Agenda item

To receive and consider the 2023/24 Budget Planning report.

Katherine Vernon presented the 2023/24 Budget Planning report.  She stated that the provisional allocation had been received in July, the final allocation would be received in December after the October 2022 census.  There had been a slight increase in the Schools Block allocation.

For 2023/24 local authority’s funding models have to allocate individual school funds within 10% of the National Funding Formula (NFF) rates.  During the summer, modelling with the NFF, minimum and maximum rates had been done, and none of the current models worked with the current rates.  The Task and Finish Group had met and asked for current school pupil number to see if a more appropriate model could be developed.  Schools promptly provided their pupil numbers and it was ascertained that there were an additional 600 pupils in the system.  This additional information has allowed a model to be developed which aligns wit the minimum NFF rates.      

With the new pupil numbers it was anticipated that the Growth Fund, of £1.6 million would be insufficient to support predicted growth and the need for new classes.  Lynne Samuel explained that there were risks in relation to the Growth Fund, and the potential opening of new school.

The forthcoming consultation will address this matter.

Derren Gray informed that the Task and Finish Group had met twice.  There was little difference for schools with the allocation model going 10% below NFF and at NFF, but it was sufficiently significant that the Task and Finish Group had decided to go with 10% below NNF.  Derren pointed out to the DfE colleagues who were in attendance, that it was not fair that the allocation model had to work with NNF rates but the funding to be received will not match it those rates.  Derren also pointed out that there was a significant amount of contingency in the Growth Fund, however this was likely to be needed.

It was proposed that the principles of the new funding allocation model be sent for consultation to schools.

The Chairman asked for further clarification in relation the clawback of Early Years funding process and how it differed from other local authorities.  Lynne Samuel explained that a further small clawback had been anticipated for the last financial, however there had been an additional allocation instead.  Wokingham’s practice was to re-distribute any additional funding to providers. However, other local authorities generally did not do this.

Sal Thirlway explained that officers were thinking about the best way to use the Early Year’s additional funding, in the context of the Safety Valve.  The Safety Valve was looking to reduce the deficit in the DSG, not only the HNB deficit.  However, there was recognition that settings were under significant financial pressure at this time.  A proposal was being considered by the Early Years Task and Finish Group to implement a hardship fund using the unforeseen additional allocation.

Ian Morgan stated that he was broadly supportive of the proposal to implement a hardship fund. However, he pointed out that allocation for the next year was not yet confirmed.  He worried that settings were facing significant challenges with the cost of living crisis, in particular in smaller settings.  Feedback from the sector on this proposal would be obtained through leaders forums, this would also be discussed at the Early Years Task and Finish Group.

The Chairman expressed his gratitude for the work of all of the task and finish groups, it made the budget setting process much more effective.

RESOLVED That the 2023/24 Budge Planning update be noted.