Issue - meetings

Purpose of report

To provide the Cabinet Member with an initial summary and impact assessment, of the proposals contained within the 'school funding formula' consultation documents issued by the Department for Education (DfE) on the 7^th March 2016.

RECOMMENDED: that the Cabinet Member:

(1)  Notes the Department for Education's proposed changes to the school funding arrangements and the potential impact of these changes, as set out within this report;  and in particular:

2017-18

                                              i.        The transitional period for 2017-18 and 2018-19. Funding to Local Authorities would be allocated on a national formula basis, but Local Authorities would continue to distribute this to schools based on a local formula.

                                            ii.        Additional ring-fencing. The 'Schools Block' funding will be ring-fenced within the Dedicated Schools Grant (DSG).

                                           iii.        Creation of a new 'Central Schools Block' which will include the 'retained duties' element of the Education Services Grant (ESG).

                                           iv.        The Introduction a formulaic method for distributing High Needs funding from central to local government from 2017-18 (including Special Education Needs (SEN) and Alternative Provision (AP)).

                                            v.        The proposed fundamental review of Schools Forum.

2019-20

                                           vi.        The implementation of a single National Funding Formula from 2019-20 (at a school level), with funding being passed directly by the Education Funding Agency.

                                         vii.        Withdrawal of current de-delegation arrangements.

(2)  Note the submission of the response to stage 1, of the Department for Education's consultation, as shown at Appendix 1.

(3)  Endorse the creation of a working group to guide and inform the development of the local funding arrangements for 2017-18 and 2018-19 as set out in section 10.

(TAKE IN REPORT)

The report was introduced by Richard Webb, Finance Manager. 

Councillor Young advised that he was very concerned about the proposed changes and he had made a representation to the LGA to seek the views of other local authorities as some areas will be particularly hard hit.  However until local authorities have the complete information, it was difficult to model. 

Officers advised that they had written to the DfE to seek further clarification as to when the next stage of the consultation was anticipated to be released. 

Officers advised that they have established working group representatives who are ready to work on the development of the future funding proposals.

DECISION: The Cabinet Member

(1)  Noted the Department for Education's proposed changes to the school funding arrangements and the potential impact of these changes, as set out within this report;  and in particular:

2017-18

                                              i.        The transitional period for 2017-18 and 2018-19. Funding to Local Authorities would be allocated on a national formula basis, but Local Authorities would continue to distribute this to schools based on a local formula.

                                            ii.        Additional ring-fencing. The 'Schools Block' funding will be ring-fenced within the Dedicated Schools Grant (DSG).

                                           iii.        Creation of a new 'Central Schools Block' which will include the 'retained duties' element of the Education Services Grant (ESG).

                                           iv.        The Introduction a formulaic method for distributing High Needs funding from central to local government from 2017-18 (including Special Education Needs (SEN) and Alternative Provision (AP)).

                                            v.        The proposed fundamental review of Schools Forum.

2019-20

                                           vi.        The implementation of a single National Funding Formula from 2019-20 (at a school level), with funding being passed directly by the Education Funding Agency.

                                         vii.        Withdrawal of current de-delegation arrangements.

(2)    Noted the submission of the response to stage 1, of the Department for Education's consultation, as shown at Appendix 1.

(3)  Endorsed the creation of a working group to guide and inform the development of the local funding arrangements for 2017-18 and 2018-19 as set out in section 10.