The Schools Forum was scheduled to discuss the Dedicated Schools Grant (DSG) for the 2026/27 academic year, including its allocation and projected expenditure. A significant portion of the meeting was also dedicated to reviewing the ongoing Dedicated Schools Grant (DSG) deficit recovery plan, addressing the substantial financial challenges faced by the council in this area.

2026/27 Dedicated Schools Grant

The meeting was scheduled to review the final Dedicated Schools Grant (DSG) allocation for the 2026/27 academic year. This grant is divided into four blocks: High Needs, Early Years, Schools, and Schools Central. The report pack detailed the expected gross and net grant funding for each block, totalling £441,410,188.

Within the Schools Central Block, an expenditure of £2,989,773 was forecast against a grant of £2,329,773, requiring a £660,000 contribution from the Council's core funding. This block saw an increase due to the inclusion of separate grants, but a decrease in pupil numbers led to a net reduction in the grant.

The Early Years Block was projected to receive £68,573,869 in grant funding, with expenditure forecast to match this amount. This block saw a significant increase due to government changes, including the full implementation of provisions for working parents and under-twos, and adjustments to hourly rates for various age groups. The report highlighted that the Council is permitted to retain a portion of this funding for staffing and support, provided a minimum pass-through rate of 97% to settings is maintained. A contingency of £490,000 was included due to the uncertainty of take-up and volatility of some funding streams.

The Schools Block was allocated £296,898,709. This funding increased by £10.5m, primarily due to an uplift in the per-pupil unit of funding, partially offset by a reduction in pupil numbers. The report detailed changes to the National Funding Formula (NFF) for 2026/27, including the integration of previous grants and the setting of minimum per-pupil funding levels. The report recommended Option 4 for modelling the NFF, which involved increasing the Average Weighted Pupil Unit (AWPU) factor by £9 per pupil and maintaining a 0.0% Minimum Funding Guarantee (MFG). This option was favoured for providing maximum MFG protection and greater funding for schools.

The High Needs Block was allocated £73,607,837, but expenditure was forecast at £85,078,869, resulting in an expected deficit of £16,505,000 for the year. This block continues to face significant pressures due to increased volume and complexity of needs, with a predicted cumulative DSG deficit of £42,346,000 by the end of the 2025/26 financial year. The report noted that while additional grant funding has been provided, demand continues to outstrip supply, exacerbated by a lack of local specialist provision. The statutory override, which allows local authorities to disregard DSG deficits in their main revenue budgets, has been extended to March 2028.

DSG Deficit Recovery Plan

A significant focus of the meeting was the DSG Deficit Recovery Plan. The report highlighted the national context of a substantial cumulative DSG deficit across local authorities, with projections indicating a significant increase nationally. It noted that Bromley had been one of the last London boroughs to enter a deficit position, with its deficit projected to reach £42.3m by the end of 2025/26 and £77.4m by year-end 2027/28, even with proposed mitigations.

The plan outlined existing workstreams and proposed actions to transform the local SEND system and drive future sustainability. Key proposed mitigations included the establishment of two new specialist satellite provisions, funded by a £9.044m allocation from the Department for Education (DfE) for 152 places, aiming to deliver these several years earlier than anticipated under DfE delivery. Another proposed mitigation involved establishing mini specialist provisions within mainstream schools, supported by the LA, to cater for the most vulnerable and high-needs pupils.

The report also detailed a number of specific actions aimed at reducing costs and improving efficiency within the SEND system. These included restructuring of SEN Statutory Assessment Teams to increase capacity and reduce caseloads, the introduction of a High Cost Placements Panel to review the most expensive placements, and the wider rollout of Universal, Targeted and Specialist models for Speech and Language Therapy and Occupational Therapy. Recommissioning of SEN tuition packages and the development of enhanced in-house tuition provision were also proposed to reduce costs. A review of residential placements and a streamlined Annual Review process for Education, Health and Care Plans (EHCPs) were also part of the proposed actions. The plan also aimed to increase the capacity of local specialist provision, such as Alternative Provision Resource (ARP) bases, and to focus on the cessation of EHCPs where appropriate.

The report also referenced the outcome of the Local Area SEND inspection in September 2019, which identified areas of strength and 18 key areas for improvement, with the local area not being required to provide a written statement of action. The report indicated that progress had been made in a number of areas since that inspection.