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 Finance and the Assistant Director of Education, which provided an update on the Dedicated Schools Grant (DSG) budget for 2020-21.

It was outlined that there was a forecast surplus of £0.072m on the Schools Block, relating to rates rebates in schools that recently converted to Academy status, and rates charges being lower than estimated.  It was further explained that this was partly offset by rates re-valuations (relating to 6 schools) resulting in an increase in the costs of £0.019m. Members were also informed that there was a surplus of £0.251m relating to unallocated growth funding and it was proposed that any surplus be used to contribute to the DSG reserve deficit. 

In addition, Members were also informed that there was forecast to be a small surplus on the Central School Services Block of £0.003m.  It was explained that this was due to the cost of licences being slightly less than estimated.  With regard to the Early Years Block, it was explained that there was a projected surplus of £0.395m.

Members of the Forum noted that the in-year overspend against the High Needs Block was now estimated to be £3.687m.  This would be offset by the Schools Block transfer, leaving a projected year-end deficit of £2.838m.  It was explained that this was an improved position and, as previously discussed, Members’ attention was drawn to the slowing or flattening of growth.

It was discussed that a review of SEND support services had also identified savings in relation to staffing, previously charged to the High Needs Block.  It was expected that the full effect of these efficiencies will be seen in next year’s spend.

In relation to growth, Members were informed that Tameside had seen significant growth throughout the past 2-3 years, bringing the LA further in line with the national average.  As the number of EHCP’s was expected to increase to 1,832 by the end of the financial year, this would mean that the percentage of pupils holding EHCP’s within Tameside would be 3.79%.

It was highlighted that growth projections were based on growth in the Special sector next year and that this would flatten as schools reach capacity.  Resource bases were also expected to see continued growth, with the implementation of plans for new units across the borough.  However, growth was expected to increase at a slower rate in the mainstream sector, flattening out in 2025.

In relation to the Early Years Block, it was explained that, due to the current COVID-19 situation, it was more difficult to complete the projections for spend, due to the impact on providers.  At present, it was anticipated that there would be a £0.395m surplus at the end of the financial year.  However, Members were informed that this could change significantly due to the changing nature of Government directives in managing the COVID-19 outbreak, and the rapidly changing environment.

Members were informed that, whilst the Autumn term saw the vast majority of providers re-open, participation had not yet returned to pre-COVID-19 levels.  As a result, there had been a requirement for adjustment payments to 130 providers to top up Autumn participation levels.

It was explained that the final settlement for Early Years funding would not be announced until July 2021 and that the projections would continue to be updated and reported to Schools’ Forum throughout the financial year.

A projected surplus of £0.075m from the centrally retained element of Early Years funding was outlined to members and, again, it was proposed that any underspend in the DSG be utilised to support the DSG deficit position.

In conclusion, it was outlined that, if the 2020-21 projections were accurate, there would be a deficit of £2.711m on the DSG.  With this in mind, Members were reminded that a Deficit Recovery Plan had been developed and submitted to DfE, as discussed in the previous School’s Forum meeting.  Members were informed that this position would continue to be closely monitored and regular updates would be provided throughout the year.

RESOLVED

(i)     That the contents of the report be noted and supported

(ii)    That any unspent amounts be held in reserve to offset the High Needs deficit