Agenda item

This report provides Schools Forum with an update on the forecast financial position for 2022/23. The position is reported against the budget set in consultation with Schools Forum and submitted to the Department for Education (DfE) on the Section 251 budget return. 

Olufunke Adediran, Head of Finance at Brent Council, introduced the report for the Forum to note that provided an update on the forecast financial position for 2022/2023, with the following key points shared:

·                The increased demand for High Needs (HN) provision was forecast to lead to the overall Dedicated School Grant (DSG) expenditure exceeding income by £2.2m in 2022/23, resulting in a forecast cumulative deficit of £17.3m by the end of the current financial year. This was mainly due to the increasing number of children and young people with Education Health and Care Plans (EHCPs) that had risen by 8% since last year.

·                The £2.2m deficit against the HN Block had also been adversely affected by the increased forecast of costs at in-borough mainstream schools, academies and special schools and independent day special schools, as well as out-of-borough special schools. The forecast also included an increase in expenditure relating to £0.3m to be recouped from the HN Block and allocated to other local authorities for out of borough placements, following an adjustment by the DfE in July 2022.

·                The pressures against the HN Block would be further offset by £1.9m underspends identified as part of the HNB Management Plan to review and realign costs that had been funded from the DSG but which could be funded by the DSG. Actions taken to alleviate the pressures included £1m contribution towards the costs of children placed in independent Residential Care Children’s Homes and other education related costs for Looked After Children to be funded from the Placements budgets via the General Fund and a contribution of £0.9m towards transport costs for SEN children.

·                The Early Years Block funding allocation had increased by £1.3m following the completion of the January 2022 census as a result of an expected increase in take up of the 3 and 4 year old entitlement and a small increase in take-up of the 2 year old entitlement. There would also be a reduction to the supplementary nursery grant, consideration was being given to how this reduction would be contained within the Early Years Block with the Forum being updated on this at a future Schools Forum meeting.

·                The Central Block of the DSG (£2.1m) that funded central services for schools, including the long-term commitment towards pension strain costs for former school employees of £0.4m was forecast to break even.

·                The outline position in relation to High Needs Block, Early Years Block and Central Block would be subject to ongoing monitoring and updated to future Forum meetings.

The Forum were then invited to raise questions on the report, with the following queries raised:

·                Members sought further details on the increased pressured on the High Needs Block in relation to the high costs of the children placed in provision outside of the borough. Officers clarified that costs had not increased, however a deep dive would be undertaken in this area to better reflect the breakdown of expenditure in this area as it remained a costly expenditure for the Council.

·                In response to a query regarding why SEN Services in schools had continued to be reduced when Section 6, Table 2 in the accompanying report showed an underspend in SEN Services, officers clarified that due to the financial pressures it was vital for the Council to consider how spending across SEN in the borough was managed. As further highlighted by the DBV Programme , the Council were encouraged to think about different ways to deliver services to maximise the funding available, as such any saving made in one area would be used to mitigate pressures in other areas. Officers advised that in considering how SEN Services were re-shaped schools should not feel that there had been a reduction. Officers encouraged schools to make contact with them if they were feeling that this was the case at their school.

·                Members sought clarity on Section 6.6 of the report in terms of cost avoidance as part of the HNB Management Plan. Officers advised the Forum that as part of the management plan that was endorsed by the Schools Forum in May 2021, key themes were set out that supported exploration of how effective support could be delivered in the most cost-effective way. This tied in with the DBV in SEND Programme in thinking about what could be done differently, identifying needs at an earlier stage to effect maximum impact and better outcomes and how this in turn would impact the financial plan.

·                In response to a Forum query regarding the increased savings made on the transport budget, officers clarified that following advice from CIPFA, transport costs going forward could be funded from the General Fund rather than the HNB and the DSG.

As no further issues were raised the Chair thanked officers for the update and it was RESOLVED to note the contents of the report.