Agenda item

To receive and update on the proposed formula changes.

Coral Miller presented the report which was set out in agenda pages 45-48.  This report provided an analysis to the changes to the funding formula to the school block budget from 2017/18 to 2018/19.  The DfE were still working on the guidance and more adjustments were expected at the end of November.  The actual allocation was due out in December 2017.

Coral Miller explained that the actual allocation would differ as the DfE had made the assumption that all new and growing schools were full, which they were not.  Therefore, it was likely that the estimate had more pupils than there currently were in Wokingham schools.

Coral Miller stated that the actual unit cost per child was the same for primary and secondary, however in the 2018/19 budget the DfE were proposing a Primary Unit of Funding (PUF) and Secondary Unit of Funding (SUF), this would provide the funding allocation in December which would be based on the October 2017 census.  The actual figure had not been revealed yet.

Coral Miller stated that the actual funding would be given to Local Authorities to allocate according to their own local factors with the expectation that the Local Authority would move closer towards the National Funding Formula model.

Coral Miller stated that Wokingham should see some increase in its school block budget, this would be between 0.5% to 2.3% as currently published by the government.

Coral Miller explained that the Local Authority had the discretion to transfer 0.5% from the schools block to other DSG blocks, after consultation with schools and academies and Schools Forum approval.

Coral Miller stated that the Minimum Funding Guarantee (MFG) could now be flexible from 0 to -1.5% reduction.  This was not new money and would be funded if the Council moved -1.5% from other schools in the schools block.  The Local Authority was working with a Task and Finish Group to establish a fair funding model for Wokingham in the two soft years.

Coral Miller explained that in Wokingham there were similar schools with different unit costs, and this was for historical reasons.

Derren Gray reported that the Task and Finish group had been looking at the options for Wokingham.  He highlighted the following points:

·           The lump sum was £175K in the National Funding Formula it would be £110K; therefore this year we were bounded by a reduction of £20-25K, so work was being based on £150K for 2018/19;

·           The primary ratio in the NFF would be 1 to 1.29, currently this was 1 to 1.27, so there was work towards setting it at 1 to 1.28 for 2018/19;

·           The new NFF  proposed a 3% capping;

·           The MFG could be -1.5%, so work was being undertaken to test different models at -1.5%, -1% and -0.5%.  the options would be presented to Forum in January.

In response to a question Coral Miller stated that a consultation was required by the government and she proposed to carry out a short consultation.

Jane Winterbone stated that Derren Gray had informed Headteachers about the New Funding Formula at a meeting last week, also she had already informed Governors at a briefing session.

RESOLVED That a short consultation would be carried out.