Agenda item

To receive and consider the 2023/24 Final High Needs Block Budget.

Lynne Samuel presented the 2023/24 Final High Needs Block Budget report.

A spend of £36.6m was projected for the 2023/24 financial year, with an income of £28.4m, therefore a £8.2m in-year deficit was forecast for Year one of the Safety Valve programme.

It was pointed out that all the work being undertaken with the DSG Management Plan and the Safety Valve would take some time to realise the savings and this level of first year deficit was expected.

The Task and Finish Group had been working on the Budget and considering all options.  There was a desire to uplift all bands in line with inflation, however there was a constraint to work within the income received.  The report contained details of the uplifts.

The graphs in the report showed the profile and the balance of the number of out of borough placements in relation to the increase in the number of in-house placements would change in future years; and how this would affect the Budget going forward.

Wokingham applied an annual inflationary cap to requests from INMSS providers, this was set at 2.5% for the 2022/23 financial year.  This cap applied to all placements whether made through the framework or not.  The inflation increase requests being received by local authorities was far beyond what was affordable, and negotiations would be carefully managed.

The Task and Finish Group would continue to meet.  At the next meeting they would review the terms of reference and work programme.

Sara Attra stated that it was good to have a Task and Finish Group, but that going forward, she would like more time for discussions at the Task and Finish Group.  She expressed concern that capping the increase to 2.5% to independent and non-maintained special schools was not realistic in view of what was being asked by those schools.  She also stated that for the Addington Budget, further pay increases would not be fully covered leading to a potential deficit in the next two years.

Iain Thomas was in agreement with Sara Attra’s comments and shared the concerns that staff costs are going up and a deficit was projected as a result of the funding uplifts not fully covering the cost increases.

Lynne Samuel recognised that there was challenge in relation to the fact that the funding received by the local authority did not fully cover the schools’ needs.

The Chairman asked if there were any further risks that could potentially compromise the delivery of the Safety Valve programme.  Lynne Samuel stated that the local authority was continuing to closely monitor all risks.

The Chairman asked that the Christmas tree graph include the geographical allocations, showing in and out of area spend.

It was recommended that planning for the consultation on possible transfers from the Schools Block to the HNB start as soon a possible to ensure that schools were well informed about the options.  Lynne Samuel agreed and added that the Task and Finish Groups would be involved in the preparation of the consultation papers.

Schools Forum members were encouraged to contact Lynne Samuel if they wished to take part in the Task and Finish Groups.

RESOLVED That the report be noted.