Agenda item

PFI Proposal

Minutes:

LA requested the use of £500k from DSG Schools Block to fund the PFI affordability gap, which is currently paid from SBC’s general fund. This request arises from SBC funding reductions, conversion of two of the three PFI schools to academy status, and the move towards the National Funding Formula.

 

There was some discussion and a number of questions raised.  Officers were asked to define the DfE ‘clear advice’ referred to in the report and it was confirmed that this was from conversations with LA officers and emails.

 

Nicky Willis noted that only one of the two maintained ‘PFI’ schools would convert by 1st September and the other was a later time frame. 

 

It was asked what risk there was to the schools involved if the request was not agreed; this was not clear and was referred to as a ‘grey area’.

 

Kathleen Higgins clarified that the move to academy status makes no difference to the affordability gap and the DfE does not expect the PFI schools to pick up the affordability gap. She stated that fact that they have commenced the process of converting to academy status has not led to this needing to be addressed; this has been an ongoing issue for a considerable time.

 

Jo Rockall referred to the last line of paragraph 4.4: With the EFA’s new way of working they would require that all schools’ costs and budgets are within the DSG School Block Budget.  She asked what evidence there was of this given that the DSG is revenue funding. David Johnson referred to the PFI itself being capital but the gap between the Revenue Support Grant (RSG) was revenue.

 

Angela Mellish asked where the requested £500m would come from and it was confirmed that this would reduce the DSG.

 

John Constable referred to headteachers understanding the financial position and pressures for SBC but also referred to increased costs and the budget pressures for schools requiring headteachers to put the interests of their schools first.

 

Maggie Waller was sympathetic to the pressures faced by SBC but referred to the commitment given to schools at the time the PFI was undertaken that there would not be an adverse impact on schools.

 

The first phase of the DfE consultation on the National Funding Formula included a question about PFI and this has not been concluded so that this request seems premature.

 

The proposal was rejected as Schools Forum felt it was unwise to agree to any reduction in funding available for school budgets given the uncertainties about future funding.

 

Supporting documents: