Agenda item

8.1

The Committee received presentations from Mark Sheikh (Head of Service – Business Strategy) on the changes to revenue funding and the capital programme for schools and the challenges being faced by both the Local Authority and the schools themselves regarding both issues.

8.2

With regard to the revenue funding, Mr Sheikh reported on the history of the Dedicated Schools Grant (DSG) and on the overall DSG settlement for Sheffield for 2018/19, which indicated a low settlement in comparison to other Core Cities.  Mr Sheikh made reference to the pupil premium, schools block funding and the role of the Schools Forum, which comprised a statutory body, made up of representatives from schools, academies and other non-school organisations, and which served as a mechanism for consultation on issues concerning the funding of schools.  He reported on the background to the National Funding Formula (NFF), and referred to the implications and impact of changes to the formula for Sheffield.  Mr Sheikh referred to the Early Years Block and High Needs Funding, and concluded by reporting on what the Council was doing to address the current funding challenge.

8.3

With regard to the capital programme for schools, Mr Sheikh reported on the Government policy priorities and capital funding allocations, referring to the numbers of children at both primary and secondary schools, historically from 2001/02, and forecast, to 2027/28.  He reported on the planned expenditure in terms of basic need and school places and referred to the key issues regarding the School Condition Programme.  Mr Sheikh reported on the numbers of new school places, and associated costs, under the Free Early Learning initiative, and concluded by highlighting a number of photographs showing recent school refurbishment and expansion projects.

8.4

Members of the Committee raised questions, and the following responses were provided:-

·             In terms of the role and powers of the Schools Forum, there was a requirement to consult the Forum on any proposed funding changes, and the Forum had the power to contest any decisions made with regard to schools’ funding formula, resulting in the final decision being made by the Department for Education.  There was a statutory requirement for the Local Authority to consult with the Forum on funding decisions regarding early years provision.

·             Further discussions on the scale of the works required in terms of the refurbishment of, and expansion to, schools in the City were required with colleagues in Corporate Finance.  The Authority was already borrowing £21 million for this purpose, which could have an adverse effect on the Council’s overall cash flow.

·             Whilst officers were mindful of the funding benefits in terms of academy conversion, it was not considered a factor, particularly as capital spend on academies had also now reduced.

8.5

RESOLVED: That the Committee:-

(a)      notes the information reported as part of the presentations now made;

(b)      thanks Mark Sheikh for attending the meeting, and responding to the questions raised;

(c)      requests that, in the light of comments raised as part of the previous item on 2018 Pupil Outcomes, the Schools Forum gives specific consideration to the allocation of funding with regard to prior attainment; and

(d)   tasks the Chair to carry out further investigations into the potential for prudential borrowing with regard to capital funding for schools.