Agenda item

Cabinet noted the following:

Ø  the forecast position for DSG spend in 2022/23 to 2026/27

Ø  the overarching issues that have resulted in the DSG deficit and the actions taken to date to address these

Ø  the Council has been taking part in the ‘safety valve’ intervention programme with the DfE and has submitted its final proposal for addressing the deficit on the High Needs Block.

The Lead Member for Financial Oversight & Council Assets introduced a report that updated on the High Needs Budget position and the progress to date on the Dedicated Schools Grant (DSG) Management Plan 2022/23 to 2026/27.

The background to the current position was summarised and it was noted that in May 2021 the DSG was heading towards a cumulative deficit of more than £40m by 2026/27 and overspending by £7m per annum in 2020/21 with no plan to deal with these issues.  A significant amount of work had been undertaken since May 2021 to address the problem, including a major cost reduction programme that was forecast to bring the DSG back into in-year balance by 2025/26.  The Council had participated in the DfE Safety Valve programme and had formally submitted a plan to DfE in January 2023 which, if successful, would see the historic deficit of £27m finance by the DfE.  The outcome of the submission was awaited.  If successful, it was essential that the Council kept DSG in balance, otherwise the historic deficit would fall back to the Council.  This would take sustained and proactive leadership and resources to ensure it could be delivered.

The Cabinet discussed the potential timeframe for staged payments to the historic deficit and asked if the Council would still have sufficient officer resource and expertise to manage it.  The decision of the DfE was expected by the end of March and there would be regular monitoring and reporting.  Members commended all the officers involved from finance, education and across the Council who had contributed to important work to address the issues.

The Cabinet then agreed to recommend the report to full Council.

Recommended – That the following be noted:

(a)  The forecast position for DSG spend in 2022/23 to 2026/27.

(b)  The overarching issues that had resulted in the DSG deficit and the actions taken to date to address these.

(c)  The Council had been taking part in the ‘safety valve’ intervention programme with the DfE and has submitted its final proposal for addressing the deficit on the High Needs Block.