Agenda item

ECHS19015

The Sub-Committee considered a report setting out information on the 2019/20 Dedicated Schools Grant and how it would be allocated.

The final Dedicated Schools Grant (DSG) funding for 2019/20, updated to reflect October 2018 pupil numbers, had now been provided to all LAs. The final allocation included the additional funding for SEND announced by the Secretary of State which for Bromley was £788,032 for both 2018/19 and 2019/20. 

The DSG for 2019/20 was divided into four blocks – High Needs, Early Years, Schools and Schools Central, with expected grant income detailed below:

The Head of ECHS Finance reported that the Schools Central Block was balanced as a result of a contribution of £310,000 from the Council.  In addition to this a disapplication request to transfer £1,000,000 from the Schools Block to the High Needs Block had been submitted to the DfE.  The outcome of the disapplication request was not yet known.

The Head of ECHS Finance provided an update on the discussion that had taken place at the meeting of the Schools’ Forum on 10^th January 2019.  Whilst the Schools’ Forum had appreciated the concerns of the Council in relation to High Needs Funding Members of the Forum had felt that the financial burden should not fall on schools.  After a lengthy discussion the Schools’ Forum had voted against the disapplication request.

The Sub-Committee noted that if the disapplication request was approved the proposal now was to set aside the DfE funding of £788,032 resulting in an overall £2m contribution from the Council.  If the disapplication request was unsuccessful the Council would still commit £2m but there would be no set aside.  The amended proposals would be considered by the Executive in February 2019.

The Head of ECHS Finance drew Members attention to the appendices to the report which provided the financial detail.  The Sub-Committee also noted the outcome of the consultation was included in Appendix 3 to the report.  The responses from the Schools had been overwhelmingly against the disapplication request.

The Sub-Committee noted that under the minimum Funding Guarantee, no primary schools would lose more than 1.22% funding.  There was no minimum funding guarantee for secondary schools.  Members also noted that no upfront funding for Free Schools was provided.  This funding was lagged at the estimated cost of this was £2.5m and created an ongoing impact as schools grew.

In opening the discussion the Chairman asked what work had been done in terms of lobbying the DfE concerning funding issues.  The Head of ECHS Finance reported that he, the Interim Executive Director and the Portfolio Holder had met the local MP, Bob Neill, to raise the issue.  Bob Neill MP was now writing to the Minister to set out the concerns that had been raised concerning funding.  Members of the Sub-Committee suggesting that in light of the significant impact that reduced funding was having on schools more should be done.  Members highlighted that there were three other MPs representing the Borough and they should also be contacted to take up the issue.  The funding issue was not one unique to Bromley, it was a national issue and one that had received extensive coverage.  Now was the time to exert pressure on the DfE to take action.

Members reported that they were aware of the issues in relation to High Needs Funding.  Children who 10 years’ ago would have been placed in specialist provision were now being placed in mainstream provision and this present significant challenges to schools.  The issue of lagged funding for new Free Schools needed to be addressed as a matter of urgency and there was a need for the Local Authority to be proactive in its approach to lobbying on this issue.

The Head of ECHS Finance outlined the role of the Schools’ Forum, noting that the final decision on the budget rested with elected members.  In terms of the disapplication requested, the Head of ECHS Finance reported that 0.5% of the overall budget could be transferred between blocks.  If the Schools’ Forum supported the transfer there was no need to submit a disapplication request.  As the Schools’ Forum had not supported this current transfer, with the agreement of the Portfolio Holder, the disapplication request had been submitted.

In relation to the issue of the disapplication request;  Members stressed that more information was needed but nevertheless expressed skepticism that that the proposals outlined in the report would in fact deliver the outcomes that were required and as a result Members remained to be convinced that the approach outlined in the report was the correct approach.  A Member likened the current proposals to “robbing Peter to pay Paul” stressing that this directly impacted on educational provision for some children to provide for others.  The Member noted that there was 22 pages of consultation feedback from schools outlining the detrimental impact that the transfer of funding would have and this feedback from professionals had been effectively dismissed.

The Chairman of the Education, Children and Families Select Committee highlighted that there was a recommendation in the recent Select Committee report concerning the Education Budget to the effect that LB Bromley lobbies through London Council’s on the issue of High Needs Funding as it was clear that Bromley was not the only London Borough that was facing this challenge.  It was suggested that there should be a further recommendation added to the Select Committee’s report to the effect that the Portfolio Holder joins with all four MPs in the Borough to lobby on the key issue of lagged funding for new Free Schools and High Needs Funding for supporting children with SEND accessing mainstream education.

Members of the Sub-Committee noted that there was a clear need to work with schools to address the funding issues and ensure that a positive relationship was maintained. 

It was agreed that the minute from the discussion should be circulated in advance of the Select Committee meeting on Tuesday 29^th January 2019.

RESOLVED: That the Portfolio Holder be recommended to

1.  Give further consideration to the Dedicated Schools Grant allocation and methodology of its distribution; and

2.  Further lobby on the key issues of lagged funding for new Free Schools and High Needs Funding for supporting children with SEND accessing mainstream education.