Agenda item

Government Updates & 2025-26 Budget Setting

Minutes:

Michelle Hibbert, Schools Funding Accountant presented the latest updates on the national funding formula and budget setting.

A number of key updates were set out, with the following topics being covered. Further detail is available in the report.

·      National Funding Formula

·      Minimum Funding Guarantee (MFG) 

·      National Insurance Contributions

·      Early Years Funding Rates: 

·      Provisional Funding Allocations

The Forum were advised that all the information on funding allocations was provisional and subject to being recalculated based on October 2024 actual census information, it was also dependent on local factors.

Final allocations would be published in December, except for the early year’s block which would be determined by the separate national formula for early years.

An update on the schools funding formula consultation was provided by officers, with full detail set out in Annex A of the report.

Officers proceeded to set out the Central Services Block funding required for 2025/26, with the Forum being advised that the total budget was £2.2m, which was an increase of £0.19m from the previous year.

A member inquired as to when further information on the national insurance contributions funding would be available and was told that this was not known.

Officers were asked whether the grants that had been rolled into the NFF had been funded for at the same per pupil level as previously. Members raised concerns that this would lead to a reduction in funding and were advised that officers would look into this, and the exact figures would be circulated to members following the meeting.

Upon being put to the vote, this was approved by the Forum.

Officers subsequently set out the Early Years Funding request, advising the Forum that since publication of the agenda, early year rates and operational guidance had been published by the government, and that a review of the provider rates would be brought to the Forum in January 2025.

Members were advised that the total funding request was £1.032m, which was a net increase of £0.391m, this had been agreed by the Early Years Reference Group and was primarily due to increases in staffing costs. Upon being put to the vote, the request was approved unanimously.

An update was provided to the Forum on the High Needs Budget for 2025/26, with the following key points highlighted by officers.

·      That an additional £3.5m had been received, with £2.3m used to meet costs for 2025/26.  

·      That work was done based on provisional allocations and would be subject to review based on census data.

·      That the full budget of £65.5m had been committed for 2025/26, with no in year demand contingency being held.

·      That there would be a 3% uplift to the top up funding rate for High Need Pupils in Mainstream Schools.

Further updates on government announcements were provided to the Forum, with full detail set out in the report.

Actions.

1.      The Forum noted the latest updates on the national funding formula (NFF) and the DSG.

2.      The Forum noted that information on the funding level for newly rolled in grants would be circulated to members following the meeting.

3.      The Forum noted the 2025/26 Schools Funding Formula Consultation Outcome.

4.      The Forum voted on and approved the Central Services Block funding request for 2025/26.

5.      The Forum voted on and approved the Early Year Central funding request for 2025/26.

6.      The Forum noted the High Needs Draft Budget for 2025/26.

Supporting documents: