Archived decisions

COUNCIL MEETING, 16 MAY 2005

REPORT OF THE

Cabinet / Leader

PART II

CONSULTATION ON NEW SCHOOL FUNDING ARRANGEMENTS FROM 2006/07

1. The Government is proposing fundamental changes in respect of school funding arrangements from 2006/07. The Department for Education and Skills (DfES) has consulted the County Council on the detailed proposals relating to the introduction of the Dedicated Schools Grant (DSG) and three year budgets for schools on an academic year basis rather than the current financial year arrangement. Members of the Cabinet received an initial report in July 2004 highlighting the Government's intention to create a DSG and expressed strong concern at the further significant erosion of local authority control that would be the inevitable result of the proposals.

2. Further to this, the Cabinet considered a detailed report on this complex matter at its meeting on 25 April 2005 setting out how the dedicated schools budget would work and comparisons with the current funding system; the effect the introduction of the grant would have on council tax; the issues surrounding three year and academic year budgets; and the overall implications for the County Council. The Cabinet expressed a number of concerns, namely that the introduction of these proposals would signify further extensive upheaval to the funding arrangements for schools and the knock-on effect this would have to the rest of the grant system; affect people's understanding of how council tax is used to support education; require additional mechanisms in order to ensure a smooth transition in respect of the further changes to the distribution of grant; the potential use of business rates as a means of eliminating revenue support grant shortfall; and the cost and complexity of moving to academic year allocations. Furthermore, the proposed changes would not help the integration of Children's Services with schools funding in regard to the work currently being undertaken by the County Council to implement the requirements of the Children Act 2004.

3. The Cabinet approved a response which will be submitted to the DfES in the prescribed format to meet the consultation deadline of 13 May 2005. The content of the response will have an effect on all the aims of the Corporate Strategy but in particular Aims 1 and 5 (Maximising life opportunities and Improving services). A copy of the County Council's substantive response is available in the Members' Rooms and additional copies can be obtained on request from Democratic Services in the Chief Executive's Department.