No further funding for Somerset fire authority's Red One commercial operation as debt grows to £770,000
By Susie Watkins
26th Feb 2021 | Local News
In case you missed it before.
Somerset's fire authority will not allocate more taxpayers' money to bail to its own commercial operation – which is now more than £770,000 in debt.
Red One Ltd is the commercial trading arm of Devon and Somerset Fire and Rescue Service, describing itself on its website as "the UK's leading provider of fire and rescue training."
The company has been in debt for a long time, with its financial fortunes taking a turn for the worse as a result of the coronavirus pandemic.
But the fire authority said the company will renegotiate its debt repayments until the economic climate improves.
Brief details of Red One's woes were published in a report which came before the fire authority's resources committee on Wednesday morning (February 10).
As of December 2020 (the most recent figures available), the company was in debt to the fire authority to the tune of £770,104.
This represents a slight drop from the June debt level (which stood at £772,252), but is a still a sharp rise from the pre-pandemic period, with its debt standing at £673,229 by September 2019.
The company has not formally requested any formal bailout from the fire authority.
Amy Webb, the fire authority's director of service resourcing, said a repayment plan had been agreed with the company, but this was "on hold due to the cancellation of courses due to covid."
She added: "The amount of overdue debt is mainly due to the impact of covid-19 on Red One's ability to deliver training and generate income.
"It is also a result of some invoices for services provided by the fire service becoming overdue during that period."
Red One has provided firefighter training for more than 40 other fire services in the UK, as well as running driver training and maritime courses.
Ms Webb said there were no plans to provide extra funding for Red One in the form of a bailout or short-term loans – stating that a recently-acquired contract with the Hinkley Point C nuclear power station would lead to a positive change in the company's fortunes.
She said: "The fire authority has not bailed out the company and doesn't intend to do so in the future.
"Instead, we have allowed the company to pause repayments to give some flexibility and support the company at this difficult time.
"We do not expect the overall debt to grow. Red One is not currently incurring any recharges and has started gaining income from the profitable contract it has secured with Nuclear New Build to provide fire cover at Hinkley Point C.
"However, the impact on Red One's ability to trade during this time creates a financial risk to the fire authority, which is why we have made a provision in the official accounts."
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