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 outlined the consultation to all schools regarding the allocation of Schools Block funding for 2024-25.

An error in the original calculations for NFF by the DfE was highlighted and Members were made aware that the DfE had apologised for this error.  Documentation in relation to this was shared with Members.  As a result, the high level information and NFF rates presented during the last meeting had been revised.

It was explained that the provisional 2024-25 updated allocation for Tameside had increased by £6.791m, as opposed to £8.668m as originally reported.  It was noted that this was after increasing the 2023-24 Schools Block allocation to take account to the mainstream schools additional grant (MSAG) funding that was allocated in 2023-24.  There was also increases in funding across all blocks for Tameside MBC, which was noted as positive.  However, the High Needs increase continued to be capped, which would continue to contribute to the High Needs deficit.

A detailed description of the Schools Block Finding Formula Proposals was provided for Members.  It was noted that the core factors in the updated schools NFF (such as basic entitlement and the lump sum) would increase by 1.4% and the funding floor would ensure that every school would attract at least 0.5% more pupil-led funding than 2023-24.

Members were made aware that the modelled figures show schools were seeing an average increase of 4.92% across Tameside mainstream schools (excluding premises factors, business rates and PFI).

It was explained that part of the average 4.92% increase was related to the 2023-24 MASG  being rolled into 2024-25 schools block baselines.  Further comparisons were provided to show the average increase excluding the MSAG and the average increases show 1.43% across Tameside mainstream schools, which related to inflationary increases in comparison to 2023-24.

It was suggested that, based on the modelled allocations to schools and the 2024-25 funding announcements, it would be possible to:

• Set the MFG protection at the highest rate possible of 0.50%

• Remove the Gains Cap so no school would see their formula allocation capped

• Transfer 0.50% from the Schools Block to the High Needs Block.

In relation to Growth Funding, Members were made aware that this was not included in the provisional figures provided.  However, it was explained that LAs must use the new NFF requirements for growth funding, whereby additional classes (driven by basic need) must be funded by at least the minimum funding level set out in the funding calculation.  The NFF growth allocations had been set at £1,550 per new primary pupil and £2,320 per new secondary pupil plus a lump sum of £76,195 for each brand-new school.   It was noted that the rates used in the local formulae for Tameside were already above these rates and that there was a plan to review the existing growth policy in light of the updates to NFF.

In relation to high needs pressures for 2024-25, Members were made aware that, nationally, High Needs funding was increasing by £440m or 4.3% in 2024-25 and funding allocated to Local Authorities was increasing by around 5% overall. 

It was also explained that a funding floor had been set at 3% to ensure every LA received at least a 3% increase on the relevant funding elements per head compared to 2023-24 baselines.  A limit on gains would also apply so the maximum increase an LA could receive would be 5% compared to 2023-24 baselines. 

It was stated that Tameside had received the maximum increase possible, the capped allocation at 5%.  However, without the cap, it was noted that Tameside would have received an additional £3.885m in 2024-25.  Despite this additional funding, Members were informed that the impact of the cap, along with projected growth in number of EHCPs, there continued to be an increasing in-year deficit on the high needs budget position.

Members were informed that a consultation on the proposals set out for the funding formula for Schools Block 2024-25 had been circulated to all schools and Chairs of Governors.  The closing date for the consultation had been 8 November 2023 and the results of the consultation was provided for Members.

The consultation advised the proposed Schools Block funding allocation for 2024-25 would be based on the NFF rates, would have an MFG of 0.5% and there would be no cap on gains based on the provisional funding allocation for the LA.   It  was noted that a 0.5% transfer from the Schools Block to the High Needs block was also affordable on this basis.

It was explained that there were only 16 responses from 2 schools in relation to the consultation, and the responses were outlined for Members. 

Discussion ensued in relation to the consultation and Members discussed the lack of response from schools and Chairs of Governors.  It was noted that this was disappointing and it was suggested that headteacher briefings, moving forwards, may need to be moved in order to be able to use these a vehicle to raise the profile of such consultations and ensure understanding of the issues raised.  It was also suggested that schools business managers may have greater involvement and that responses could be analysed according to sector and school context to gain a clearer understanding of the responses.

RESOLVED

(i)     That the contents of the report be noted

(ii)    That a transfer of 0.5% from the Schools Block to the High Needs Block be approved