Agenda item

(To receive a report from Mark Popplewell, Strategic Finance Lead - Children's Services, which notifies the Schools’ Forum of the revised Schools Budgets for 2023/24 and seeks support for the proposed use of cumulative underspending from 2022/23)

Consideration was given to a report by the Strategic Finance Lead – Children’s Services, on the Revised Schools Budgets for 2023/24 and the proposed use of cumulative underspending from 2022/23.

The Forum were reminded that the Dedicated Schools Grant (DSG) was a ring-fenced grant that could only be spent for the purposes as outlined in the Department for Education Schools and Early Years Finance (England) Regulations. Under these Regulations, underspends are automatically carried forward to the following financial year, and LAs must consult with its Schools’ Forum over its planned use, or to address overspends.

The report provided context of the financial challenges facing LAs in managing its High Needs spending within the DSG. Page 42 provided details of the three programmes the Education Skills and Funding Agency are running to offer direct support regarding the effectiveness and sustainability of LAs high needs spending. To provide context, the total SEND deficits across Council’s in England was estimated at £2.3bn at the end of 2022/23 by the Association of Directors of Children’s Services. The DfE acknowledges the unsustainable SEND system, and the SEND and AP improvement plan is the mechanism for supporting change.

Page 43 of the agenda pack provided details of the carry forward for 2022/23. The Forum noted that the cumulative carry forward at 31 March 2023 was £13.823m, there are commitments of £4.341m (detailed in Appendix B), with an uncommitted sum of £9.482m. The cumulative underspend included the net underspend in 2022/23 of £3.285m, an explanation of this underspend is detailed in Appendix A.

The report recommended that the underspend of £9.482m remained uncommitted and held in reserves due to the current spending levels of SEND and the uncertainty in the financial environment going forward. The increase of 3% per head within the High Needs block of the DSG is modest and will place significant pressure in managing cost demands within 2024/25 allocation. Medium-term financial planning was indicating an in-year overspend for 2024/25 in light of demand and price changes, which would need to be met from available reserves to provide a balanced budget. With the nature of the services that the High Needs block provides, which is driven by large, demand-led activities, it was difficult to change spending levels quickly, therefore having a sufficient level of reserves to draw on is important to secure a sustainable budget in the medium-term. Ensuring funding was directed to the right activities and cost-effective provision was vital. Lincolnshire did not want to be forced into retracting its comprehensive early help support packages, or to seek a transfer of up to 0.5% of the Schools block to the High Needs block to manage unfunded cost pressures.

The Assistant Director – Children’s (Education) highlighted the high level of demands for high needs support, which was to be supported within one budget. The Council sought to ensure that it embedded the inclusive ambitions for children to be respected, hopeful and optimistic about their futures. Work streams that were being developed included £100m investment into the special school estate to improve facilities and the lived experiences of children and young people. Whilst this would create many additional places, demand was likely to be much higher than availability of placements meaning a continued dependence on external placements. The Council continued to embed and strengthen its local offer, however challenges with capacity remained and difficult decisions would need to be made in future to meet the needs and demands of the services, as well as support, early intervention which was vital.

Consideration was given to the report and during the discussion the following points were recorded:

• The Forum acknowledged the challenges faced and questioned whether an increase in funding for special needs, in line with national figures, would give the schools a better capacity to support pupils. Officers noted that they are very mindful of the higher costs being seen in providing this support and the importance in providing fair funding, which will be considered through the detailed budget setting exercise.

RESOLVED:

1. That the report be noted;

That the Local Authorities proposed use of the uncommitted sum, as outlined in section 4 of the report be supported.