress that the Scottish Fire and Rescue Service has made in improving the efficiency and effectiveness of fire and rescue services in Scotland.

And what were your main findings?

We found that the Scottish Government and the Scottish Fire and Rescue Service managed the merger of the eight predecessor services effectively. There was no impact on the public during the merger, and the service’s performance is improving.

There are major challenges ahead though. Savings of £328m are expected from fire reform and the service is on track to deliver these savings. But due to additional cost pressures and likely budget reductions we estimate a potential funding gap of nearly £43m in 2019/20.

Redesigning services and delivering new services, while managing financial pressures, will be a significant challenge for the service.

So can you explain how Audit Scotland has calculated the funding gap of near £43m, and how this compares to the calculations carried out by the Scottish Fire and Rescue Service?

The service recognises that a decrease in funding of five per cent by 2019/20 would result in a funding gap exceeding £21million. 

However, our own analysis, which is based on the costs and savings identified by the Service but use forecasts of UK public sector spending to estimate future budget reductions, gives a potential funding gap of nearly £43m in 2019/20.

How much did the reform programme cost? 

Reform of fire and rescue services was expected to cost approximately £40m, and it has actually cost an estimated £36m.

The report also highlights the number and types of incidents which the Scottish Fire and Rescue Service attended in 2013/14, can you tell me a bit more about those, and how that could change the role of the service moving forward?

There has been a long-term reduction in the number of fires and fire-related casualties. The service attended nearly 85,000 emergency incidents in 2013/14, a third of which related to fires. Other incidents included special services incidents, for example, road traffic collisions and flooding. But more than 50 per cent of incidents related to false alarms, the majority of which were due to equipment failure, and this represents a significant cost to the service, which the service recognises and is attempting to address.
Given the long-term reduction in the number of fires, the Service is exploring opportunities to take on different roles, and become involved in community safety beyond its historic remit.  

And what does Audit Scotland want to see happen now as a result of this report?

The potential funding gap of £43million means that it is crucial that the service agrees a long-term financial strategy by the end of March 2016. 

The merger was managed effectively, and we have recommended that the service carry out a ‘lessons learned’ exercise, and shares its findings with the Scottish Government and other public bodies that are starting a merger.

Michael, thank you. And you can view the full report on our website at: 
www.audit-scotland.gov.uk