Issue - meetings

Assessing the serious cashflow issue caused by ever-increasing demand and cost outsripping High Needs Dedicated Schools Grant government funding

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Meeting: 10/12/2024 - Cabinet (Item 86)

86 Assessing the serious cashflow issue caused by ever-increasing demand and cost outstripping High Needs Dedicated Schools Grant government funding. PDF 492 KB

This report presents the background to and an update on the ongoing conversation with the Department for Education (DfE) and the Ministry of Housing, Communities and Local Government (MHCLG) further to the letter from the Director of Finance issued on the 22 May 2024. This letter outlined concerns about the impact the ever-increasing deficit on the Dedicated Schools Grant (DSG), caused by increasing demand and cost outstripping government funding, will have on the council’s ability to set a legally balanced budget for 2025/26.

Additional documents:

Decision:

RESOLVED that Cabinet: -

(a) Noted the actions taken to date to seek government advice, support, and guidance as to how the Council can set a legally balanced budget for 2025/26.

(b) Noted the work undertaken by Children’s Services to improve the efficiency and effectiveness of the SEND service to manage demand and cost.

(c) Agreed that the Leader should write again to the Deputy Prime Minister requesting an urgent meeting and a solution to the cashflow challenge that the Council faces.

(d) Agreed that the Chief Executive and Director of Finance should write formally to the Permanent Secretary, MHCLG, drawing her specific attention to the cashflow challenge and potential solutions.

(e) Request officers to bring forward details of which of the options listed in section 28 of the report will need to be enacted to ensure the Council can set a legally balanced budget for 2025/26.

Voting: Unanimous

Portfolio Holder: Finance

Reason

To ensure that Cabinet are kept abreast of a potential existential threat to the financial viability and sustainability of the council.

Minutes:

The Portfolio Holder for Finance presented a report, a copy of which had been circulated to each Member and a copy of which appears as Appendix 'D' to these Minutes in the Minute Book.

Cabinet was advised that the report presented the background to and an update on the ongoing conversation with the Department for Education (DfE) and the Ministry of Housing, Communities and Local Government (MHCLG) further to the letter from the Director of Finance issued on the 22 May 2024, and that this letter outlined concerns about the impact the ever-increasing deficit on the Dedicated Schools Grant (DSG), caused by increasing demand and cost outstripping government funding, will have on the council’s ability to set a legally balanced budget for 2025/26.

The Chair of the Overview and Scrutiny Board addressed the Cabinet advising that at the meeting the previous evening and following comprehensive discussion the Board had supported the recommendations within the report but had raised concerns in regard to the options contained within the paper.

The Chair of the Children’s Services Overview and Scrutiny Committee addressed the Cabinet stressing the importance of the SEND services provided and of the need to retain these.

The Leader of the Labour Group addressed the Cabinet thanking officers for their hard work, and stressed that there were significant discussions going on regarding this matter and of the work going on behind the scenes to try and bring a resolution to this matter.