The report of the Directorate Finance Lead – Children and Schools  is attached.

The Forum considered a report of theDirectorate Finance Lead – Children Services and Education which discussed the outcome of a consultation across Manchester schools to understand their views on the proposals to further develop a single national funding formula (NFF) system to direct funds to schools.  The Forum had previously considered the details of this consultation, along with the anticipated financial impact of the NFF and Manchester’s draft response to the consultation at its September 2021 meeting.

The Senior Finance Manager – Schools  introduced the item with a focus on the updated consultation responses in light of the consultation having closed after the report’s publication. She asked the Forum to note that since the report’s publication a total of 44 schools out of 180 had responded to the consultation.

In  response to the question on the whether the Local Authority should begin transitioning from the Local Funding Formula (LFF) to the National Formula Factor (NFF) in 2022/23, a total of 37 schools were in favour, 1 school did not agree and 6 schools were unsure. Numerous of schools had requested information about what their individual budget share would amount to  under the different models however, as was the case for Forum members in the September, this information could not be provided due to the level of information that had been provided by the ESFA.  A few schools reported that they lacked sufficient information to respond, leading them to respond as ‘unsure’. The school that did not agree with transition in 2022/23 commented that they acknowledged that the  LFF was very generous with regard to levels of deprivation in the city in contrast to the NFF. A majority of schools had agreed with the proposed transition, commenting that it would be prudent to begin a gradual and longer transition period, that it would facilitate strategic budget planning and would enable a real-time analysis of impact.  In addition, comments were submitted to the effect that the proposed model would reduce the reliance on the Minimum Funding Guarantee.

In response to the question on whether the  Local Authority should introduce the NFF Free School Meals (FSM) factor into the LFF in 2022/23, a total of 37schools were in favour of the introduction, since it was felt it would help target deprivation levels in the city  given the number of schools with FSM eligible pupils.  No schools were opposed, however 7 schools responded as ‘unsure’ citing that they did not have enough information to respond.  The Senior Finance Manager – Schools feedback that there had been  some themes of uncertainty emerging form the consultation in respect of whether this would replace the LFF’s FSM6 factor. She, however, asked the Forum to note that this would be an additional factor to the pre-existing one.   Another concern which arose from the question was  whether this would create an additional administrative burden. The Senior Finance Manager – Schools asked the Forum to note that this would not be the case as it would be derived from the pre-existing administrative activity.

A member commented on the number of schools (44 out of a possible 180) that had responded to the consultation.  The Directorate Finance Lead – Children Services and Education advised that whilst the number appeared low, this was relatively high return rate for a school funding consultation.  She added that the technical nature of the questions and inability to provide information on individual school budgets may however have influenced a reluctance to respond to the consultation.

Decision

To note the consultation outcome.