Issue - meetings

The Assistant Chief Finance Officer presented a report, a copy of which had been circulated to each Member and appears as Appendix ‘B’ to these Minutes in the Minute Book.

The Forum was advised that the quarter one budget monitoring for the DSG, reported to the council’s Cabinet on 1 October, showed a projected increase in the high needs funding gap for 2025–26 of £11.6m from the budgeted gap of £57.5m. This resulted in a total forecast funding gap of £69.1m. This reflected higher than expected growth in demand in the later months of the last financial year, with this higher demand continuing in 2025–26, primarily due to the numbers of education, health and care plans (EHCPs) and increasing costs of provision.

Other DSG budgets for 2025–26 were forecast to be balanced.

The cumulative deficit on 31 March 2026 was projected to be £180.5m.

It was noted that the statutory override has been extended to March 2028, allowing the deficit to be carried forward without impacting the Council’s general fund. Members were informed that national reform of the high needs system is anticipated, although no formal announcements have yet been made.

During the discussion, Members raised concerns about the sustainability of the current funding model and the increasing demand on high needs provision. A member requested that pupil cohort data be included in future pre-meeting discussions to support more informed decision-making. ACTION

RESOVLED that the report be noted.