Agenda item

The Forum were updated on the potential implications for the council and schools from Stage 2 of the consultations issued by the Department for Education (DfE) relating to proposed changes to education and school funding. Following the outcomes from the Stage 1 consultation, a number of key decisions had been taken by the DfE that allowed for illustrative financial implications to be issued to LAs and schools. However, some areas still require attention meaning most figures needed to be viewed with caution. The Stage 2 consultation would end on 22 March 2017. The illustrations had been based on 2016/17 data, when the changes would come into effect in 2018/19, so would be subject to updating, but the information provided was a good starting point.

The key proposals of the DfE consultation and been included in the report to Members and confirmed that in general there would be an increase in funds to BFC schools but that the Council faced a significant loss of income from the reforms, most notably from withdrawal of the Education Services Grant (£1.237m) and the new formula proposed to allocate funds for High Needs Pupils (£2.327m).

The Forum discussed these key points:

• The indicative funding allocations for schools through the SNFF would have been 5.1% higher in 2016/17 than the amount actually received through the current funding framework.
• Schools would not be able to move directly to SNFF. A transitional funding protection scheme would be put in place which would limit the overall increase to 3% in year 1, with BFC schools expected to receive an average increase in funding of 2.1%. Loses would be capped at 1.5% per pupil.
• Based on the current data, four of the smaller schools would face reductions. This was as a result of a reduced lump sum payment to schools through the SNFF and a higher proportion of funds being allocated through deprivation and low prior attainment measures rather than basic per pupil funding amounts.
• There would be an on-going role for LAs in aspects of School Improvement with new grant funding until 2019, which was outside the scope of the DfE consultation.
• Further questions were being posed by the DfE consultation and a draft response from the Council, if one is to be made, would be reported to the Forum in March.
• BFC were responsible for setting school budgets for 2018-19. The DfE would allocate funds to LAs through the new National Funding Formula and each area would need to decide whether to continue for one more year to fund schools on their local Funding Formula, seek to mirror the National Funding Formula, or move somewhere in between. This would be the key process decision for 2018-19 school budgets.
• 2019-20 budgets would be allocated by the Education Funding Agency through the National Funding Formula with minimal LA involvement.

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

• The same top up rate would apply if a school place was offered to a pupil with High Needs from outside of the Borough as for a BFC pupil.
• The table in Annex 2 of the report highlighted that it was the smaller schools that were receiving the smallest increases or reductions to their baseline. It was a concern that the smaller schools who faced budget pressures would be asking for loans for assistance.

RESOLVED that the Forum NOTED the proposals from the latest stage of national funding reform and the financial implications anticipated at this time using 2016-17 data, in particular:

1.    The potential benefit to schools of an initial funding increase in year 1 of the SNFF of £1.422m, an average rise in per pupil funding of 2.2%

2.    A cut in council funding of up to £4.082m comprising:

a.    A confirmed cut in general council funding available to support schools of £1.237m

b.    a potential cut in education specific grants of £2.845m