Agenda item

The Chair introduced the item by thanking H&F's finance team for working on the budget papers over the Christmas break.

Tony Burton (Head of Finance, LBHF) and Caroline Baxter (Strategic Finance Manager, LBHF) presented the report that detailed the final 2019/20 schools block allocation and the funding to schools through the schools funding formula.

Tony Burton noted that the funding allocations presented in the report were the outputs from a model prescribed by the ESFA, using October 2018 census data. The Local Authority was constrained in the factors that it could use. Though there was still some discretion on local factors up to 2020/21. In 2021/22 the funding would be entirely allocated through the national funding formula, with no local discretion over factors.

Tony noted that the final model needed to be submitted to the ESFA by the end of Monday, the 21st of January. There may be changes due to NNDR rates but they would be minor. The report also recommended transfer of 1 percent of funding from the schools block to the high needs block – this dis-application request, if agreed by Schools Forum, needed to be submitted to the ESFA today.

Tony noted that, since the report presented at the previous meeting, the allocation had increased by 0.37% and the majority of schools would be getting slight improvements on the previous modelling. This increase fulfilled the Government's promise to increase funding by one percent over two years – but it was recognised that this increase was significantly below the increased cost pressures schools were articulating.

A member asked why Earl’s Court Primary and West London Free School were being treated in the formula as two separate schools (receiving two lump sums) despite sharing the same site. Caroline Baxter explained that the schools were registered as two separate schools and had unique DfE numbers. Sharing the same site was a temporary arrangement pending the redevelopment of Earl’s Court.

A member asked if the Secondary School allocations, including the Minimum Funding Guarantee plus top-up, for Academies were final. Tony Burton responded that the allocations for Free Schools and Academies would be subject to further adjustment by the ESFA after submission. Officers have asked the ESFA for transparency over any adjustments they make.

Officers noted that Phoenix Academy don’t currently qualify for falling rolls protection because, as a new schools, they don’t have an Ofsted rating. The Council is recommending payment if they get a good or outstanding inspection result.

Flora Gardens Primary School made an application for falling rolls protection but they didn’t meet the 5 percent threshold. They have also received some transitional protection in the current year's budget. Fulham College Boys submitted a detailed plan to turn around a decrease of 8 percent and officers recommended approving their request.

A member commented that it was counter-productive to support the growth of 7 schools while also having to protect schools that had falling rolls. And over-capacity of places was projected to grow over the next five years (if no mitigating action was taken).

Steve Miley (Director of Children's Services) addressed the forum and explained that this situation was based on historical decisions. The current administration has inherited a number of growing schools up to 2022 – but after that the Council will have more control. Officers have explored what can be done in the meantime but the Council was bound by legislation to support these growing schools up to 2022. Steve added that while we couldn't change the number of school places in the borough – schools and the Council can work together to influence parents choosing where to send their children.

A member raised a query that some schools could potentially be paying twice for SIMs licenses – both centrally through the DSG and as individual schools. Officers noted they were trying to resolve this and would follow it up after the meeting.

ACTION: Tony Burton

A member asked how schools were held to account for how they used the transition funding. The Chair asked that schools receiving falling rolls protection should demonstrate how they are using the funding to impact their roll.

ACTION: Tony Burton / Jan Parnell

Members asked if there were many schools close to the 5 percent threshold for falling roll protection. Officers said there were. Members said they would like to consider the threshold in future. The Chair said a final decision on Phoenix Academy's request would be made at the next meeting, pending the outcome of an Ofsted inspection.

ACTION: Schools Forum

A member asked how EAL (English as an additional language) was defined in this context. Officers responded that it was any child with English as a non-first language – but additional funding was only available for three years.

Tony Burton asked the forum for a steer on how develop the allocation for 2020-21 – the last year of local discretion. The Chair proposed officers put a paper to the forum with some predictions on funding levels and some thinking about the potential pitfalls.

ACTION: Tony Burton

RESOLVED

1.    That Schools Forum agreed that the ESFA will be notified that the local authority wish to proceed with the dis-application request to transfer up to £1m from the schools block to the high needs block.

2.    That Schools Forum agreed that the NFF transitional factors as set out in Appendix 1 column A of the report are used as the basis for calculating the 2019/20 schools funding formula.

3.    That Schools Forum agreed the approach and distribution of falling rolls funding as set out in section 7 and tables 8 and 9 of the report.

4.    That Schools Forum agreed in principle the request to consider an application from Phoenix Academy for falling rolls funding subject to their Ofsted rating being Good or Outstanding.

5.    That Schools Forum considered its role in setting the strategic direction of the schools block budget allocations for 2020/21 which is scheduled to be the final year of local formula discretion prior to the implementation of the full National Funding Formula for Schools in 2021/22.

6.    That Schools Forum consider its role in the strategy for managing the schools economy with constrained funding term and significant cost pressures over the medium term.

7.    That Schools Forum considered its role of oversight of the high needs block budget and the government requirement to articulate in the summer term 2019, how the block will be balanced within a three-year timescale.