Agenda item

To provide an update on the development of the 2023-24 High Needs Block element of the Schools Budget in advance of final proposals that will be presented to the Forum in March.

Delivering Better Value Project (Additional Item)

The Chair gave notice that he had agreed to an additional item of business relating to the Delivering Better Value (DBV) Project.  This was agreed as it would provide additional context for the discussion on the 2023-24 proposals for the High Needs Block (HNB) Budget. 

Cheryl Eyre explained that this was a DfE initiative working with around 50 LAs in England to explore and identify how to reduce HNB deficits.  Over the past few months, colleagues had been spending lots of time working with the delivery company to explore and develop the data and understand the context.  This had been useful in analysing the cases and understanding what could be done better.  The council was now required to submit a bid for £1m funding to undertake work that would lead to a sustainable position and implement changes to alleviate some of the issues underlying the deficit budget.  Cheryl thanked colleagues who had given a significant amount of time to the project.  The council had been working on a high-level submission linked to the data and research so far, including proposals targeting the areas needing resolution and support. 

The first proposal was for universal training across mainstream education focusing on ASD and Speech, Language and Communication Needs (SLCN), focussing on young people with and without Education, Health and Care Plans (EHCPs).  Specialist Resource Provisions (SRPs) had also been considered as part of this, as there was a need to train staff who were supporting young people accessing the mainstream curriculum.  This would help enhance the SRP offer. 

The second area related to a historic proposal from Kennel Lane School to provide an outreach service for young people in small groups and to develop toolkits for staff to meet needs in mainstream settings.  Jenny Baker has been considering how to update the proposal. 

The third proposal was to develop a transition team working with primary schools to support pupils as they transition and for a period of time afterwards.  If this could be delivered for two years, there would be the data and evidence to strengthen the argument for more permanent funding so that this service could be sustained. 

The bid needed to be submitted by 23 January.  It was noted that, if the bid were successful, there would be no time limit for spending the money and it could be stretched out for lasting impact.  This would also ensure that schools were not bombarded with too many initiatives at the same time.  Cheryl thanked members of the Forum for their support. 

The Forum noted that this was good news and that the money was a significant amount for a small Borough.  Headteachers had reported during meetings that they were happy that the bid addressed the issues that had been raised.  There had been some really innovative thoughts about how to make a lasting positive impact. 

2023-24 proposals for the High Needs Block Budget

Jenny Baker declared an affected interest as the Headteacher of Kennel Lane School.  Jenny remained at the meeting during consideration of the item.

The Forum considered a report which provided an update on the development of the 2023-24 High Needs Block (HNB)

element of the Schools Budget in advance of final proposals that were to be presented to the Forum in March.

Paul Clark explained that no new initiatives were being proposed, but figures had been added to the proposals that have already been agreed. 

The budget position was similar to the last few years.  There had been significant increases in income from the government but even with those increases, there was still forecast to be an annual HNB deficit of around £7m.  Although it was anticipated that certain projects would start to deliver savings, for others, such as the DBV programme, there was not enough data currently to include these on the forecasts.  Therefore, there was a potential aggregate £44m deficit by 31 March 2026.  It was expected that this would come down as savings were made.

Paul highlighted the key assumptions:

·       expecting increases in government funding although at a lower level than had recently been received;

·       expecting an increase in numbers of EHCPs but the trend from recent years suggested that this would be a smaller increase than previously;

·       expecting a high level of inflation next year but then rapidly reducing; and

·       expecting some plans to come to fruition to decrease the numbers of educational placements outside the borough. 

The DfE had announced that liability for Dedicated Schools Grant (DSG) deficits would remain with the DfE for a further three years to 31 March 2026.  However, the size of deficit remained a significant concern. 

The Forum noted that:

·       it had asked the council to consider working with other LAs and expressed its appreciation that this was being explored;

·       top up funding to schools had been increased, and the Forum was grateful for the indicative increase, but acknowledged that this was not increasing in line with costs;

·       in the past, the Forum had challenged the council about figures coming through late, but that this year the information had been presented to the Forum as early as possible – the Forum expressed its thanks for this; and

·       The Forum noted with continuing concern the projected HNB £44m cumulative deficit at the end of the 2025/26 financial year and Bracknell Forest Council’s ability to manage any potential payback.  . 

The Forum also expressed its concern regarding the additional capital investment required to ensure that any new SRP places at King’s Academy Binfield were fit for purpose.  It was felt that the original funding should have been spent appropriately to ensure it could deliver the 40 places that were included in the capacity design of the school.  Cheryl Eyre explained the context around that and shared that the council were investigating the matter.  The Forum requested an update on the progress of that investigation at the next meeting. 

Action: Cheryl Eyre

RESOLVED

1.     to NOTE the updated medium-term financial plan which indicated an estimated deficit for 2023-24 of £7.166m and an accumulated HNB deficit at 31 March 2024 of £29.835m; and

2.     to AGREE that no further budget developments were required in the next update to the medium-tern financial plan which was to be reported to the Forum in March.