Issue - meetings

Report ED17035

The Sub-Committee considered a report setting out the Education Portfolio Holder’s draft 2017/18 budget which incorporated the future cost pressures and initial draft budget saving options reported to Executive on 11^th January 2017.  The Sub-Committee noted that there were still outstanding issues and areas of uncertainty remaining and further updates would be included in the 2017/18 Council Tax report to the next meeting of the Executive on 8^th February 2017.

The report anticipated that the disproportionate cuts in direct funding to local government would continue over the remainder of the four year spending review period.  The impact of funding reductions translated to a reduction in the Council’s Settlement Funding Assessment of 36% by 2019/20 compared with the England average of 21.6% for the period 2016/17 to 2019/20.  The Budget Strategy had to  be set within the context of a reducing resource base, with Government funding reductions continuing beyond 2020.  This highlighted the on-going need to reduce the size and shape of the organisation to secure priority outcomes within the resources available.  The overall updated strategy had to be set in the context of the national state of public finances, with austerity continuing given the level of public debt, and the high expectation from Government that services should be reformed and redesigned with devolution contributing to the transformation of local government.

Despite being a low cost authority, Bromley had achieved general savings of over £80m since 2011/12 but it was becoming more challenging to achieve further savings with a low cost base.  Overspends had been identified in the 2016/17 Budget monitoring report to Executive on 30^th November 2016 relating to SEN transport.  In addition to the cost pressure relating to SEN transport, there were potential funding reductions of up to £1.5m per annum towards SEN placement costs arising from the introduction of a ‘High Needs’ funding block from 2018/19.  This highlighted the need for a fundamental review of SEN services.  The Government had announced one off funding of just under £139,624 in 2016/17.  This related to a High Needs Strategic Planning Fund which local authorities could use to carry out a strategic review of their high needs provision.  Members were being asked to agree the release of this one off monies to undertake a review working with schools, colleges and other providers, and with parents and young people.

The latest forecast indicated that despite having a balanced budget in the next two years there remained a significant budget gap in future years that needed to be addressed.  The report to Executive on 11 January 2017 identified the budget gap rising to over £23m by 2020/21 with the gap rising steeply from 2019/20.

In relation to the Education Budget, additional growth pressures had been set aside in contingency of £750,000 for the additional cost pressures in SEN transport.  £477,000 had been allocated to the budget to cover the loss of Education Services Grant (ESG) due to schools conversion to Academies.  ESG would cease completely in 2017/18.

The  ...  view the full minutes text for item 44