Agenda item

7a        2016/17 Draft Budget

7b        2016/17 APT submission

7c        2016/17 High Needs Places

CB provided a copy of the draft budget that will be considered by the P&R committee on 16^th February 2016, and which forms the majority of the information submitted to the DfE in Section 251 (s251) at the end of March.  Members should note that underspends from previous years have been crucial in covering the cost of growth in Barnet, both in pupil numbers and new schools; this is costing approximately £3.5m - £4m per annum. £1.3m will be used to support the growth fund in 2016/17, but further underspends will be needed to support growth going forward.  Other LAs are either setting deficit budgets or are cutting funding to schools to cover this pressure.

All proposals in the 2016/17 draft budget are based on the status quo, as any future national funding formula requirements are not known at this stage and should not affect 2016/17.

In a change to the budget presented to Schools Forum in October, the 2016/17 draft budget proposals include an increase in the AWPU of £10 for all Reception – Year 11 pupils.  An additional £500k has also been factored into the HN budgets in order to lift the top-up rates by 2% to schools.  Central services costs have been retained at flat cash levels, although this is a smaller percentage of expenditure as pupil numbers and the DSG grows.  The table shows the gross budget figures that are needed for s251, and the net budgets after Academy/ Free School recoupment.  (Budget monitoring is reported against net budget figures).

Members were asked to vote on the 2016/17 draft budget proposals.

Vote: Carried, unanimous.

The final 2016/17 Authority Proforma Tool (APT) was submitted to the government on 21^st January 2016.  This detailed Barnet’s final 2016/17 funding formula for both maintained schools and academies.

The APT released in December giving the October school census data showed a significant drop in IDACI scores affecting all London authorities. In previous years, Barnet funded the top 3 IDACI bands (4, 5 and 6) in the funding formula.  However, Barnet schools no longer have any pupils at IDACI level 6.  This change would have significantly reduced the overall amount allocated through deprivation funding, and also put the majority of schools on the minimum funding guarantee (MFG).

In order to rectify this demographic change and to lift schools off the MFG, officers agreed that Barnet should continue to fund the top 3 IDACI bands - now bands 3, 4 and 5 - and that the same overall amount should be distributed through deprivation factors.  Additionally, modelling indicated that it was advantageous to secondary schools to distribute a greater amount through IDACI and less through FSM6, although the overall ratio between primary and secondary funding remains consistent at 1:1.29

As a result of these rate adjustments, the cap on gains that had been proposed to the Schools Forum in October at 15% can now be raised to 20% without increasing the overall cost of the Individual Schools Budget (ISB).  The final APT submission can be viewed on page 21 of the Schools Forum papers.

Members were asked to vote on the 2016/17 APT submission.

Vote: Carried, unanimous.

DM summarised the key points in the High Needs paper, which showed that current trends indicate a need for increased places in Barnet specialist provision and reduced reliance on out-of-borough placements, although there has been a small increase in placement in other LA Special schools.  Capacity has recently been expanded at Barnet’s primary Special Schools, and a building programme is due to start shortly to increase places at Oak Lodge.  It is expected that Kisharon will convert to a Special free school, which will further increase local provision.  Although specialist provision demand is increasing, there has been a small overall decrease in statemented pupils in mainstream settings – higher numbers in primary, lower in secondaries.

There has also been a reduction in Post-16 placement costs as a result of demographic changes and the development of provision at Barnet & Southgate College.

IH commented that the work involved in this analysis, the tracking of HN children and more accurate budget projections had been significant and he thanked Penny Richardson, David Monger and Jane Marriott for their efforts.

GK asked if the authority received a greater number of complaints from dissatisfied parents. DM stated that parents are happier that greater provision is available locally and there are fewer tribunals or complaints.

Schools Forum is asked to note

1.    the current projections for High Needs Funding

2.    the proposed number of places in Barnet specialist provision for 2016/17

Duly noted.