Agenda item

The report of Marie Taylor (Head of Finance – Children and Education) seeks to present budget monitoring information against the Dedicated Schools Grant (DSG) for the financial year 2023-24 as at 30 November 2023.

Marie Taylor, Head of Finance – Children & Education, presented the report which detailed the year end budget monitoring information against the Dedicated Schools Grant (DSG) for the financial year 2023-24 as at 30 November 2023. The following was then highlighted:

·       An overspend of £4.385m was forecast against the overall Schools budget. The main driver for this forecast variance was noted as being the ongoing pressures on the High Needs Block (HNB), however Members were reassured that the reasons for that were known and understood.

·       As per Paragraph 4 it was explained that the Government acknowledged the deficits held by Local Authorities (LAs), which were estimated at £2.6bn nationally. As such, the Government introduced a three-year statutory override in 2020 which separated LAs DSG deficits from their wider financial position. However, it was confirmed that this override had been extended until 2026.

·       Paragraphs 5 and 6 were then detailed before moving onto each block individually as per the order listed in the report.

·       Paragraphs 7 to 9 referred to the Early Years budgets in which there was a projected underspend of £1.004m. The Early Years budgets had been decreased by £2.250m as a result of the planned transfer to the DSG reserve. However, it was emphasised that this would facilitate improved budget monitoring and should reflect the Department for Education’s (DfE) post year adjustment of the variance which was due to actual children’s attendance and therefore payments, being less than those calculated by the DfE using the updated census data.

·       Paragraph 10 referred to the Schools Block budgets in which there was a projected underspend of £0.090m and was noted as relating to central teams and helping to offset the overall pressure on the DSG.

·       Paragraphs 11 to 13 referred to the High Needs budgets in which there was a projected overspend of £5.606m. The High Needs budgets had already been increased by £18m as a result of the planned transfer t the DSG reserve in order to facilitate improved budget monitoring. It was explained that the main driver of the increased cost was volume with the number of Education Health Care Plans (EHCPs) being requested continuing to increase post pandemic which had exacerbated the existing pressure on the HNB as officers worked to reduce the pandemic EHCP assessment backlog and named pupil allowances. Officers further highlighted that Agenda Item 11, Safety Valve Programme Update, would provide a more detailed update on the High Needs Sustainability Team’s work with the DfE and partners to investigate and address the issues faced.

·       Paragraph 14 referred to the Central School Services budgets in which there was a projected underspend of £0.151m as a result of the underspend on central services and an underspend in admissions due to appeals panel income.

·       Paragraphs 15 to 18 referred to the DSG reserve and management plan which outlined a breakdown of the reserve calculations and the introduction of the Safety Valve Programme. It was noted that once all calculations had been made, the DSG reserve had a forecasted deficit position of £56.247m.

Members expressed concern as to the degree of deficit, however acknowledged all the work that officers were doing to address and mitigate this figure.

There being no other questions or comments, it was then:

Resolved:

The Schools Forum noted the forecast budget monitoring position including the balance on the DSG reserve at the end of November 2023 together with the report later in the Agenda on the High Needs Block recover plan and the Safety Valve Programme.