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 2022-23 and provided an update on the Early Years final outturn position for 2021-22.

Members were made aware of the current DSG settlement for 2022-23 and informed that there was a forecast surplus of £0.254m on the Schools Block.  This related to £0.257m unallocated growth, which had been offset by a £3k retrospective business rates charge.  It was noted that final growth allocation would be based on pupil numbers at the October 2022 census point and, therefore, the figures would be updated once this was finalised.  It was acknowledged that this may impact on the current surplus forecast and proposed that any surplus on the Schools Block be used to contribute to the DSG deficit.

Members were advised that the Central Services Schools Block was expected to be spent in full and that the projected in-year deficit on the High Needs Block was expected to be £4.581m.  It was noted that this would reduce to £2.939m with the £0.954m transfer from the Schools Block and a combination of both savings and cost avoidance totalling £0.688m identified in the Deficit Recovery Plan.  This projection also included £2.482m of estimated remaining in-year growth relating to further increases in the number of EHCP’s and the planned new Resource Bases.  In contrast, the Early Years Block was projected to have a surplus of £0.429m.

Members were informed that the High Needs Budget position for August 2022 had seen a slight increase of £0.010m from the original position, which had forecast an in-year deficit of £3.629m.  It was noted that the original budget had included growth of £5.401m and, to date, 54% of this budget had been spent; this could indicate growth could be slightly higher than expected. 

It was acknowledged that some of the growth had been in areas, which had not been anticipated, for example, in the Post 16 sector and in out of borough placements.  Members were informed that growth would continue to be monitored closely and that a more detailed review would need to be carried out following updated intelligence from the SEN team as well as updates on the new resourced units.

Details of the Early Years settlement for 2021-22 were provided for Members and it was noted that the overall settlement had increased by £81k, which had resulted in a final surplus of £0.228m and had been used to contribute towards the DSG deficit.  A detailed update of the Early Years Block for 2022-23 was also provided. 

It was acknowledged that participation was difficult to estimate but was continuing to reduce, which had contributed to surpluses for 3 and 4 year old funding.  Members were advised that there would be a further funding adjustment based on the spring term census data and, if estimates were accurate, this would suggest that there would be a clawback of funds, which would reduce the anticipated surplus.

It was explained that the reduction in participation for 3 and 4 years olds was, in part due to the reducing birth rate.  However, it was also acknowledged that the take up of places had decreased, based on the latest census information.

In relation to the SEND Inclusion Fund (SENDIF), Members were made aware that there was currently a nil variation.  However, it was noted that demand on the fund for the summer term appeared to be high and, therefore, a full review would be undertaken and an update provided at the next meeting.

Details on the closing position of the DSG for 2021-22 and the estimated position for 31 March 2023 was provided for Members.  It was noted that, if the 2022-23 projections materialised there would be a deficit of £5.496m on the DSG.  Members were informed that a deficit recovery plan had been developed and submitted to the DfE and discussions were ongoing, with further information to be shared at the next meeting.

Discussion ensued in relation to the high number of out of borough placements and it was agreed that an update in relation to the possible reasons surrounding this would be brought for discussion at the next meeting.

RESOLVED

That the contents of the report be noted and supported