Agenda item

Consideration was given to the report presented by Vera Njegic, Principal Finance Officer, which detailed how the Education Skills and Funding Agency (ESFA) had now released guidance for Local Authorities and Schools on revenue funding for 2018-19. The full National Funding Formula (NFF) for 2018-19 and 2019-20 had been confirmed along with indicative DSG allocations with final updates in December 2017. 

The Forum were advised that the Dedicated Schools Grant (DSG) would be allocated in four blocks based on national funding formula for April, 2018. These were the Schools, High Needs, Early Years and Central School Services. Funding in the Schools Block would be based on a national formula, but Local Authorities (LA’s) could continue to fund schools on local formula for 2018-19 and 2019-20. Based on indicative modelling Rotherham’s DSG for Schools Block would increase by 1.3% and High Needs Block by 2.8% in 2018-19. Funding for Central Services would increase by 2.5%. Indicative allocations were detailed as part of the appendices and it was noted that de-delegation of funding to LA’s for central provision of services was still permitted with agreement of the Schools’ Forum.

As a result of changes to the formula announced through ministerial statement it was noted that:-

·             There was an additional £1.3 billion for Schools and High Needs across 2018-19 and 2019-20.

·             In 2018-19 all LA’s were to receive an increase compared to DSG levels in 2017-18.

·             The NFF set notional allocations for each school, aggregated up to calculate the Schools Block.

·             Schools Block allocation – 0.5% increase per pupil  - pupil-led.

·             Minimum per pupil thresholds in 2018-19 of £3,300 per Primary and £4,600 per secondary (£3,500 and £4,800 in 2019-that the 2018-19.

·             MFG would continue – flexibility to set between 0% and minus 1.5% so LA’s have the flexibility to offer higher levels of protection locally than previously.

·             Pupil numbers – include integrated resource numbers on roll.

·             Schools Block ring-fenced from 2018-19, but could transfer up to 0.5% with Forum agreement. This would equate to £925k. An objection to a transfer or should the LA wish to transfer more than 0.5% an application to the Secretary of State was required by 30^th November, 2017.

·             Confirmation that the High Needs funding would be based on a national funding formula, rather than being based on a historic roll forward method used in precious years.

Discussion ensued on the modelling progress towards full adoption of the national formula and the options available to the Local Authority, which would need further discussion and a further report for consideration prior to consultation with schools and providers.

It was, therefore, suggested that in order to fully understand the complicated changes and progress the funding formula, that a further report be submitted to a Finance Sub-Committee or a High Needs Sub-Committee with a recommendation then being made to the full Schools’ Forum for approval of the preferred option.

Agreed:-  That a further report on the Schools Revenue Funding 2018-19 and changes to the National Funding Formula be presented to a meeting of a Finance Sub-Committee or High Needs Sub-Committee with a view to a further report being submitted to the Schools’ Forum in due course for approval.