The National Fire Chiefs Council (NFCC) has welcomed Government plans that would allow standalone fire and rescue authorities to keep core funding in line with inflation if they increase council tax precepts by £5.
The changes are set out in the Local Government Finance Policy Statement 2026-27 to 2028-29 following months of pressure from NFCC and fire and rescue services over earlier proposals that could have reduced budgets in real terms.
Under the new approach, any standalone fire and rescue authority that uses the £5 council tax flexibility will see its core spending power rise at least in line with inflation as measured by the GDP deflator.
The Government has also confirmed a review of the fire funding formula and a package of £2.1 million in transitional support for areas transferring fire functions to Mayoral Strategic Authorities or undergoing local government reorganisation.
Fire Chiefs have welcomed the move to set out funding proposals across a three-year period, noting that longer-term settlements can ease planning pressures compared with one-year deals.
Phil Garrigan, National Fire Chiefs Council (NFCC) Chair, said: “We welcome the Government’s recognition of the urgent need to stabilise fire and rescue funding and its commitment to review the formula – this is confirmation that they have listened to our concerns.
“These steps are vital to avoid immediate harm, but we now need to go further to address the impact of a decade of underinvestment, including the loss of almost £1 billion in capital investment.
“This progress reflects the collective efforts of many across the sector – including trade unions – as well as those in politically influential positions, who have consistently championed the often-unseen work of fire and rescue services.
“Fire and rescue services are right there at the forefront of public safety, and NFCC will continue to lead the sector’s work to ensure funding reflects the growing and changing risks we face.
“We need to work through the detail of what these changes mean for fire and rescue services in real terms, but they form a positive step in the right direction.”
NFCC funding analysis warns of uneven impact
NFCC said its earlier modelling showed that previous grant proposals could have produced real terms budget cuts of more than £100 million over three years.
The organisation linked those projections to changes proposed under Fair Funding Review 2.0, which place greater weight on population growth when distributing national fire funding.
NFCC analysis indicated that areas with faster population growth would gain a larger share of the fixed funding pot, leaving slower-growing regions exposed to deeper reductions.
The council highlighted that some of those slower-growing areas also face complex hazards, including chemical sites, high-rise buildings and high levels of deprivation.
NFCC warned that a purely population-driven funding model risked creating clear winners and losers across the country, even where underlying risk profiles differ.
Following the Government’s revised proposals, NFCC believes the combination of a £5 council tax flexibility and the new spending floor will enable standalone fire and rescue authorities to keep pace with inflation if they fully use the precept increase.
The organisation is urging those authorities to make use of the flexibility to avoid avoidable reductions in service provision.
NFCC said the position for county council fire and rescue services is more complex and that it is awaiting further detail to understand the implications for those services.
Service pressures grow as demand increases
NFCC stated that fire and rescue services are already operating under pressure as demand and risk evolve.
Recent data from the Ministry of Housing, Communities and Local Government (MHCLG) shows that fire and rescue services in England attended 628,764 incidents in the year ending June 2025.
NFCC noted that this total represents a 25% rise over the level recorded a decade ago.
Over the same period, firefighter numbers in England have fallen by 25%, equating to around 11,000 fewer wholetime firefighters since 2008.
NFCC said that services are being asked to respond to the UK’s growing challenges linked to climate change, emerging technology risks and an expanding role in civil resilience and community safety.
The council pointed to the impact of almost £1 billion in lost capital investment over the past decade, with ageing estates and mounting pressures affecting how services maintain and upgrade their infrastructure.
NFCC is calling for sustainable investment to match the demands placed on fire and rescue services so that they can continue to keep communities safe now and in the future.
Funding reforms and planning for fire services
The Government’s council tax flexibility and inflation floor are directly relevant to fire and rescue chiefs and senior officers who are planning budgets and operational capacity for the next three years.
Standalone fire and rescue authorities that choose to use the £5 precept increase can maintain core spending power in real terms, which will shape decisions on crewing models, station portfolios and local risk coverage.
Procurement officers and those responsible for estates will need to set investment priorities in the context of NFCC’s reference to almost £1 billion in lost capital funding and the pressures from ageing buildings and equipment.
Government departments and local government finance teams involved in fire governance will need to interpret the forthcoming review of the fire funding formula and assess how population-based allocations interact with local risk factors such as high-rise buildings or chemical sites.
Risk assessors and fire engineering consultants working with services in areas of slower population growth may see increased focus on how changing grant distributions align with hazards and deprivation levels.
Data from MHCLG on rising incident numbers and reduced firefighter headcount in England provides a quantitative backdrop for discussions on staffing, resilience and future funding requirements.