Agenda item

The report of Grant Davis (Schools Strategic Financial Support Manager) seeks to update Schools Forum on the revenue funding settlement and the budget setting process for 2025-26.

Grant Davis, Schools Strategic Financial Support Manager, presented the report and updated the Schools Forum on the revenue funding settlement and budget setting process for 2025-26. The following was then highlighted:

• The funding changes for 2025-26 were briefly detailed as per Paragraphs 4 to 12 of the report in which it was highlighted that the 2025-26 year represented the first year of school funding since the general election in July 2024. As such, the Government had pledged to boost schools funding with an increase of £2.3bn (3.5%) into the overall Dedicated Schools Grant (DSG) compared to 2024-25, with £1bn committed to High Needs and SEND, and the remaining £1.3bn for schools.
• Specific reference was made to Paragraph 11 of the report in which it was noted that the Schools Block of the DSG had been awarded an increase of 0.5% for the core funding factors compared to the 2024-25 year. In response, it was highlighted that representations had been made to the Department for Education (DfE) that that level of increase was unsustainable for schools.
• Paragraphs 13 to 16 discussed the National Funding Formula (NFF), and it was confirmed that 2025-26 would be another ‘soft’ year with the Schools Forum retaining their role in determining the school funding allocation methodology. The DfE had further confirmed their intention to move to a ‘hard’ NFF by 2027-28, however it was reiterated that as Wiltshire’s local school formula already mirrored the NFF, any tightening of the formula would have a minimal impact on Wiltshire schools.
• Paragraph 17 referred to the Minimum Funding Guarantee (MFG) and it was reiterated that during their December 2024 meeting, the Schools Forum had agreed to set the threshold at the maximum 0.0%, subject to affordability
• Officers then listed the changes to the main formula as per Paragraph 18.
• As per Paragraph 21, it was confirmed that the Pupil Premium Grant (PPG) funding would continue in the 2025-26 year with the numbers of eligible PPG pupils taken from the October 2024 census, however rates for the next year were yet to be determined.
• The school revenue funding settlements for each of the Funding Blocks were then detailed as per the order listed in the report.
• It was confirmed that the provisional DSG allocation for Wiltshire Council was £551.890m, an increase of £58.429m from 2024-25, with the Tables in Paragraphs 22 and 24 showing the year-on-year split of funding between Blocks.
• Paragraph 27 detailed pupil movements year-on-year and it was highlighted that Wiltshire was continuing to see a drop in the birth rate for children starting Primary School which was indicative of the change in demographics within the County.
• Paragraphs 29 to 34 provided updates on the Central School Services Block (CCSB), HNB, and Early Years Block (EYB).
• Paragraphs 35 to 36 referred to Funding Block transfers and Paragraphs 37 to 41 referred to the budget setting process for 2025-26, with Paragraph 39 detailing the breakdown in the calculation for the Schools Block funding available for distribution to schools. It was further confirmed that financial modelling had confirmed that the NFF was fully affordable. However, when taking into account the setting of a Growth Fund of £0.5m, a Block transfer of 0.236%, or £0.914m, was affordable. As such, it was highlighted that for the first time since the introduction of the NFF, a transfer of 0.5% was not affordable, mirroring the position of a number of other Local Authorities. The Table under Paragraph 40 provided a breakdown of the analysis as to why a Block Transfer of 0.5% was not affordable.
• Finally, it was noted that at the December 2024 meeting of the Schools Forum, Maintained Schools voting Members agreed that the de-delegation of services would continue in 2025-26 and that Maintained Primary Schools would de-delegate funding to support school improvement services.

There being no questions or comments, it was then:

Resolved:

The Schools Forum noted the report.