Agenda item

Report of Chief Officer for Children’s Services and Director of Finance

(DEF/22/02), attached.

DISCUSSION:

The Forum considered the joint Report of the Chief Officer for Children’s Services and Director of Finance (DEF/22/02) on the current position of the:-

DSG Deficit & Management Plan

DSG Settlement 2022/23

Schools Block

Central School Services Block

High Needs Block

Early Years Block

Other Schools Grants

Carry Forward Decisions.

The Director of Finance advised that in relation to the Schools Block and sparsity values (section 3 of Report (DEF/22/02)) and Devon’s October 2021 consultation with schools based on July 2021 pupil census data and sparsity values then considered (and at the Forum’s meeting 17 November 2021), the DfE’s recently received latest Authority Proforma Tool included the updated 2021 October pupil census.  This had occurred since SFG met on 5 January 2022 and so had not yet been considered in detail by its members. The revision now made it clear the LA was unable to assign all the factors within the sparsity allocations as there were additional schools eligible for sparsity that were not identified using the July 2021 data, resulting in an overall shortfall in the funding envelope of £1.1m.  Officers therefore recommended a change in the sparsity rates to that used in 2021/22, calculated to ensure that Devon schools saw the best funding position with the funding available. Appendix A to Report (DEF/22/02)) gave a breakdown of impact on individual schools.

The Director of Finance further advised that information had been received from the DfE last week, seeing a removal of 50% in 2022/23 of the maintained schools School Improvement Grant and removal in full from 2023/24.  It was therefore recommended that £317,500 (50%) be funded from the Financial Intervention Panel Schools (FIPS), £2.5m surplus as a one off in 2022/23 only, whilst more detailed consideration be given to funding for 2023/24.

Members’ discussion included:-

-a wish to more fully understand the DfE’s revised Tool and sparsity criteria, modelling options. equitability and impact on individual schools, before a decision was made, bearing in mind a change was proposed from the schools consultation;

-that the potential budgetary difficulties, particularly for small rural schools, of a revised sparsity allocation at this stage when setting budgets;

-clarification was sought on whether the DfE revision and timing had affected other LAs adversely;

-that the DfE deadline requiring Devon to submit a decision was this Friday, 21 January 2022; and

-that in respect of the School Improvement Grant DfE reduction, members would consider supporting funding from the FIPS surplus as a one off in 2022/23 only.

(There was a short adjournment pending further advice on potentially not reaching a decision today on sparsity rates given the imminent DfE deadline of   21 January 2021).

DECISION:

(a) that the Dedicated Schools Grant (DSG) Deficit as set out in section 1 of Report (DEF/22/02) be noted;

(b) that the DSG 2022/23 announcement on 17 December 2021 as set out in section 2 of Report (DEF/22/02) be noted;

(c) that further data and model options on Schools Block sparsity rates be sent to members for consideration, inviting them to submit their response via email by noon, Friday 21 January 2022, so that Devon may respond to the DfE deadline of the same date (see Notes 1* and 2** below);  

(Vote: Schools, Academies and PVI members)

(d) that the Central School Services Block, High Needs Block and Early Years Block as set out in section 4 to 9 of Report (DEF/22/02) be noted; and

(e) that as a one off 2022/23 only, £317,500 (50%) School Improvement Grant be funded from the Financial Intervention Panel Schools (FIPS) surplus, whilst more detailed consideration be given to funding for 2023/24, following DfE notification of reduced grant.

*Note 1: outcome of DEF member Sparsity rates responses in (c) above was: 

that Cabinet be recommended:-  

that Option D (as set out in paragraph 3.8 of the Sparsity additional supporting document) to reinstate the sparsity rates to that used in 2021/22 and use the National Funding Formula (NFF) calculation to ensure that Devon schools move as close to the National Funding Formula as possible, whilst remaining in the funding envelope available be approved.** 

(Vote: Schools, Academies and PVI members)

**Note 2: (Forum Members wished to place on record that in reaching their decision they acknowledged that the funding model proposed in consultation was unable to be implemented following the release of the latest Authority Proforma Tool from the DfE. When presented with the two affordable funding formulas (Option D and E) Members supported the LA’s recommendation to apply option D. This was because this provided the most favourable opportunity for school finance in future years to eventually meet the requirements of the National Funding Formula.

Forum Members would like the further data and model options now circulated to be further considered at the next Schools Finance Group meeting. It was critical that the Local Authority communicate this information to schools in a timely and sensitive manner). 

ACTION:

Director of Finance (Adrian Fox) (c), (d); County Solicitor (Fiona Rutley) (c).