The Cabinet met on Tuesday 12 November 2024 and discussed the council's financial performance, proposed changes to the school estate, and the annual education performance review. Key decisions included approving the extension of a loan to Barking Riverside Limited and noting the projected revenue overspend for the 2024/25 financial year.

Revenue Budget and Capital Programme Update - Quarter 2 (April-September) 2024/25

The Cabinet received an update on the council's revenue and capital budget monitoring position for the 2024/25 financial year as at the end of September 2024. The report indicated a projected revenue overspend of £17.21 million for the General Fund, a significant increase from the previous quarter. This was attributed to factors including the inclusion of the 2024/25 budget gap and a reversal of a contingency release. The report also highlighted ongoing risks related to increased service demand, particularly in adult and children's social care, and potential shortfalls in income.

While the Housing Revenue Account (HRA) was projecting an underspend of £3.881 million, the Dedicated Schools Grant (DSG) budget showed a projected overspend of £4.025 million, primarily within the High Needs block. The Capital Programme for 2024/25 was forecasted to underspend by £2.096 million. The Cabinet noted the progress on savings delivery, with £3.6 million of agreed savings at risk of not being met. The council's reserves were also discussed, with proposed drawdowns in Q2 reducing the total usable reserves.

The Cabinet resolved to:

• Note the projected £17.210m revenue overspend forecast at Q2 for the General Fund for the 2024/25 financial year.
• Note the movement in reserves as set out in section 6 of the report.
• Note the progress on delivery of savings as set out in section 4 of the report.
• Note the projected £3.881m revenue underspend forecast for the Housing Revenue Account.
• Note the projected £4.025m overspend within the Dedicated Schools Grant.
• Note the Q2 Capital Programme monitoring forecast of £263.398m.
• Approve the reprofiling of the Capital Programme as set out in section 9 of the report.

Proposed Changes to the School Estate

The Cabinet discussed proposals for Roding Primary School, which currently operates across two sites, to consolidate onto a single site at Cannington Road. This proposal stems from a decline in demand for school places in the area, with current and future analysis indicating that four forms of entry (FE) are required, making consolidation onto one site more financially viable and efficient. Preliminary discussions with the Roding Primary Governing Body have been positive, with the school welcoming the proposal.

The consolidation is also seen as an opportunity to address the increasing demand for specialist education places for pupils with special educational needs and/or disabilities (SEND). The release of the Hewitt Road site could facilitate the expansion of specialist provision there, and Roding Primary could enhance its own specialist provision at Cannington Road. Feasibility studies will be undertaken to explore these opportunities. A statutory public consultation will be initiated if the consolidation is supported, with the outcome and feasibility study findings to be reported back to Cabinet.

The Cabinet resolved to:

• Note the actions being taken to manage school places across the Borough and to meet the demand for specialist places, including the potential longer-term expansion of Mayesbrook School.
• Delegate authority to the Strategic Director, Children and Adults, in consultation with the Cabinet Member for Educational Attainment and School Improvement and the Head of Legal, to commence statutory public consultation on the proposal to consolidate Roding Primary School on to a single site at Cannington Road.

Extension of Loan to Barking Riverside Limited

The Cabinet considered a report on the proposed extension of a £5.5 million loan to Barking Riverside Limited (BRL). The original loan was agreed in May 2013 to support site remediation and servicing works for the Riverview School site, with a repayment date of 1 April 2020. This was subsequently extended to 1 April 2025, with L&Q Homes Limited acting as guarantor.

BRL is currently in advanced discussions with Homes England to secure an additional £65 million in funding for the Barking Riverside development. Homes England is unable to provide funding that would repay the existing loan from Barking and Dagenham Council. Therefore, BRL has requested an extension of the loan to 31 March 2034, on the same terms and with the same guarantor. This extension is intended to enable BRL to secure the new investment, which will support continued investment in core infrastructure and facilitate the delivery of thousands of homes.

The Cabinet resolved to:

• Agree the extension of the existing loan of £5.5m to Barking Riverside Limited from the current repayment date of 1 April 2025 to 31 March 2034 based on the present terms summarised in paragraph 2.4 of the report.
• Delegate authority to the Strategic Director, Resources, in consultation with the Head of Legal, to conclude loan terms and complete the necessary legal agreements.

Annual Education Performance Review 2023/24

The Cabinet received the annual education performance review for 2023/24, highlighting both achievements and challenges. The report noted that 97% of the borough's schools are now rated 'Good' or better by Ofsted, exceeding London and national averages. Four secondary schools achieved 'Outstanding' ratings.

Key performance indicators showed improvements in Early Years Foundation Stage (EYFS) Good Level of Development and Key Stage 2 expected standards in Reading, Writing, and Maths. GCSE results for Barking and Dagenham remained above 2019 levels in all headline measures, and numbers of young people progressing to Higher Education increased, with 20% attending competitive universities. Degree-level apprenticeships also saw an increase, with placements at global employers.

However, the borough's proportion of young people not in education, employment, or training (NEET) increased slightly, surpassing the London average for the first time since 2016, although it remained below the national average. The report also highlighted the ongoing demand for specialist education places, which continued to outstrip provision despite the creation of new places.

Specific achievements for Looked After Children (LAC) were noted, with Attainment 8 results and English and Maths grades in the top national performance quartile. Positive feedback was received from Ofsted regarding Additional Resourced Provision (ARP) and SEND provision. The 'Inspiring Futures' Cultural Education Partnership is planning a creative and cultural alternative education provision for young people at risk of not accessing mainstream education, supported by a significant Arts Council grant.

The Cabinet resolved to:

• Reaffirm the Council's commitment to strengthening and developing partnerships with Barking & Dagenham's family of schools and settings, BDSIP, Barking & Dagenham College, CU London and other key partners to achieve the best possible outcomes and opportunities for the Borough's children and young people.
• Note performance against the priorities of the Education and Participation Strategic Plan 2023-26 as set out in section 2 of the report and in the dataset at Appendix A to the report.