Agenda item

Item 2b 2025-26 Budget

Minutes:

The item was introduced by the Assistant Director of Finance, who advised members that the purpose of the report was to inform the Schools Forum of the distribution of the Dedicated Schools Grant (DSG) for the financial year 2025/26. An overview of the report was provided, with an outline of the contents of the annexes provided, further detail was included in the report, which is available to view here.

The annexes were introduced individually by officers and are detailed below.

Item 2b – Annex A – Dedicated Schools Grant Income.

That there was a total Budget of £407 million, which was a £40 million increase from the previous year.

The teachers' pay additional grant, teachers' pension, and core schools budget grant had been rolled into the national funding formula for 2025/26.

Detailed breakdowns and allocations were discussed and can be found set out in the report.

A member inquired whether the increase in the total budget and the implications of rolling the teachers' pay additional grant, teachers' pension, and core schools budget grant into the national funding formula and whether this actually represented an increase in funding for schools.

Item 2b Annex B – Central Schools Expenditure, Growth and De-delegation.

Members were informed that central schools expenditure included admissions costs, schools forum, education welfare, asset management, statutory and regulatory duties, and centrally employed teachers' pension contributions.

It was clarified to the Forum that the decision made on 17 October 2024 for additional places for Watling Primary school had been incorrect, as it had stated 180 places rather than 240. Members were asked to vote upon the correct total, and upon being put to the vote, it passed unanimously.

Item 2b – Annex C – Primary and Secondary Schools Budget Shares

Members were told that:

·      The funding formula was continuing to transition to the national funding formula and the minimum funding guarantee.

·      The minimum funding guarantee is set at 0%, ensuring schools receive the same amount per pupil as the previous year.

·      Detailed breakdowns of funding rates and allocations were provided.

In response to a member, officers advised that the number of schools attracting the minimum funding guarantee increased from 10 to 16, with the total protection amount rising from £58,000 to £124,000. A member commented that this was relatively low given the number of settings and amounts of funding.

Item 2b – Annex D – Early Years Block Funding 2024/25.

The following points were highlighted:

·      The full increase in government funding rates is passed on to providers, with 97.6%. of total funding passed out to providers.

·      Maintained nursery schools would continue to receive supplementary funding, which has increased.

·      Early years pupil premium and Disability Access Fund (DAF) rates had increased.

A vote was taken to approve an increase in central expenditure by £0.1m to accommodate increased pressures and staffing demands, which was unanimously agreed upon.

Item 2b Annex E – High Needs Budget 2025/26

The following points were highlighted:

·      That the final allocation of funding for the high needs block for 2025/26 was announced on 18th December at £65.674m.

·      There would be no allowance for a demand reserve next year due to affordability constraints.

·      Additional places were built into special schools, special units, resource provisions, and alternative provision to address increasing demand.

·      A member provided clarification that it was Stephenson MK Trust, not Stephenson academy that had Post 16  provision.

In response to questions from members, officers advised that there was no central government guidance on the level of central spend for High Needs, as it varied greatly due to local factors.

Item 2b Annex F – Government Grants 2025/26

An Update on various Government Grants was provided by the Schools Funding Accountant:

·       Pupil premium rates for early years had increased by 32 pence per hour.

·       The core school budget grant for special schools and alternative provision would continue.

·       Grant funding to compensate for employers' National Insurance increases was expected to be published soon.

Actions:

1.       The Forum noted the DSG budget of £407.174m for the purposes of setting the schools budget as set out in Annex A and the overall budget position as set out in Annex G.

2.      The Forum noted the expenditure budgets for 2025/26 to be funded from the Central School Services Block (CSSB), as agreed at the 12 December 2024 Schools Forum meeting.

3.      The Forum noted the allocations from the Growth Fund for 2025/26 funded from the Schools Block; £0.563m in the primary sector and £0.472m in the secondary sector (the weighted pupil numbers and growth fund criteria were approved at the 17 October 2024).

4.      The Forum noted the delegated budgets for 2025/26 to be funded from the Schools Block as agreed at the 17 October 2024 schools forum meeting.

5.      The Schools Forum approved the additional pupil number adjustment required to support growing schools for 2025/26.

6.      The Forum noted the unit rates for the Primary and Secondary School Funding Formula (Annex C).

7.       The Forum noted the final Early Years central expenditure budget for 2025/26, as agreed at the 12 December 2024 schools forum meeting.

8.       The Forum voted on the additional early years central spend request based on the updated allocations.

9.       The Forum noted the remainder of the Early Years budget for 2025/26 The Forum noted the budgets for the High Needs pupils and students (Annex E).

10. The Forum noted the distribution of the Government Grants (Annex F).

11. The Forum noted the 2024/25 Budget Summary (Annex G).

Supporting documents: