The Hampshire & Isle of Wight Fire and Rescue Service is moving forward with a significant increase in capital spending for 2026/27 that will fund new vehicles, estate works and equipment — but will heavily draw on the authority’s reserves.
Large capital programme backed by reserves
The approved capital programme totals £24.42 million, more than double the sum spent by the service in the previous 12 months. The largest share — £18.73 million — will be met from the authority’s earmarked reserves, with the remainder to be financed by borrowing.
“I think it is important to remember the authority receives no capital grant funding from central government, so all of this capital expenditure to fund these assets needs to come from local resources.”
The comment came from Rob Sarfas, the fire authority’s chief financial officer, at a meeting of the Hampshire & Isle of Wight Fire and Rescue Service authority on 28 July. Mr Sarfas stressed that capital funding must come from local sources rather than central government grants.
How the money will be spent
Much of the package is targeted at vehicles and the estate. Key allocations include:
- £10.5m for vehicles
- £12.09m for the estates programme
- £1.39m for carbon reduction measures
- £98,000 earmarked for Basingstoke Fire Station
Officials say the capital spend will also cover a programme of ICT and equipment refresh over the coming years.
Reserves set to fall
At 31 March the authority’s overall reserves stood at £35.3m. Forecasts presented to the authority indicate that, due to this planned investment and other commitments, overall and earmarked reserves are expected to fall to around £10m within the next two years.
| Item | Amount |
|---|---|
| Total capital programme 2026/27 | £24.42m |
| To be funded from reserves | £18.73m |
| Vehicles | £10.5m |
| Estate works | £12.09m |
Mr Sarfas explained to councillors that reserves perform two distinct functions: they provide for planned future expenditure — comparable to a household saving for occasional large purchases — and act as a mitigation fund against financial risks.
During the meeting Councillor Paula Ferguson asked whether there was a minimum reserve level that should not be breached. The finance officer confirmed that a review is under way to determine whether all proposed capital spending remains a priority in future years. He also noted his statutory duty to produce an annual report with his professional view on the adequacy of reserves when the budget is set.
Local taxpayers and future choices
As the authority has no central capital grant for these works, the finance officer warned that the burden of funding will fall primarily on local resources. In practical terms this means local taxpayers are the main source of capital finance either now through reserves set aside from previous budgets or later via borrowing that must be repaid from local revenue.
How the authority balances the need to modernise vehicles and buildings against preserving a adequate rainy-day fund will be a key issue for councillors and residents over the coming budget cycle.
