Agenda item

Report of the Director of Finance & Public Value and Director of Children and Young People’s Futures (Interim) (DEF/22/12), attached. 

DISCUSSION:

The Forum considered the Report of the Director of Finance & Public Value and Director of Children and Young People’s Futures (Interim) (DEF/22/12), following consultation with schools which aimed to deliver the fairest distribution of funding for the majority of schools, whilst keeping within funding requirements and National Funding Formula guidance.  There was a welcomed increase in school responses this year, i.e. 39% of schools representing 38,000 pupils responded (analysis of participation at Appendix 1 of the Report).

The Director of Finance & Public Value provided revised details in relation to the De-delegation School Improvement bar chart, at Appendix 2 of the Report (resulting from a new software error) i.e.:-

In relation to the consultation regarding the movement between blocks and recommendation (b) in the Report, it appeared that schools were not fully appreciative of the one-off treatment to transfer funds and so 56% schools did not agree to moving 0.5% from the Schools Block to the High Needs Block (paragraph 3.11).   When presented with 3 options of how the £2.48 m would be funded, 92% schools preferred to fund via a one-off transfer from the growth fund surplus. Members voiced concerns that schools were not willing to make the transfer in the first instance against a background of school budgets volatility and instability.

DECISION:

(a) that Cabinet be recommended:-

that the proposals for the 2023-24 schools revenue funding formula as set out in Report (DEF/22/12) be approved as follows:-

(i) that the Minimum Funding Guarantee (MFG) be set at 0%;

(ii) that the sparsity factor be adjusted should actual funding received be lower than the indicative amount stated in the consultation;

(iii) that any unallocated funds be distributed in the following order prior to using surplus growth fund, (should actual funding received be higher than the indicative amount stated in the consultation):-

(A) Bring the Sparsity factor up to the National Funding Formula rates stated for 2023-24;

(B) Add to the MFG up to a maximum of 0.5% per 2023-24 guidance; and

(C) Go towards the amount being transferred to the high needs block up to a maximum of 0.5% (see Movements into Another Block), subject to either:-

-this only being agreed if Report (DEF/22/12) recommendation (b) was approved (paragraph 3.13 of the Report also refers); OR,

-the disapplication to the Secretary of State was successful (paragraph 3.14 refers).

(Note: the final funding rates may change subject to affordability when the October 2022 pupil data and Schools Block DSG settlement is confirmed in late December 2022).

(Vote: Schools, Academies and PVI members)

(b) that Cabinet be recommended:-

that should the Secretary of State overrule the Forum’s decision* not to support the transfer0.5% between blocks for 2023-24 through a one-off transfer of the growth fund surplus and thus allows DCC to apply the 0.5% transfer, this should be funded from the growth fund surplus (as Report recommendation (b) and school responses in paragraphs 3.12-3.13).

*(Note: the recommendation as set out in the Report as (b) relating to specifically approving the proposal to transfer 0.5% between blocks for 2023-24 through a one-off transfer of the growth fund surplus was voted upon but not supported.  The Forum were aware this action would cause a disapplication request to the Secretary of State).

(Vote: Schools, Academies and PVI members)

(c) (i) that the de-delegation proposals for maintained primary and maintained secondary schools be approved, as set out in paragraphs 3.17-3.18 and Appendix 2 of Report (DEF/22/12), excepting School Improvement (as set out in paragraphs 3.20 and 3.21); and

(c) (ii) that School Improvement be deferred** for further discussion due to concerns raised by schools during the consultation.

(Vote: Maintained primary representatives)
(Vote: Maintained secondary representatives)

(**Note post meeting, (c)(ii) above: the deferred School Improvement de-delegation proposal should be considered at the next SFG, prior to a decision required at this Forum on 18 January 2023).

(d) that the Central Services funding allocations set out in Report (DEF/22/12) (paragraphs 3.24-3.30 and Appendix 2), be approved as follows:-

(i) to continue to contribute £60,000 for the Emotional, Psychological and Social Wellbeing Service;

(ii) to top slice £223,000 from the Schools Block to fund the Phase Association (Devon SLS and DAG) for one year;

(iii) to retain the funding centrally at the increased £5.99 rate per pupil (£550,000) for Schools Admissions Service; and

(iv) to fund Anycomms+ at a rate of £90 per year for a 3-year period.

(Vote: Schools, Academies and PVI members)

(e) that the revised school responses data De-delegation School Improvement bar chart, at Appendix 2 of the Report (as above) be noted.

ACTION:

Director of Finance & Public Value (Adrian Fox) – (a)-(d) including disapplication request; and

Education (Heidi Watson-Jones) - (c)(ii) SFG agenda.