The Business Advisor (schools) will present a report, Document HW, which asks the Forum to consider the consultation document, which outlines the proposals for the formulae to be used to calculate budgets for Primary and Secondary schools and academies for the 2018/19 financial year and the criteria that will form the basis of the allocation of additional funding to schools (and academies where appropriate) from DSG centrally managed funds.

Recommended –

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

(Andrew Redding – 01274 432678)

The Business Advisor (schools) presented a report, Document HW, which asked the Forum to consider the consultation document, which outlines the proposals for the formulae to be used to calculate budgets for Primary and Secondary schools and academies for the 2018/19 financial year and the criteria that will form the basis of the allocation of additional funding to schools (and academies where appropriate) from DSG centrally managed funds.

The Business Advisor (Schools) explained the 6 key decisions that are set out in the document and what is proposed against each of these. These decisions frame the Forum’s discussions over the next few meetings. He stressed the indicative nature of the modelling and that final ‘affordability’ would be confirmed following the release of the October 2017 census dataset in December.

The Business Advisor also explained that, following the writing of the consultation document, clarification had been received from the Education and Skills Funding Agency that authorities that wished to set a Minimum Funding Guarantee level higher than 0% (up to + 0.5%) could apply to the Secretary of State to do so. Gaining approval to do this did not commit us to funding a higher MFG but it would give us another option available in our allocation of the DSG next year. The Business Advisor stated that, on current data, the additional cost of a 0.5% MFG vs. 0% would be c. £1.01m (£0.77m primary and £0.24m secondary).

Forum Members made the following comments:

·         That the position for schools under a minus 1.5% MFG will be dire especially in the context of possible release of public sector pay restraint during 2018/19. The MFG needs to be set at the maximum level possible.

·         However, the option to use remaining primary-phase headroom within the Schools Block instead to support low-AEN schools with higher levels of SEND (by enhancing the SEN Funding Floor, as set out in the consultation) as an alternative to the MFG enhancement should be seriously considered. It was acknowledged that this latter approach will require the transfer of monies from the Schools Block to the High Needs Block (to fund additional expenditure, not to reduce cost pressure).

·         The argument for moving to implement national funding formula locally in 2018/19 is quite compelling. The feedback from secondary phase headteachers / CEOs indicates that they are already supportive of this proposal.

·         A further ‘top-slice’ from the Schools Block to support the High Needs Block in 2018/19 is very unlikely to be supported by schools. The transfer made in 2017/18 was to support the High Need Block strategically over the next 5 year period under national funding formula.

Resolved –

(1)  That the consultation document (Document HW Appendix 1) be published.

(2)  That requests (‘disapplications’) be submitted to the Secretary of State for permissions a) to set the Minimum Funding Guarantee (MFG) in 2018/19 above 0%, up to + 0.5%, b) to amend the calculation of the minimum per pupil funding floors in 2018/19 to remove the BSF / PFI factor and business rates, and c) to exclude the re-profiling element of the BSF / PFI factor from the calculation of the MFG / ceiling in 2018/19 so that this does not distort these calculations.

Action:          Business Advisor (Schools)