Agenda item

To consider PowerPoint presentation.

This item will be led by the Council’s Executive Director of Children, Families and Education Claire Winter and Strategic Manager, Finance, Sian Kenny.

Note – the Chair will allow 20 minutes for this agenda item.

Presentation received providing an overview of the budget outturn position for 2022/23 and issues around the 2023/24 budget.

There will be budget sessions for all members from September – there will be a session on the DSG which will be useful to attend.

Concern on budget position and the future issues which were highlighted.

Detail around SEND provision and sufficiency to be shared.

The Chair welcomed the Council’s Strategic Manager, Finance, Sian Kenny and the Service Director, Children and Families, Jayne Shelbourne-Barrow to the meeting. Ms Kenny provided an overview of the budget outturn position for 2022/23 and issues around the 2023/24 budget.

Ms Kenny highlighted the following matters: -

·      Financial overview position - 2022/23 outturn approx. £20m overspent; 2023/24 budget monitoring emerging issues £40m overspend; 2024/25 MTFP forecast Feb ’23 £40m but with inflation likely to be higher.

·      High level information on the 2022/23 Outturn General Fund Children’s Services £21.4m overspend.

·      The emerging issues / risks / mitigations relating to the General Fund for 23/24.

·      Information on the 22/23 outturn of the Dedicated Schools Grant (DSG).

·      2022/23 outturn and LA maintained school balances.

·      The 23/24 emerging issues / risks / mitigations relating to the DSG and schools.

The Committee asked a number of questions and made a number of comments which were responded to at the meeting:

·      What influence does the local authority have in respect of the overspends highlighted – the MTFS considered by Executive for 24/25 already included information on High Needs and the impact on the local authority.

·      22/23 outturn / overspend and position with regard to the current financial year  – advised that the service is working on the Qtr. 1 budget monitoring report (position at end June) which will be considered at the September Executive meeting.

·      The Chair asked that members have this information at the earliest opportunity – also confirmed the LA does closely monitor current budget positions / financial forecasts.

·      Position regarding the DSG and the ‘override’ mentioned in the presentation -  the current cumulative High Needs deficit is£20m – estimated to rise to c£70m by March 2026, without mitigation being in place (analysis of Somerset position from national Newton Europe Delivering Better Value programme,  at which point it will become a general fund liability; the DfE is holding the deficits nationally (and it is a national not just a Somerset issue); would become an issue for the local authority in 25/26 if the override is not extended.

·      School deficits – 9 schools (out of 133 local authority maintained schools) shared a cumulative deficit position of £1.9m, which represents an in-year deficit of £1.2m to carry forward into 23/24 and Wadham Secondary school position is of considerable concern as it had an accumulated deficit of £1.5 at 31 March 2023 without an agreed recovery plan; outlined work being done with the school and the underlying problems have been addressed by an area restructure; role of new education sub group highlighted and plans being worked on – will come back to the committee on that when agreed; this situation clearly needs to be resolved.

·      Overspend in home to school transport and SEND school transport – significant review undertaken by Edge Public Solutions who have identified a range of actions which are being taken forward in relation to both areas.

·      Sufficiency of special school places  - the  DfE is building special  free school in Ash with 120 places and this will be open for September 2024 (2-year delay); the DfE is also planning to build a school with 64 places in Wells (opening timeline 2027 - 2029). There is a financial impact of not having those schools in place as those already identified as currently needing special school places are being placed, as an alternative, in  independent non-maintained school setting .  The increased costs of these provisions compared to a special free school is a budget impact of - £1.3m per term (and  therefore approximately £4m each academic year).

·      There will be budget sessions for all members from September and there will be a session on the DSG which will be useful to attend.

·      Having stable workforce is good news but a more stable workforce impacts on staff turnover savings (23/24 General Fund emerging issues) - having stable workforce is good news but level of underspend seen in previous years is therefore not likely to occur in 23/24.

On behalf of the Committee, the Chair thanked Ms Kenny for the update. The Committee will continue monitor the Childrens Services budget position and will also be included on the agenda for the next meeting.