Agenda item

To receive an update on the initial matters regarding the Schools Block Element of the Schools budget.

Paul Clark reported to the schools forum on the key issues to consider at this stage of the budget setting process for 2018-19 including the responses received from schools through the recent financial consultation exercise. The key points were:

• Responses from schools showed clear support to:
  • Moving as close to the SNFF as possible
  • The MFG should be set at the highest permitted amount i.e. 0%.
  • Continue ongoing de-delegation of permitted services (note the council would no longer request this in respect of SIMS licenses)
  • Continue the £20 per pupil contribution from maintained schools to LA education related statutory and regulatory duties
  • Schools amalgamating that close to form a new primary school should retain any aggregate surplus balance
• Subsequent to last meeting and the issuing of the financial consultation with schools, the DfE would now allow LAs to implement an MFG rate of up to +0.5%. This would assist LAs in matching the SNFF although other difficulties remain to prevent a perfect match.
• Taking account of estimated levels of income, the LA proposed the following initial budget changes for 2018-19:
  • +£0.325m for additional pupils
  • +£0.512m diseconomy funding for new schools
  • -£0.102m adjustments to business rates
  • +£1.264m balance is “new” money that can be used to offset cost increases e.g. pay price inflation, pension changes, impact of the Living Wage

The next steps would be to distribute the indicative 2018-019 budgets to schools by 15 December, using BFC pupil data and the preliminary decisions taken by the Forum. Then calculations would be updated in light of data from the DfE which is expected during the week commencing 11 December 2017. The final recommendations would then be made by the Forum on 18 January and its recommendations would be endorsed by the Executive Member and DfE notified for the 19 January deadline.

RESOLVED That the Forum AGREED:

That in accordance with the majority views of schools as expressed through responses to the financial consultation, that:

1.    The allocation of additional funds to schools should be through Option 1, aim for a close fit to the 2018-19 SNFF allocation for each school;

2.    The cost of meeting the MFG will be via an equal proportionate deduction from all schools experiencing a funding gain;

3.    That taking account of the additional funding to be provided through the Pupil Premium, that funding for Looked After Children is removed from the BF funding formula.

On going central retention by the Council of Schools Block and Central School Services funding for the services set out in Annex 2.

The provisional budget changes for 2018-19, as set out in Table 2, and that indicative budgets are sent to schools this term, based on these decisions.

That taking account of the recent revision by the DfE to allow for LAs to closer match the allocations from the SNFF in their local funding formula, that the MFG is set at the highest affordable rate, at the same proportional increase most schools can expect, which currently indicates an MFG rate of + 0.38%.

Item for Primary School representatives only:

RESOLVED That the Forum AGREED:

That the continued de-delegation of budgets for the services requested by the council.

Item for Secondary School representatives only:

RESOLVED That the Forum AGREED:

That the continued de-delegation of budgets for the services requested by the council.

Item for all School representatives only

RESOLVED That the Forum AGREED:

That a £20 per pupil contribution continues to be made by maintained schools towards the cost of delivering ‘general’ education related statutory and regulatory duties.

That subject to agreement of the DfE, where schools amalgamate to form a new primary school, that any balances from the closing schools should be made available for use by the successor school rather than be retained by the council.