Agenda item

Report of Corporate Director for People

Paul Burke commented that there were over 80 local authorities whose Schools Budgets were in a deficit and credited officers for getting Nottingham City Council into a positive position.

Julia Holmes, Senior Commercial Business Partner, introduced a report that presented the proposed Schools Budget for the financial year (FY) 2022/23. The following information was highlighted:

a)  The overall indicative 2022/23 Schools Budget to be spent incorporating the Schools, Central Schools Services, EY’s and HN’s blocks is £324.535m.

b)  Following the Autumn 2021 spending review, local authorities have also been allocated supplementary funding for 2022 to 2023 worth £1.2 billion on top of the schools NFF. This equates to £7m for Nottingham City maintained schools and academies. For early years and post-16 provision in schools, the grant is being provided in respect of the Health and Social Care Levy. For primary and secondary provision, the grant is being provided in respect of both the Health and Social Care Levy and other cost pressures.

c)  After applying the +2% minimum funding guarantee (MFG) per pupil within the local funding formula (this is the maximum MFG that can be applied within the formula in 2022/23), this has created expenditure of £246.180m in the schools block. This left a surplus balance of £0.519m unallocated; this has since been allocated to the pupils growth contingency fund as the most equitable way of distributing the money.

d)  The early years national funding formula (EYNFF) dictates the hourly rate that each Local Authority receives for 3 & 4 year olds; the rate for 2022/23 has increased by £0.17 per hour compared to the rate for 2021/22 and an increase of £0.21 per hour for 2 year olds. This increase was significantly greater than previous years and the increase would be passed on to schools and providers.

e)  As one of the Local Authorities due to gain most significantly under the HN NFF, Nottingham City has received an 11% increase per head of 2-18 population which is the maximum allowable gain. The LA’s provisional EY block allocation, as published on 16 December 2021, is £21.181m. In 2022/23 LA’s can receive increases between 8% to 11% per head of population.

f)  The figures provided were provisional and would be amended as a result of the detailed calculation of indicative budgets for settings prior to the end of February and the finalisation of 2022/23 service budgets. The provisional budget figures are underpinned by the assumptions and principles which were unlikely to change.

In response to questions raised, the following information was noted:

g)  With regards the daily provision funding for AP schools it was noted that the AP was commissioned via the Pupil Referral Unit (PRU) and there was a proposed increase in the budget by the PRU to reflect potential increases in the sector who will be setting their prices accordingly to take into account the Health and Social Care Levy.

h)  The R21 rollout has previously been funded from reserves but there will be a need for managerial oversights in the long term to ensure that it is sitting best in the budget.

Nick Lee (Director of Educational services) acknowledged the work of officers in the Local Area Review of SEND and reported that a positive report had been received from Ofsted and CQC, highlighting the interventions and the value that it has given the City. There was recognition that the offer, the value for money and the City has put into both early interventions and specialist services was paying dividends for children and young people. It was further reported that the City Council had been asked by the Department of Education to work with them around good practice in high needs funding with the intention for it to be replicated nationally.

Resolved to note:

(1)  the overall indicative 2022/23 Schools Budget to be spent, incorporating the Schools, Central Schools Services, EY’s and HN’s blocks, is £324.535m;

(2)  that the above is funded by the provisional 2022/23 DSG allocation of £322.042m, reimbursement of £0.445m funding paid to academies for pupil growth for April to August 2022, and an additional £2.048m HN’s allocation;

(3)  that the budget will be updated in-year to reflect subsequent adjustments made by the ESFA to the 2022/23 DSG allocation, as described in the report;

(4)  that any balance remaining will be allocated to the Statutory School reserve;

(5)  the impact to schools’ budgets of the indicative allocation, as set out in Table 5 of the report;

(6)  that total planned early years central expenditure aligns to the £1.025m approved at SF on 7 December 2021, funded based on a revised split between 2 and 3 & 4-year-old funding;

(7)  that Pupil Premium funding will be allocated to schools in accordance with grant conditions.