Agenda item

The Schools Forum received a report setting the current scene on the School Block element of the Schools Budget and an update on the initial matters that needed to be dealt with in order for the timely preparation of the 2017/18 budget. Further decisions would be required in January when all of the information was available.

At this stage, there is only provisional funding information available but it is important to make some early decisions so that budget planning can be suitably progressed to ensure that the council would be able to meet the DfE deadline of 20 January 2017 for Local Authorities to submit the actual Funding Formula and units of resource that would be used in 2017/18.

The key points and decisions being requested at this stage were:

• The DfE would provide a cash flat funding settlement for the Schools Block, meaning no increase for inflation or other pressures although increases in pupil numbers would be funded
• As a result, there would be increased funding from the DfE arising from an extra 396 pupils in schools which at +2.6% was significantly larger than the +1.9% increase experienced in each of the previous 2 years
• Schools supported continued BFC central budget management of the services the DfE permits to be ‘de-delegated’ from schools although in future an annual update on each of the services would be provided to confirm performance and impact
• The £0.26m funding transfer from the Education Services Grant into the Dedicated Schools Grant should, as intended by the DfE, be used to fund LA ‘retained’ statutory and regulatory duties
• That maintained schools supported contributing £20 per pupil to the cost of meeting ‘general’ statutory and regulatory duties that the council is obliged to meet despite the DfE withdrawing funding of £77 per pupil
• A saving of £0.096m would be realised from the Brakenhale School academy conversion which results in charitable status and eligibility to 85% charitable rates relief
• Taking account of the agreed budget strategy and the estimated amount of available resources, the budget changes that were considered the highest priority to fund in 2017-18 at this stage were:

o   Changes in pupil numbers

• • Changes in pupil characteristics, which typically benefit the most vulnerable children
  • Diseconomy and start-up costs at new and expanding schools, as set out in the approved policy
• Agreeing all the proposals would require a draw down from the accumulated surplus balance on the Schools Budget of £0.256m.
• There would be an estimated £1.7m of unfunded pressures falling on schools next year, which amounts to around 2% of current spending levels.

As a result of the Members questions, the following points were made:

• Schools found it difficult to commit money to ‘de-delegated’ services without understanding what they could do for the school, or whether they provided a good service. LA officers confirmed that an annual performance would be provided each year in advance of the relevant budget decision.
• Schools were making savings from re-organising their staffing structure and this is forecast to result in overspend on the redundancy ‘de-delegated’ budget this year. This is the first over spending for three years and reflects the difficult financial environment.
• The ‘de-delegated’ staff supply cover costs were mostly for maternity cover. The proportion of the spend was approximately £300k.
• If more schools acadamised then ‘de–delegated’ support service budgets would also reduce requiring a consequential  cost reduction in order to provide value for money, sustainable services. However there were still many unknowns surrounding acadamisation and it was difficult to speculate the speed in which this could occur. The impact on ‘de-delegated’ services would need to be taken on a case by case basis.
• The duties, set out on pages 131/132 of the report, indicated what the £20 per pupil deduction to support ‘general’ LA statutory and regulatory duties could be spent on.
• The additional £20 per pupil deduction would put enormous pressure on some schools.
• There was a limited ’de-delegated’ budget available for those schools that were struggling to meet the new financial pressures.

RESOLVED that all Forum Members AGREED the following recommendations:

• That subject to relevant provisions being contained within DfE Funding

Regulations, the funds being transferred from the Education Services Grant to

the Dedicated Schools Grant for ‘retained’ education related statutory and

regulatory duties can be held centrally by the Council within the Schools Budget (paragraph 6.22 of the Report).

• On going central retention by the Council of Schools Block funding for the services set out in Annex 4 (paragraph 6.32 of the Report).
• The provisional budget changes for 2017-18, as set out in Table 4, subject to sufficient resources being available (paragraph 6.47 of the Report).

RESOLVED that all Forum Members NOTED:

• That schools are again likely to face significant unfunded cost pressures next year that are currently estimated at £1.7m an average of 2.1% (paragraph 6.49 of the Report).

RESOLVED that Primary School representatives only AGREED:

• The continued de-delegated of budgets for the services permitted by

the DfE (paragraph 6.17 of the Report).

RESOLVED that Secondary School representatives only AGREED:

• The continued de-delegated of budgets for the services permitted by

the DfE (paragraph 6.17 of the Report).

RESOLVED that School representatives only AGREED:

• That subject to relevant provisions being contained within DfE

Funding Regulations, a £20 per pupil contribution is made by maintained schools towards the cost of delivering ‘general’ education related statutory and regulatory duties (paragraph 6.28 of the Report).