Agenda item
Budget and Finance
A presentation to be made at the meeting.
Minutes:
Councillor Asma Begum, Cabinet Member for Children, Youth Services, Education and Equalities introduced the items stating there were longstanding national pressures on Children and Young People services, particularly funding in relation to SEND. She said they continued to lobby government for funding especially as the service was demand-led and therefore if the demand increased, more pressure was placed on the finance budget.
The Sub-Committee then heard for Ms Kay Goodacre, Head of Strategic Finance for Children and Culture who gave a presentation on the issue. Ms Goodacre made the following points:
- High End Needs continued to be a pressure however the lobbying of government had led to an 8% in funding in 2021/22.
- There was a requirement to produce a high-end needs management plan for the DfE, which was previously known as the recovery plan. The nuance in wording from ‘recovery’ to ‘management’ plan shows the Government recognises the demand will not decrease but will need to be managed in the long term.
- School budgets were also under pressure. School Balances increased from £27m to £35m in 2020/21.
- Work on transparency and compliance had been undertaken with schools in relation with the Statement of Accounts. Headteachers and Business Managers within schools had been provided with training.
- A refreshed policy for schools with in-year budget deficits and cash advances had been introduced.
- Falling school roles, school closures and amalgamations continued to be an issue.
- The budget headlines were schools to receive a 2% increase in their minimum funding guarantee, High End Needs would increase by 8% however there would be a reduction in the Dedicated School Grant by 10.5%.
- In relation to future pressures the budget may face, Ms Goodacre said this related to supporting families, such as the recruitment and retention of Social Workers, greater number of families with no access to public funds, children in need of placements and reorganisation of the Youth and Early Years’ service.
In response to comments and questions from members the following was noted:
- The school balances increase of £8M was not focussed on a few schools but was spread over the sector both primary and secondary schools. The impact of Covid and schools being cautious had led to this.
- In response to if the Council was exploiting all the available funding streams/ grants for vulnerable learning, Ms Goodacre said they did their utmost to access funding however sometimes it was for the schools to apply for the funding, as illustrated by the Covid Recovery and Tuition funding. Ms Goodacre said this came with conditions and was difficult to access. She said they assisted and signposted schools accordingly.
- In relation to the School Forum, Councillor Salva-Macallan asked if the agenda and minutes from the meetings were available online. Councillor Salva-Macallan requested the dates of the meetings be noted on the Corporate Calendar, so Members were aware when meetings were taking place. Ms Goodacre responded stating the Schools forum meetings were public meetings and the agenda and minutes were published online.
- ACTION: The Children & Culture Directorate to ensure meetings of the Schools Forum are added to the Corporate Calendar.
- In response to if Tower Hamlets had been hardest hit in relation to falling school rolls and demography changes, Ms Goodacre responded stating this was the current situation across London, especially inner London. She said Hammersmith & Fulham had run into financial difficulties due to falling rolls whereas Tower Hamlets had acted quickly to address this and school closures. She said it had to be accepted that London was changing, and migration trends showed less children living in London.
- In relation to the closure of schools costing £2.1m, members asked if there was a strategy in place to recoup funds. Ms Goodacre explained the costs related to the deficit the two schools in question had at the time of the closure and with falling rolls, they’d have less income coming in. She said this cost had to be picked up by the Local Authority as it had a statutory duty to do so. She said as the site is not owned by the Council, it could not sell the land to recoup the money.
The Chair thanked the attendees for their contribution to the meeting and said their input had helped members understand the pressures on the budget of the Children and Culture Directorate.
The Chair summarised the main points of the discussion as follows:
- There were huge pressures facing different aspects of the Children and Culture Directorates budget. Children’s social care and high-end needs budget as well as the school budgets and pressures relating to accessing funding.
- That the Schools Forums meeting dates should be added to the Corporate Calendar, so members were aware when they met.
Supporting documents: