Agenda and minutes

To receive any declarations of interest from Members of Schools’ Forum

A declaration of interest was received from Gus Diamond (Secondary, Academies) in relation to Agenda item 5, specifically the Growth Fund.

To consider the minutes of the meeting of Schools’ Forum held on 27 September 2022

Consideration was given to the minutes of the meeting of School’s Forum, which was held on 27 September 2022.  It was noted that Louisa Siddall, Senior Finance Manager had been present at the meeting and that her attendance had been omitted from the minutes.

RESOLVED

That, with the above amendment, the minutes of the meeting of Schools’ Forum, which was held on 27 September 2022, be approved as a correct record

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

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

Members were advised that there was a forecast surplus of £0.353m on the Schools Block.  It was noted that this related to £0.355m unallocated growth, a minor variation of £1k on an academy conversion offset by a £3k retrospective business rates charge.  It was proposed that any surplus would contribute to the DSG deficit.

It was predicted that the Central School Services Block would be spent in full, whilst the High Needs Block was projected an in-year deficit of £4.385m, which would be reduced to  £2.743m when taking into account the £0.954m transfer from the Schools Block and £0.688m from identified savings and cost avoidance, as outlined in the Deficit Recovery Plan. 

A forecast surplus of £0.674m was projected for the Early Years Block and a detailed explanation on the Early Years forecast was provided.  It was cited that although there is a forecast surplus there is an adjustment to early years funding annually which could reduce this position.  It was noted that participation for 2 years olds was increasing.  However, the DfE target number of potentially eligible families had reduced, which had led to a reduction in the estimates. This was also noted to be impacted by a reduction in birth rates across the borough.

In relation to Early Years funding, it was acknowledged that this was a complex area, which would continue to be closely monitored and that a more detailed update would be provided at the next meeting of School’s Forum.  It was also noted that there continued to be significant demand on the SEND Inclusion Fund and that this could increase further following the spring term school census.

The surplus forecast on Central Retention in the Early Years funding was explained to be as the result of vacancies in the Early Years Quality team and the SEMH team.  However, it was noted that these posts had now either been recruited to or were in the process of recruitment.

Projections were provided in relation to the DSG Reserve.  Members were advised that, if the 2022-23 projections materialised, there would be a cumulative deficit of £4.956m on the DSG.   It was acknowledged that a deficit recovery plan had been developed and submitted and that discussions with the DfE were ongoing.  It was confirmed that this position would continue to be closely monitored and that regular updates would be reported to Schools’ Forum.

RESOLVED

That the contents of the report be noted and supported

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

Consideration was given to a report of the Director of Education, Tameside and Stockport and Assistant Director of Finance, which set out information on the allocation of the Dedicated Schools Grant funding for 2023-24 and details of additional funding provided.

Members were advised that the provisional DSG settlement of £257.527m for 2023-24 had been received on 16 December 2022.  In addition, the government had announced that an additional £2.3billion per year would be invested in schools over the next 2 years.  This would represent an actual increase of £2 billion after an adjustment had been made to remove the element which related to the Health and Social Care Levy.

In Tameside, a Mainstream Schools Additional Grant (MSAG) for 2023-24 had also been allocated, which totalled £6.915m alongside additional funding of £1.636m to support the High Needs Block.

A detailed breakdown of the provisional settlement for the 4 blocks within the DSG compared to the latest 2022-23 settlement figures was provided for Members.

Members were advised that the Schools Block, which was the largest element of DSG funding, covered funding for all pupils and school led factors in the funding formula and comprised of the following:

•       A primary unit of funding (PUF) of £4,996.61

•       A secondary unit of funding (SUF) of £6,486.04

•       Premises – this includes PFI and business rates, which are based on historical spend.

•       Business rates, which are included in the LA allocation but will be top sliced from the DSG allocation and retained by the ESFA who will make payments to all LA’s directly on behalf of Schools.

•       Growth – this is calculated using the difference between the primary and secondary numbers on roll on the October 2021 and October 2022 school censuses.

It was explained that, in 2023-24, LAs would be able to set the Minimum Funding Guarantee (MFG) between +0% and+0.5% per pupil and that a Gains Cap could be used, which was a limiting factor that limits the gain in pupil led funding per pupil that a School received.  It was noted that this factor had been used in previous years to enable the LA to meet its statutory duty to set a balanced DSG budget.

Members were made aware that the provisional figures from the DfE had previously indicated that it would be affordable to:

•       continue to apply the 2023-24 national funding formula rates;

•       set the MFG protection at the highest rate of 0.5%;

•       remove the gains cap; and

•       transfer 0.5% of the School Block Funding to the High Needs Block.

However, following receipt of figures from the DfE, which had since been updated to reflect October census data, this scenario was not affordable within the funding allocation for the Schools Block as there was a shortfall of approximately £312k.  As a result, members were provided with a range of alternative options as set out below and option 3 was recommended in setting the formula for 2023-24.

•       Option 1 – Include a  ...  view the full minutes text for item 20.

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

Consideration was given to a report of Director of Education (Tameside and Stockport), which provided an update on the DSG deficit position in both 2022-23 and 2023-24, along with updates on the Delivering Better Value programme and the action plan to address spending pressures.

Members were informed that the High Needs Budget position for 2022-23 had slightly improved on the summer term and an in-year deficit of £4.385m was now forecasted, prior to any transfer from the Schools Block or savings identified as part of the High Needs Review.  When taking into account the agreed transfer from Schools Block in 2022-23 (£0.954m), it was noted that this would reduce the in-year deficit to £3.431m.

A range of proposed savings, which equated to £0.688m were detailed for Members and it was explained that this would further reduce the deficit to £2.743m.    However, it was acknowledged that there was a potential risk attached should these savings not materialise in full throughout this financial year.

With regard to growth, Members were made aware that the spend against forecast continued to be broadly in line with the planned budget.  However, it was outlined that there continued to be higher than average growth in the Independent sector, Out of Borough placements and Post-16 provision.  In contrast, growth in mainstream, special schools and resourced provision was lower than had been anticipated.  It was suggested that some delays in establishing new resource bases had contributed to this and noted that growth would continue to be monitored closely, with a more detailed review to be carried out alongside the SEND team.  Members were also informed that the number of Education Health and Care Plans (EHCP) had continued to increase in line with predictions

An update was provided on the High Needs Settlement, following December 2022 announcements from DfE, and providing comparison data with 2022-23.    It was highlighted that Tameside had seen an increase of 8% since 2022-23.  It was noted that this funding was subject to further updates during the financial year 2023-24 in order to reflect 2023-24 high needs places and import/export adjustments.

Based on the additional £2.3billion additional government investment over the next 2 years, it was stated that the High Needs Block would benefit from an increase of £400m.  In Tameside, it was explained that this would represent an additional £1.636m, which would take the overall increase to £4.301m (an increase of 13% when compared to 2022-23).

Members were made aware that the conditions of the DSG outlined that LAs were required to pass on to special schools the allocations of additional funding using a proportion of their additional High Needs funding in 2 ways:

•       For 2023-24, a Minimum Funding Guarantee (MFG) would be applied to special schools budgets. Previously this had always been set at 0%.  However, for 2023-24, it had been set at 3% (compared to the 2021-22 baselines)

•       For 2023-24, special schools and Alternative Provision (AP) Schools would receive a separate additional allocation amounting to 3.4% of their total  ...  view the full minutes text for item 21.

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

Consideration was given to a report of Director of Education (Tameside and Stockport), which sought de-delegation from maintained schools in order to fund the school improvement function, which had previously been funded by the School Improvement Monitoring and Brokerage Grant.

Members were informed that, in line with the direction of travel of The Schools White Paper 2022, the government had now fully removed the School Improvement Monitoring and Brokering Grant and, as a result, local authorities were now required to seek de-delegation of Schools Block funding from maintained schools in order to support ongoing LA improvement activity costs.

Members were reminded of the previous transitional arrangements and were advised that for 2023-24, the de-delegated cost per pupil would increase to £12.78.  They were also made aware of the many and varied benefits of the LA’s school improvement activity, which was not only limited to mainstream schools.  It was stated that academies and free schools would also be able to buy in to this service in order that equity and the ability to support the whole sector was retained.  It was emphasised that this service facilitated whole sector cohesion and the statutory duties and powers of intervention were also outlined. It was also stated that the rate for 2024-25 would take into account the 2023-24 position.

Following presentation of the report, feedback from consultation within the primary maintained sector was shared, which was overwhelmingly positive and in favour of de-delegation for school improvement.  However, it was also requested that transparency in where this funding was targeted could be shared in order that schools could ensure value for money during this time of unprecedented budget challenges.

RESOLVED

That de-delegation for the maintained sector at a cost per pupil of £12.78 be agreed.  

A query was raised in relation to Schools Funding Group.  It was agreed that a discussion would take place outside of Forum with regard to how this advisory group would work moving forwards and the timetabling of these meetings.

To note that the date of the next meeting of Schools’ Forum be proposed for 14 March 2023

RESOLVED

That the next meeting of The Schools Forum be held remotely on 7 March 2023 at 10am.

CHAIR