Issue - meetings

This report provides the detail of the updated DSG management plan submitted to the DfE for consideration as part of the DfE Safety Valve (SV) programme.

The DSG accumulated deficit has grown rapidly from £3.6m brought forward from the preceding  councils in April 2019 to £36m by March 2023, with £63m estimated for March 2024.

The high needs funding annual gap is estimated at £27m in 2023-24. The updated DSG management plan is projecting a further rise to £29m in 2024-25 before it starts to reduce gradually over the remaining years of the 15-year plan.

The estimated accumulated deficit at March 2025 is £92m without other funding sources being secured.

The Assistant Chief Finance Officer presented a report, a copy of which had been circulated to each Member and a copy of which appears as Appendix 'B' to these minutes in the Minute Book. This report provides the detail of the updated DSG management plan submitted to the DfE for consideration as part of the DfE Safety Valve (SV) programme. The DSG accumulated deficit had grown rapidly from £3.6m brought forward from the preceding councils in April 2019 to £36m by March 2023, with £63m estimated for March 2024.

The high needs funding annual gap is estimated at £27m in 2023-24. The updated DSG management plan is projecting a further rise to £29m in 2024-25 before it starts to reduce gradually over the remaining years of the 15-year plan. The estimated accumulated deficit at March 2025 is £92m without other funding sources being secured. The 15-year plan as included within the confidential appendix to the report included a 0.5 percent transfer for 2024/25 and 1 percent each year after this, which balances the high needs block within 15 years with contributions from the schools block. It was expected that the plan with the parameters as outlined was quite unlikely to be agreed by the DfE as part of the Safety-Valve Programme

It was confirmed that a 5-year plan was requested by the DfE but the modelling for this was not achievable and the 15 year plan as modelled was more realistic. It was noted that the statutory override against the deficit was due to run out in March 2026.

It was confirmed that the transfers outlined in the plan would need to be agreed by the Forum on an annual basis.

In response to a question, it was confirmed that a range of officers and members were involved in the production of the plan through a Safety Valve Board and that no headteachers were involved in the production of the plan.

It was confirmed that the impact of the 0.5 percent transfer and the 1 percent transfer for schools was modelled within the next paper. It was confirmed that this was 1 percent in total not additional to the 0.5 percent.

The Chair noted that this was a complex and high-level discussion and that in future it would be helpful to give consideration to discussions of this with headteachers in advance via Schools Forum members.

RESOLVED that the information in the report be noted.

Voting: Nem. Con.