Agenda item

To seek comments on the detailed budget proposals for the High Needs Block element of the Schools Budget.

The Forum considered a report which sought comments on the detailed budget proposals for the High Needs Block (HNB) element of the Schools Budget. 

Paul Clark explained that, whilst it was expected that we could see three years of high increases in funding, this was significantly below the forecasted demands, so the deficit was still increasing.  The two main factors were the increase in demand of costs which fell into the Council’s commitments, and the actions to aid cost reductions from the Commissioning Plan had slowed due to the pandemic.  Although BFC was not financially responsible for this deficit, as this lay with the DfE, BFC was still spending public money and therefore was managing these budgets in same way as if it were responsible, seeking best value and following all the normal financial regulations and procedures. 

To illustrate the national nature of the financial challenge facing BFC, financial returns from 77 LAs (a 52% response rate), including BFC, had been completed in autumn 2020.  This confirmed that most LAs were expecting larger SEND budget deficits.  BFC’s deficit was forecast to increase around the midpoint range of the survey results. 

The DfE launched a consultation regarding a small number of changes to the distribution of funds to LAs in 2022-23.  This was in advance of further potential changes in 2023-24 as part of the SEND review.  Regarding the proposed changes for 2022-23, the DfE was looking at certain allocations being based on actual data as opposed to budget data.  Although the funding protection mechanism means that changes would not have an affect in 2022-23, BFC could be very vulnerable after that if funding protection measures were amended. 

Paul Clark also answered a question on Support for Learning which was an in-house SEN service and to what extent the funding was secure.  He explained that all budgets within the HNB were regularly reviewed and could be subject to future changes. 

RESOLVED

1.    to AGREE that the Executive Member:

i.        sets the total initial Dedicated Schools Grant funded HNB budget at £18.998m;

ii.       releases £0.143m of funds from the SEND Units Reserve to finance estimated start-up costs at the proposed Special Resource Provisions in BF schools; and

iii.     confirms the changes set out in the supporting information (Table 1 and Annex 5 of the report) and relevant budgets are therefore updated to those summarised in Annex 6 of the report; and

2.    to NOTE:

i.        that work needed to continue to ensure appropriate provision for children and young people with Special Educational Needs and those in need of Alternative Provision through the programme of the HNB sub-group;

ii.       the further deterioration in the forecast financial position of the HNB Budget at Table 1 of the report, with a:

a.      £5.698m deficit forecast for financial year 2021-22;

b.      £11.217m cumulative deficit forecast for 31 March 2022; and

c.       £17.216m cumulative deficit forecast for 31 March 2023; and

iii.      the key aspects of the DfE consultation on the review of the 2022-23 HNB NFF including:

a.      the importance of the Funding Floor factor to protect against a potential £0.738m funding reduction; and

b.      the potential for significant changes in funding allocations to LAs from 2023-24 for which the financial implications cannot be estimated at this stage.