Agenda item

The paper  report presents the key decisions that need to be made in order to set the 2018/19 mainstream funding formula.

Andrew Ward introduced the report which contained key decisions that had to be made in order to set the 2018/19 mainstream funding formula. He noted that calculations for the presented models had been made using numbers from the October 2016 census so changes were expected once data from the October 2017 census was released in December 2017. Mr Ward drew the Members’ attention to section two of the report (page 21 to the Agenda pack) and explained the rationale behind the recommendations. As reported at the previous meeting of the Forum, an additional £1.5 million would be allocated to the Schools Funding Block and an additional £1 million to the Nigh Needs Block. Dedicated Schools Grant funding of 3 and 4 year olds would be reduced by £0.17 to £5.37 per hour and this would go ahead for 2018/19. Moreover, inflation was expected to exceed the 0.5% per pupil funding increase that had been announced over the summer and there had been an increase in the number of requests for new Education and Health Care Plans (EHCPs).

Mr Ward reported on the work of the Task and Finish Groups. The High Needs Task and Finish Group had met twice since the last Schools Forum meeting and its recommendation was that the proposed additional £1 million be used to fund increases to top up funding rates in mitigation of cost pressures, and enable planner increases to special provision places. Furthermore, placements were increasingly available in Brent as opposed to independent and out of the Borough settings and this was expected to improve cost efficiency. The Early Years Task and Finish Group had met once and an additional meeting had been scheduled to agree further actions. Mr Ward highlighted that both Groups had emphasised the need to hold reserves as contingency measures.

Mr Ward drew Members’ attention to the table in Appendix 1 which provided information on the funding formula rates, with the proposed increase of rates shown in the middle columns. Mr Ward emphasised that the ratio between primary and secondary provision would be the same as the national average; 1:1.29

The total amount of reserves was estimated to be approximately £7 million and increased rates had been modelled to account for release of £2, £2.5 and £3 million. However, the sustainability of these options could be questioned as it had not been possible to predict trends in the next couple of years and account for the way funding would be controlled. Moreover, if too much funds were allocated, there might be a need to reduce the rate in the future.

Members of the Forum enquired about the way secondary low attainment was defined and if there had been any changes to Key Stage 2 data. In response, Mr Grady said the definition and application of secondary low attainment would be examined and reported back on.

Mr Ward said that Appendix 2 contained data on modelled funding allocation by School which also provided information on the future trends indicated by the National Funding Formula. However, he noted that the figures were subject to ratification by the Council and the DfE. He encouraged business managers at schools to read the Agenda pack for the meeting in January 2018 to aid their financial planning. Mr Ward said that he would find out and report to the Forum if any unused funding would be lost in next year’s allocation. 

Members of the Forum expressed their gratitude to the Schools Finance Team for their work on this report.

RESOLVED that:

(i)        The contents of the Dedicated Schools Grant Schools Budget and Mainstream Funding Formula 2018/19 and 2019/20 report, be noted;

(ii)       The Council be recommended that the pupil funding rates in the formula be adjusted proportionally in order to allocate the £1.5 million additional funding for 2018/19;

(iii)      The Council be recommended to use £2.5 million DSG reserves for allocation in a sustainable manner in the funding formula across 2018/19 and 2019/20; and

(iv)      The Nigh Needs Block and Early Years Block budgets be planned within the funding allocations set out in the report and £2 million DSG reserves be retained as a contingency against cost pressures and potential funding reductions in these areas.