Agenda item

Lisa Potts introduced the report (Agenda Item 10) noting that it was part of the regular quarterly reporting cycle. She summarised that the Dedicated Schools Grant (DSG) had carried forward a deficit of £16.1m and the current forecast projected an overspend of £30.2m by the end of the financial year. While this was a significant figure, Lisa Potts explained that it aligned with long-term projections, particularly in relation to pressures on the High Needs Block (HNB).

Lisa Potts highlighted several key changes, including updated grant allocations from the Department for Education (DfE). The Early Years Block had seen a substantial increase in funding due to the introduction of new funding streams for children aged nine months to two years, and for two-year-olds of working parents. As a result, the grant had risen from approximately £12 million to approximately £28 million. Lisa Potts explained that the Local Authority (LA) was permitted to retain four percent of this total to support centrally managed costs. It was anticipated that at least £300k could be used to reduce the overall deficit, with potential for more once trends for new funding streams were clearer.

Lisa Potts also reported a large change in the HNB due to Brookfields School’s academisation. When the budget was originally set, Brookfields had been included in the LA’s funding allocation. However, following the academisation, place funding went directly to the school from the DfE resulting in a £2 million adjustment in the LA’s allocation. It was clarified that top-up funding would still be managed through the LA’s budget.

Keith Harvey asked whether the funding now going directly to Brookfields followed the same formula previously used by the LA. Lisa Potts confirmed that the school received £10,000 per confirmed place directly from the DfE. She added that top-up funding would continue to be provided by the LA.

RESOLVED that the Schools’ Forum noted the report.