HWFRS Financial Settlement

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After setting its budget for the current 2025/26 year, HWFRS had to make £1.2m of efficiency savings to address central government funding cuts and inflationary pressures. These savings have already been delivered this year without any changes to front‑line services. However, the Government’s recent grant announcement in December 2025 proposed a further £1.2m reduction in funding over the next three years from March 2026, which would have had a serious and detrimental impact on the Fire and Rescue services provided across both counties.

Following robust lobbying by HWFRS, the National Fire Chiefs Council (NFCC), and local Fire Authority Members during the consultation period with Government in January 2025, it is pleasing to see the Government has listened carefully and has increased HWFRS’s funding floor which means the Fire Authority will no longer face the additional £1.2m cut over the next three years. 

As a result, in relation to government grant settlements the Fire Authority now has a balanced budget for the next two years with a potential funding gap of about £200k in the three years’ time. This shortfall will be factored into the medium‑term financial plan, with future savings identified to close the gap. Other funding factors such as inflationary pressures and council tax could improve or worsen this position in the future. However, thanks to the current improved grant funding position, HWFRS should not at this time need to make any significant changes to front‑line services.

Although HWFRS is still not funded to the level it needs or deserves, the Fire Authority welcomes this positive step from Government who have recognised the importance in supporting the Fire and Rescue Service in Herefordshire and Worcestershire and across England.