Fire Chiefs welcome funding reforms – but warn impact of decade of cuts persists

• Fire Chiefs have welcomed changes, set out by the Government, to the way fire and rescue services will be funded. The three-year settlement includes:
  • Confirmation that standalone fire and rescue authorities will be permitted to increase their council tax precept by up to £5 per year (for a Band D property).
  • A pledge that standalone fire and rescue authorities who increase their council tax by the £5 per year limit will receive real terms funding increases from government.
  • A commitment to review the fire funding formula.
• The changes follow pressure from the National Fire Chiefs Council (NFCC) and fire and rescue services for the Government to reconsider plans set out earlier this year which would have resulted in significant cuts to the sector.
• Fire Chiefs welcome the changes and say the three-year settlement will help services to plan. But they say the Government should go further to address a decade of underinvestment, with funding to respond to growing risks – such as climate change and energy technology – and to tackle the ageing fire estate.

Fire Chiefs have welcomed changes announced by the Government which could see all standalone fire and rescue authorities receive an increase in funding at least in line with inflation, if they raise their council tax precept by the £5 limit permitted. This follows pressure in recent months from the National Fire Chiefs Council (NFCC) and fire and rescue services to reconsider funding proposals which could have seen services facing real terms cuts.

In August, NFCC warned that proposed changes to government grant funding could result in “real and significant cuts” to fire and rescue budgets, undermining their ability to keep communities safe. Modelling commissioned by NFCC predicted real terms cuts of over £100 million across three years, compounded by changes to how funding is distributed under the Fair Funding Review 2.0.

Under the new funding approach set out in the Review, population growth will play a major role in determining local allocations. While national fire and rescue funding has not increased overall, areas with faster population growth will gain a larger share of the existing pot, leaving slower-growing regions at risk of further cuts – even where they face significant hazards such as chemical sites, high-rise buildings, and high levels of deprivation. NFCC analysis warned this population-driven model might create major disparities, producing clear winners and losers across the country.

Following NFCC’s calls for urgent action, the Government has now announced the following as part of its Local Government Finance Policy Statement 2026-27 to 2028-29:

• Council Tax Flexibility: Standalone fire and rescue authorities will be able to increase their precept by £5.
• Core Spending Power Floor: A guarantee that any service increasing council tax in line with the £5 expectation will see funding rise at least in line with inflation as measured by the GDP deflator.
• Full Review of Fire Funding Formula: A commitment to reassess how fire and rescue funding is allocated.
• Transitional Support Funding: £2.1 million to support fire and rescue authorities during the transfer of fire functions to new Mayoral Strategic Authorities and areas undergoing local government reorganisation.

NFCC analysis shows the Government’s changes will allow fire and rescue service funding to keep pace with inflation if standalone fire and rescue authorities fully use the £5 council tax flexibility. NFCC is urging authorities to take up this option rather than exposing their communities to avoidable cuts in service. The position is more complex for county council fire and rescue services and NFCC awaits more information to understand the position for those services.

The Government’s policy paper outlines funding proposals for the next three years – a move welcomed by Fire Chiefs, who say longer-term settlements will help address the planning challenges caused by short-term agreements.

National Fire Chiefs Council (NFCC) Chair, Phil Garrigan, 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 warned that fire and rescue services continue to be stretched thin. Recent data from the Ministry of Housing, Communities and Local Government (MHCLG) shows fire and rescue services in England responded to 628,764 incidents in the year ending June 2025 – a 25% increase over the past decade ago. Meanwhile firefighter numbers in England are down by 25% since 2008 – the equivalent of 11,000 wholetime firefighters.

Fire Chiefs say fire and rescue services stand ready to meet the UK’s growing challenges – from climate change, emerging technology risks, and an expanding role in civil resilience and community safety. However, they say this commitment must be matched by sustainable investment. After a decade of underinvestment and the loss of almost £1bn in capital funding, ageing estates and rising pressures threaten progress.  NFCC is urging the Government to provide the resources needed to ensure services can keep communities safe now and in the future.

ENDS

Notes to editors

• Government changes to fire service funding (in respect of the real terms funding floor; the maintained referendum principle of £5 for standalone fire and rescue authorities (£5 for a Band D property or approximately 10p per week); and the commitment to review the funding formula) can be found under section 7 of the Local government finance policy statement 2026-27 to 2028-29, found here, published on Thursday 20^th November.
• Fire and Rescue services in England are carried out by standalone fire authorities in some areas, and by upper tier authorities in other areas in which fire and rescue is one of a range of local services delivered by the authority.
• Earlier this year, NFCC commissioned Somerset Council to model the impact of the Fair Funding Review 2.0 on fire and rescue authorities. The modelling was based on a series of assumptions as not enough information had emerged from government yet to fully understand the full impact of the Spending Review and Fair Funding Review 2.0. The modelling looked at both government grant funding and core spending power (grant funding plus council tax).
• This modelling showed that standalone fire and rescue authorities were facing £102 million real terms cut due to Government funding plans.
• The National Fire Chiefs Council (NFCC) is a charity and an independent membership association and the professional voice of the UK Fire and Rescue Service. NFCC supports fire and rescue services to help them to save lives and keep their local communities safe.