Agenda item

To consider the attached report of the 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 provided members with an update on the latest funding announcements.

Members were advised that the DSG announcements at this stage only covered the Schools Block, High Needs Block and the Central Service Support Block.  It was explained that Early Years Block information was not shared at this point and updates on this and confirmation of all other allocations would be expected in December 2022.  In addition, it was outlined that indicative figures released at this stage were based on the 2022-23 data set (October 2021 census data) and would change in some areas to take account of October 2022 census returns.

It was explained that 2023-24 was the second year of a three year funding settlement which had seen core school funding increase by £1.5bn from 2022-23 and there was an increase in funding rates of 1.9% nationally.  In addition, the provisional 2023-24 allocation for Tameside had increased by £7.5m, this was after increasing the 2022-23 allocation to take account of the supplementary funding, which was allocated in 2022-23.

Members were informed that the Schools Block allocation was based on October 2021 census data.  It was also explained that the provisional 2023-24 allocation for Tameside MBC had increased by £5.190m; this excluded Growth funding which would be allocated following funding announcements in in December 2022. 

The main changes within Schools Block allocations were outlined for Members.  These included changes relating to increases in IDACI and FSM6 Factors and Sparsity Factors, proxy measures for Prior Attainment, changes in the way Business Rates would be paid, use of local formulae for the Minimum Funding Guarantee, and the continuation of compulsory Minimum Per Pupil Funding Levels (MPPL).

It was highlighted thatthis was the first year the DfE were moving LA’s closer to a direct National Funding Formula; meaning every LA must use only NFF factors and they must use all of the NFF factors.  It was noted that they must also move 10% closer to the NFF factors.  Members were assured that Tameside was already in line with NFF and, as a result, these changes would not impact

Tameside schools.

In relation to High Needs Block funding, Members were informed that this had increased 6.3% nationally (£570m) and that Local Authorities had seen an increase between 5% and 7% capped.  It was noted that the 7% increase was before recoupment and the hospital factor was included and that Tameside had received a 7% capped increase.  It was also discussed that, without this cap, Tameside would have, in fact, received an additional £3.479m.  This increase was after adding in the supplementary grant that had been added to the 2022-23 baseline.  Members were made aware that these current announcements were provisional and would be subject to further updates.

Members were informed of the provisional High Needs allocation for 2023-24 compared to the current 2022-23 allocation.  This demonstrated an overall increase of £2.276m (before any recoupment and any further adjustments) or 7%.  However, this was expected to be offset by an estimated increased spend of £8.455m if growth in Education Health Care Plans (EHCPs) were to continue at the current rate.   This would leave an estimated in-year gap of £4.165m and a carry forward overspend from 2022-23 totalling £6.871m, which would leave an estimated £11.036m deficit to address in 2023-24.

It was explained that Local Authorities would continue to be able to transfer up to 0.50% of the Schools Block allocation to another block within the DSG, with Schools’ Forum approval.  A disapplication process to the DfE would continue to be in place for any amounts over 0.50% or for any amount without Schools Forum approval.

Members were advised that, based on current growth projections, even continuing with a 0.50% transfer (as in 2021-22) of £1.001m, this would still leave a potential in-year deficit on the High Needs Block of £4.165m in 2023-24 and a 1.00% transfer would still leave an in year deficit of £3.164m.  With this in mind, Members were asked to support, in principle, the 0.5% transfer to the High Needs Block to support spending for additional needs (subject to affordability within the Schools Block allocation). 

It was explained that consultation with schools would be carried out in the normal way to seek opinion on the block transfer.  However, consultation with regard to the application of the Schools Block NFF was no longer needed as there was full compliance with DfE requirements. 

In relation to the Central Services Schools Block, Members were made aware that this had been reduced overall by 4.1%.  However, it was noted that Tameside would see an increase in funding as the formula continued to reduce historic funding by 20%.  It was explained that Tameside would not be affected by this reduction as it had no historic funding.

RESOLVED

(i)   That the contents of the report be noted

(ii)  That it be agreed, in principle, to transfer 0.50% from Schools Block to High Needs Block in 2023-24, subject to affordability