Fire is close to firm in Norfolk town (7)
I believe the answer is:
dismiss
'fire' is the definition.
('dismiss' can be a synonym of 'fire')
'is close to firm in norfolk town' is the wordplay.
'close to' says to take the final letters (the close/ending of).
'in' means one lot of letters goes inside another.
'norfolk town' becomes 'diss' (I've seen this before).
The final letter of 'firm' is 'm'.
'is'+'m'='ism'
'ism' placed within 'diss' is 'DISMISS'.
(Other definitions for dismiss that I've seen before include "Throw out" , "P45" , "Sack - cashier" , "Fire - cashier" , "Sack - send away" .)