Agenda item

Claire White introduced the report (Agenda Item 7) which set out the position known so far on the Dedicated Schools Grant (DSG) funding and budget for 2017/18.

The Government was intending to reform the way funding for each block was allocated to local authorities. The reform of the school and high needs funding had been delayed by a year, and it was now proposed to take place from 2018/19. Second stage consultations and exemplifications were still outstanding and due by the end of the year. Changes to early years funding were due to take place from 2017/18, and the results of the consultation which closed in September had been received late the previous week after the agenda had been dispatched.

A clearer picture on the DSG funding allocations for 2017/18 would emerge in mid December when final allocations for the schools and high needs blocks are due, when the arrangements for early years funding were analysed, and when the official October 2016 census data was made available.

The draft 2017/18 budget requirement for each block was also set out, indicating where there could be differences between funding expected and expenditure, after taking into account likely carry forward of funds or deficits at the end of the 2016/17 financial year.

Final grant allocations were subject to the October 2016/January 2017 census data. Further work on the budget was also ongoing. The indications were, however, that there would be enough funding in the schools block, but further savings needed to be found in the high needs block.

Paul Dick asked what proportion of primary and secondary schools might set a deficit budget in 2017/18. Claire White responded that there were a handful of schools  indicating a deficit for next year and it was likely that more could set deficit budgets in the next year, however until budget allocations were known it was difficult to predict.

Councillor Lynne Doherty asked whether the Early Years formula would still include a quality supplement. Claire White advised that the government had originally proposed that there would be no quality rate in the new early years formula, even though it was used in West Berkshire, however it was now proposed that there would be a quality rate but that it would be capped. This would mean that if West Berkshire chose to use the quality supplement, those providers who were to gain from the new formula  would gain less, but those who might lose would lose less. Brian Jenkins raised the point that the area cost adjustment for West Berkshire remained low compared to our neighbouring authorities. Claire White advised that she had written to the Department for Education to ask how it had been calculated. The detail in the document released the previous week stated that rateable values would be reviewedperiodiocally.

RESOLVED:

• To allocate all schools block headroom to schools.
• Not to transfer any funding from the High Needs Block to the Schools Block.
• To note the position on the early years and high needs blocks, particularly in reference to other reports on this agenda.