Agenda item

(a) Joint Report of the Corporate Director of Children and Young People’s Services and Corporate Director of Resources

(b) Presentation by the Head of Finance and Transactional Services

The Committee considered a joint report of the Corporate Director of Children and Young People’s Services and the Corporate Director of Resources which provided an update on mainstream primary and secondary formula funding arrangements for the coming financial year and the approach to setting the local formula for mainstream primary and secondary funding in 2020-21, and a presentation from the Head of Finance & Transactional Services (for copies see file of minutes).

The Head of Financial and Transactional Services advised members that funding formulas were due to be replaced next year but the government were satisfied that the local authority was moving forward.  The funding was allocated on a lag basis using numbers from the previous financial year.  This had both challenges and benefits, but it was impossible to work out funding on an in-year basis.

Members were advised that the national funding formula (NFF) benefitted schools in more affluent areas and areas of deprivation were least likely to benefit.  It did not protect schools from falling rolls.

In response to a question from Mrs Norman about the number of schools who may be affected negatively from the change to the NFF, the Head of Finance & Transactional Services confirmed that all schools would benefit from the changes, however this area would not benefit as much as others.  Had 4% been applied to all schools, they would have received more.  Modelling which had been done to assist in the response to the consultation, could be provided and in response to a further question on whether any feedback to the Councils response had been received, the Head of Finance & Transactional Services confirmed that an acknowledgement of receipt had been received, but no feedback.

Councillor Jewell referred to the deficit of the High Needs Block (HNB), noting a shortfall in 20/21 and asked how long it would take to recover the balance.  The Head of Finance & Transactional Services confirmed that the HNB was operating in a negative reserve and expenditure needed to be brought in line with grant funding received.  For a period of time there would need to be an underspend in order to pay back the deficit, which was forecast at £2 million if nothing else changed.  There was a HNB Sustainability Plan in order to reduce the deficit.  The Council had formerly been given 3 years to recover any deficit to the HNB but there had been two significant changes to regulations;

·        To prevent Council Tax money being used to top up

·        Councils would now be given ‘a reasonable period’ to recover the deficit.

The plan had been prepared on that basis that a period of 5 years was reasonable.

The Chair thanked the Head of Financial and Transactional Services for providing members with the information.

The Chair confirmed that Ms Evans had emailed to ask if the information was communicated to the public, in particular parents and carers and the Head of Finance & Transactional Services confirmed that the information was published and schools were given the information, however it would be a decision of the school as to whether they cascaded it to parents.  He suspected parents would not be sent individual letters however the information was available as schools published their individual finance reports.

Resolved:

That the content or the report be noted and the Committee continue to monitor progress towards implementation of the National Funding Formula.