Agenda item

Joshua Amahwe, Head of Finance CYPS, presented a report outlining the 2023/24 performance against the approved Safety Valve Agreement (with the Department of Education) and the recovery plans in place to enable Rotherham to achieve financial sustainability and operate within its annual financial allocation over future years.

The report also highlighted the financial position of the Dedicated Schools Grant (DSG) High Needs Budget in 2023/24 and the projected accumulated deficit position over the life of the Safety Valve Agreement.

Ongoing monitoring had taken place with quarterly meetings between the DfE (assigned SEND advisor) and the Council to both support delivery and hold accountability of the Safety Valve Agreement.  This support and challenge process also allowed emerging challenges to be shared and a vigorous oversight of plans to be undertaken.

Rotherham was on track in 2023/24 and had delivered against all the conditions of its Agreement.  Financial performance was also on track against the agreed DfE plan and the Agreement.

The report submitted outlined the progress made towards meeting the key conditions in the Safety Valve Agreement as well as Phase 4 of the SEND Sufficiency Plan.

The Local Authority would continue to update the DSG management plan as part of the Safety Valve Agreement to reflect changes in the Council’s deficit recovery plan.  Ongoing monitoring would be in place across the lifespan of the programme with quarterly submissions to the DfE on progress and any risks it faced.

Discussion ensued with the following issues raised:-

-        As at July 2024 the projected deficit was as estimated, however, it was a forecast and there were still pressures within the system/increase in numbers/continual submission of cases of EHCP assessments/inflation etc. all of which created uncertainty and something that had to continue to be managed

-        The deficits were included in CYPS budgets because of the DSG.  It was ringfenced funding and sat outside the Council’s General Fund budget and services funded by Council Tax payers although the Council was still accountable for how the funding was used.  At this point in time the legislation and regulation required local authorities to treat them as 2 separate budget streams, ringfenced in terms of DSG, however, it was expected that that protection would cease next year and become part of the Council to manage from the deficit point of view

-        The deficit was already allowed for within the CYPS budget and there was no additional risk or pressure for the Council.  This was a national issue and not just Rotherham.  Many local authorities had not received the Safety Valve funding and when the Government removed the DSG override it would put many councils in significant difficult financial positions

-        There was close work with schools with regard to the budget.  Schools needed to ensure that they used resources appropriately in the right place for children and address value for money

Resolved:-  (1)  That the progress in the recovery actions being taken via the Safety Valve Programme to manage the Dedicated School Grant (DSG) deficit in Rotherham be noted.

(2)  That the 2023/24 financial position of the DSG High Needs Budget and accumulated DSG deficit at the end of the Safety Valve Programme be noted.