Agenda item

To update the Forum on the development of the Start-up and Diseconomy Funding Policy for New and Expanding Schools that is expected to be required for 2019-20 which builds on the on-going experiences and lessons learnt to date through the school places programme.

The Forum considered a report updating it on the development of the Start-up and Diseconomy Funding Policy for New and Expanding Schools that were expected to be required for 2019-20 which built on the on-going experiences and lessons learnt to date through the school places programme.

The Forum was advised that supporting new and expanding schools in the initial years after they opened, often with relatively low numbers of pupils as housing developments continued but not necessarily at the anticipated rate, could require significant amounts of additional financial support over a number of years.  As more schools opened, more experience was gained and the policy therefore needed regular update to remain appropriate for the prevailing circumstances.  Three changes were proposed for 2019-20:

1.         To add a new category for one-off pre-opening start up costs to recognise synergies and other benefits that arise when a group of schools were opening simultaneously by the same provider. This new category would be funded at around £0.050m which was a 50% reduction on the amount included in the current policy for other new primary academy schools.

2.         To update the funding model to reflect the increase in national rates in 2019-20 from £3,300 to £3,600 for primary aged pupils and from £4,600 to £4,800 for secondary aged pupils, the cost of which was reflected in the DfE funding settlement.

3.         To add a new post-opening revenue grant allocation of £250 per primary aged pupil and £500 per secondary aged pupil to recognise that new schools experienced initial high costs of stocking up with general resources which the day-to-day budget allocation did not recognise.

These changes would result in estimated additional costs of £0.045m in 2019-20 and £0.163m in 2020-21, although the pace of housing developments would impact on this.

The Forum reiterated the concerns expressed during the previous discussion.  It was suggested that it was like a perfect storm.  There was going to be a period of uncertainty during which there would be more places than pupils at a time of existing financial constraint which was being compounded by the loss of funding due to the loss of pupil numbers in existing schools

It was acknowledged that it was difficult to be objective when members of the Forum’s schools were directly affected as they were losing funding to the new school, not only as a result of potential future top-slicing, but also reduced funding due to the fact that they were below PAN.  However, the Forum accepted that what was being proposed was reflective of the Department for Education’s guidance which made rejecting it difficult.  However, it was agreed that the Council should look at how it could provide additional support for the schools which were being adversely affected by the opening of new schools.

RESOLVED that:

1.         The changes to the new and expanding schools funding policy be incorporated into the draft 2019-20 policy;

2.         Confirmation be given to Kings Group Academy that final funding allocations for 2019-20 were expected to be in accordance with the new policy.

3          The Schools Forum expresses its ongoing concern to the Council and Executive Member for Children, Young People & Learning about the serious adverse impact on existing schools of the delivery of new schools when there is a significant surplus of places, and requests that urgent consideration be given to ways of mitigating the adverse impact by providing additional financial support to those schools which were facing additional budgetary pressures as a result of the loss of funding due to a drop in pupil numbers..