The Schools Forum met on Wednesday 8 July 2026 to discuss the financial health of schools within the borough, including the Dedicated Schools Grant (DSG) outturn position and school balances. The Forum also reviewed the forward plan for reports in the upcoming year and noted updates on Children's Services fees and charges.

Forward Plan of Reports 2026-27

The Schools Forum noted the forward plan of reports for the 2026-27 municipal year. This plan includes standing items such as Dedicated Schools Grant (DSG) updates and National Funding Formula Review updates. The Forum also discussed the possibility of holding some future meetings virtually, with a preference for the January and July meetings to be conducted online, while the October and December meetings would remain in person.

2025-26 Dedicated Schools Grant (DSG) Outturn Position

The Forum was presented with the outturn position for the 2025-26 Dedicated Schools Grant (DSG). Members noted an in-year deficit of approximately £18.9 million and an accumulated DSG deficit of approximately £27 million. The majority of this overspend was attributed to the High Needs Block, driven by the continued demand for SEND services and the cost of independent special school placements. The Forum was informed that the Local SEND Reform Plan had been submitted to the government and, if approved, the authority anticipated receiving a High Needs Stability Grant equivalent to around 90% of the accumulated deficit (£24.3 million). The remaining £2.7 million would continue to represent an ongoing financial pressure. The Accountancy Business Change Manager expressed confidence in the robustness of the reform plan submission and its prospects for approval, noting that initial feedback had been positive.

2025-26 Revenue & Capital School Balances

The report on the 2025-26 revenue and capital school balances indicated a reduction in total maintained school reserves from £6.4 million to £2.9 million. Over the past five years, school balances have decreased from £13.2 million to £2.9 million, now representing only 1.44% of annual school budgets. The Forum acknowledged the ongoing financial pressures faced by schools, including declining pupil numbers, rising staffing and pay award costs, inflation, energy costs, and expenditure related to SEND. Discussions also covered the sustainability challenges posed by falling pupil numbers, the progress of deficit recovery plans, the strategic management of school places, and the impact of population changes across the borough. It was noted that schools with deficit balances ranged from approximately £12,000 to £850,000, with some deficits being of a scale that might not be recoverable within the standard three-year deficit recovery period. The Accountancy Business Change Manager confirmed that deficit recovery plans are assessed by a review panel comprising finance and education officers, who consider financial positions, long-term sustainability, recovery plan viability, and the impact on educational provision and staff wellbeing. The Forum agreed that recovery plans should continue to be reviewed on a case-by-case basis to ensure they are achievable and sustainable. The Forum also highlighted the importance of schools with significant surplus balances having clear plans for utilising these funds for the benefit of pupils. It was confirmed that four schools currently held uncommitted surpluses above the permitted threshold and were being asked to provide details of their proposed spending plans, with a report on this to be presented to the Forum.

2026-27 Dedicated Schools Grant (DSG) Funding Update

The Schools Forum received an update on the 2026-27 Dedicated Schools Grant (DSG) funding. Overall DSG funding had increased, but this was offset by a reduction of 1,098 pupils compared to the previous year. The Forum noted the allocation of the Inclusive Mainstream Fund (IMF) to schools to support inclusion activities, with schools receiving IMF funding required to publish an inclusion strategy. The de-delegated budget had decreased due to declining pupil numbers, and continued pressures remained on trade union and support service budgets. The High Needs Block remained under significant financial pressure, with projected future overspends, and the approval of the Local SEND Reform Plan was deemed critical to addressing these challenges. The Forum discussed the impact of falling rolls across primary and secondary sectors, the long-term sustainability of SEND funding, the practical implications of inclusion requirements for school leaders, workforce challenges including educational psychologist recruitment, and the importance of monitoring whether planned reforms delivered improved outcomes and value for money. It was agreed that the impact of the SEND reforms would be reviewed after one year of implementation and a report presented back to the Forum.

Children's Services Fees and Charges 2026/27

The Strategic Lead for Inclusion and Place Planning presented the report on Children's Services fees and charges for 2026/27. It was noted that most traded services would see an inflationary increase of 3.8% for the upcoming financial year. These increases would apply to a range of services, including the Attendance and Advisory Service, Secondary Inclusion Service, Educational Psychology Service, Outreach Counselling, Governor Services, School Improvement, and Performance Analysis Services. The Forum noted that the proposed increases were considered reasonable in the current financial climate, and no formal consultation had been undertaken as services had historically absorbed inflationary pressures where possible.

Attendance Record

The Schools Forum noted the attendance record for the Forum meetings.