Agenda item

Jenny Lawrence introduced the report which presents the 2017/18 Schools Budget outturn position and confirms the Dedicated Schools Grant (DSG) Reserve and its intended use.

Jenny referred to the table on page 12 of the report and highlighted the Children in Care overspend.  Jenny stated that some of the social care overspend was as a result of additional staff as part of the post-OfSTED action plan.  Jenny added that the Early Years Block was underspent due to the unused contingency for the roll out of the 30 hours extended entitlement.  There was a minor overspend on SEN which was due to a combination of factors as outlined in the table.  The two areas of concern are Children with Medical Needs (increased demand) and Specialist Services to Vulnerable Groups (delay in delivery of savings).  The Schools’ Block had an overspend of £140,000 which was due to growth funding for extra classes at two new schools – Hallam Fields and Fossebrook.

Jenny reported that the maintained school balances only represent a minor element of the end of year process so therefore it is proposed that this information is not brought to Schools’ Forum.  Schools’ Forum agreed with this proposal.

The Dedicated Schools Grant Reserve for 2017/18 is confirmed as a balance of £2.2m.  The High Needs block is overspent by £1.1m as demand for high need services continues to increase.  Work continues to take place with schools in order to provide lower cost provision and there is a growing national campaign regarding the insufficiency of funding within the High Needs Block.

The policy of the Government continues to impact on the role and responsibilities of local authorities and schools through policy or funding changes.  The funding remains unclear in terms of the National Funding Formula and continuing legislation change in local authority spend.

David Thomas referred to paragraphs 6 and 13 regarding the unused contingency on the early years block and asked which DSG block had contributed to the DSG.  Jenny replied that this was not possible as this was within the DSG.  Jenny agreed to track this information and add to the minutes (as below).

The three blocks of the DSG were introduced in 2013/14 and £4.9m of reserves were bought forward into the 2013/14 financial year. Since this point the following School Block has contributed £650k to the reserve, early years £2.5m and High Needs has withdrawn £3.8m.

Graham Bett referred to Paragraph 20 and enquired whether there were any alternative options if the spend is not enough in terms of the national funding formula and overall school funding.  Jenny said these are not being considered at the moment.  Jenny added that the schools’ blockwill remain the schools’ block and will continue to go out to schools.  There are big issues around the high needs block and is therefore difficult for local authorities to decide on alternative options.

Graham asked about the planning side with regards to the MTFS requiring the Schools’ Budget to be set at the level of DSG with no financial contribution from the Council (paragraph 19).  Jenny stated that the report to Schools’ Forum in February shared the need for savings over 3 years. 

The Chair agreed to discuss one of the items for AOB – National Funding Formula for 2019/20.  Jenny reported that she had attended an information session with the DfE recently to look at their July announcement.  The 2019/20 NFF will be broadly the same as 2018/19.  The funding floor will increase to 1% and the gains cap will increase to 6% against 2017/18 baselines.  The minimum per pupil funding levels will increase to £3,500 and £4,800 for primary and secondary schools respectively.  Jenny added that there is no indication when, or if, a ‘hard formula’ will be introduced and when.  In terms of the premises factors it was still the aim to put into a formula.  Mobility calculations still being considered to solve current data issues.  Jenny outlined the changes in terms of primary low prior attainment and changes to the minimum per pupil levels for middle schools, KS3 and KS4 schools.  Options are being worked on for a future formula allocation to local authorities for school growth funding. 

Jenny added that there was no indication of 2021 which makes planning for local authorities and schools difficult. 

Schools’ Forum noted the financial outturn for the 2017/18 Schools Budget (paragraphs 4-9)

Schools’ Forum noted the level of DSG reserve (paragraphs 10-13).