Agenda item

Claire White introduced the report that set out the changes and requirements for setting the primary and secondary school funding formula for 2018/19 in preparation for the consultation to take place with schools. Agreement was required on a proposal for setting the school funding formula for 2018/19 as set out in 2.1 of the report. This would then go out to consultation with schools.

Claire White drew attention to Table 1 on page 20 of the report, which set out the national funding rates for each factor compared to West Berkshire’s current rates. Appendix A showed the funding per factor for each school in West Berkshire and showed the National Funding Formula compared to the West Berkshire formula. Claire White reported that the picture was positive compared to what had been anticipated earlier in the year.

For West Berkshire, there had been a shift in funding from basic entitlement and lump sum funding to additional needs funding. The following reasons explained why there had been a shift in some factors:

·                West Berkshire was ranked one of the lowest in terms of deprivation, which was replicated in lower relative funding when the DSG was first put in place.

·                When the current West Berkshire formula was set in 2013 it was a Schools’ Forum decision that the prior attainment factor for primary schools was not, on its own, a reasonable proxy factor for additional need, and so more funding was added to the AWPU and deprivation. 

·                It had been a Schools’ Forum decision not to use the sparsity factor for primary schools, as most of the small schools in the district fell just outside the criteria and it was felt unfair that just a few would gain and at the expense of others.

Based on the October 2016 census data and pupil numbers, the schools block DSG would be £97.5m. Growth funding and increases in business rates would have to be deducted, with the balance available to be allocated to schools. The total balance available to allocate would amount to £97,118,000 but  this figure could go up or down depending on the changes in pupil numbers in the October 2017 census.

Claire White added that in addition to agreeing on the funding formula, a decision needed to be taken on how to allocate any surplus or shortfall. The final amount of funding would not be known until mid December 2017 and after the consultation with schools had taken place.

Claire White drew attention to the proposals under section 6 of the report. First it remained a local authority decision, for at least the next two years, on how the funding would be allocated to schools through formula factors.

Although it would be impossible to replicate the national funding formula as shown in the DfE tables for each school, it was proposed that in principle the aim would be to move as close as possible to the national rates, using all the formula factors and using the highest minimum funding guarantee possible, whilst applying the 3% per pupil cap on gains. There was no advantage in doing anything different because this would give schools certainly in funding allocations in future years. The minimum funding guarantee would protect those schools that would lose and schools that would gain, should receive the funding as soon as possible. Claire White confirmed that the Heads Funding Group had agreed to this in principle. 

Claire White explained that the minimum funding guarantee that could be set in the schools formula was between 0% to -1.5%. If the local authority wished to set a minimum funding guarantee of between 0% and +0.5%, an application needed to made to the Secretary of State for Education, following consultation with schools and subject to Schools’ Forum approval. The Heads Funding Group had felt that due to current funding shortfalls in all schools, if funding was available, all schools should see an increase in their per pupil funding, even if this was only a small amount. The Heads Funding Group had proposed that this option be used.

If there was enough funding to allow a minimum funding guarantee of 0.5% (shown under Appendix D to Appendix A), the cost of the model would be £97,127k, which Claire White reported could potentially be affordable. The impact was displayed on the table under section 6.5 of the report. No schools would gain nil and 30 schools would gain up to £5k. Claire White added that the Heads Funding Group had explored a number of different options and had concluded that the national rate would benefit the majority of schools.

Claire White reported that the next step would be a consultation document that would go out to schools containing the proposals detailed within the report. The consultation would last for three weeks and the results would be brought back to the next Heads Funding Group to review before determining a final proposal to present to the December Schools’ Forum meeting for approval. The Council’s Executive would make the final decision in January 2018 and the formula would also need to be submitted to the ESFA by the 19^th January 2018.

Angela Hay referred to the reduction in the resource unit funding allocation from £10k to £6k and queried if the shortfall would be accounted for in anyway. Claire White reported that calculations would need to take place after the next schools census. Funding would be allocated in two different ways, with unfilled places still attracting £10k.

Paul Dick noted that the reduction in resources would relate to primary provision rather than secondary and needed to be monitored closely.

The Chairman referred to the recommendations under section two of the report and asked the Schools’ Forum to determine these.

RESOLVED that the Schools Forum approved the following proposals for setting the school funding formula for 2018/19, to go out to consultation with schools:

·      Use the National Funding Formula rates for every formula factor, applying a funding cap on gains of 3% per pupil and minimum funding guarantee of 0%.

·      Apply to the Secretary of State for Education to increase the minimum funding guarantee up to 0.5% should more funding be available.

·      Scale every formula factor upwards or downwards in order to match the final funding allocation available for distribution to schools.

RESOLVED that the consultation document was approved by the Schools’ Forum as was the timescale for consultation as set out in the report.

 (Keith Harvey left the meeting at 5.46pm)