Agenda item

AA introduced the report and drew attention to the following:

·       The report showed the provisional DSG outturn for the last financial year as well as some of the schools’ balances for 20-21.

Provisional outturn:

·       The overall deficit was slightly lower than reported at the previous monitor, but still significant at £7.1m and when added to the deficit from last year this would be approximately £10m which represented 3%-4% of the overall DSG budget. This was the driver for the DSG Management Plan discussed earlier in the meeting. 

·       The High Needs Block was the main area where there was an overspend, and this was nearly £12.5m. 

·       Most of the other blocks were underspending. 

·       Schools Block: underspending by £400k due to Growth Fund underspend refund of recoupment made in respect of Avanti Gardens.

·       De-delegation: underspend of £89k mainly due to TU facility time.

·       Early Years Block: underspend of £0.6m due to a number of factors the most significant being the fact that the number of hours funded in 20/21 had decreased when compared to the previous year, due to the impact of Covid-19 and the late announcement by DfE that 2021 spring term funding for early year’s providers should be based on participation

·       Due to the pandemic, a lot of the initiatives set out in the Education Transformation Programme were not started and so out of £1.4m only 560k was spent and this money had been carried over into this year.

·       The overspend in the High Needs Block was not unique to Bristol, a lot of Local Authorities were are grappling with this issue.

·       The major area of increased spend was in top ups as there had been both an increase in pupils and a movement in the banding with an increase in the more expensive banding and decrease in the least expensive bands.

Individual School Balances:

·       At end of last financial year individual school balances reduced to £5.8m due to several factors. 

·       11 nursery schools were in deficit and 1 in surplus with an in-year deficit.  The nursery sector was also in deficit.

·       Two special schools converted to Academy status during the year and both schools had surpluses that transferred with these schools amounting to £0.975m.

Why is the £0.85m surplus in four nursery school family support hubs not included in the figures?

AA confirmed that this was funded from Council resources as part of the general fund and not as part of the Early Years Block.

One of the strategies for dealing with the funding pressures in the High Needs Block, is lobbying central government for more, what is the process for doing this and what progress has been made?

AH/DM confirmed that lobbying was ongoing through a variety of different ways both through Education and Finance and a key anchor would be the forthcoming spending review in September which would give the Council the opportunity to submit further evidence and case studies.  DM also confirmed that the Council’s external auditors were concerned about the deficit and that this would add weight to the representations being made to DfE.

Is there any indication where Bristol City Council sits in comparison with other LAs?

DM confirmed that the comparative data was not yet available until all LAs had published outturn information, but she was aware that many LAs had increased spending pressures due to Covid.  She also reported that there were some LAs with deficits of £20-30m and 4 LAs had deficits totalling over £100m written off by the DfE but Bristol City Council’s DSG deficit was not sustainable and was of concern to the Council.

Should there be a limit on surpluses that schools can carry over and therefore take with them when they convert to an academy?

AA confirmed that there was guidance that LAs could claw back surpluses if more that 8% for primary schools and 5% for secondary schools and anything in excess of this amount would require a school to have a spending plan agreed by the LA.  DM confirmed that Bristol did not claw back surpluses, but the Council was due to consulted on a revision to the scheme of financing schools and could put this forward as an option although it could not be applied retrospectively. 

If a school chooses to join an academy rather than be forced does the deficit still stay with the LA?

AA confirmed that if a school was forced to become an academy, the LA would take the deficit but if it chose to become an academy, the deficit would go with them, but in either case a surplus would always to a school converting to become an academy.

In considering the recommendations, it was:

RESOLVED:

1) That the provisional 2020/21 DSG outturn position set out in Table 1, which includes a net in-year deficit of £7.1m, which is a favourable movement of £1.48m from the forecast position at Period 9 be noted.

2) that majority of the pressure is in High Needs Block and the drivers for this cost pressure be noted.

3) that the total DSG deficit carried forward of £10.0m be noted.

4) That the number of maintained schools with surplus and deficit balances and the overall position by sector be noted.