Agenda item

Tony Burton (Head of Finance, Children’s Services) presented the report which provided an update on final proposed modelling following notification of final 2020/21 financial year School Block allocations by the Education and Skills Funding Agency (ESFA) in late December 2019. He noted it had also been covered at recent budget workshops with schools.

Tony highlighted that the 2021 schools block allocation had improved from provisional allocation due to an increase in growth funding (described in 1.4 of the report).

A member asked if there would be any minimum funding guarantee in future years with the national funding formula fully implemented. Tony said the Council didn’t know yet.

Tony noted that the report recommended Model 3 which used area cost adjusted national Schools Block NFF rates and increased each rate by 7.06%. It assumed a 1% transfer from the Schools Block to High Needs Block and 0.5% Minimum Funding Guarantee factor rate.

Tim Scott noted that the comparison table made it seem as though most secondary schools were worse off under Model 3 than Model 2. He asked if there was an argument apply a different percentage in Key Stages 3 and 4 to even it out. Members also questioned the use of FSM6 over FSM numbers.

Tony explained that the proposed model 3:

·       ensures a move towards the NFF – albeit at proposed local factor rates set 7.06% above the NFF factor rates after area cost adjustment.

·       distributes funding via NFF funding factors linked to school census in a way that is clear and transparent and linked with weighting of factor funding set out in the NFF for 2020/21

·       Avoids passing very high levels of funding through the MFG rather than NFF factors

·       results in £1.5m of MFG funding allocation at the 0.5% positive level

·       The move to 2020/21 NFF adjusted rates provides a significant key stage 4 AWPU factor increase versus the current rate.

·       that the choice in the formula was to use FSM or FSM 6 – you couldn’t use both. Officers recommended keeping with FSM6.

A member noted that the Council’s universal free school meals initiative meant it was very difficult to get people to sign up to the official ‘Free School Meals’ so those numbers would be off. Another member asked if the fully implemented National Funding Formula would need FSM numbers. Tony to check.

ACTION: Tony Burton

A member asked if it was possible to show the comparisons as a percentage of total school budget. Primaries with small budgets don't look like their losing much compared with schools with larger budgets but in percentage terms it could be a lot.

A member raised the issue of falling rolls and the significant impact that reductions in funding could have on a school. It was noted that four primaries had over 10 percent falling rolls. Officers said the maintained schools contingency fund could help and the issue was on the agenda at the Primary Heads meeting scheduled for 15 January 2020. There was a plan to mitigate the impact.

Tony recommended that a sub-group of Schools Forum meet with to consider bids for falling rolls protection and make recommendations to the Forum. Daniel Upfield, Jessica Mair, Tim Scott, Claire Fletcher volunteered.

The recommendations in the report were put forward by the Chair and unanimously agreed (recommendations 5 and 6 were unanimously agreed by the maintained school representatives).

Tony noted that final checks and minor adjustment to schools NNDR business rates recently confirmed would be made prior to submission to the ESFA. There may be changes following submission to ESFA linked to queries raised by the ESFA. It is not expected that the proposed allocation for any individual school would change as a result of this.

The Chair thanked Tony and the rest of the H&F Children's Services Finance Team for their hard work – particularly over the Christmas break.

RESOLVED

1.    That the APT for Model 3 is submitted to ESFA for 2020/21 school budget shares, with revised NFF rates for local factors in appendix 2 and with an MFG value of 0.5% per pupil positive.

2.    That Schools Forum agree a proposal to continue to transfer 1% of the total Schools Block to the High Needs Block in 2020/21. This equates to £1.05m based on the final grant allocation.

3.    That, in the event the Minister of State declines the disapplication (Recommendation 2), and additional funding to schools needs to be allocated through a revised model it is proposed that the factor rates in Model 3 are further uniformly uplifted to adjust allocations at a school level.

4.    That Schools Forum agree a proposal to top-slice the 2020/21 Schools Block to the value of £0.13m or 0.01% of the total for the Falling Rolls protection fund in 2020/21. Together with the £0.125m retained balance for falling rolls, this would establish a total fund of £0.25m for 2020/21. A sub-group of Schools Forum is recommended to consider final bids for funding and to agree allocations. 8.5.

5.    That maintained school representatives at Schools Forum agree to the proposed de-delegated budgets proposed for 2020/21 in Table 4 totalling £709,115.

6.    That maintained school representatives at Schools Forum agree to the proposed Education Functions budgets proposed for 2020/21 in Table 5 totalling £323,024.