Agenda item

Proposals for 2018-19 Schools Block and Central School Services Block Elements of the Schools Budget

To receive a report on the proposals for 2018-19 schools block and central school services block elements of the schools budget.

Minutes:

The Forum received a report on the final proposals for the 2018-2019 Schools Block and Central School Services block elements of the schools budget that built on the following provisional decisions made at the previous meeting, and in particular:

 

  • Budget allocations to  schools would aim to replicate the School National Funding Formula (SNFF) as closely as possible
  • The local Minimum Funding Guarantee would be set at the highest permitted rate of +0.5%
  • Maintained schools would continue to contribute £20 per pupil to statutory and regulatory duties.
  • That on-going de-delegated to Council management of permitted budgets.

 

No new issues had been identified that needed to be considered in the final budget proposals, but a number of relatively minor changes to budget amounts were presented that reflected the most up to date information. To ensure that existing schools received the full £1.7m (2.7%) benefit from the SNFF, £0.4m (approximately half the available balance) was recommended to be drawn down from the New School reserve to fund the additional costs arising from supporting new schools.

 

Additional costs expected from new schools remain a significant cost pressure risk in BF moving forward and the DfE had very recently requested volunteer LAs interested in working on a national funding model to consider a long term funding solution to attend workshops. BFC has expressed interest in contributing to this development.

 

It was also confirmed that all key data had now been provided by DfE for 2018- 2019 budgets which has resulted in an additional £1.992m funding. This is made up of £1.728m from the impact of the SNFF – a 2.7% increase in core funding compared to 2017-18 funding - and £0.264m from increased pupil numbers.

 

However, DfE identified an error on the numbers of pupils eligible to a free school meal (FSM) that had previously been supplied to LAs to calculate budgets, which required the re-issuing of the data and the recalculation of individual school budgets. This was released after the publication of this report and required revised versions of Annexes 1, 2 and 4 of the report to be issued at the meeting. It was confirmed that there was no overall financial impact from the updated data but the distribution of funds between schools had change as a result of the corrected FSM data.

 

 

The following responses were made to comments from members:

 

  • It was acknowledged that although the financial settlement for schools was better this year, there were still considerable challenges for schools as cost pressures are starting to rise.

 

  • It was confirmed that no new information had been provided by DfE regarding funding for 2019-2020.

 

  • The position on school places at Binfield Learning Village (BLV) was clarified as 120 Year 7 funded places available from September 2018 to be followed by 150 in September 2019. There would be one primary school class of 30 pupils from September 2019. Only places needed to meet basic need would be funded by the council. There would be no funding for parental preference.

 

  • It was questioned whether these arrangements could change, however the academy had elected Bracknell Forest Council to administer their admissions arrangements, and agreed to the admissions consultation proposals including admitting only up to the agreed pupil numbers of 120, then 150 in secondary, and 30 in primary.

 

  • Strong concerns were raised about risks to school funding as a result of school place allocation to BLV and it was questioned what risk migrations were in place for schools who would now have lower pupil numbers. Forum members were reassured that the position would be made clearer once the BLV places had been allocated.

 

  • It was noted that Edgbarrow was the only school which needed a per pupil funding top up as they fell short of the new £4,600 minimum funding per pupil.

 

The revised Annex 1 detailed the new funding levels for schools once SNFF had been implemented and it was reported that eventually 70% of BF schools would get more funding under the national funding formula, and there would have been an average 5.8% increase in funding if the 3% “cap” on increases was not in place. During the next 2 years to cap SNFF increases to the stated 6% maximum (excluding meeting minimum per pupil rates), this prevents 19 BF schools (52%) from receiving the full increases they are due - up to a 13.08%. At this stage it is not known when the SNFF will be fully implemented and relevant schools receive the full benefit of the reforms.

 

Concerns were raised in particular over the different between pre and post SNFF Funding for Great Hollands Primary School who were due a 13% increase in funding and it was questioned how the school would cope without the additional funding until then. It was reported that the government had not allocated sufficient funding to move immediately to the SNFF, however every school would receive an increase in per pupil funding which had not been the case in recent years.

 

The key new costs which need to be considered in 2018-2019 budgets were reported and included; pay and price inflation, including the Local government pay offer of a core 2%, but with higher increases to the lower paid, LG Pension scheme deficit contribution, and the BF supplement.

 

 

RESOLVED that the Forum AGREE:

1.    that the arrangements in place for the administration of central government grants are appropriate;

2.    the budget amounts for each of the services centrally managed by the council and funded from the Schools Block and Central School Services Block DSG elements are as set out in Table 1 and Annex 3, with the Schools Block totalling £0.463m and the Central Schools Services Block totalling £1.041m;

 

In its role as the representative body of schools and other providers of education and childcare, the Forum RECOMMENDED that the Executive Member AGREES the following decisions for the 2018-19 Schools Budget:

1.         that the amount of DSG funding for delegation into school budgets through the BF Funding Formula be set at £67.425m;

2.         that £0.394m be drawn down from the New School start-up / Diseconomy Reserve and be included in delegated school budgets;

3.         that the units of resource for the BF Funding Formula be set at those shown in column 3 of Annex 2;

4.         that other Schools Block related grants be reset to the amounts anticipated in 2018-19;

5.         that the DfE pro forma template of the 2018-19 BF Funding Formula for Schools as set out in Annex 4 be submitted by the 19 January deadline.

 

It was RESOLVED that the Forum NOTE:

1.         that the full £1.728m increase in funding from the SNFF is allocated to existing schools;

2.         that proposals in respect of the Early Years and High Needs Block elements of the Schools Block will be presented to the Forum in March;

3.         the 2018-19 cost pressures that schools are likely to need to finance from within their budget allocation, estimated at between 2% and 3%;

4.         the on-going uncertainty from the DfE in respect of a long term funding solution for new and expanding schools, where significant cost increases are expected in BF in future years and which may impact on funding levels for existing schools;

5.         that whilst transitional funding protection is in place during the next 2 years to cap SNFF increases to 6%, this prevents18 BF schools (49%) from receiving the full increases they are due, up to a 13.94% increase.

Supporting documents:

 

Contact Information

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Email: committee@bracknell-forest.gov.uk