Issue - meetings

Report by Carolyn Godfrey, Corporate Director and Michael Hudson, Service Director - Finance

Cllr Laura Mayes presented a report which updated Cabinet on the outcome of consultation with Wiltshire Schools on proposed changes to the Wiltshire local funding formula for schools and to agree the changes to the formula as recommended by Schools Forum.

The report also outlined why proposals from the Department for Education (DfE) to allow the inclusion of formula factors for mobility and sparsity are not recommended for inclusion in the Wiltshire formula.

As a result, the main elements of the funding formula are left unchanged however there are 3 changes that local authorities could now incorporate within their local funding formula for 2014-15.  These were:

1. Lump sum – it was now possible to set differential lump sums for primary and secondary schools, with a maximum allowable lump sum of £175,000
2. Pupil mobility – a threshold had now been introduced to enable funding to be more targeted
3. Sparsity– a new factor could now be used to target funding at necessary small rural schools

The new proposals from DfE for 2014-15 were aimed at supporting schools in rural authorities. Wiltshire Schools Forum had considered the implications of the new proposals to establish whether they should be incorporated in to the Wiltshire local funding formula.  Following consideration of the potential financial impact of the proposals the recommendation from Schools Forum was that differential lump sums should be implemented for primary and secondary schools but that the formula should not be amended to include Mobility or Sparsity factors. Schools were consulted on the proposed changes to the lump sum during September and the outcomes of that consultation were considered by Schools Forum on 3 October 2013.

The current Wiltshire funding formula is compliant with DfE requirements however the proposed changes would enable the formula to better reflect the differing requirements of primary and secondary schools.

Resolved:

That Cabinet approve the recommendations of the Schools Forum from its meeting on 3 October 2013 as follows:

1. That the lump sum for Primary schools be set at £85,000
2. That the lump sum for Secondary schools be set at £175,000

Having consulted Maintained schools on the delegation or de-delegation of budgets for central services,

That budgets for central services continue be held centrally with the exception of the elements of the budgets for the Ethnic Minority Achievement Service and the Traveller Education Service which have been delegated to secondary schools in 2013-14.

Reason for decisions

The changes to the lump sum element of the schools funding formula introduced by DfE in 2013-14 had the single biggest impact on school budgets in Wiltshire.  The ability to set differential lump sums and therefore recognise the different fixed costs in primary and secondary school will mean that the funding formula can more appropriately reflect the costs of running schools.

The reasons why Schools Forum has not proposed the implementation of a mobility factor or a sparsity factor are detailed within the report.