Rachael presented to members the latest Financial report, detailing a final outturn position of £3.174 million in deficit. The challenges are in relation to the EHCP's in year adjustments and the other packages for EHCP pupils and SEND personal budgets (bespoke packages).

A detailed breakdown on the Early Years block as well and the position moving forward. We anticipate that the Early Years block will be in the region of £9000 overspent at the end of this that was overspent by about £9000. Members were asked to note that this is anticipated at this point because the final adjustment figures don't come through till July from the ESFA for the early years block. Given the nature of Early Years funding over the last 12 months trying to anticipate how the funding is going to work given the opening and closing of provisions during that period of time, It was felt that this was a relatively strong budget position to be in at the at the end of the year.

The most significant area of concern remains in the Higher Needs block. This is where we get challenged by the ESFA regarding our rates of EHCP's and our request for statutory assessments. Dorothy explained that when a new education, health and care plan is issued, there is a calculation that's done by the monitoring team regarding Element 3 funding. We are finding on an increasing scale that schools are not accepting that first calculation and coming back and requesting significantly additional Element 3 funding. School forum needs to be considering how to address that, needing to look at what schools are investing from the delegated pot rather than their overreliance on element 3 funding.

Independent schools fees have risen during this financial year. You would have noted in papers that we came forward and told you that Preston Bridge was opening in our area as a new Independent School. And we have seen some parents requesting that provision and we haven't had a counter argument or a counter offer for those children, which would have not been overruled at tribunal. So we have had to place some children in that independent provision as well.

Dorothy noted that some of the Devon children placed at the independent schools provision have subsequently selected to move into a house in Torbay, meaning that these children come on to our financial pages as well, and that it wouldn't be right to then cease that provision or try to find an alternative for those children as well.

Mike Lock asked that given Torbay spend just over £3,000,000 on independent placements as a percentage how does that compare with other local authorities? Dorothy stated that this is low when compared to other LAs.

Officers are going through bespoke packages trying to look at whether those packages coming out of COVID can now be stepped down and children can return into a mainstream offer with support, as well as scrutinizing very closely any new requests for bespoke packages. Meetings are planned for the 9^th and 10^th June. Rachael asked that if anyone is keen to be part of that, to let her know.

Rachael asked members to note that the Special Schools block came in under spent this year and we have managed the numbers well in compared to our Commissioning at the start of the year. So congratulations to all involved. There has been significant demand for places as well and that was a positive part of the higher needs block that was that was managed effectively.

But it leaves us still in the position that we are in the £3.174 million deficit at the end of this year, with now a cumulative overspend of £8.999 million, ahead of the safety valve conversation due to commence with the ESFA on the 25th of May.

After conversations with authorities that have already been on the safety valve, Martin said that the safety valve agreement comes with significant challenge back to the local area to do things differently. The expectation ahead of the meeting on the 25th is that we will put forward a further savings plan to the ESFA. At the moment officers are going through the Written Statement of Action to identify any of those trajectories to then say where they would have financial implications. Rob and Martin are talking to our finance colleagues at Devon later on today to find out their experiences from their first meeting.

Members noted that although we are having safety valve conversations, we still can't expect that to necessarily happen. It is important to make sure that we are as successful as we can be in that process, and we need to be confident that it can be delivered and everybody in the system has to be working towards that same objective, so that we can secure the additional funding/support coming into the area.