Issue - meetings

To consider the attached report of the Director, Education (Tameside and Stockport) and the Assistant Director, Finance

Consideration was given to a report from Director of Education (Tameside and Stockport) and the Assistant Director, Finance, which provided an update on the outturn position for 2021-22 and the budget position for the financial year 2022-23.

Members were made aware that the position for 2021-22 was an in-year overspend position and it was noted that the High Needs budget continued to be under significant pressure despite the Schools Block transfer of £0.878m.  Members were informed that this was predominantly in relation to the continued growth in the number of Education Health Care Plans (EHCP) across the borough.

An underspend of £0.178m in the Schools Block was highlighted, which was related to business rates being £0.049m lower than previously estimated, along with unallocated growth of £0.128m.  In addition, Members were advised that there was a small surplus on the Central Services Schools Block of £7k.  This related to a reduction in Schools’ Forum costs due to remote meetings and reduced expenditure on non-staffing resources within the School Admission team.

Members noted that there was a surplus of £0.153m the Early Years Block.  This was in relation to £0.147m in-year surplus and £6k additional funding from the final 2020-21 Early Years allocation from DfE.  It was noted that a further £0.078m was due to be received in relation to the 2021-22 financial year and the final Early Years settlement would be announced in July 2022.

It was proposed that each of the surpluses discussed would be used to contribute to the overall Dedicated Schools Grant deficit and the overspend on the High Needs Block.

In relation to the DSG budget update for 2022-23, it was forecast that there would be a surplus on the Schools Block, which was in relation to a reduction in the PFI contributions for 3 schools.  Members were informed that the value of the reduction (approx. £0.26m) would have resulted in minimal increases across all schools and, due to the timing of determining this reduction and DfE statutory deadlines, this surplus funding was added to the growth fund.

It was expected that the Central Services Schools Block would be fully utilised and the in-year deficit on the high Needs Block was expected to be £4.526m, which would be reduced to £2.884m with the £0.954m transfer from the Schools Block and a combination of savings and cost avoidance totalling £0.688m identified in the Deficit Recovery Plan.

Members were informed that the Early Years Block was currently forecasting a deficit of £0.236m and were advised that this would be updated in July 2022 with an anticipated increase of £0.323m to reflect January 2022 census data.

The Dedicated Schools Grant Reserve position for 31 March 2023 was outlined for Members.  It was stated that, at the end of 2021-22 there was a £3.243m deficit and the spending detailed within this report was anticipated to bring this to a £5.786m deficit by the end of this financial year in line with the forecasts.

RESOLVED

That the contents of the  ...  view the full minutes text for item 3