The Principal Finance Officer (Schools) will present a report, Document OX, which asks the Schools Forum to consider the consultation document, which outlines the proposals for the Schools Block, the funding formula to be used to calculate allocations for mainstream Primary and Secondary schools and academies for the 2023/24 financial year, and the criteria that will form the basis of the allocation of additional funding to maintained schools (and academies where appropriate) from Schools Block centrally managed funds.

The Authority would like now to consult on these proposals. The feedback from this consultation will be presented to the Schools Forum on 7 December. The Forum will then be asked to gives it final views (its recommendations) on 11 January 2023.

Recommended –

The Schools Forum is asked to agree that the consultation (Document OX Appendix 1) is published

   (Jonty Holden – 01274 431927)

The Principal Finance Officer (Schools) presented a report, Document OX, which asked the Schools Forum to consider the consultation document, which outlines the Authority’s proposals for the Schools Block, the funding formula to be used to calculate allocations for mainstream Primary and Secondary schools and academies for the 2023/24 financial year, and the criteria that will form the basis of the allocation of additional funding to maintained schools (and to academies where appropriate) from Schools Block centrally managed funds.

The Principal Officer explained that the Authority would like now to consult on these proposals, with the feedback to be presented to the Schools Forum on 7 December. The Forum will then be asked to give it final formal views (its recommendations) on 11 January 2023.

Following the presentation of the report:

·         A member representing maintained primary school headteachers asked whether the Authority has information that can be reported on the number of schools that will fall into deficit as a result of increasing costs. The member explained that they are interested in trends in the growth of the number of schools with deficit budgets. The Principal Officer responded that the Authority (School Funding Team) has very recently published some information (key messages) and modelling for schools, which will support the immediate review of their current year and 3-year budget projections. The Authority does not yet have sight of the updated budget positions of schools following this review and therefore, does not yet have sight of the number of maintained schools that are newly forecasting that they will fall into deficit if no mitigation action is taken. This picture will emerge as maintained schools submit their updated budget positions. The Principal Officer stated that it is anticipated that schools will face financial challenges and will have difficult decisions to take. The Authority will keep the Forum informed.

·         A member representing academies asked whether the Schools Supplementary Grant could now be clawed back (as a result of the cessation of the National Insurance Levy). The Principal Officer responded that the position here was not currently clear and that the Authority is specifically concerned that the 2023/24 settlement, which was announced in July and on which the consultation modelling and proposals that are presented today have been calculated, could be changed (could be reduced to remove the proportion of the Supplementary Grant that related to supporting the National Insurance Levy). There is some information that indicates that the Treasury is planning to remove from April 2023 from the DfE’s departmental budget the £300m that was allocated nationally for the Levy. For school funding, the critical consideration here is whether the DfE amends the 2023/24 settlement to compensate for this.

·         A member representing maintained primary headteachers asked whether most schools gain from the proposed change to Notional SEND. The Principal Officer clarified that there is no material loss or gain in funding as a result of the proposed change, as this is a ‘notional’ figure within formula funding allocations that are governed by the National Funding Formula. The Chair, as well as an academies member, emphasised this - that a change in the definition of Notional SEND does not change the formula funding that a school or academy materially receives. They added that schools / academies will need to renew their analysis of their uses of their Notional SEND budgets should the changes be implemented.

·         The member representing the teacher trades unions asked whether we expect a response from every school and whether the number of responses per school to the consultation is limited. The Principal Officer responded to explain that, although responses are voluntary, we would wish to encourage all schools and academies to respond. The introduction of an electronic responses platform will help to maximise the number of responses we receive. Schools are typically only expected to submit a single response, but could submit further responses should these include additional information or feedback that was not included in the original response.

Resolved –

That the Consultation - Primary and Secondary Mainstream Formulae & Schools Block Matters 2023/24 (Document OX Appendix 1) be published.        

ACTION:        Principal Finance Officer (Schools)