Agenda item

Clive Harris, Senior Adviser, introduced the item informing the Board on the second stage of the Department for Education consultation on a schools national funding formula which had been announced just before Christmas. The Board’s attention was brought to the fact schools would be expected to move from a soft formula to a hard formula in on year (a two year soft formula was proposed in the first national funding formula consultation) and that under new proposals,  councils would be able to seek top-slice funding from schools to pay for statutory duties previously funded through ESG. He welcomed the views of the Board to inform the LGA response to the consultation.

In the discussion that followed, the Board raised the following points:

·         Members expressed a view that they were sceptical top slicing funding from schools through the schools forum was a valid option for local authorities.

·         A concern was raised in regards to the impact on smaller schools and, should a smaller school be forced to close, the financial issues it would cause the local authority, including increases in school transport costs. The Board had a clear consensus in regards to their concern to the impact of the new funding formula on smaller schools in particular. The Chair emphasised that the Board should continue to argue the case for further devolution and how important it will be for local authorities going forward.

·         Members shared concerns in regards to schools moving to a new hard formula in just one year. It was suggested that a longer transitional period moving into the new formula would be welcome. The Chair shared Members’ concerns as to the pace schools would have to adopt the new schools national funding formula.

·         A concern was raised that as the current government is committed to increasing the housing stock there will be a significant pressure to open the schools required to accommodate new residential developments.

·         A view was expressed that local authorities also would benefit from the same flexibility as multi academy trusts.

·         The Chair expressed a view that there were exceptions where a local authority will be better informed than central government such as with new housing estates, traveller communities and armed forces housing. The Chair expressed a view that in these circumstances greater flexibility and devolution would benefit local authorities.

The Chair concluded that it was of crucial importance to have sustained funding towards school improvement. He echoed the Boards view that local authorities want the same flexibility as multi academy trusts. He also indicated that where there is a local demand to top slice funding from schools central government should not seek to overrule the will of the local area.

Decision

The Board noted the report and advised that as a general position on the LGA’s response to the consultation is that the new schools national funding formula must be determined carefully and that the local knowledge of local authorities must be respected.

Action

Officers to incorporate the Board’s view in the LGA’s response to the consultation.