This report outlines the current situation with regard to school funding and also outline proposed changes that may be made in the future.

10.1    The Committee received the report of the Service Delivery Manager – Learning & Skills which outlined the current situation with regard to school funding and proposed changes to funding which may be made in the future

10.2    The Service Delivery Manager reminded members that school funding had gone through, and continued to go through a period of significant reform and that significant change in how local authorities distributed funding to schools had taken place in the 2013-14 and 2014-15 financial years.  He added that in March 2014 the Government had launched a consultation into the next phase of reforms which sought to address the unfairness of the current funding system and identify additional funding to those authorities least fairly funded.  He informed members that Shropshire Council had been identified as one of the Councils that would benefit from the reforms and that early indications were that this would lead to an increase of £8.9 million in the 2015 - 16 Direct Schools Grant (DSG).

10.3    The Service Delivery Manager reminded members that the DSG was distributed via a local funding formula, based on allowable factors which were set out by government, and that the local formula was developed by a Task and Finish Group of the Schools Forum before being approved by Council.  He added that to prevent too much turbulence in funding occurring there was a statutory protection in the form of the minimum funding guarantee (MFG) which ensured that the year on year reduction in per pupil funding was not greater than 1.5%

10.4    The Service Delivery Manager commented that projected reduction of over 1600 pupils in the period 2013 – 2018 represented a major funding challenge which could potentially mean a reduction of £6.7 million in the DSG over this period. He advised the meeting that work was being undertaken by the Schools Forum to consider the impact of continued falling rolls and the changes to the national funding formula. Member’s noted that the use of collaborative working, the exploration of alternative models of provision and the more efficient use of resources was being encouraged.

10.5    A Member expressed concern that the provision of free school meals (FSM) to KS1 pupils may result in a reduction in the amount of pupil premium schools received as this was based on the number of pupils registered for free school meals, and asked what steps were being taken to ensure that schools and parents were aware of this.  The Service Delivery Manager informed him that schools and governing bodies had been reminded of the importance of this. A Member suggested that a press release be issued to explain the importance of registering for FSM in order to gain the maximum amount of pupil premium. This was agreed.

10.6    A Member asked how the extra funding arising from the changes that were currently out for consultation would be distributed.  The Service Delivery Manager advised him that it would be distributed through the local funding formula and that this would be developed by the Schools Forum Task and Finish Group and a full consultation would be carried out prior to this being agreed. He added that even though there was extra funding, some schools would not see an increase in their budget due to the fact that the extra funding would negate the MFG.

10.7    The Deputy Portfolio Holder Children’s Services commented that falling school rolls were a major challenge.  Mr Atkinson commented that the real challenge was getting individual schools to accept the challenge.  The Service Delivery Manager informed the meeting that all schools will receive a five year profile of pupil numbers and estimated financial data in order to enable schools to look at options.  The Director of Children’s Services commented that schools needed to work together to find local solutions to the challenge.

10.8    A Member asked that a further report be made to a future meeting.  This was agreed.

10.9    RESOLVED:

            That the current position in relation to school funding was noted