Agenda item

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

Consideration was given to a report of the Interim Assistant Director of Finance and Assistant Director of Education, which provided members with an update on the latest funding announcements and some context for the potential impact of the Tameside MBC position. 

Members were made aware that the DSG announcements at this stage only covered the Schools Block, High Needs Block and the Central Service Support Block.  It was noted that detailed Early Years Block information not available at this point and that updates on this and confirmation of all other allocations were expected in December 2023.  Members were informed that these were indicative figures, based on the 2023-24 data set (October 2022 census data) and that actual allocations would change based on the October 2023 census return.

It was noted that the provisional 2024-25 allocation for Tameside had increased by £8.668m.  The Schools Block allocation for this period had increased by £6.726m, excluding growth funding, which would be included once the final allocation was announced in December 2023.

It was explained that a new, formulaic approach to allocating split site funding was being introduced and this would be provided on a consistent basis across the country.  However, this would not affect any mainstream Tameside schools currently.

It was stated that the core factors in the schools’ National Funding Formula (NFF), such as basic entitlement and lump sum, would increase by 2.4% and the funding floor would ensure that all schools would attract at least 0.5% more pupil-led funding than 2023-24.  In addition, Members were made aware that the Mainstream Schools Additional Grant (MSAG) had been rolled into the NFF, which ensured that additional funding formed part of schools’ core budget.

The movement to a hard NFF, which had been introduced in 2023-24 was discussed and Members were informed that this approach would continue in 2024-25, where schools must also move 10% closer to the NFF factors compared to 2023-24.  However, as Tameside was already in line with NFF, these changes would not directly impact any Tameside schools.

Members were made aware that growth allocation had been set but that Tameside’s local formulae were already above these rates.  It was stated that these updates were currently being reviewed and any proposed changes would be brought forward as part of the annual funding consultation.  Similarly, new NFF requirements in relation to falling rolls was discussed and it was noted that this update would be reviewed and brought to annual funding consultation.

Members were made aware that local authorities could continue to set a  minimum funding guarantee (MFG) of between +0.0% and +0.5% per pupil and local authorities would continue to be able to transfer up  to 0.5% of Schools Block allocation to another block within the DSG, with Schools’ Forum approval.  With this in mind, it was noted that a proposal would be brought to the next meeting of Forum in relation to this.

An update was provided in relation to the High Needs Block and Members were informed that funding wold increase by £440m or 4.3% in 2024-25,with funding to local authorities increasing by around 5% overall.

It was explained that a funding floor had been set at 3% to ensure every LA would receive at least a 3% increase on the relevant funding elements per head compared to 2023-24 baselines.  It was also noted that a limit on gains would also apply.  This would mean that the maximum increase an LA could receive would be 5% compared to 2023-24 baselines.  Tameside had received the maximum increase possible, capped at 5%.  However, it was noted that, without the cap or limit on gains, Tameside would have received an additional £3.885m in 2024-25.  Members were reminded that these current announcements were provisional and would be subject to further updates.

The provisional High Needs Allocation for 2024-25 was presented to Members and comparison was provided with 2023-24 allocation.  It was noted that Tameside was seeing an overall increase of £1.847m, which included the rolling in of the Additional High Needs Grant from 2023-24, but was before recoupment and any further adjustments to Basic Entitlement and Import/Export factors.

In relation to the Central Services School Support Block, Members were informed that Tameside would see an increase in funding of £0.095m.  The new entitlements in relation to Early Years Funding were also outlined, along with information relating to the associated consultation, which had closed on 8 September 2023.  Members were also provided with information relating to the Teachers Pay Additional Grant, which provided an additional £525m in 2023-24 and £900m in the 2024-25 financial year.

Discussion ensued in relation to historic funding, the significant growth in EHCPs and the cap on High Needs funding. 

RESOLVED

That the contents of the report be noted