Agenda item

To receive an update on the School and Education Funding

Paul Clark gave an update on school and education funding and presented options for funding for 2018 – 2019.

It was reported that for the next 2 years there would be transitional arrangements in place when local authorities (LA) would receive their funding for schools in two separate blocks: the aggregated amount from each of their school’s National Funding Formula (SNFF) allocation; and a separate allocation for business rates, high pupil mobility and growth fund based on planned spend from 2017-18.

To assist a smooth transition to the SNFF, LAs would continue to use their local funding formula. It was also reported that DfE Regulations do not allow LAs to replicate the SNFF so LA school budgets will always be different to the SNFF.

There will be 2 elements of funding for protection for schools next year; the Minimum Funding Guarantee that will limit reductions in per pupil funding from 2017-18 to a maximum of 1.5%, although for the first time LAs have the power to set their own rate, although it must be between 0% (no change in per pupil funding) and minus 1.5% (schools need to absorb the first 1.5% reduction in per pupil funding); and new minimum per pupil funding rates of £3,300 for primary schools and £4,600 for secondary schools.

Despite there now being an extra £1.3bn funding (£416m 2018-19 and £884m              2019-20) in school budgets, there is no noticeable gain for BF schools from that previously announced in December 2016. This was because in general the extra money was being used to ensure those schools previously due to have a funding reduction or small increase would now all experience at least a 0.5% increase in per pupil funding. The overall change in funding based on 2017-18 census data showed an increase in funding over 2 years from the SNFF of £3.246m (5.1%), £1.696m in 2018-19 and £1.550m in 2019-20. For 2018-19 BF schools would see per pupil funding increases on the SNFF of between 0.5% to 3.9%.

It was also explained that LAs will be funded for the additional diseconomy costs for new schools based on the budget they set for 2017-18 whilst a new formula is developed for 2019-20. With BLV opening in September 2018, there would be a significant cost increase of new schools from the amount of funding provided, currently which is estimated at circa £0.555m in 2018-19 and a further £0.479m increase in 2019-20. This unavoidable pressure would need to be funded from within the overall £1.696m increase, meaning £1.141m would be available for distribution through school budgets.

The three funding options for schools to consider as part of the financial consultation were presented; option 1 was a close fit to SNFF, option 2 was the current Bracknell Forest formula with increases factors by the agreed budget strategy, option 3; was the current Bracknell Forest formula. Other questions on the consultation included whether maintained mainstream schools continued to support as they had done in previous years “de-delegation” of budgets where permitted by the DfE, whether maintained schools agreed to continue the £20 per pupil contribution to the council’s unfunded education related statutory and regulatory duties, and finally whether the balances held by schools closing as a result of an amalgamation should be made available to the successor primary school, rather than reverting to the council.

It was questioned whether Academies would be funded in the same way as LA schools and it was confirmed that this was the case however funding for academies would come directly from the Department for Education.

The forum questioned what the positive and negative aspects were of each option and it was explained that all were increases but some with big changes. Every school had to be under the SNFF in two years and the forum was asked to consider which option should be recommended to schools.

RESOLVED that the Forum To NOTED:

a. the latest announcements from the government on school and

education funding reform

b. the additional £0.555m of cost from new schools that will need to be

funded next year

c. that the council will not be requesting that the funding maintained

schools receive for the SIMS licence fee is returned to the council for

central management through the de-delegation route.

RESOLVED that the forum AGREED:

That the School’s Forum should recommend that schools support option 1 for the calculation of 2018-19 school budgets.

It was noted that Paul Clark would also be discussing the options with school bursars, Business Managers and Chair of Governors meetings.

            (Action: PC to send dates to JC)