Agenda item

Lisa Potts introduced the report (Agenda Item 13), which set out the current financial position of the high needs budget for 2025/26 and the position as far as it could be predicted for 2026/27, including likely shortfall.

Lisa Potts noted that some figures in section 3.3 of the report contained minor errors, and members were directed to table 4.10 of the report for accurate values. Lisa explained that the forecast for 2025/26 showed a significant overspend and that provisional figures for 2026/27 were based on historical data and anticipated trends in Education, Health and Care Plans (EHCPs).

Lisa highlighted that the estimated Dedicated Schools Grant (DSG) income for 2026/27 was £29.4 million, which appeared lower than the previous year because the 2025/26 allocation had included £2.1 million of place funding for Brookfields School, which had since converted to an academy. This amount had been removed for 2026/27, with inflation applied to the remaining allocation. She confirmed that the forecast deficit for the High Needs Block (HNB) was expected to rise to approximately £17m in 2026/27, compared to £13 million in the current year.

Neil Goddard added that the vast majority of HNB funding continued to flow directly to schools, with only a very small proportion retained for central expenditure. He explained that the newly appointed commissioning team, led by Tony Parker, was expected to deliver savings through improved engagement with the independent and non-maintained sector, although these efficiencies would only flatten the curve of overspend rather than achieve a balanced budget. Neil Goddard also noted that the recent banding review for SEND would result in higher values for the upper bands, and this had been factored into the budget proposals. He confirmed that the new banding arrangements were intended to take effect from the next financial year, subject to agreement.

Neil Goddard emphasised that while actions taken to date were reducing the rate of increase, the scale of the deficit remained a national issue requiring a national solution. He also reminded members that government proposals to assume responsibility for historic deficits were expected from 2028, but until then, the LA faced ongoing financial pressure, including interest costs on the cumulative deficit.

Michelle Harrison asked when the new banding would come into effect and Neil Goddard confirmed that implementation was planned for the next financial year, with some potential for phased introduction earlier if feasible.

RESOLVED that no further questions were raised by the Schools’ Forum, and the report was noted.