Agenda item

(To receive a report from Mark Popplewell, Head of Finance – Children's Services, which notifies the Schools' Forum of the revised Schools Budget for 2020/21 and seeks support for the proposed use of the underspending from 2019/20)

The Chairman invited Mark Popplewell, Head of Finance – Children's Services to present the report to the Forum.

The Forum was advised that the purpose of the report was to notify the Forum of the revised Schools Budget for 2020/21 and to seek support for the proposed use of the underspending from 2019/20.

The Forum was advised further that the Dedicated Schools Grant (DSG) was a ring-fenced grant that could only be spent for the purposes outlined in the Department for Education's School's and Early Years Finance (England) Regulations.

It was reported that the cumulative underspend carried forward at 31 March 2020 was £12.618m before accounting for commitment of £7.312m.  The Forum noted that the uncommitted sum of £5.306m represented 0.89% of Lincolnshire's overall 2020/21 DSG (£595.282m).  This reflected the net underspending of £0.064m on budgets in 2019/20 held centrally within the DSG.

Appendix A to the report provided the Forum with an explanation of the major under and overspendings of the Central DSG Budgets for 2019/20.  Particular reference was made to the HN top up funding, which reflected the rise in the number of pupils with Education, Health and Care (EHC) plans in Lincolnshire.  Also highlighted was out of county placements, the Forum noted that EHC plan placements were only made when there was no Lincolnshire school able to take pupils.

Appendix B to the report provided the Forum with details relating to the existing 2019/20 DSG commitments, which totalled £7.312m.  Particular reference was made to the temporary rate increase in the early years sector for 3 and 4 year old entitlement; the special educational needs and disabilities (SEND) Strategy; and Sector-led school investment.  It was noted that some commitments could not be fully quantified at this stage, but when work streams were finalised, or the government's position was confirmed, spending would start to take place.

The Forum was advised that it was proposed that the remaining uncommitted sum of £5.306m was held in reserves, due to the current spending levels in the area of SEND and the uncertainty in the financial environment going forward.  A full explanation of the LAs position was detailed on pages 38 to 41 of the report.

In conclusion, the Forum noted that the LA did not have a deficit in its overall DSG account, unlike some other LAs, who had large overspends on their High Needs block.

The Forum noted further that the LA proposal to hold the uncommitted sum in reserves was due to the anticipated growth in costs in the area of SEND; and the tighter financial environment expected going forward.

It was highlighted that the LA proposals to retain financial capacity within the DSG reserves was to temporarily manage unfunded cost pressures and transformational activities which were seen as important measures to securing a financially sustainable DSG.

During discussion, the following points were raised:

·         What measures were being put in place to measure the improved outcomes from the HN block.  It was agreed that there needed to be a measurement of the investment made.  Reassurance was given that this would be reviewed;

·         Multi-faceted approach to mainstream.  The Forum was advised best practice supported existing funding, but that checks would need to be done, to ensure that they were achieving targets in the sector led review;

·         Whether the Early Years underspend could be used to address Early Years hourly rate.  The Forum was advised that the reserves were only a temporary measure, which the LA applied in 2020/21, whilst considering the overall affordability of the DSG.  A permanent solution was required on nursery school funding rates.

RESOLVED

1.    That the Revised Schools Budget 2020/21 report presented be noted.

2.    That support be given to the Local Authority's proposal for the use of the uncommitted sum, as outlined in section five of the report.