Agenda item

David Ramsden entered the meeting at 5.24pm

The Forum considered a report (Agenda Item 7) to present an overview of the estimated Dedicated Schools Grant (DSG) budget for 2016/17.

In the Spending Review in November 2015, the government had suggested that schools would see a ‘real term’ increase in funding. Claire White explained that West Berkshire’s number of pupils had increased and so the total allocation would increase however the funding rate per pupil would remain the same.

It was highly likely that there would be a significant shortfall in funding in 2016/17, due mainly to the following factors:

·                A significant overspend in the 2015/16 high needs block which would need to be met from 2016/17’s DSG.

·                Carry forward of under spend from previous years in the high needs and early years blocks would have been used up in 2015/16.

·                Pupil numbers and needs in the high needs block continued to rise without any increase in funding.

If the assumption was made that there would be no increase to the DSG, and taking an early estimate of the budget requirements for next year, the following table would summarise the funding position for 2016/17. A breakdown of the funding and budget, split between the three blocks was shown in Appendix A of the report, with a more detailed breakdown of expenditure by cost centre shown in Appendix B.

Since the report was produced, some of the census data had been received which was needed for the calculations of the Schools Block. A draft calculation had demonstrated that £200k headroom might be available instead of a £135k shortfall.

Avril Allenby entered the meeting at 5.28pm

The funding could be confirmed, once the following had taken place:

·                Actual funding settlement received from the DfE.

·                School census data received from the DfE and the school formula run.

·                Officers would continue to work on obtaining their best forecasts for the current year spend and next year’s estimates for all other budgets.

The school formula was set for 2016/17 but a decision would need to be taken on the funding rates at the January 2016 meeting of the Schools’ Forum. It had been assumed that there would be enough funding in the schools block to maintain the current funding rates. If there was a “surplus” in this block, consideration would need to be given on whether this could be used towards the shortfall in the high needs block rather than increasing the funding rates. Consideration would also need to be given to reducing current funding rates in the school formula. For example, a reduction of £10,000 from the lump sum paid to every school would generate £760k funding for the high needs block, or for each £10 deducted from the per pupil rate funding would generate approximately £220k funding for the high needs block. The Heads Funding Group was opposed to this proposal.

The Early Years Block position was difficult to predict however there was an indication that it might be possible to balance this block if there was an underspend in 2015/16 which was carried forward. In the Spending Review it was proposed that there would be a national funding formula for Early Years that might be in place for 2017/18, although was likely to be introduced on a phased basis. This might be a positive development because West Berkshire received below average funding nationally in this block. The Early Years Steering Group would draw up their proposals for balancing this block, which might require a reduction in funding rates to providers.

Graham Spellman asked if the figures on schools budgets would be brought to the January 2016 meeting alongside the information on funding rates; Claire White confirmed that they would.

RESOLVED that the report be noted and an update be received at the next meeting.