Agenda item

(To receive a report from Mark Popplewell, Head of Finance, Children's Services, which advises the Schools' Forum of the revised Schools Budget for 2019/20 and seeks support for the proposed use of the underspending from 2018/19)

Consideration was given to a report from Mark Popplewell, Head of Finance, Children's Services, which advised the Schools' Forum of the revised Schools Budget for 2019/20; and sought support for the proposed use of the underspending from 2018/19.

The Forum were advised that the cumulative underspend carried forward at 31 March 2019 was £18.187m before accounting for existing commitments of £7.233m.  Appendix A to the report provided explanations for major underspendings and overspendings on budgets in 2018/19 (included within the cumulative underspend), which accounted for the £6.082m underspend.  The Forum noted that £1.533m of the underspend related to Lincolnshire's share of the £125m made available nationally by the DfE to respond to the growing high needs pressures.  Appendix B provided the Forum with details of the 2018/19 commitments for the Dedicated Schools Grant (DSG).  The Forum noted further that a thorough review of commitments had taken place.  The Forum were guided through Appendix A and B to the report presented.

It was reported that the Local Authority (LA) was proposing to capitalise £5.000m of the DSG underspend to support the implementation of Building Communities of Special Provision Strategy.  It was noted that this strategy would transform SEND support for local children and young people.  It was noted further that the strategy would bring major infrastructure improvements to Lincolnshire special school buildings to ensure they had the right facilities to meet all types of need including special schools having greater capacity to meet the increasing demands for places in Lincolnshire.  The strategy would also ensure that an integrated system was created where by pupils attended their nearest school.

The Forum was also advised that the government had allocated funding to LAs through the special provision capital fund to invest to improve the quality and range of provision for children and young people with SEND aged 0-25.  Lincolnshire's share of the government's £365m investment nationally between 2018/19 to 2020/21 was £3.929m.

The Forum noted that in the last round of government free school applications, Lincolnshire had been unsuccessful in its special free school application for Lincolnshire.  It was noted further that to support the fulfilment of the strategy including Lincoln area place requirements, and to secure funding, the LA was seeking with Schools Forum support to utilise the DSG funding of £5.000m to contribute towards the major improvements to Lincolnshire special schools.

The proposal for use of the uncommitted sum was detailed in section 5 of the report.  It was noted that the cumulative underspend (£18.187m) less existing commitments (£7.233m) and proposed developments (£5.000m) left £5.953m.  The Forum noted that as previously mentioned there was likely to be other commitments that could arise during the year within the schools arena that the LA would be required to respond to.

The Forum noted that within the DSG blocks of the Schools block; Central Schools Services block; Early Years block; and High Needs block, there remained areas of financial risk for affordability purposes (particularly the level of High Needs block protection received compared to the National Funding Formula allocation), therefore a level of prudence was required to enable the LA time to respond to financial changes and cost rises.

In conclusion, the Forum noted that an increasing number of LAs were now incurring a deficit on their overall DSG account, largely because of overspends on their High Needs blocks.  The Forum was advised that Lincolnshire was not currently in this position, however, expenditure was forecasted to grow; and as a result the position would be carefully and prudently managed.  The Forum noted that the LA proposed that the remaining sum was not committed and held in reserves due to the anticipated growth in costs in the area of high needs and the much tighter financial environment expected going forward.

It was reported that for 2020/21 the LA was not proposing to move funding from the Schools block to an alternative block.

During discussion, the Forum raised the following points:-

·         Whether there could be a reduction in the uncommitted sum.  Officers confirmed they felt the carry forward appropriate, due to the demand led nature of the service (e.g. cost of out of county provision) and the growing trajectory of high needs costs.  It was confirmed that during 2018/19, the LA had tried to create greater financial capacity in the High Needs block through Children's Services core budget; an example given was Healthy Minds which the LA had funded fully rather than match funded;

·         Use of DSG for capital funded projects – The Forum was advised that final approval would be sought from the Secretary of State through a disapplication request to the Regulations to use the DSG for the capital purposes. It was noted that evidence would be provided on the importance of this invest to save project and the benefits that it would bring to secure greater outcomes for pupils, but also to enable high needs pressures to be managed;

·         Free School Bid – The Forum was advised that the LA had been very disappointed of being unsuccessful in the last round of government free school applications, mainly due to other areas being able to demonstrate a greater need; as nationally other LAs were either at or nearing crisis point;

·         The amount individual schools receive to meet the needs of young people requiring SEND.  The Forum noted that as Lincolnshire had a high number of Education, Health and Care Plans (EHCP); a review was being carried out to identify whether, if an earlier point of intervention had been undertaken in the child's journey whether the outcome would have been different.  It was highlighted that so far indications were that early intervention would have an impact.  It was noted that the LA was committed in investing in more early intervention; and that working together would make the overall offer for Lincolnshire more resilient; and

·         Nursery school funding – The Forum noted that funding for nursery schools remained cash flat and that there was no clear indication of future funding levels after September 2020.  It was highlighted that there was lots of work to do as children attending nursery schools were from deprived areas and their needs were now increasing.  An example given was that some two year old children coming into nursery school were unable to communicate.  Officers advised that the issue of funding for nursery schools was on-going; and the LA was waiting for a national decision, however, the LA was continuing to work with the nursery school sector to promote joined up working and to consider optimum delivery models.  Recognition was given that speech and language was a growing problem; and health visitors were being trained to help identify at their birth to two and half year checks; so that referrals could be made quicker. 

RESOLVED

1.    That the Revised Schools Budget for 2019/10 as presented be noted.

2.    That the Forum voted to support the LAs proposed development to capitalise £5.000m of the DSG underspend to support the implementation of the Building Communities of Specialist Provision Strategy; and to support the LAs proposal to retain the remaining uncommitted sum of the DSG underspend as detailed in section 5 of the report presented.