Agenda item

Joint report of the Chief Officer for Children’s Services and County Treasurer (DEF/17/01) to follow.

DISCUSSION:

The Forum considered the report of the Head of Education & Learning and County Treasurer (DEF/17/01).

The Forum also noted the respective minutes of the Schools Finance Group (SFG) of 4 January 2016.

The report (DEF/17/01) covered:-

Dedicated Schools Grant (DSG) 2017/18: Budget Planning

EFA funding allocations 2017/18 announced 20 December 2016

Schools, High Needs and Early Years Block

Education Services Grant (ESG)

Apprenticeship Levy

Other Schools Grants

Month 8 DSG monitoring position 2016/17.

(Note: There was a correction to section 5 paragraph 3 (Education Services Grant) that the proposed top slice of £15 was for all schools to cover the statutory retained duties by the local authority – not only maintained).

The national funding formula consultation 2018/19 implications were to be considered by a Task and Finish Group prior to the next Schools Finance Group and next Forum in March, before the formal consultation response being submitted by 22 March 2017.

In relation to the DSG 2017/18 and consultation and consideration by DEF 19 October 2016 and following work of the Task Group and with budget holders, a report (CT/17/07) was approved by Cabinet on 11 January 2017, with officers recommending the transfer of £2.22m from the Individual Schools Budget to the High Needs budget (reduction in Age Weighted Pupil Unit AWPU of £33).  This, along with further management action by the service, would eradicate the current budget  deficit  by outturn 2018/19 (ie payback any carry forward overspend over the next 2 years, alongside negating fully the underlying budget deficit).  This was lower than the "up to £4.5m" limit transfer (£55 AWPU reduction) unanimously rejected by DEF in October.   Cabinet also recognised it was planned to bring a proposal to DEF's 15 March 2017 meeting to carry forward the forecast overspend in High Needs in to the 2017/18 financial year.

During a comprehensive discussion Forum members raised concerns as summarised including:-

-clarity around the £33 reduction to the AWPU.  In order to release £2.22m to the High Needs block  funding of £3m has been top-sliced from schools in order to take into account the affect of the Minimum Funding Guarantee (MFG);

-disappointment that the additional £1m uplift  funding into the schools block was moved directly to High Needs;  If this amount was allocated to schools this would amount to £44 reduction per child rather than £33 reported to Cabinet;

-that some Forum members suggested only £11 per pupil should be transferred to the High Needs Block, not £33, after additional monies received in the settlement;

-effect of lower AWPU on the baseline for the national funding formula ongoing into the future;

-delayed circulation of impact assessment to Cabinet which Phase associations and schools had not had sight of;

-whether the full implications and impact within schools of the above decision had been acknowledged by Cabinet;

-extension of the Babcock LDP contract meaning funding made available for Babcock services rather than finding £2m to address the High Needs funding issue (noted that the Babcock contract included Education Phycologist’s time etc which supported High Needs);

-High Needs funding pressures may continue into the future;

-lack of responses by MPs and Councillors to representations made by the Phase Associations and schools, engagement and the decision making process;

-Early Years proposed increase to the hourly provider rate without consultation; providers advised accordingly of new increase prior to this Forum’s meeting; representations made to the EY PVI representative. 

The Cabinet Member for Children, Schools and Skills and officers responded to all of the points above but Forum members remained unanimously dissatisfied at the current budgetary position and implications of the above in its totality.

Further, in respect of ESG retained statutory services (section 5 of the report), members expressed reservation at making a decision on this day regarding the £15 top slice of the new extra funding given the new information come to light on this day and affected all schools rather than maintained only, with insufficient time to consult colleagues.  The County Treasurer advised a return was due to be made to EFA by 20 January and so a delay was problematic.   As the responsibility for decision making was a Forum one, a vote against the recommendation would mean the LA would have to refer this to the Secretary of State.  Members asked for further clarity including a full breakdown of general and retained duties with the detail being submitted to SFG and a summary to DEF.  

The meeting adjourned whilst members considered their positions regarding the ESG proposals.    

DECISION:

(a)  that the Dedicated Schools Grant (DSG) 2017-18 announcement on 20th December 2016 as set out in sections 1 of the report be noted;

(b)  that this Forum does not support sections 2-4 of the report and expresses dissatisfaction at the funding pressures, specifically in the Schools Block, High Needs Block and lack of transparency in Early Years funding for 2017-18;

(Vote: all phases maintained and academy, PVI)

(c)  that officers be requested to look further at the interpretation of EY provider rates consultation guidance;

(d)  that the Cabinet Member for Children, Schools and Skills be thanked for his work and of others in securing a Westminster Hall debate on funding for Devon schools to be attended by the Cabinet Member on 18 January 2017;

(e)  that this Forum does not support the ESG proposals for the funding of statutory retained services as set out in section 5 of the report, in view of concerns regarding the detail of information, transparency, processes and impact with all the other changes forced upon Devon Education;

(Vote: all phases maintained and academy, PVI)

(f)  that the Apprenticeship Levy and Other Schools Grants for 2017-18 as set out in sections 6 & 7 of the report be noted and the County Treasurer be asked to clarify further the detail on section 7;

(g)  that the Month 8 DSG monitoring position as set out in section 8 of the report be noted.

ACTION: 

County Treasurer (Nicola Allen, Julian Dinnicombe)