In accordance with the Council’s Constitution, questions to this Committee must be received in writing 4 working days before the date of the meeting.  Therefore please ensure questions are received by the Democratic Services Team by 5pm on 8^th January 2016.

Report ED16011

The Sub-Committee considered a report setting out the draft Education Portfolio Budget 2016/17, which incorporated future cost pressures and initial budget saving options reported to the Council’s Executive on 13^th January 2016.  Members were requested to consider the initial budget saving options proposed and identify any further action to be taken to reduce the cost pressures facing the Local Authority over the next four years.

The Finance Manager advised Members that no additional growth pressures had been identified within the initial budget for the Education Portfolio for 2016/17, but that there had been additional allocations of £382k relating to the full year effect of the supplementary estimate for Adult Education, £400k in response to the reduction in Education Services Grant, and £199k relating to increases in National Insurance contributions.  A number of savings for the 2016/17 budget had also been identified during 2015/16, which included savings of £76k for Bromley Youth Music Trust and £30k for Early Years.

In considering the draft Education Portfolio budget 2016/17, the Chairman noted that following Members’ agreement to discontinue the market testing process for education services, a review was being undertaken of the organisation of the Education Service to ensure it continued to be fit for purpose,  the outcome of which would be reported to Education PDS Committee in Spring 2016. 

In response to a question from a Member, the Portfolio Holder for Education confirmed that Officers were working to identify if the Southborough Lane campus currently used by the Bromley Youth Music Trust would be needed for the provision of additional school places in Planning Area 5 in future years. 

With regard to the academies agenda, the Portfolio Holder for Education highlighted that Bromley was significantly further advanced than most other local authorities and continued to work closely with the Department for Education to share learning and raise any issues which might benefit other local authorities.  Further information on how the decrease in grant funding per pupil would impact the Education Portfolio as more schools converted to academy status would be provided to Members following the meeting.  This issue would also be raised with the Regional Schools Commissioner for South East England and South London who was attending the next meeting of Education PDS Committee on 19^th January 2016.

RESOLVED that:

1)  The financial forecast for 2017/18 to 2019/20 be noted;

2)  Members’ comments on the initial draft savings options proposed by the Council’s Executive for 2016/17 be noted; and,

3)  Members’ comments on the initial draft 2016/17 Education Portfolio budget be provided to the meeting of the Council’s Executive on 10^th February 2016.

Report ED16012

The Sub-Committee considered a report providing information on the Dedicated Schools Grant 2016/17 and how it would be allocated. 

The Dedicated Schools Grant was made up of three blocks comprising High Needs, Early Years and Schools.  In December 2015, the Department for Education had released the final Dedicated Schools Grant for 2016/17 based on the final units of funding that were released in July 2015.  Dedicated Schools Grant income was generally in line with what was expected and what had been received in previous years.  In 2015/16, a balanced budget had been set at the start of the financial year which took into account planned expenditure to be funded from the unspent Dedicated Schools Grant carried forward from previous years as agreed by the Schools’ Forum.  Based on the most recent estimates it was likely that the Dedicated Schools Grant budget would be overspent by approximately £52k for 2015/16, and by approximately £4m for 2016/17 due to a range of pressures including the need for bulge classes and the demand for special educational needs provision. 

The Local Authority was very concerned about this situation as it demonstrated that the current budget was not sustainable and that further savings would need to be identified in future years.  Officers were working to identify potential savings within the High Needs and Early Years blocks, as well as within the central spend in the Schools block.  However, it was anticipated that some savings might also need to be found within the Schools block, and the Schools’ Forum had been asked to consider this as part of the Formula Review in preparation for the introduction of the National Funding Formula.

The Finance Manager reported that the Schools’ Forum had discussed the Dedicated Schools Grant 2016/17 at its meeting on 14^th January 2015.  In recognising the funding pressures, the Schools’ Forum had agreed to expand an existing working party initially formed to review the funding formula for 2017/18 to include Early Years and Special Schools representatives and to work to review Dedicated Schools Grant expenditure as a whole.  The Working Party would be supported by Local Authority Officers to identify areas where potential savings could be made and how this would impact on provision, and would report its findings to the meeting of the Schools’ Forum on 14^th April 2016.

In considering the report, the Chairman was concerned at the initial projected overspend of approximately £4m for Dedicated Schools Grant for 2016/17 for which savings had been identified to mitigate.  There were also measures in place to help contain the future projected overspend, such as the planned alternative provision at Beacon House which would reduce the need for high cost out-of-Borough placements.

In response to a question from the Portfolio Holder for Education, the Head of Schools’ Finance Support confirmed that schools managed their finances differently.  Larger schools had their own finance officers and multi-academy trusts often shared finance officers.  Part of the remit of the Schools’ Finance Support service was to  ...  view the full minutes text for item 26.

Members generally discussed the level of recharges to the Education Portfolio.  The Finance Manager confirmed that the level of recharges to the Education Portfolio reflected the cost of providing central services such as Human Resources, Finance and Legal Services to the services across the Portfolio, and that an annual baseline review was undertaken to help identify potential savings across these support services which could arise as a result of changes in the services they were recharged to.

Members noted that further details of the new National Funding Formula would be announced in Spring 2016, after which a consultation would take place. It was possible that Bromley would benefit from higher funding under the new formula as it was currently one of the lowest funded local authorities and received significantly less per pupil school funding than some neighbouring local authorities.  Further details of the level of per pupil school funding received by other London local authorities would be provided to Members following the meeting.

RESOLVED that the issues raised be noted.

7.00pm, Tuesday 16^th February 2016