Agenda item

This report sets out the recommended funding formula principles for Surrey mainstream schools and early years providers in 2025/26.

(The decisions on this item can be called-in by the Children, Families, Lifelong Learning & Culture Select Committee)

RESOLVED:

1.    That Cabinet notes and supports the application to the Secretary of State to transfer 1.0% (which was equivalent to £8.4m in 2024/25) from the schools’ block DSG to the High Needs block DSG, as set out in the safety valve agreement with the Department for Education (DFE).

2.    That the Schools Forum’s formula recommendations for schools as set out in Annex 3, is approved by Cabinet; and the decisions in Annex 4 implemented, subject to any changes required to comply with the DfE provisional schools funding settlement announced on 28 November 20243           The proposals agreed by the Schools Forum for additional funding for mainstream schools with disproportionately high incidence of special educational needs and disabilities (SEND) are agreed.

3.    That the introduction of additional funding for primary schools with temporary falls in rolls is supported by Cabinet as agreed by the Schools Forum.

4.    That the principles of the early years funding formula, supported by the Schools Forum, is approved by Cabinet.

5.    That authority is delegated to the Director of Education and Lifelong Learning in consultation with the Executive Director of Children, Families and Lifelong Learning and the Cabinet Member for Children, Families and Lifelong Learning to approve amendments to the funding rates in the schools formula and early years funding formula, as appropriate, following receipt of the DSG settlement and DfE pupil data in December 2024. This is to ensure that total allocations to schools under this formula remain affordable within the council’s DSG settlement and to meet the DfE deadline of mid-January for submission of proposed school budgets to the DFE and the expected deadline for confirmation of early years funding rates, currently expected to be 28 February 2025.

Reasons for Decisions:

To comply with DfE regulations requiring formal council approval of the local funding formula for Surrey’s primary and secondary schools and to allow budgets for schools to be submitted to the DfE by the deadline of 22 January 2025 and funding rates for early years providers to be set by the required deadlines.

(The decisions on this item can be called-in by the Children, Families, Lifelong Learning & Culture Select Committee)

The Cabinet Member for Children, Families and Lifelong Learning explained that the report sets out the recommended funding formula principles for Surrey's mainstream schools and the early years providers for 2025/2026. The funding of all Surrey schools (including academies) and the funded entitlement to early years nursery provision are provided from the council’s allocation of Dedicated Schools Grant (DSG). Each local authority is required to consult on and maintain local formula arrangements to allocate DSG to mainstream schools and early years providers. The Safety Valve agreement includes a 1% block transfer from the schools’ block of the DSG to the High Needs block in each year of the five-year term of the agreement. Although schools do not have formal right of approval over the request, the Council is required to consult schools and to share the outcome with the Secretary of State. Each local authority is required to consult on and maintain those local formula arrangements to allocate the DSG to our local schools. The Council consults through the schools forum, which is a statutory body which is consulted every year on how the grant should be allocated to each school. It was explained that the report did not address pupil premium or sixth form funding as this was covered by central government.

The Leader explained that the Council was yet to receive Capital funding promised by the government to enable us to build more school facilities. This was an integral part of the safety valve agreement. The Council would continue to push for this funding.

RESOLVED:

1.    That Cabinet notes and supports the application to the Secretary of State to transfer 1.0% (which was equivalent to £8.4m in 2024/25) from the schools’ block DSG to the High Needs block DSG, as set out in the safety valve agreement with the Department for Education (DFE).

2.    That the Schools Forum’s formula recommendations for schools as set out in Annex 3, is approved by Cabinet; and the decisions in Annex 4 implemented, subject to any changes required to comply with the DfE provisional schools funding settlement announced on 28 November 20243           The proposals agreed by the Schools Forum for additional funding for mainstream schools with disproportionately high incidence of special educational needs and disabilities (SEND) are agreed.

3.    That the introduction of additional funding for primary schools with temporary falls in rolls is supported by Cabinet as agreed by the Schools Forum.

4.    That the principles of the early years funding formula, supported by the Schools Forum, is approved by Cabinet.

5.    That authority is delegated to the Director of Education and Lifelong Learning in consultation with the Executive Director of Children, Families and Lifelong Learning and the Cabinet Member for Children, Families and Lifelong Learning to approve amendments to the funding rates in the schools formula and early years funding formula, as appropriate, following receipt of the DSG settlement and DfE pupil data in December 2024. This is to ensure that total allocations to schools under this formula remain affordable within the council’s DSG settlement and to meet the DfE deadline of mid-January for submission of proposed school budgets to the DFE and the expected deadline for confirmation of early years funding rates, currently expected to be 28 February 2025.

Reasons for Decisions:

To comply with DfE regulations requiring formal council approval of the local funding formula for Surrey’s primary and secondary schools and to allow budgets for schools to be submitted to the DfE by the deadline of 22 January 2025 and funding rates for early years providers to be set by the required deadlines.

(The decisions on this item can be called-in by the Children, Families, Lifelong Learning & Culture Select Committee)