Agenda item

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

Consideration was given to a report of the Assistant Director of Finance and the Director of Education (Tameside and Stockport), which outlined the Schools Grant budget position for the financial year 2021-22 and the DSG reserve position.

Members were provided with a budget update for 2021-22, including the projected distribution/spend for the DSG settlement.   It was stated that there was an overall deficit of £1.439m and explained that the forecast surplus of £0.168m on the Schools Block related to actual rates charges being lower than estimated (0.049m) and unallocated growth (£0.118m).  Members were also informed that the Central Schools services Block (CSSB) was expected to be spent in full.

Members were made aware that the projected in-year deficit on the High Needs Block was expected to be £3.271m, which would reduce to £2.393m with the £0.878m transfer from the Schools Block. Included in this figure was a further £0.994m of estimated in-year growth for September to March 2022.

It was estimated that the Early Years Block would have a surplus of £0.787m, and Members reminded funding would be based on data collections in summer 2021, autumn 2021 and spring 2022 terms.  It was noted that this would be different to previous years, when the funding had been based on spring census data only. 

With regard to the High Needs position for 2021-22, a breakdown of the £2.393m deficit (an increase of £1.256m) was provided and the impact of the growing number of EHCPs was again highlighted.  As a result, members were informed that some additional work had been undertaken alongside the SEND team and the initial projections of 207 new EHCPs had now been revised to 407 new plans, which were expected for the full financial year.

A detailed update of the Early Years Block for 2021-22 was provided for Members.  These were based on the actual payments made to providers for the summer term and estimated uptake for the autumn and spring terms for 2, 3 and 4 year olds.  It was noted that the current forecast indicated an underspend of £0.918m for 3 & 4 year olds, an overspend of £0.05m for 2 year olds and an overspend £0.03m on early years pupil premium.  However, this was based on the current settlement and as previously reported, it was expected that funding would be adjusted in line with the data collections from the summer term and future collections at autumn and spring.  It was, therefore, envisaged that the position would become more balanced and there will not be an underspend.

Members were informed that that current forecast for the SEND Inclusion Fund (SENIF) was illustrative of the increasing demand on this fund.  It was stated that this was being reviewed through the Early Years Working Group, where further work was being undertaken to understand the demand to ensure that funding support was being provided in the best way.  It was  acknowledged that it was extremely difficult to forecast the uptake of places, especially in light of the pandemic and that this was a complex area of funding which would continue to be closely monitored.

Details on the closing position of the DSG were provided for members, who were informed that, if the 2021-22 projections materialised, there would be a deficit of £3.124m on the DSG.  With this in mind, it was stated that a Deficit Recovery Plan had been developed and submitted to the DfE and that discussions with DfE were ongoing.  It was noted that this position would be closely monitored throughout the year and that regular updates would be provided for Schools’ Forum.

RESOLVED

That the contents of the report be noted and supported