The Business Advisor (Schools) will present a report, Document IB, which provides a forecast of the anticipated DSG cost pressures position in the 2018/19 financial year. Please note that any further information on the DSG for 2018/19 that may be announced by Government before 6 December will be presented verbally at the meeting.

Recommended –

Members are asked to consider the information presented in the report, in advance of making final recommendations on 10 January 2018.

(Andrew Redding – 01274 432678)

The Business Advisor (Schools) presented a report, Document IB, which provided a forecast of the anticipated DSG position in the 2018/19 financial year. He emphasised that this is an estimated position, still based on the early DSG announcements and largely on the October 2016 Census dataset. He explained the position of each of the 4 Blocks and that there are a series of decisions, ‘internal’ to each Block, that are required to be taken. These are set out in more detail in other reports. These include the investment of headroom (£0.77m estimated primary phase headroom) within the Schools Block and the value of Minimum Funding Guarantee.

In his presentation, the Business Advisor (Schools) also highlighted:

·         There is a new Central Schools Block, which ceases the top-slicing of the Schools Block for centrally managed activities other than the Growth Fund. It is proposed that the headroom within the Central Schools Block is utilised to support the pressure on the High Needs Block. This proposal is set out in a separate report.

·         The Authority is effectively fully ring-fencing the DSG by Block.

·         All Blocks but the High Needs Block are estimated to balance in 2018/19. The Early Years Block is over spending but this is deliberate and is offset by the strategic use of reserve (in order to protect EYSFF 3&4 year old base rate funding).

·         The forecasted overspent position of the High Needs Block is one of the most crucial matters for the Forum to consider. This is currently estimated as an overspending of £2.128m. Document IB sets out what is already included in getting to the £2.128m, which includes the transfer of some funds from the High Needs Block to the Central and Early Years Blocks and the cessation of alternative provision top up funding as proposed in the consultation. Also included is a 1.5% reduction in the value of top up funding allocated by the High Needs Block funding model.

·         How crucial the successful delivery of significant structural change is, through the SEND and SEMH reviews, to the financial viability of the High Needs Block in 2018/19 and going forward.

·         That it is likely that a substantial value of the identified High Needs Block transition fund / reserve will need to be allocated to support the 2018/19 DSG budget.

The Chair encouraged primary academy representatives to put themselves forward for the SEMH review group. An Academy Member thanked the Business Advisor for emphasising how crucial the successful delivery of structural reform is. He added that this reform must be across the whole system and that there are two further non-DSG specific considerations a) that successful delivery of structural change, including of alternative provision, relies on capital investment and b) that the Authority’s home to school transport policy must support reform to provide for the sustainability of newly establishing and expanding provisions. It was agreed that an update on these two matters will be included in the presentation to the next meeting.

No resolution was passed on this item.