Agenda item

Report CEF23067

The report provided an outline of the final Dedicated Schools Grant allocation for 2024/25 and an overview of how this would be spent.  The Schools’ Forum had also considered the report at its meeting on 18 January 2023 and had recommended that the Portfolio Holder for Children, Education and Families approve the final Dedicated Schools Grant allocation for 2024/25 and the methodology of its distribution.

The Chairman was pleased to note the funding increase of £14.7M for the Early Years block for 2024/25 which reflected the new funding available for younger children aged two and under and an increased part-time equivalent rate for three-and four-year olds and disadvantaged two-year olds, as well as an increased Early Years Pupil Premium and Disability Access Fund across the new funding streams.  Another Member expressed significant concern regarding the deficit budget for the High Needs Block with a deficit of approximately £21M projected for the end of 2024/25.  The Head of Finance: Children, Education and Families explained that the ongoing and significant deficit in funding within the High Needs Block was a national issue impacting local authorities across the country.  The Government had put a Financial Disregard in place which meant that the deficit did not have to be counted within the Local Authority’s reserves and the Local Authority had developed a Dedicated Schools Grant Recovery Management Plan in consultation with the Department for Education to mitigate the overspend as far as practicable.

The Chairman asked what the views of the Schools’ Forum had been on the proposed final Dedicated Schools Grant allocation for 2024/25 and was advised that the Schools’ Forum had agreed with Scenario 2 and Option 4 for the Early Years’ and Schools’ Blocks respectively which would maximise the funds provide directly to Early Years providers and schools.  Early Years providers had also been consulted on their preferred funding model and had expressed a strong preference for Scenario 2.  These preferred options were the closest to the Department for Education’s National Funding Formula which was not yet mandatory but would become a requirement for future years.  The Schools’ Forum had also commented on the overall funding envelope for the High Needs Block which, as well as being insufficient overall, had not received any budget increase for 2024/25, although an additional one-off grant had been paid for 2023/24. 

A Member observed that school rolls had fallen dramatically in parts of London in recent years and queried whether this was the case for Bromley and, if so, what the financial implications would be.  The Director of Education advised that demand for primary and secondary school places fluctuated over time.  While birth rates were currently falling across London, Bromley continued to see high demand for its primary and secondary schools, although there was some evidence of falling demand at secondary level which would impact individual schools as funding was allocated on a per pupil basis.  School places were reviewed annually by the Committee’s School Place Planning Working Group, and it may be that some schools would seek to reduce their published admissions number to mitigate an anticipated fall in demand in the short- to medium-term.  The Head of Finance: Children, Education and Families added that the Department for Education had established a Falling Rolls Fund for the 2024/25 financial year which was allocated on the basis of Super Output Areas but that no area within the Borough qualified for funding under this scheme at present.

RESOLVED: That the Portfolio Holder be recommended to approve the Dedicated School Grant allocation for 2024/25 and the methodology of its distribution, taking into account the views of the Children, Education and Families PDS Committee and the Schools’ Forum.