Agenda item

Report of Chief Officer for Children’s Services and County Treasurer (DEF/20/01) attached.

(a) Finance Update

DISCUSSION:

The Forum considered the report of the Chief Officer for Children’s Services and County Treasurer (DEF/20/01) regarding the Dedicated Schools Grant (DSG) 2020/21 Budget Planning including:-

ESFA Schools Funding allocation announcement;

Schools Block;

Central Services Block;

High Needs Block (with detailed explanation of funding shortfall, demands and planned actions);

Early Years Block;

Other School Grants; together with the

Month 8 (2019/20) Budget Monitoring position.

The Forum also noted the respective minutes of the Schools Finance Group (SFG) of

8 January 2020.

Members noted that the High Needs Budget Table 2 (section 4 of the report) should read 2020/21 (not 2019/20).

Budget monitoring report month 8 (2019/20) forecasting overspend had increased by £1.2m to £21.5m but early indications for month 9 was showing a more stable position.

Following DEF’s last meeting regarding members’ concern that schools (via the DSG) were anticipated to pick up HNB costs associated to post 16 places, the County Treasurer reported on his discussions at f40 regarding the Forum’s concern over schools picking up 18-25 HNB costs as part of a DSG Deficit Recovery Plan for 2019/20 and response from ESFA 21 January 2020 to the Forum’s letter seeking clarification on this matter.

DECISION:

(i)  that the Dedicated Schools Grant (DSG) 2020/21 ESFA announcement on 19 December 2019 on Schools Funding allocations 2020/21 (as set out in section 1 of report DEF/20/01) be noted;

(ii)  that the Schools Block, Central Services, High Needs Block, Early Years Block and Other School Grants for 2020/21 (as set out in sections 2 to 6 of report DEF/20/01 respectively) be noted; and

(iii)  that Month 8 DSG monitoring position (2019/20) (as set out in section 7 of report DEF/20/01) be noted.

(b) Transferring of Funding to the High Needs Block

DISCUSSION:

The Forum additionally considered the report of the Chief Officer for Children’s Services and County Treasurer (DEF/20/02) as appended to these minutes, following further consultation with schools 6-19 January 2020, regarding schools’ views on a one-year transfer of 0.5% (£2m) from the schools block to the high needs block (HNB) in view of the significant high needs budget pressures.  60% (221 schools) responded, with 86% (191 Schools) disagreeing to the transfer (evenly split primary/secondary phase).

The report outlined two options:-

-Option 1: Not agree the transfer, where underlying HNB budget issues were not going away and this delayed the process and risked the shortfall becoming bigger as actions were delayed.

-Option 2: Agree the transfer, to enable the authority to fully cost plans and develop potential support to reduce the demand on high cost places.  Officers recommended this option to  transfer as inevitability planned action was required to managed the HNB continued demand.

The Head of Education & Learning also reported on extensive work being carried out in conjunction with partners, including health services to reduce the impact on the HNB including early intervention and early years initiatives.

Members recognised the LA was in a very difficult position and that this was reflected nationally.  Work continued with the f40 campaign group, Devon MPs and DfE as supported by the LA and DEF.  DEF was committed to working with the LA to find a way forward following the results of this consultation.

Following a short adjournment members reconvened and:-

DECISION:

(a) that whilst the Forum could not support Option 2, i.e. the transfer of 0.5% (£2m) from the Schools Block to the High Needs Block at this stage (noting that 86% schools did not support this), the Forum was supportive of partnership and collaborative working with the LA and others to find a solution; and

(b) that up to £100k be approved, to be transferred from the Schools Block to High Needs Block to employ an external adviser to plan, cost and evidence invest to save, outreach and other short and long term initiatives to manage the continued demand on the HNB, with the findings required prior to the annual schools funding arrangements consultation with schools in October 2020.

(Vote: Schools, Academies and PVI members)

ACTION:

County Treasurer (Adrian Fox) and Head of Education & Learning (Dawn Stabb)