Agenda item

To seek agreement from the Forum in respect of proposals for additional financial support to schools, in particular, approval of new or amended applications for licensed deficit arrangements.  An update is also provided on the current position in respect of previously agreed financial support arrangements.

The Forum considered a report which sought agreement in respect of proposals for additional financial support to schools; in particular, approval of new or amended applications for licensed deficit arrangements.  An update was also provided on the current position in respect of previously agreed financial support arrangements.

Paul Clark explained that a lighter touch approach to monitor schools which had deficits was used during the pandemic.  It was now appropriate to fully apply approved policies and procedures to support schools.  Relevant schools had responded very well to the increased financial scrutiny. 

The overall position had improved, and the total level of deficit had reduced.  There were 2 schools which needed further work on their recovery plans where work was progressing.  There was also one school which had asked for a licensed deficit for the first time and this was supported by a recovery plan that demonstrated a plan in place to return to a surplus. 

Surplus places were having an impact on the budget at a number of schools and had previously been highlighted by the Forum as a concern.  The report set out how the authority was helping schools with a long-term approach, providing a pupil forecast model to run income scenarios and help budget planning.  The accuracy of pupil forecasting at the authority had improved significantly.  The authority had also reduced the number of spare places when there was agreement by governing bodies and was continuing to explore this approach. 

Reflecting on more flexibility introduced into the DfE conditions that local authorities needed to meet when financing school deficits, and to provide an approach that was expected to be sustainable into the medium term, the authority proposed to amend the current policy to allow up to 3% of school budgets to be used to support deficits and loan. 

The Forum asked whether Ascot Heath Primary School was getting the support it needed.  Paul Clark replied that the deficit was a concern due to its size, but the school was working well with the Council and a recovery plan for the next five years had been developed that demonstrated a return to surplus.  There was also the potential of a sale of the caretaker accommodation which could contribute significant funds to addressing the deficit.  Restrictive covenants needed to be removed to enable the sale, and this was work in progress, so was not certain to happen.  Furthermore, any sale of property would be a capital asset and would have to be swapped with some revenue funding that the council had set aside for this purpose.  Should this sale conclude, there would be no further funds available to facilitate future funding “swaps”. 

The Forum was pleased to hear of the progress made and thanked Paul Clark for his work to support schools throughout the pandemic. 

RESOLVED to AGREE

1.    that subject to the school governors confirming the financing schedule and compliance with the associated terms and conditions of the deficit scheme:

1.1    the following amendments to existing licensed deficits:

i.       Sandhurst Secondary School’s licensed deficit agreement be amended to a maximum deficit of £0.050m, for full repayment by 31 March 2023;

ii.     Harmans Water Primary Schools receives a licensed deficit of up to £0.070m for full repayment by 31 March 2023;

iii.    The Pines licensed deficit agreement be amended to a maximum deficit of £0.075m, for full repayment by 31 March 2024; and

iv.    Ascot Heath Primary School receives a licensed deficit of up to £0.330m, for full repayment by 31 March 2026; and

1.2    the following new licensed deficit arrangement:

i.       Cranbourne Primary School receives a licensed deficit up to £0.080m for full repayment by 31 March 2026; and

2.    that the council continues to work on repayment schedules with the following schools, and that subject to the school governors confirming the financing schedule and compliance with the associated terms and conditions of the deficit scheme, that maximum deficits are as follows:

i.        Winkfield St Mary’s receives a licensed deficit of up to £0.100m; and

ii.       Easthampstead Park receives a licensed deficit of up to £0.200m; and

3.   that subject to comments from schools following formal consultation, and agreement of the Schools Forum, that the financing arrangements for licensed deficit and loan applications are limited to 3% of final school budgets from the previous financial year (excluding brought forwards).