Agenda item

a)            Report of the Interim Corporate Director of Resources

b)            Presentation by Finance Manager – Education Services

The Committee considered a joint report of the Director of Transformation and Partnerships, Interim Corporate Director Resources and Interim Corporate Director Children and Young Peoples Services which provided information on School Funding Reforms (for copy see file of minutes).

Members received a presentation from Finance Manager, Education Services (for copy see file of minutes), which provided Members with information on the ongoing Government consultation with regards to Authority proposals affecting  2017/18 school funding and changes to the National Funding Formulas (NFF) for;

·         Mainstream Primary and Secondary Schools

·         Early Years (nursery schools)

·         Special Educational Needs

Early Years Funding was based on historical spend and proposals were for a national formula to allocate funding to local authorities from 2017/18.  Indicative allocations provided as part of the consultation indicated that Durham would receive a 3% increase in funding.  The early years funding formula would require greater equality in distributing funding to providers.  However the specific impact for County Durham, for Early Years providers and SEN Funding would not be known until the outcome of the consultation.

Councillor Gunn referred to the information which had been presented to Members and the significant impact it would have on young people in County Durham for years to come.  It was not a case of a few changes or minor changes, but a significant amount of huge changes which would affect schools drastically.  A reduction of £7.5k was the difference in having a teacher or not having a teacher and although she had many unanswered questions, she acknowledged that they could not be answered until the consultation had ended.

Councillor J Armstrong acknowledged that the presentation had raised more questions than answers, however the changes which the Government were making were essentially leading up to remove the responsibility of education services from Councils and pushing schools to becoming Academies.  There was no clarity to the plans other than there would be a reduction to the budget and the Finance Manager, Education Services agreed that when more information was available, he would present it to the Committee.

Councillor Hart referred to the potential impact the new formulas could have on small rural primary schools and the Finance Manager, Education Services confirmed that a potential reduction in budget of £30k would have a huge impact on any school, however until the outcome of the consultation, no modelling work could be undertaken as there was too much uncertainty.

In response to a question from Councillor Smith, the Finance Manager, Education Services confirmed that sparsity funding may be applicable to small schools which were located in areas where pupils would have to travel long distances to the nearest alternative school.

Mrs Swift commented that Governing Bodies were anxiously waiting for the consultation to end and queried what would happen to those schools who were sitting on large surplus budget balances which they had carried forward.  The Finance Manager, Education Services confirmed the capping mechanism had been removed a few years ago and however some schools were carrying money forward because of required capital works or to assist contingency plans following the Reform.

Councillor Gunn suggested getting the information that this was a Government reform, into the public domain should to be a priority.  Councillor Armstrong agreed that the Portfolio Holder for Children and Young Peoples Services would be consulted in circulating information to all Members, Schools and how to address and keep the public informed.  It was agreed that a letter should be sent from the Children and Young People’s Services which advised the Portfolio Holder of the Committees concerns and requested a communication plan be put in place following the outcome of the consultation to ensure that the relevant information was disseminated and all concerned be informed that any future funding reductions as a result of the reforms were not within the Council’s control.

Resolved

That the report be noted and a letter be sent to the Portfolio Holder for Children and Young People’s Services, as requested.