FIRE chiefs are on target to stick to their budget after making more than £500,000 of savings – but they have warned there may be tough times ahead on the financial front.

Figures which were today being presented to the North Yorkshire Fire & Rescue Authority have painted a picture of how the region’s fire service is coping as it strives to meet its cash targets for 2009/10.

Finance managers at North Yorkshire Fire & Rescue Service say “a significant reduction in capital expenditure”, partly due to lack of progress with several building projects, have allowed the organisation to save £510,700.

That means it is on course to come in within its 2009/10 budget of £30,691,300, with money also being saved through not filling a vacant post in its IT section, not making personal recognition awards in cash, the removal of “bounty payments” to retained firefighters who work part-time and cutting energy costs.

But Ian Young, the service’s director of corporate services and treasurer, says budget pressures on the organisation are likely to increase in the years to come. “We have not needed to borrow money for certain projects within our capital programme because we have not secured the land,” he said.

“Of course, we would have preferred to secure this and to have started the planning process for projects in areas such as Danby, Grassington and Summerbridge, near Harrogate. We have stations in those areas which need refurbishing or don’t meet the requirements of a modern fire service, but it may mean we now have to look for alternative sites.

“The budget forecast in this report is very much provisional and under review. Taking into account our reduced spending this year, we would be looking at a potential council tax increase as far as the fire service is concerned of one per cent in 2010/11. However, we will also be pointing out to members of the fire authority that, while we have quite a healthy balance sheet now, life could become increasingly difficult with regards to our budget as we move towards 2011/12.

“We need to be looking at the decisions we take next year and maintain our flexibility.”

The report also outlines areas where the service is looking to inject funding from its projected 2009/10 underspend of £99,400, including maintenance at fire stations and taking on four full-time firefighters.