Agenda item

Report of the Deputy Chief Executive and Director for Families and Communities

Members were informed that the outturn position for 2018/19 was a £1.783m variance (0.29%) overspend on planned expenditure across all services.  As a result, reserves were now showing a balance at the end of March 2019 of £3.951m.  This included the Early Years adjustment for 2017/18 which was received in July 2018.

The Individual Schools Budget showed an overspend of £0.052m (0.01%).  This outturn related to budgets allocated to individual schools through the funding formula.  Any under or overspends were contributed to each individual school’s balances.  Individual balances were £18.795m at the end of the financial year.

The high needs block overspent by £5.125m (7.20%) and there was a continued forecast overspend on this in 2019/20.  The Early Years’ service had underspent by £1.430m (-3.05%).  This was not the full and final outturn as the DSG was amended in July for the previous January’s census.  The underspend was due to lower take up than funding allocated based on the January censuses for three and four year old universal hours, and an underspend on the amount of deprivation payments budgeted for.  Central and de-delegated items had underspent by £1.963m (-10.06%).

In relation to Early Years, a member commented that it would be helpful if there was more transparency in the calculation of the budget to promote a better understanding, particularly given that a lot of small nurseries were going out of business.  It was important to ensure that each child received the funding which they were entitled to. 

Members had a number of concerns in relation to the school balances figure of £18.795m.  They queried what was considered to be an acceptable range and were informed that this was 8% for primary schools and 5% for middle and secondary schools.  Officers also confirmed that there were currently 167 maintained schools.  A member commented that the majority of schools produced balanced budgets.  There were instances where funding had been allocated but had not yet been spent.  They expressed concern that the figure could be misleading and did not represent a true reflection.  Another member added that they had heard the view expressed that Staffordshire was holding excessive balances.  It was queried what could be done to mitigate these views and clarify the actuality of the funding.  Officers responded that the detail was set out in the Statutory Statement of Accounts, and the Cabinet Member for Learning and Employability assured Forum that the Secretary of State and other decision-makers understood the reality of the figures.  Members were also informed that work was taking place across the County around SEND district models and with special schools to try to address concerns around out-of-county placements.  It was queried how the SEND work would be communicated and it was confirmed that discussions would commence shortly in localities.  A member who was involved with one of the Working Groups confirmed that they would shortly be in a position to share significant amounts of information on what was a national crisis.

RESOLVED – That the 2018/19 Schools Budget financial outturn be noted.