Agenda item

To consider the attached report of the Assistant Director, Finance and the Assistant Director, Education.

Consideration was given to a report of the Assistant Director of Education and the Assistant Director of Finance.  The report outlined the budget position for the financial year 2020-21 and provided an update on the Early Years’ final outturn position for the financial year 2019-20.

Forum members were made aware that there was a forecast surplus of £0.050m on the Schools Block.  This related to rates rebates for schools that had recently converted to Academy status and actual rates charges being lower than estimated.  It was also explained that Schools Forum would be updated again, in January 2021, due to the timing of the census and that any surplus was proposed to be contributed to the DSG deficit.  In addition, it was highlighted that a small surplus of £0.003m was also projected on the Central Services Schools Block due to the cost of licences being slightly less than estimated.  Projected deficits were also discussed, with the High Needs Block having a projected deficit of £3.543m and a projected deficit of £0.466m for the Early Years Block.

With regard to the High Needs Block, it was stated that the in-year projected overspend was £3.543m, after the Schools Block transfer.  However, it was made clear that the growth was estimated, at this time, and that work was continuing with regard to accurately predicting the cost of future growth.  It was explained that, when looking at the previous financial year, it would appear that a significant part of the growth had occurred in the Autumn term.  With this in mind, it was envisaged that a clearer picture of this year’s cost of growth may be seen by the end of this term.

Members of the Forum were informed that  the overall settlement for Early Years had increased by £0.278m.  However, it had previously been reported that there would be an estimated £0.296m in the final settlement.  It was stated that the reason for this variation was that the actual settlement for Universal Entitlement of 3 and 4 years olds was lower than estimated (£0.013m).

It was explained that the estimated surplus of £0.547m was transferred to the reserve at the end of 2019-20 financial year to support the wider deficit on the DSG.  It was also stated that the £0.018m reduction in surplus should be covered by the projected surplus for 2020-21.  An overall settlement for the Early Years had increased to £17.261m and a detailed update of the Early Years Block was provided for members, along with explanation with regard to significant financial pressures in this sector relating to sustainability.

It was stated that the final settlement for Early Years funding would be announced in July 2021 and that, as a result of COVID-19, the DFE had advised that they would be changing the measurement of the adjustment.  Members were informed that projections would continue to be updated throughout the financial year to take into account the actual uptake and that this would be reported to Schools Forum.

Members discussed the reduction in numbers within Nursery provision, across all sectors in the borough and issues relating to sustainability were highlighted.  It was confirmed that there was currently a reducing birth rate in Tameside.  With this in mind, it was suggested that provision may need to be adapted in terms of meeting parental needs and demands.  It was highlighted that the priority would need to be maintaining sufficiency of places and that this situation would continue to be reviewed.

Members of the Forum were made aware that there was a forecast of £3.638m deficit on the DSG and that a Deficit Recovery Plan would be required and would require the agreement of Schools Forum.

RESOLVED

That the contents of the report be noted