Agenda item

(To receive a report from Mark Popplewell, Head of Finance, Children's Services, which asks for the Committees views on the Local Authority's funding formula proposals for 2018/19 and advises of the direction of travel following the government's implementation of a national funding formula for schools in 2018/19 and 2019/20, which will be considered by the Executive Councillor for Adult Care, Health and Children's Services on 10 January 2018)

Consideration was given to a report from Mark Popplewell, Head of Finance, Children's Services, which invited the Committee to consider a report entitled National Funding Formula for Mainstream Schools', which was appended at Appendix 1 to the report, which was due to be considered by the Executive Councillor for Adult Care, Health and Children's Services on 10 January 2018.

In guiding the Committee through the report the Head of Finance, Children's Services highlighted the background to the Government's implementation of the national funding formula for school for 2018/19.

The Committee was advised that the Government had encouraged Local Authorities to move towards the national funding formula so that schools' allocations were on a sensible trajectory towards the move to a 'hard' national funding formula from 2020/21.

Page 17 and 18 of the report presented provided the Committee with information relating to the government's building blocks of the schools national funding formula, which included basic per-pupil funding (including minimum per-pupil level), additional needs funding, school-led funding and geographical funding. Details of the fourteen formula factors within the building blocks were shown including key points from the formula.

Table one on page 5 of the report, outlined Lincolnshire's schools overall planned funding level for 2018/19, through the implementation of the national funding formula compared to other Local Authorities.  It was highlighted that Lincolnshire continued to remain in the lowest quartile for school funding levels with Lincolnshire primary schools overall being the 33^rd lowest funded Local Authority and Lincolnshire secondary schools being the 37^th lowest out of 150 Local Authorities overall. 

Tables two and three on page 7 provided the planned monetary gains by the sector in year 1 of the national funding formula implementation using schools 2017/18 census data.

The Committee was advised that due to the Government's tight timescales for completion of the work, the consultation with schools had been conducted in a relatively short period of time.  The Local Authority had however forewarned schools of the consultation.  The Forum was advised that the response rate had been disappointing (9% of primary schools and 20% of secondary schools).  A copy of the consultation document was shown in Appendix A to the report.

It was highlighted that the implementation of the national funding formula was forecasted to bring in more monies into Lincolnshire schools by an overall increase of 3.7% in 2018/19, and a 6.6% increase overall in 2019/20 from the current 2017/18 schools baseline funding, which was a positive picture for Lincolnshire.

Details of the next steps to be followed were shown on page 8 of the report; and it was highlighted that the Council understood the impact of the national funding formula for 2018/19 and 2019/20 and that it was proposed to replicate the national funding formula in each of the two years to ensure a sensible trajectory for schools towards the 'hard formula' due to take effect in 2020/21.  It was noted that 97% of schools that had responded to the consultation supported the Local Authority's proposals to adopt the national funding formula for 2018/19.

Officers were praised for their timeliness in responding to the Government's request.

A discussion ensued from which the Committee raised the following issues:-

·         One member enquired how the proposal would affect Looked After Children (LAC).  The Committee was advised that the Government had not used the Looked After Children factor in the national funding formula, but had instead increased the pupil premium plus rate for 2018/19 from £1,900 to £2,300. The report highlighted that around 60% of Local Authorities used the LAC funding, of which Lincolnshire was one of them.  It was noted that the Local Authority funded £600 per LAC within its local funding formula, therefore to ensure that schools were not financially disadvantaged, the Local Authority would only adjust the schools baseline by £400 for each eligible LAC pupil to correspond with the pupil premium plus increase, which would provide protection within the schools baseline.  It was also noted that the Virtual Head Teacher was responsible for determining how the funding was used to support the Looked After Child;

·         Views of the Lincolnshire Schools' Forum – One member asked if the views of the Lincolnshire Schools' Forum could be fed back to the Committee.  The Committee was advised that the Lincolnshire Schools Forum had considered a recent report relating to the national funding formula on 4 October 2017 and was due to consider the matter further at its meeting on 11 December 2017, before approval by the Executive Councillor for Adult Care, Health and Children's Services.  The Lincolnshire Schools Forum had not foreseen any issues; but were pleased that the funding formula would bring additional funding into Lincolnshire which would start to create fairer and equitable funding;

·         Mobility funding – The Committee was advised that the mobility factor in the national funding formula was intended to support schools that had a high proportion of pupils joining the school mid-way through an academic year.  It was highlighted that as Lincolnshire did not have a mobility factor currently within the local funding formula, Lincolnshire would not be in receipt of any funding for 2018/19.  It was noted that the Government was reviewing the mobility factor and the Local Authority had agreed to keep this formula factor under review to ensure all schools were funded fairly;

·         Special Educational Needs – The Committee was advised that schools would continue to receive the notional SEN £6,000 within the formula to support children with special educational needs.  The report highlighted that the Local Authority would be required to review the funding formula arrangements connected to schools delegated budgets, such as the school reorganisation policy and targeted notional SEN fund mechanism, in light of the schools national funding formula changes.  All steps would be taken to ensuring fair and objective funding was allocated to schools; and

·         Sparsity – Some concern was expressed with regard to the fact that Lincolnshire schools were poorly funded and the impact of the national funding formula on the smaller more vulnerable rural schools; and that lobbying should continue with regard to this.  It was reported that all schools through the National Funding Formula would be receiving at least 0.5% per pupil gain in funding in 2018/19.

Overall, the Children and Young People Scrutiny Committee supported the recommendations as detailed on page 3 of the report, but wished to highlighted to the Executive Councillor for Adult Care, Health and Children's Services for the need to continue lobbying for small rural schools; that the Committee was going to look at SEN funding at a future meeting; and that it was important to ensure that Looked After Children were not dis-advantaged going forward.

RESOLVED

1.    That the Children and Young People Scrutiny Committee supported the recommendations to the Executive Councillor for Adult Care, Health and Children's as detailed on page 3 of the report presented.

2.    That the Executive Councillor for Adult Care, Health and Children's be requested to consider the following comments made by the Committee before making a decision:-

·         The Committee stressed the need to continue to lobby central Government for a fairer funding formula for schools as Lincolnshire was still poorly funded area under the National Funding Formula;

·         The Committee highlighted concern that due to the Government's tight timescales the consultation with schools had been conducted in a relatively short period of time, in addition the Committee highlighted the low response rate of 11%. Officers confirmed that the Local Authority had forewarned schools of the consultation and provided information to schools at Headteacher briefings;

·         The Committee highlighted the need for funding to continue to adequately consider the sparsity factor and rural nature of Lincolnshire, in order to provide small and remote schools with additional funding and a degree of financial stability;

·         The Committee highlighted concern in relation to Looked After Children (LAC) funding arrangements.  Officers confirmed that the Local Authority had previously funded £600 per LAC within its local funding formula and to ensure schools are not financially disadvantaged would only adjust the schools baseline by £400 for each eligible LAC to correspond with the pupil premium plus increase, therefore providing some protection within the schools baseline;

·         The Committee queried the current arrangements with mobility funding in relation to areas within Lincolnshire where pupils might move to the County mid-way through the academic year which would be significant financial challenge to small rural schools.  Officers confirmed that the Local Authority did not have a mobility factor currently within the local funding formula but would keep a close eye on the mobility fund as this was an area of risk; and

·         The Committee highlighted the reported need to review the targeted notional SEN funding mechanism in light of the schools national funding formula changes.  Officers confirmed that all steps would be taken to not disadvantage schools as part of these changes.