Agenda item

7a  2017/18 Draft budget

7b  DSG baselining exercise

7c  2017/18 Growth fund update

7d  Update on funding arrangements for 2018/19 – verbal update

Item 7.1 – 2017/18 Draft Budget

CG presented this item, explaining the update to the 17/18 budget presented to the Schools Forum at the meeting on 9 February - the budget is as approved previously, but with some correction to presentation of line items as required for the s251 submission.

The contingency funding at line 1.1.1 has been called upon to fund increased NNDR for VA and Foundation schools. The liability was not known at the time of the February Schools Forum meeting.

There has also been a revision to Early Years expenditure based on actual 2016/17 claims and increase in line 1.2.1 (maintained school top ups) offset by a reduction in line 1.2.3 (non-maintained/ Independent top ups) due to increased provision of places in borough.

On line 1.3.1, £744,974 has been set aside as EY contingency to cover the expected reduction in income as a result of lower EY pupil numbers. This adjustment has yet to be confirmed by the ESFA.

Line 1.4.3 has been corrected to show the copyright licensing charge as expenditure rather than a reduction to Schools Block income, as presented previously.

7.2 – DSG Baselining Exercise

The Stage 2 National Funding Formula baseline calculations were submitted prior to the general election.  All authorities had to submit 2017/18 baseline information directly to inform the calculation of 2018/19 NFF allocations.  The information provided will enable baselines to be set for each of the DSG blocks, i.e. Schools, High Needs, Early Years and Central.

7.3 – Growth Fund

IH explained that the growth fund is money set aside for things like bulges, new classes and diseconomy funding  As a result of the MFG cap applied in 2017/18, the expansion of St Mary’s & St John’s from a primary to all-through did not enable the school to benefit fully from the formula funding for secondary pupils.  As a result, it was agreed that they would be awarded a one-off ‘exceptional’ amount of diseconomy funding of £117,517 (the ‘cap’ reduction in secondary funding).

VW discussed the opening of the new Saracens secondary school in Colindale.  The DfE has agreed to open the school in temporary premises in September 2018 as an exception, on condition that the revenue funding awarded to the school is guaranteed for a minimum of 120 pupils in the first year of operation – the DfE has asked Barnet to guarantee this amount (so no retrospective funding adjustment if their pupil numbers are below this).  This is considered low risk due to the pressure on secondary places in this particular area.  If the opening is approved for 2018 and the numbers fall short of 120 pupils, the shortfall in funding would be allocated from the Growth Fund.

KN asked what the value of the underwriting was.

CG replied that it was roughly  £5.5k per pupil.  VW confirmed that the first teaching would be from September 2018 and is confident the target of 120 pupils is achievable.  Blessed Dominic would also be moving to new premises by then.

NT asked whether Barnet benefitted from its ties with Saracens.

Saracens would be providing much needed secondary school places in the borough.

The Schools Forum’s approval is needed for use of this growth fund for these exceptional items.

Results of vote: Agreed unanimously.

7.4 – National Funding Formula (verbal update).

Plans for the National Funding Formula (NFF) will go ahead in 2018/19 (soft formula). The government has announced that no schools will lose out as a result – it was initially thought that Barnet would lose 1%.

However there is continuing pressure on school budgets as a result of inflation, pay and pensions increases.  The impact of the apprenticeship levy and loss of ESG, which the council absorbed in 2017/18, could also affect community schools and all maintained schools respectively in future.

If the council were to seek to recover the loss of  ESG funding from the schools’ budget, the average cost would be £26k per maintained  primary school and £62k per maintained  secondary school. A decision on this will need to be made by the council and the decision is likely to  depend on the position in relation to wider council budgets as well as taking account of the impact on schools.

These issues will be discussed in greater detail at the October Schools Forum meeting.

LL asked for feedback regarding the number of schools needing to submit a 3 year budget.  Have these schools factored in the impact of the apprenticeship levy? 

It was pointed out that all schools are required to submit a three-year budget but it was not expected that these would factor in the potential extra costs arising from the ESG cuts or apprenticeship levy at this stage.