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Spending Review Outcomes Schools

Spending Review Outcomes Schools. David Tully Secondary Heads Consultative Meeting 17 th November 2010. Key budget issues. Spending Review - headlines Dedicated Schools Grant Pupil Premium Retained LA budgets and impact on increased delegation and service level agreements with schools.

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Spending Review Outcomes Schools

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  1. Spending Review OutcomesSchools David Tully Secondary Heads Consultative Meeting 17th November 2010

  2. Key budget issues • Spending Review - headlines • Dedicated Schools Grant • Pupil Premium • Retained LA budgets and impact on increased delegation and service level agreements with schools.

  3. Spending Review 2010 - headlines • Real terms increases of 0.1 per cent in each year of the Spending Review for the 5 to 16s school budget, including a £2.5 billion pupil premium. Underlying per pupil funding will be maintained in cash terms; • Post 16 funding per pupil will be less in cash terms than currently • Extending early years funding to two year olds. • SureStart to continue as part of an Early Intervention Grant • Capital to reduce by 60% with scaling back of BSF and a refocus on essential condition and sufficiency issues. • Local Authority grants to reduce in value by 26%, possibly with much of that reduction in the first two years.

  4. DSG settlement 2011/12 • DSG unlikely to be much more than 0% per pupil • SDG, SSG, SSG(P) and LPG to be subsumed into DSG and, therefore, protected at 2010/11 rates. • Pupil numbers not looking to change much on 2010/11 • MFG, if DfE decide to have one will be negative. • Working assumption is for 1% below S251 budgets for 2010/11 • Headroom not expected to be much and what money there is will be part of a debate about what to keep, what to stop and what to devolve from the current retained budget .

  5. DSG Illustration 2011/12 NB Retained budget would have to reduce in one year by one quarter. MFG at -1% would shift around £2m from devolved to retained.

  6. Pupil Premium • Nationally, a £2.5bn deprivation factor is significantly more than the estimated c£650m currently distributed through the DSG and the £350m distributed through SSG (Personalisation). • By 2014/15, Tower Hamlets, as one of the most deprived boroughs in the country, should expect to do well from the distribution of this large funding allocation, but no decisions yet on methodology. • In 2011/12 it may be that very little, if any money gets through to Tower Hamlets because of the difference in distribution between the current DSG method and the new Pupil Premium method.

  7. Local Authority Services • The Council had anticipated significant reductions in its budget for 2011/12 onwards and has been planning for £70m savings over three years. • Spending Review sees grant to local authorities dropping by 26%. • Children, Schools and Families will face reductions to its Council budget, reductions to the retained DSG and reductions in the array of specific grants and funding streams that support many programmes of work across the department. • It is inevitable that services provided to schools will now seldom be free and if schools do not wish to pay, the services will have to go. • Moreover, more responsibilities are likely to fall to schools to meet as the local authority will not be in a position to provide as much direct support as previously.

  8. Potential new delegation • Maternity cover (so schools buy insurance or self-insure) • NQT cover (so schools pay from their formula budget) • Facilities management / ICT under BSF (combination of extra for elements beyond schools’ control and absorbing costs within budget) • Private Finance Initiative (current subsidy to operate as a technical additional delegated budget with no option but to repay) • Catering – schools making higher contributions for the service itself and incurring the penalty charges where the school is closed • Rent and rate (so fixed estimate used in budget, replaced with actuals the following year) • Recycling – schools pay for their own recycling sacks • School Library Service – make it delegated, rather than devolved.

  9. SLAs with schools • A consultation brochure has been launched, setting out our offer of services and charge rates • The consultation process will run for a month, ie until end November • Schools will be asked through a combination of one to one meetings with link advisors in secondaries and group meetings in primaries, to provide feedback on the services they would be likely to buy from the brochure

  10. SLAs with schools • This will inform our planning of services for next financial year.  If there is no demand for a service, and no other funding source, this may mean that we will not continue to provide it.  This will be an irreversible decision.  As such it is important that we get as much feedback as possible during the consultation. • We will feedback to heads on the outcomes of the consultation, and its implications, before Christmas.

  11. Conclusions • Schools may experience reductions in cash terms, and that amount of money will need to absorb inflationary pressures and pay for a wider range of services and a greater number of responsibilities. • More details available in December with a view to providing Schools Forum with an overall assessment of the situation and a proposal for the 2011/12 budget in January 2011.

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