Agenda item

Report of the Chief Officer for Children’s Services and County Treasurer (DEF/16/10)

to follow.

DISCUSSION:

The Forum considered the joint report of the Chief Officer for Children’s Services and County Treasurer  (DEF/16/10).  Additional consultation responses had been added to the report and a revised report circulated as appended to the minutes.

The Forum also noted the respective minutes of the Schools Finance Group (SFG) of 6 July and 5 October 2016.

The report covered:-

2017/18 Schools Revenue Funding Formula

Delegation and De-delegation

Centrally Retained Services

Disapplications.

The LA and Phase Associations consulted schools (ending 12 October 2016) on the Devon proposals for the 2017/18 school revenue funding formula. 

Of particular concern was the pressure on the High Needs budget continuing to increase as the number of complex, high cost placements continued to grow with no comparable additional funding from central government and additional costs to be managed from existing resources. Many LAs nationally and particularly those relatively poorly funded were experiencing significant difficulties in funding increased High Needs pressures and members had now re-established a Task & Finish group to lobby government regarding fair funding and High Needs. The Devon consultation asked schools to agree in principle to the transfer of funds up to £4.5m to the High Needs Block from the Schools Block with 24% responses agreeing (and 76% disagreeing) to the proposal.  This would equate to £55 per pupil reduction but it was also suggested an equal % reduction rather than an equal absolute amount per pupil may be considered.   The LA had been working with schools to see what action could be taken to reduce budgets but a significant gap still remained. Within the proposed funding for 2017/18 the EFA had advised they would be applying an uplift for High needs but this would not be known until at least the end of November 2016 and it was not anticipated this would bridge the gap.

With regard to the growth demand the diseconomies of scale when a new school opens and the gap in getting funding for pupils and incurring costs, the f40 LAs group, prompted in part by Devon, had lobbied government but despite the unfairness of the current system hitting other existing hard stretched schools, it was not thought that this was likely to be addressed in the new national funding formula when it was announced.  The proposal in the report related to funding in principle in the 2018/19 financial year, with no change proposed for 2017/18.  As such whether supported or not it would not result in a budgetary decision by Cabinet. 

In considering the consultation responses relating to increasing the top-slice from 2018/19 to meet growth demand, 33% responses agreed (with 67% disagreeing) and members felt unable to support this in part due to the consultation responses and pending budget clarity for 2018/19.

Member comments also included that:-

-Asking all schools to bear the brunt of high needs could be deemed unjust (for a situation beyond their control) as the DSG funded to 18 year old pupils historically with no additional funding for 19 - 25 year age range and as the Devon SEND strategy had not yet been formalised with measures to reduce the need to place SEN pupils in high cost out of county placements (amounting to £12m).  Consequently further high needs increases were ongoing into the future until in county provision was increased to reduce this bill and mitigate the £4.5m overspend;

-A £55 reduction per pupil  would equate to over £100k for two schools and would be on top of existing real 8 - 12 % school reductions, potentially further impacting on schools’ ability to meet the needs of all children (and could result in further exclusions in turn creating further pressure on the SEN budget);

-Transferring funding from the Schools Block did not address the real problem of

funding pressures within mainstream schools including assistance they would be able to give to SEN pupils. Parents were unaware that a significant number of Devon schools were now at risk of budget deficits;

-Concern that bids for a new SEN free school had not been supported;

-Members were not yet assured by the historic strategy or that there was yet enough clarity on current/future strategy;

-Desire to work more closely with the 16-19 Forum representative and 16-19 providers for SEN pupils.

The Chief Officer for Children’s Services and Head of Education & Learning explained progress with formulating the joint Education, Health and Social Care SEND strategy and ongoing measures being taken to increase in county and reduce out of county SEN provision, involving the phase associations.  There had been significant increases in maintained special school places and strategic shifts in expenditure however even with this increased capacity, need (some of which was complex) had been even greater so both maintained and independent special school places had grown.   The SEND code of practice and the extended age range had had a significant impact and created pressures within the High Needs Block which was reflected across the country.   

DEF members (all phases maintained and academy, PVI) were unanimous in their concern and in resolutions (a)(ii) and (iii) below.

DECISION:

(a) that Cabinet be recommended:-

(i) that the 2017/18 schools revenue funding formula factors for distributing the funding to schools as set out in section 1 of report DEF/16/10 be approved;

(note: that the final funding rates may change subject to affordability when the October 2016 pupil data and Schools Block DSG settlement are confirmed late December 2016)

*(Vote: all phases maintained and academy, PVI)

(ii) that the transfer of funding from Schools Block to High Needs Block in principle be not supported; *(Vote: all phases maintained and academy, PVI)

(iii) that the increase of top-slice from 2018/19 to meet growth demand in principle be not supported; *(Vote: all phases maintained and academy, PVI)

(b) that Cabinet be advised:-

that the Forum remains committed to continuing to work together with the LA around the budget pressures of the High Needs Block;

(c) that the de-delegation proposals for maintained primary and maintained secondary schools respectively as set out in section 2 and appendix A of the report be approved;

*(Vote 1 : maintained primary)

*(Vote 2 : maintained secondary)

(d) that the centrally retained services budget allocation as set out in section 3 and appendix A of the report be approved;

*(Vote: all phases maintained and academy, PVI)

(e) that the local authority’s disapplication requests that have been applied for and awaiting approval be noted;

(f) that a report on SEND strategy progress be brought to the next DEF meeting.

ACTION:

County Treasurer (Julian Dinnicombe)

Education & Learning (Dawn Stabb) (f)

County Solicitor (Fiona Rutley) agenda forward plan