Agenda item

To receive a report that updates Schools Forum on the national funding position following the July 2022 technical update of the latest ESFA guidance on schools funding for 2023/24. It provides forum with estimates of the possible impacts on resources up to and beyond 2022/23. It then sets out a draft consultation document for comment by the forum, seeking the views of schools and other interested parties about any changes to the school funding arrangements for 2023/24.

Consideration to a report of the Head of Education Commissioning and School Organisation.

The Schools Budget Financial Advisor introduced the report. In addition to the report, he outlined the following:

·       Because Camden historically received higher funding than other authorities, they would be receiving the minimum uplift of 0.5%.

·       The government directive was for local funding formulas to mirror the national funding formula (NFF) and that any differences must be reduced by 10% each year.

·       There were funding pressures on schools going forward due to the comparatively meagre funding increase; which would be further exacerbated by the proposed teacher salary increases, energy cost increases and general inflation. It was anticipated that the government would address the pressure on schools and that additional funding was needed.

The Chair thanked the Schools Budget Financial Advisor for the report and opened the Forum to comments and questions:

·       In relation to the differences between the local and national funding formulars, a Member asked what were the areas that showed the most difference and would be affected by the 10% yearly reductions policy. In response, it was confirmed it was the funding per pupil on a key stage weighted basis. The local formula for each stage was significantly higher than the NFF. It was confirmed they were modelling the affects of the changes.

·       It was clarified that 6.1b meant that the SEN teams were advised to spend new money sustainably and to make those decisions with the school and stakeholders.

·       In relation to the finance rating score cards recently sent to headteachers, a Member asked how many schools had been ranked as ‘Red’. It was agreed this information would be shared with the Forum following the meeting.

Action By - Schools Financial Advisor

·       In relation to the finance rating score cards recently sent to headteachers, it was agreed that more information of the direction of travel of schools ratings would be shared at the next meeting. In relation to the direction of travel, it was confirmed that the Forum had been provided separately with the outturn position of schools. Prior to the pandemic 51% of schools showed an in-year deficit, but very few showing overall deficit. During the pandemic schools balances had slightly improved. Now the direction of travel was that more schools would increasingly be hit with pressure on their finances which the Council was positioning itself to respond to.

Action By - Schools Financial Advisor

·       A Member stated they would like a financial advisor from the ESFA to meet with schools and advice them on how to manage budgets more effectively. It was confirmed they had been contacted and the Council was awaiting a response.

·       In relation to support staff pay awards on section 5.9, a Member asked for an update on the pension back funding for support staff. It was confirmed that a response was still outstanding on this matter. It was raised that local financial pressures should be clear, to enable better strategic financial planning with that in consideration. An answer would be pursued and updated to the Forum.

Action By - Schools Financial Advisor

·       In relation to section 5.11, It was confirmed that a support staff pay award had not yet been agreed.

·       In relation to the Medium Term Financial Strategy (MTFS) in section 6.1e, it was confirmed that the Council may introduce an MTFS saving of up to £250k to its commissioning budget for Camden Learning services. There was no other MTFS savings which affected schools. This saving would be phased over the period 2022/23-2024/25, until the next commission, which Camden Learning were aware of.

·       It was confirmed that the Forum would be provided on the pension back funding for 2022/23 using figures on the pension contribution up until September 2022.

Action By - Schools Financial Advisor

RESOLVED

THAT the Schools Forum

a)    Note the developments regarding the planned implementation of the national funding formula, as set out in sections 1 to 4.

b)    Note the current pressures on schools budgets and the support being provided by the Council in sections 5 to 8. The timetable for consultation on the local funding formula is outlined in section 9.

c)    Comment on the draft 2023/24 budget consultation document prior to circulation to schools and other relevant parties, as described in sections 9 and set out in Appendix 1.