HC Deb 08 December 2003 vol 415 cc343-4W
Mr. Hammond

To ask the Deputy Prime Minister what his estimate is of the net cost to Fire Authority employers of meeting the fire-fighters' pay settlement in (a) 2003–04, (b) 2004–05 and (c) 2005–06, taking account of financial savings from modernisation under the June agreement. [141896]

Phil Hope

The Independent Review of the Fire Service estimated that the net costs and savings of its proposals would be:

  • 2003–04: £25 million net cost
  • 2004–05: £4 million net cost
  • 2005–06: £34 million net saving

The Local Government Association (LGA) has said that the fire-fighters' pay settlement will balance over the Spending Review 2002 period. The Government agrees but recognises that there may be a lag between costs and savings of modernisation. An additional £30 million transitional funding is therefore available for England and Wales, which will be released subject to satisfactory progress on on-going pay negotiations and modernisation and repaid by fire and rescue authorities over the Spending Review 2002 period.