Budget Update
Russell Dyer,Departmental Finance Manager
Education, Schools and Children
8 March 2017
www.southwark.gov.uk
Key Issues to cover
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2016-17 Closing
2017-18 Budget
2018-19 NFF
High Needs and Early Years
Future Funding for LA Services
www.southwark.gov.uk
2016-17 Closing
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31 March 17 closing date, not 24 March 17
Important to meet deadline for accounts returns
Future years will have earlier closing
Excess balances reminder
DSG forecast 16-17 pressures on Blocks & DSG
reserve to be reported to March Schools Forum
www.southwark.gov.uk
2017-18 Budgets
• Should have received now & covering letter
• Flows from decisions at Schools Forum meeting January 2017
and EFA review of APT (reports are on website – giving further
detail)
• Sought to maintain unit values using DSG reserve & high needs
transfer but:
• Cost pressures growing free schools and business rates
• Increased de-delegation for Summerhouse but offset by
reduced capital from revenue
• Maintained de-delegations for ESG and School Improvement
(Primary Only) – LA needs to be accountable for these new
areas to schools on outcomes given the funding changes
www.southwark.gov.uk
2017-18 budgets (continued)
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MFG still set at -1.5% (before de-delegation)
Therefore will notice a reduction in budgets
Budgets to be returned 31 May
Balanced Budgets/Setting deficit budgets
Use of balances
Many schools still have excess balances
Schools in difficulty funding is still available & new falling rolls
fund
• Continued Council investment in capital programme and free
healthy school meals
www.southwark.gov.uk
2018-19 and beyond
• NFF consultation and illustrative budgets (Reductions between
-1.3% and -1.5% with an average of -1.4%)
• Growing Schools illustrative budgets now available
• For a typical primary school in Bermondsey with 2 forms of
entry this would be a cash loss of £32k between in transition
year of NFF and £33k more in year after
• Response to consultation: Schools Forum, London Councils
• Use of NAO study on financial sustainability in schools as
evidence
www.southwark.gov.uk
High Needs
• New 4 band system for SEN mainstream top ups for
new entrants from 1 April 2017
• National consultation: Schools Forum/ London
Councils
• Illustrations show as cash flat 18/19 and 19/20
• Looking at block transfers and whether we need to
move some back to support schools block – this
flexibility will continue
www.southwark.gov.uk
Early Years
• Rates set for 17-18 at last Schools Forum Meeting
for new EYNFF
• Primaries with nursery classes base rate increases
from £4.95 in 16-17 to £5.95 per hour in 17-18
• Central Retention limit now in place for 17-18 (7%) –
decision at Schools Forum on what this will be used
for
• Further work with early years group on inclusion
fund
• Maintained Nursery Assurance Exercise
www.southwark.gov.uk
Future models for LA services
www.southwark.gov.uk
Current & Future Funding of LA
Education Services
• DSG Central Block Services/ other
blocks
• Statutory: Retained Duties
• Statutory: General Duties
• De-delegated Services
• School Improvement
• Non Statutory Services
www.southwark.gov.uk
School Improvement - functions
School Improvement – distinction between standards
team and wider school improvement role.
Some functions of role:
• Accountability for all schools in Southwark
• Accountability nationally and locally for performance
and outcomes
• Responsible for moderation of testing and
assessment arrangements
www.southwark.gov.uk
School Improvement - functions
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Interface with Ofsted
Safeguarding
Oversight
QA/ Challenge
Data
Aspects of Welfare
Broader links with the whole council & partners
CPD/NQTs
www.southwark.gov.uk
School Improvement - Funding
• Was partly core and ESG funded 16/17
• 17/18 school improvement grant £0.16m (Sept 17 to
Mar 18) and ‘top up’ de-delegation £0.78m (Primary
only)
• Will grant continue 18/19 and bidding be allowed by
LA for Strategic School Improvement Fund?
• Will de-delegation be allowed 18/19?
• Will need to move to traded/ subscription service
18/19 if de-delegation is not permitted
• De-delegation only possible if schools agree and
budgets will be tighter under NFF
• Govt. reviewing the role of LAs
www.southwark.gov.uk
Potential future models:
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Some services will continue in blocks
Depends on funding and de-delegation
Pay as you go;
Subscription to a range of basic services –
‘insurance policy’;
• Individual fully traded/ subscription services;
• Schools Forum role for a number of schools
even if this ceases, to allow a form of
‘voluntary’ central retention/ de-delegation?
www.southwark.gov.uk