A request was made by the Schools Forum to apply to the Department for Education to request the ability to vire funding from the Central Schools Funding Block to the Higher Needs Funding Block of the Dedicated Schools Grant, to help support children with special educational needs, alternative provision, special schools and excluded pupils.

The Council is due to receive a decision on this request in February and the Chief Finance Officer as holder of the funds on behalf of the Schools will need to take a formal decision to vire the money between the two funding blocks.

TheChief FinanceOfficer inConsultation withDirector ofChildren's Services and TheMayorsubmit anapplication tothe Secretaryof Stateto seekapproval fora virementof £1.359million (1.79%)from thecentral schoolsblock tothe higherneeds block of the DSG.

TheSchool Forumand HigherNeeds RecoveryGroup haveworked fora yearto consider the optionsavailable toboth managethe demandon thehigher needs budget andreduce thedeficit. TheSchool Forumhave receivedindependent advice from aspecialist consultantand lookedat goodpractice fromother LocalAuthorities.

TheDSG isa ringfenced specificgrant, providedoutside thelocal government finance settlement.  As thefunding isring-fenced,there isno requirementfor local authorities totop-up thegrantfrom generalfunding orfrom non-ringfenced revenue reserves.

Therecovery plan(including thevirementapplication)is inline withthe Department for Educationexpectations thatsteps shouldbe takento ensurestatutory services are providedwithin theannual fundingenvelope.

TheSchool Forumand HigherNeeds RecoveryGroup haveconsidered arange of options in formulatingthe recoveryplan.The minutesofallSchoolForum meetings can befound usingthe followinglink. http://www.torbay.gov.uk/DemocraticServices/ieListMeetings.aspx?CId=659&Year=0

28^th November 2018

TheLocal Authorityreceives aring fencedgrant forschools, earlyyears providers and higherneeds pupilswithin Torbay.The HigherNeeds Blockof theDedicated SchoolsGrant (DSG)is facingsevere financialpressure thatneeds tobe addressed as a matter ofurgency.  In2017/2018 theDedicated SchoolsGrant wasoverspent by £983,000. Avirement of 0.5% fromthe SchoolsBlock in2018/2019 reducedthis pressure to £614,000.However, giventhe pressureis increasing in2018/2019 due torising numbersof pupilswith Education,Health andCare Plans(EHCPs) and increased costs,there isa needto finda long-termsolutions tothe pressures.There is noDedicated SchoolsGrant (DSG)reserve. Thecarry forwardpressure from 2017/2018 placesthe reservein anegative positionof £614,000.  Given thelocal authoritiesoverall financialposition, especiallythe increasingsocial carepressures, there is littleif noscope tomake availableany corporatefunding toalleviate High Needs pressures. Thereisequally nobasis forthe localauthority tooccur thecosts that sit withinthe DedicatedSchools Grant.

SchoolForum (thestatutory bodyfor thedelivery ofthe DedicatedSchools Grant) working withofficers havegenerated anumber ofoptions thatcan beadopted to reduce thepressure onthe HigherNeeds Budgetin thefuture.  Howeverthe deficit position needsto beaddressed.

SchoolForum inpartnership withthe ChiefFinance Officerrecommendsthatan application is submittedto theSecretary ofState tovire £1.359 million (1.79%of the DSG)from theCentral SchoolsBlock tothe HigherNeeds Blockof theDSG.

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