Agenda item

(To receive a report from Elizabeth Bowes, Strategic Finance Manager, Schools Finance Team, which advises the Schools' Forum on the school funding arrangements for 2021/22)

The Chairman invited Elizabeth Bowes, Strategic Finance Manager, Schools Finance Team to present the report, which briefed the Schools' Forum on the school funding arrangements for 2021/22.  This report had been circulated separately to the Forum.

The Forum was advised of the background to the NFF, and details of the school funding announcements.

The Forum noted that the Dedicated Schools Grant (DSG) would continue to comprise of four blocks: Schools block, Central School Services block, High Needs block and Early Years block and that each of the four blocks continued to be determined by a separate national funding formula.

Table 1, on page 2 of the report provided details of Lincolnshire's 2021/22 DSG allocations.  The Forum was advised that Lincolnshire's overall funding levels across the four blocks had increased.  The Forum noted that the greatest challenge for Local Authorities, and Lincolnshire was the increasing demand of more young people requiring specialist support, which was having a material financial impact on the High Needs block and its sustainability.  Further details relating to each of the four blocks were shown on pages 3 to 11 of the report, including measures to support change.

The Forum was advised that in accordance with the Department for Education regulations, the Local Authority was required to seek Schools' Forum agreement in relation to the setting of central budgets within the DSG, and tables 2 to 4 of the report highlighted the budgets requiring Schools Forum agreement.  These were:

·       Table 2: Budgets requiring Schools Forum decision – Schools Block.  A proposed budget of £2.696m for 2021/22 for significant pre-16 growth;

·       Table 3: Budgets requiring Schools Forum decisions – Central School Services Block on going commitments, which comprised of the following proposed budgets figures for 2021/22: Admissions - £0.633m; Local Authority Retained Duties for all schools - £1.530m; and the servicing of the Schools Forum £0.020m; and

·       Table 4: Budgets requiring Schools Forum decisions – Central School Services Block historic commitments, which comprised of the following proposed budget figures for 2021/22: Schools Broadband £1.199m; and Private Finance Initiative Schemes £0.573m.

Reassurance was given that the budgets proposed were prudent and had been determined following a detailed review.  The Forum noted that some minor refinements to the overall budgets might be necessary and that in accordance with established practice; these would be reported to the Schools Forum in June 2021.

It was reported that the Executive was currently consulting on a single year financial plan for revenue and capital budgets.  It was highlighted that the Council continued to face future financial uncertainties, added with the growing cost pressures from demand-led services such as adults and children's social care and inflationary pressures on contracted services.  It was highlighted further that the Medium Term Financial Plan showed that a balance budget could be achieved for 2021/22, with a budget surplus of £1.921m, but for 2022/23 and 2023/24 there would be a budget shortfall.  The Forum noted that the situation for the Council continued to have a significant bearing on Children's Services budget of £122.184m.

The Forum noted the Coronavirus pandemic had impacted significantly on the 2020/21 financial year, and that central government had provided grant funding to cover costs and losses arising directly from the pandemic.

Details of next steps to be taken were shown on page 12 of the report.

In conclusion, the Forum noted that the Local Authority proposed to continue adopting the NFF in 2021/22 (subject to affordability); and that any changes to overall budgets would be reported to the Forum at its June 2021 meeting.

During discussion, the following points were raised:

·       That further information should be included in the report with regard to financial risks.  Reassurance was given that the schools NFF had been in place for a number of years, and the risk and impact was detailed in the proceeding paper.  There was however risk within the reduction of the historic element of funding with the Central School Services block.  It was also highlighted that the overall budget process was a rigorous and robust exercise.  Officers however, agreed to draw out the financial risk and impact in the separate section of reports going forward;

·       The impact of the decision to use the October census data for the calculation of Pupil Premium.  The Forum was advised that the Education & Skills Funding Agency (ESFA) had not advised of the rationale for this change.  It was noted that this would be followed up; and

·       Cost of out of county placements.  The Forum was advised that currently there were 201 placements outside Lincolnshire.  The challenge for the Council was managing need.  The Forum was advised that the Building Communities of Special Provision Strategy would be expanding existing special school provision across the county to help meet demand.

RESOLVED

That the Local Authority's proposals relating to a number of centrally held budgets as detailed in tables 2 to 4 of the report presented be agreed.