Decision details

RESOLVED:

That the Cabinet:

1)    Approve the Dedicated Schools Grant budgets for 2025/26 as set out in paragraph 1.2, Table 2 below. 

2)    Approve the Primary and Secondary schools block funding formula for 2025/26 as set out in paragraph 2.3 below.

3)    Note the Early Years Funding Formula allocation, for which a consultation with Early Years providers is currently underway as set out in paragraph 3.2 and 3.8 below.

4)    Note that the indicative budget for the High Needs block was set out in the Council’s DSG Management Plan submission to the DfE and that the final 2025/26 income and expenditure budgets for the High Needs Block was dependent on the decisions taken by the DfE in relation to the School Block Transfer disapplication.  This has now been updated and a revised DSG Management Plan will be updated in due course to reflect the Secretary of State’s decision to award a 0.5% Schools Block Transfer as set out in Table 2 below.  

5)    Should any further Council approval regarding the Schools Budget 2025/26 be required, agree to delegate authority for this to the Leader of the Council, in conjunction with the Cabinet Member for Finance & Transformation and Cabinet Member for Children, Families & Education and in consultation with the Corporate Director of Finance, to determine under urgency provisions.

6)    Request the waiver of the scrutiny call-in period, in accordance with constitutional obligations, so that schools can be formally notified of their approved individual budgets by the 28th February 2025.

Reasons for decision

The Cabinet Member for Children, Families & Education introduced the Schools Budget for 2025/26, seeking Cabinet approval for block funding allocations for schools and early years provision following consultation with Hillingdon's Schools Forum. The Cabinet Member noted that the Schools Forum had rejected the Council's request to transfer 1.9% from the schools block to the high needs block for 2025/26, and this request had also been rejected by the Department for Education. Consequently, the budget had to be amended, which contributed to the deferral of the matter to this Cabinet meeting.

The Cabinet Member noted that the Council was managing significant levels of underfunded demand from central Government within the 0-25 year old education envelope and the high costs of independent and non-maintained special needs placements, which were stated to have increased by 164% between 2014 and 2023. The Cabinet Member highlighted the Council's proactive efforts to expand in-borough special needs pupil places, reducing reliance on out-of-borough placements. This included increased primary specialist resource provision, designated unit places in secondary schools, and an expansion of post-16 places.

Regarding the early years allocation, the Council was required to pass through a minimum of 96% of funding, up from 95% last year, following the 2023 previous Government decision to expand early years and childcare entitlement for eligible working parents. The Cabinet Member advised that the early years funding group would meet at the end of February to discuss proposed changes for 2025/26, and the Cabinet was asked to agree on delegated authority to determine these changes under urgency provisions after the consultation concludes.

The Leader of the Council thanked the Cabinet Member and the education team for their work in managing support for SEND and other pupils. The Leader emphasised that the Government was not adequately funding local authorities and education, leading to a reliance on local authorities to cover deficits. With the Schools Forum not agreeing to the block transfer, the Leader advised that the Council would review service levels to balance the budget and prevent the deficit from growing further.

In considering all factors, Cabinet agreed the Schools Budget and given the urgency of ensuring school budgets were notified to schools by 28 February, requested the waiver of the scrutiny call-in period.

Alternative options considered and rejected

Cabinet could have decided to recommend that the Schools Forum reconsider the proposed funding for schools.