Agenda item

(CSP: MEC1)

Purpose:  The School Finance Regulations require the local authority on an annual basis to review the school funding formula, consult with all schools on its proposals, and gain political approval. This report sets out the proposal for the primary and secondary school funding formula for the 2017/18 financial year.

Resolved that the formula factors for 2017/18 were to remain the same as those in 2016/17.

55% be added to the basic entitlement (per pupil funding) which equates to £8 per pupil, and 45% be added back to the lump sum which equates to £1,400. This is the same proportion to the deduction that was made to school budgets in 2016/17 to transfer funding to the high needs block.

This decision is not subject to call in as:

·      a delay in implementing the decision this would cause the Council serious financial implications or could compromise the Council's position.

therefore it will be implemented immediately.

The Executive considered a report (Agenda Item 6) concerning the proposal for the primary and secondary school funding formula for the 2017/18 financial year.

Councillor Lynne Doherty in introducing the report noted that the School Finance Regulations required the local authority to review the school funding formula on an annual basis, consult with all schools on its proposals and gain political approval. This report set out the proposal for the primary and secondary school funding formula for the 2017/18 financial year. The proposed move to a national funding formula had been delayed by a year, and therefore there were minimal changes for 2017/18, none of which effected West Berkshire schools.

The proposal agreed by the Schools’ Forum (after discussing the options with head teachers) was that if there was a reduction in resources that there would be a deduction in the per pupil basic entitlement rate, as this would have a proportional impact on every school in accordance with their size. If there were additional resources available, for the first £848k, 55% would be added to the per pupil basic entitlement and 45% added back to the lump sum.

Councillor Rick Jones asked for clarification about the impact the delay to changes to the national funding formula had had. Councillor Doherty noted that the consultation had only been announced just before Christmas. The Council was therefore currently working through the numbers in order to input into the consultation and as a consequence had not proposed changes for 2017/18.

Councillor Mollie Lock was concerned about the impact the formula could have on the District’s small schools possibly resulting in them going into deficit. Councillor Doherty explained that the financial position of schools at risk of going into deficit was reviewed on a six monthly basis. Where appropriate an action plan would be put in place, each being developed on a case by case basis.

Councillor Lee Dillon commented that it was disappointing that West Berkshire Council’s funding was below the national average. He queried whether it would be possible to submit a cross party response to the consultation. Councillor Roger Croft stated that he would consider whether or not to submit a joint response once he had seen what the Liberal Democrats proposed to say. Councillor Croft stated that it was disappointing that the Council’s funding was slightly lower than the national average and that he did not welcome being penalised for West Berkshire being an economically viable and sustainable district.

RESOLVED that: the formula factors for 2017/18 were to remain the same as those in 2016/17.

55% be added to the basic entitlement (per pupil funding) which equates to £8 per pupil, and 45% be added back to the lump sum which equates to £1,400. This is the same proportion to the deduction that was made to school budgets in 2016/17 to transfer funding to the high needs block.

Reason for the decision: The School Finance Regulations require the local authority on an annual basis to review the school funding formula, consult with all schools on its proposals and gain political approval.

Other options considered: No other options were considered for the formula factors to be used or the amount of current funding that is put into each factor, mainly due to the fact that a national funding formula was due in 2018/19 and to make changes for one year only would cause unnecessary turbulence to school budgets.

There are various options available in distributing additional funding or reducing funding should this be required – through one factor only or a combination of factors. The proposal being recommended was following a discussion with head teachers on what they felt was fair, and this was agreed by Schools’ Forum.