Issue - meetings

To consider a report of the Strategic Director of Children, Families and Adults.

Fintan Bradley, Head of Strategy, Planning and Performance, attended to provide an update on the number of conversions of maintained schools within Cheshire East to Academy status. He also outlined the financial consequences of these conversions on the Council.

The Committee was asked to consider the information within the report and provide guidance on the approach to be taken in terms of the services provided to both maintained and Academy Schools at a differentiated cost.

Outlining the pattern of conversions, Fintan Bradley reported that to date, eight schools within Cheshire East had converted to Academy status (7 secondary’s and 2 primaries) and one school had achieved Free School Status.

It was explained that these conversions were starting to have significant financial implications for the Council. Very simply, it was explained that local authorities received funding for central services provided to schools from two main funding streams – The Dedicated Schools Grant (DSG) and the Formula Grant. Academies no longer were entitled to free of charge services from the local authority and were therefore compensated through the LACSEG (Local Authority Central Spend Equivalent Grant). Central Government, recognising that there was an issue of double funding with this system sought to reduce the amount paid to local authorities through the DSG and Formula Grant. The Department for Education’s (DfE) view was that it was reasonable to conclude that local authorities should be able to make savings which were commensurate with the reduction in responsibilities which a transfer of schools to Academy status entails, and which was commensurate with the cost to the DfE of providing LACSEG. Fintan Bradley explained that this was an overly simplistic analysis as Cheshire East still had a number of statutory responsibilities that related to Academies e.g. SEN which would have to be funded with an eroded budget.

With this funding pressure in mind, Fintan Bradley outlined an opportunity that Cheshire East had to start trading with Academies in the market place for providing central services. Advice was sought from the Committee as to how this relationship might function. For instance it was queried whether the Council should open itself up to the risk of trading and if so, whether it should trade at margin which provided a surplus.

A number of comments were made regarding the potential of the Council providing services to Academies. All Members agreed that the Council should trade for profit in order to cover risk. It was stated that the Council should make full advantage of its extensive knowledge and experience in providing such services. It was noted that the Council would need to make sure that if they chose to go down this route that supported schools received the same level of service as Academy schools who were buying it in. Fintan Bradley, acknowledged that this would be a challenge.

A number of concerns were also expressed with regard to the changing relationship between the Council and Academy status schools. In particular a number of comments were made about the  ...  view the full minutes text for item 133