Agenda item

To consider a report of the Corporate Director for Corporate and Support Services

The report outlines to the Forum the local authority’s intentions regarding the 2014 financial consultation and seeks views to help in shaping the planned approach.

The Forum is requested to note the report and offer any comments and views relating to any of the areas outlined in the report.

Officer Contact: Peter Hughes on 0161 474 3947 or email: peter.hughes@stockport.gov.uk

A representative of the Corporate Director for Corporate and Support Services submitted a report (copies of which had been circulated) outlining to the Forum the Local Authority’s intentions regarding the 2014 financial consultation and seeking views to help in shaping the planned approach.

The Council was forecasting a further significant reduction in resources over the period 2015-17 and was currently working through approach and priorities. It would be inevitable that the level of resource reductions would result in a “sea change” in how services were scaled, configured and provided, with implications for the partnership and financial relationship with schools.

At this stage the Forum was advised of a variety of contextual information restricted to the Dedicated Schools Grant (DSG); the local formula, specialist provision and the early years and high needs blocks.  The information outlined that there was a need for some changes in the short term and a significant challenge ahead on the prioritisation of resources and that the Local Authority intended to engage with stakeholders (i.e. Schools Forum, head teacher groups, governing bodies etc.) as appropriate on addressing the landscape in a constructive, inclusive approach.

(i)            Mainstream Local Funding Formula

The minimum funding guarantee (MFG) protection mechanism would continue to provide financial stability to schools in 2015/16 and ensure any school due to receive a reduction in delegated budget share allocated would be protected to ensure such reduction does not exceed more than -1.5% per pupil.

(ii)          Special Schools and Resourced Provision

Due to the very short timeframes governing the school funding reform changes required from April 2013, a very simplistic approach was adopted specifically relating to special schools and resourced provision/special unit settings. A simple current to new model requirement conversion task was undertaken and it was now becoming evident that a more structured, strategic and needs based review was required for the Local Authority to ensure sufficient provision is mapped to meet the special needs of the Stockport cohort in the medium-long term and appropriately resourced in line with the place-plus funding model.

(iii)         Centrally Retained Funding

The high needs block (HNB) budget had moved into a more challenging position in 2014/15 for the reasons detailed in the report and it had been necessary to deploy £0.7m of reserves to balance the DSG budget in 2014/15.  This position was unsustainable and it was necessary therefore to re-evaluate how the HNB budget is constructed in the future.         

(iv)         Early Years

The Local Authority was considering as part of the 2015/16 budgetary considerations whether it was appropriate to redirect some funding from the early years block (EYB) and to therefore consult on:

a)    A reduction in the base rates used in the early years single funding formula (EYSFF); and/or

b)    A top-slice of the two year old offer funding

(v)          Post 16

The post 16 budget in the HNB was experiencing significant budgetary pressure and this was a key contributing factor that had required the Local Authority to deploy reserves to balance the 2014/15 budget.  The number of Post 16 learners in mainstream provision with additional learning support continued to increase.  The Local Authority was currently working quickly to implement required changes to deliver the reforms required by the SEN and Disability Regulations 2014 and corresponding Code of Practice.  Transition planning for young adults was a key component aimed at ensuring young people were able to achieve their aspirations around work, training and further education.  Although it was expected this will have a positive impact on the budget it was the case this area of the HNB budget did need additional resources and as such these needed to be redirected from other areas.

(vi)         Pupil Referral Unit’s (PRUs)

In accordance with the new funding reform framework implemented from April 2013, the Local Authority was now required to provide all PRUs with a delegated budget share based on the “place-plus” funding system as opposed to the devolved budgets previously provided to such establishments.  An emerging theme emanating from the implementation of the new place-plus funding system to the PRUs was the volatility of pupil population at such establishments and the knock on impact of the financial resources allocated via the plus methodology of the new system.  The PRU provision remained an integral part of the schools resource mapping required across the borough, particularly to meet the needs of the most vulnerable children.  However, the current level of financial protection was challenging to sustain beyond 2014/15 and a number of key issues need to be addressed.

RESOLVED – That the report, in particular the next steps, be noted.