Agenda item

Jenny introduced the report which presents an update on 2017/18 school funding taking into account the schools, High Needs and Early Years Blocks of the Dedicated Schools Grant and the funding formula for maintained schools and academies.

Jenny said that the changes for 2017/18 were still unknown and phase 2 of the consultation had not happened; a further announcement was expected in the autumn.  The DfE have confirmed that local authorities would be funded at the same rate per pupil as for 2016/17; that movements between the schools and the high needs block would be permissible with an expectation that local authorities should consult with schools and agree any proposals with the Schools’ Forum.

In order to plan for 2017/18 a working group met to look at options to the local authority.  Jenny said that the schools represented at the working group agreed in principle to the local authority retaining headroom to meet rising SEN costs and therefore maintaining school budgets for 2016/17.  Jenny said that it was estimated that headroom of £3M existed within the schools’ block and the local authority proposed that this would be transferred to offset high needs pressures.

In July the DfE launched a consultation on early years’ national formula.  The local authority submitted a response and work was being undertaken with early years’ colleagues on the changes to be implemented in 2017/18.

Paul Meredith outlined the reasons for the local authority taking this difficult decision to use the £3M to meet the rising SEN costs.  The proposal would be included in the Councils 2017/18 budget proposals.

Nick Goforth referred to paragraph 14 in the report and commented that some of this headroom should be used to address the key stage 3 funding position.  Nick asked if the County Councillors were aware of how bad key stage 3 was funded.  Mr Ould acknowledged they were and this was an ongoing problem with central government regarding grants being cut and additional responsibilities.

Kath Kelly sought clarification with regard to bullet point 2 on page 24 of the report and asked if there was a possibility or discussion that this would become significant next year.  Jenny commented that there were no proposed further cuts for 2017/18.

David Thomas stated that the local authority or schools do not want to pick up the costs on SEN however it was not the schools who created the situation.

Karen Allen referred to bullet point 2 of number 8 in the report regarding viring between blocks.  Karen stated that the opportunity to vire between blocks was good for the County Council but not good for the schools.  Karen felt that Schools’ Forum was not consulted and they were notified.  Has that changed as this was suggesting this was agreed with Schools’ Forum.

Paul stated that it was the County Council’s decision and the guidance was to consult with partners and the Schools’ Forum.

Callum Orr commented that there was nothing in the legislation that the Schools’ Forum had to agree.  The local authority should consult and agree but in terms of legislation the Schools’ Forum has no decision making powers over this decision.

A further discussion took place on how the £3M headroom in DSG might be utilised.  Paul confirmed that this was not made available to address the high needs block overspend then further actions to cuts to services may have to take place elsewhere.  In this sense the DSG headroom provided a unique opportunity.

Karen Allen then called for a show of hands to determine Forum’s view on use of the funding.  This confirmed 0 were in favour of moving all of the funding to the high needs block, 13 had a preference for all or a sizeable proportion to go to Key Stage 3, and there were 2 abstentions.

A further discussion ensued whether the 1% reduction in AWPU for the previous year was permanent and if schools had any influence over the 2017/18 budget.  Jenny confirmed that the 1% reduction will not be reinstated.

Discussion took place on how significant the IDACI bandings are.  Jenny commented that she did not think they were significant and that the EFA had tweaked how they would deal with the bandings since the confirmation from the DfE that local authorities would be funded at the same rate per pupil as for 2016/17.

Graham Bett highlighted paragraph 16 of the report and suggested that as a result of today’s discussion would it be more appropriate for the Director to ask for money from the £15M.

Paul commented that the Council would save a plan or proposal the Schools’ Forum could put forward but would be a separate issue as to whether it would be approved.  The key is for all partners to sign up to the strategy.  Callum Orr asked who was actually coming out with that plan.  Paul commented that Leicestershire was and this would be the area of responsibility for the local authority in the future.

Jean Lewis asked if there was a legal ruling that we must continue to fund special schools by formula funding.  Jenny replied that there has never been anything specific to fund SEN and that funding in the formula in 2013 was aligned to special educational needs.  Jenny added that there will be schools that will have notional SEN budgets but no children with SEN.

Schools’ Forum noted the content of the report.