The Business Advisor (Schools) will present a report, Document GZ, which provides a briefing and worked through impact modelling in response the DfE’s announcement of its 2^nd stage of consultation on its National Funding Formula proposals for the Schools and High Needs Blocks. It is anticipated that the Schools Forum will consider a response to this consultation at the March meeting (the deadline for responses is the 22 March).

Recommended –

The Forum is asked to note and to discuss the information provided with reference particularly to the decisions that are required now for the 2017/18 DSG allocation.

(Andrew Redding – 01274 432678)

At the beginning of the 11 January meeting, the Chair stressed the toughness of the decisions that will need to be made by the Schools Forum. He stressed that these decisions focus on the position of the High Needs Block and the option for the ‘strategic reset’ of the DSG to enable the creation of new additional high needs places, now in the context of National Funding Formula, by moving monies in 2017/18 from the Schools Block. This is the culmination of the Forum’s considerations over the autumn term (and earlier).

The Chair asked the Business Advisor (Schools) to update Members on the crucial announcements that have been made since the 7 December meeting and to confirm the position of the 2017/18 DSG. The Chair impressed on Members the importance of their understanding what is a very complicated picture. As such, the 11 January meeting is seen as an information presentation and questions meeting, with the Forum returning to make its recommendations on 18 January. The Chair asked Members to think about how they can gather feedback from school colleagues on these issues before 18 January meeting and to do this where they can.

The Business Advisor presented the Authority’s analysis of the National Funding Formula, Document GZ, beginning by reminding Members of the matters that the Schools Forum has considered across the autumn term and the estimates  and ‘educated guesses’ that the Authority had made around the potential impact of National Funding Formula and key watch areas. The Business Advisor gave a summary of the key announcements that have been made and what these do to confirm our understanding of Bradford’s financial position in 2017/18 and beyond, referring to:

• The DfE’s National Funding Formula 2^nd stage consultation announcement of 14 December 2016
• The DfE’s announcement on early years funding reform of 1 December 2016
• The National Audit Office’s report on the real terms value of education funding, published on 14 December 2016
• The DfE’s announcement on 2017/18 DSG allocations for local authorities, made on 20 December.

The Business Advisor also presented (in response to the requests made in December):

• A document, which set out more data on how Bradford’s financial and High Needs Block position compares with the national picture.
• A document, which provided more detailed analysis of the position of unfilled high needs places in Bradford in 2016/17.
• A document, which provides an outline view of the High Needs Block over the next 5 years. Following initial consideration, the Forum asked for a more detailed picture of this, which was presented to the 18 January meeting.

In response to the presentation of this information, on 11 January, Forum members made the following main comments and asked the following main questions:

• What is the cash value of the funding of unfilled high needs places in 2016/17? The Business Advisor stated that this is estimated to be £675,000. It is expected that the value of funding related to unfilled places continues to be minimised.
• That the National Funding Formula appears to significantly more negatively affect the primary phase and smaller schools in Bradford.
• That Bradford appears to be heavily reliant on the proposed 3% floor factor.
• The weighting of Additional Educational Needs is recognised, but the movement away from IDACI and deprivation within this is also noted.
• That the NFF proposals will reduce Bradford’s Schools Block and increase our High Needs Block over time. However, that the High Needs Block position is very challenging.
• That the erosion in the real terms value of funding is a massive issue for schools going forward and will have staffing implications.
• That overall the loss to Bradford as a result of the National Funding Formula (NFF) does not look as bad as expected. However, a cash neutral position hides some very significant challenges, including in the High Needs Block, where the full value of increase that the NFF suggests we should receive will be damped, and in the continued erosion of the value of funding in real terms.

The Business Advisor explained that a drafted response to the DfE’s 2^nd stage of consultation would be presented for consideration on 15 March.

Resolved –

That the information contained in Document GZ (and additional information presented on 18 January) be noted.