Planning for the future 2025-26

It is important that we plan for the medium / long term to ensure that we can continue to deliver our services in future years.

Kent Fire and Rescue Service has a fully developed four-year Medium Term Financial Plan and a 10-year capital spend plan which looks at risks and potential future demands of the service. We have identified that the largest risks are likely to be:

Funding received from government

The government will review how funding is allocated across the fire sector in the future and has released a paper on fire services reform. The authority responds to all consultations and supports the National Fire Chiefs Council (NFCC) submissions to the Ministry of Housing, Communities and Local Government (MHCLG) on behalf of the sector.

Council Tax base does not increase

The authority’s costs increase year on year and in order to fund those increases the authority assumes there will be an increase in the number of properties that will be available in Kent and Medway from which Council Tax can be collected. We continue to work with Medway Council and the districts across Kent to obtain regular forecasts to help us plan for future years.

Council Tax collection rates fall

The authority’s financial plans are dependent on the collection of Council Tax and business rates by billing authorities. Economic conditions, including periods of inflation and wider cost-of-living pressures, can affect the ability of residents and businesses to meet payment obligations, potentially reducing collection rates and impacting the funding available. The authority works closely with Medway Council and district councils across Kent to monitor collection performance and understand emerging risks, ensuring these are reflected within medium-term financial planning assumptions.

Interest rates

Changes in interest rates can have a significant impact on the authority's finances. Higher interest rates increase the income earned on surplus cash balances held as treasury investments, providing additional resources that can help offset inflationary and other cost pressures. Conversely, when interest rates fall, the return earned on these balances reduces, leading to lower investment income. As a result, the authority must carefully reflect interest rate expectations within its medium-term financial planning to ensure future budgets remain sustainable.

Raising debt to finance investment

The authority may borrow to fund investment in property, infrastructure and other assets that support the delivery of services. While borrowing can help spread the cost of significant investments over the useful life of an asset, it also creates an ongoing requirement to repay debt and meet associated financing costs. It is therefore important that any borrowing remains affordable, prudent and sustainable, with sufficient provision made within the authority’s financial plans to meet its repayment obligations without placing undue pressure on future budgets.