The Schools Forum met on 11 March 2026 to discuss the financial health of schools within the borough, with a particular focus on the 2025/26 revenue monitoring and the proposed budget for the 2026/27 Early Years Block. Key decisions included noting the revenue monitoring report, approving the 2026/27 Early Years Block Budget, and noting the Deficit Schools Framework and Safety Valve Update.

2025/26 Revenue Monitoring Report

Al Moore, Finance Business Partner, presented the 2025/26 Revenue Monitoring report, indicating no significant changes since the January update. The Schools Block was tracking on budget, with updated allocations from the Department for Education (DfE) expected at the end of the month. The Early Years Block was awaiting spring census submissions to calculate clawback or reimbursement from the DfE. The Central Services Schools Block (CSSB) was slightly overspent due to licence costs carried forward from the previous year without inflation.

The High Needs Block (HNB) reported a £19.1 million overspend, consistent with January figures. Al Moore expressed cautious optimism that this figure would reduce by year-end due to ongoing negotiations with Health for funding and existing contingencies within the SEND return system. A positive reduction in growth rates for the HNB, now in single digits, was noted, although the budget set in October 2024 was considered slightly outdated. The £19 million was viewed as a worst-case scenario for 2025-26.

Expenditure on Independent Non-Maintained Special Schools (INMSS) had reduced, reflecting efforts to build capacity within the system to lessen reliance on these institutions. Mark Wieder, Primary Headteacher at Aldryngton School and Vice Chair of the Forum, acknowledged this positive trend but raised concerns about the mainstream budget being £1.6 million below budget, questioning if this was due to the new SEND banding tool. Al Moore clarified that expenditure was still growing, albeit at a slower rate than budgeted, and that updated modelling for the new banding framework showed funding at approximately 96% of the old framework. Ming Zhang, Service Director for Education and SEND, reiterated that the banding review aimed for more equitable assistance and focused on school inclusion.

The report was noted by the Forum.

2026/27 Early Years Block Budget

Al Moore presented the 2026/27 Early Years Block Budget report. The budget was broadly in line with January communications, with the Task and Finish Group finalising it following DfE guidance not to factor the additional 20p rate for three and four-year-olds into the base rate. The allocation was approximately £36 million, with national funding rates increasing across all age groups. The pass-through rate had increased from 96% to 97%, and increases were made to the Pupil Premium and the Disability Access Fund (DAF). The DfE's move to termly funding was seen as a positive step. Locally, the quality supplement had been removed and integrated into the base rate. A contingency of approximately 0.8% was included.

Ian Morgan, Independent Provider Representative, confirmed broad alignment and good financial management, but questioned how the shift of money from central retention to the HNB would work as central government takes more responsibility for high needs. The budget was noted by the Forum.

Deficit Schools Framework

Ming Zhang explained that a growing national challenge was the increasing number of schools in deficit, requiring clear local authority plans and support. The presented framework outlines the LA's approach to identifying, monitoring, and supporting schools in financial deficit or difficulty, including criteria for deficit action plans, recovery trajectories, and LA intervention processes. Al Moore confirmed this was a developing process for both schools and the LA, aiming to provide clarity on governance, monitoring, and controls. The report was noted by the Forum.

Safety Valve Update

Ming Zhang advised that the DfE was closing the Safety Valve programme from April 2026, transitioning to a broader financial support system with a new High Needs Stability Grant. For the current academic year, the DfE agreed to contribute 90% of the cumulative HNB deficit, conditional on the production of a Local SEND Reform Plan within 9-10 weeks. This plan was broader than just SEND/EHCPs, encompassing upstream inclusion in mainstream schools, and required the involvement of school leaders. Al Moore found the certainty regarding cumulative deficit support encouraging.

Councillor Prue Bray, Executive Member for Children's Services, highlighted the lack of detail regarding the 90% write-off and noted that the cancellation of Safety Valve meant expected payments had ceased. Uncertainty remained for the next two financial years, with firm information not expected until autumn. Iain Thomas questioned the timelines for information release to schools and the impact of removing 0.25% from school budgets. Councillor Bray responded that details were unknown and would be shared as soon as available. Ming Zhang clarified that the 0.25% related to the proportioning of the overall Dedicated Schools Grant (DSG) and stressed that school leaders should shape how these resources were utilised for school inclusion support. The report was noted by the Forum.

Schools Forum Forward Plan

Angela Blogg, Schools Finance Manager, presented the Forward Programme of work. Ming Zhang suggested embedding discussions on DSG support for mainstream school inclusion into future agendas, linking with other groups' work. Future meeting dates were confirmed. The Forward Programme of work was noted by the Forum.

The meeting also confirmed apologies from Brian Prebble and Lindsey Humber, and the minutes of the previous meeting held on 14 January 2026 were confirmed as a correct record. There were no declarations of interest.