The Committee previously requested a report on the financial circumstances relating to Hanson School’s overspend. A report was presented to the Committee on 10 October 2019.

The Strategic Director, Children’s Services will submit a report (Document “Z”) which a follow up report.

Recommended –

(1)       The Committee is asked to consider and to note the information            provided in the report.

(2)       An update on the School’s financial position be presented to the           Committee at a future meeting.

(Marium Haque - 01274 431078)

The Deputy Director for Education and Learning presented a report, (Document “Z”) in relation to the financial circumstances relating to Hanson School’s overspend.

The Corporate Overview and Scrutiny Committee has previously considered this at its meeting on Thursday 10 October 2020, where members not only requested for the financial position in relation to the school to be presented, but also that the Portfolio holder for Education, Employment and Skills to ensure that the views expressed by the Committee were communicated to the Minister.

Officers informed members that Hanson School is a foundation school maintained by the Local Authority and that the Governing Board has financial powers and responsibilities as delegated under the Scheme for Financing Schools.

The report highlighted that Hanson School’s deficit at March 2020 was forecasted to be at £4.16m and that the School was overspending.  However at the meeting officers informed members that there had been a slight increase in the deficit to £4.5m.  Yet despite this, officers highlighted to members that a process was now being developed looking at options to bring the School deficit back into balance and that the budget related work for 2020-21 had already begun.

Members seeked further clarification on the re-structuring that was taking place in Hanson School, as to whether it would actually have an impact.

Officers replied by stating that this was actually work-in-progress and that benchmarking activity had demonstrated how Hanson School and other similar sized schools are structured, with leadership arrangements. 

Furthermore, officers stressed that it was important to consider all the options appraisals for staffing structures at Hanson School and more importantly, whether Hanson School had staffing in the right places for the School to be able to move forward and make improvements.

Members discussed the pay award for teachers and raised their concerns in relation to the overspend increasing, the reason for the overspend and how much had been allocated to the pay awards.

In response, officers highlighted that there were in fact some legacy issues surrounding this area, particulary around staffing structures and contractual arrangements.  In addition to this, officers stated that they now had much greater control over the spending now.

Councillors were keen to establish the trajectory of the expected improvement, over time and whether this had gradually got worse.

Regarding this, officers indicated to members that the last time Hanson School achieved a balanced budget was in 2014/15.  Furthermore, in 2016/17 pupil numbers decreased, which resulted in a £1million deficit.

Continuing on some members discussed the schools budget provision together with  Academisation Order of Hanson School.  Here officers were clear, in that any budget deficit would be the responsibility of the school; if Hanson School converted to an academy.

The Portfolio holder for Education, Employment and Skills informed members that through the Opportunity Area Programme, £150,000 had been given to Hanson School to ensure that the children in the school are being supported.

Members were concerned that a meeting with the Minister had not ben arranged yet.  In response the Portfolio holder for Education, Employment and Skills said that along with officers, they would trying to arrange a meeting with the Minister.

Furthermore, members highlighted that in line with the Bradford Council’s Third Quarter Financial Position Statement, the deficit for Hanson School was approximately 75% of the total deficit for schools.  Therefore, when could members expect to receive a report which would say that the budget deficit is reducing.

In response, officers stressed that it was difficult work with a school with an Academy Order, as it was challenging to plan.  Officers also said that the budget deficit was something that had happened over several years and that officers now had greater control over the schools finances.

Members of Corporate Overview and Scrutiny Committee agreed that they would a report to come back, once there was a clearer idea and direction of travel.

Resolved –

An update on the School’s Financial position be presented to the Committee at a future meeting.

ACTION:  Strategic Director of Children’s Services