Agenda item

Langley Hall Free School - Exceptional Circumstances Business Case

Minutes:

8.25pm: Mr Eaton and Mr Carlton joined the meeting

 

George Grant outlined the supporting report, which was a request to consider a change to the local funding formula to include an exceptional circumstances (premises) factor with effect from 2018-19 on behalf of Langley Hall Primary Academy (LHPA).  Members noted the Local Authority (LA) was in a neutral position and it was for Schools Forum to decide the outcome, taking account of a consultation with all schools. .

 

Mr Eaton introduced himself as Advisor to Governors on Commercial Strategy and Mr Carlton as Chair of Governors of LHPA.  The Chair invited Mr Eaton and Mr Carlton to present their case:

 

Mr Eaton explained LHPA had grown quickly and, in order to meet demand, a business case had been submitted to the DfE to open another site. Approval had been received, with the second site opening to Reception, Years 1 and 2.  The annual rent was £271,000 (lease cost for the lower school site of £216,000 per annum and the catering facility lease of £55,000 per annum). The school had been able to meet this at the time of opening but this was now proving difficult.

 

It appeared that the rental cost of other free school buildings was met by the ESFA, thereby placing the school at a disadvantage.  The original business case had indicated the rental cost could be met by the school and, due to this; the ESFA had rejected the school’s application for financial support.  The site had been completely refurbished and it had been necessary to acquire a further site to provide the catering facilities, all at additional cost to LHPA.  Since submitting the original business case GAG funding had been reduced and the financial situation had changed.  The ESFA had proved difficult to deal with but the school would continue to press them. It was reported that this issue was impacting on finances although the budget was managed well and the lease represented 9.7% of the budget. 

It was asked if the expansion had been part of SBC’s strategy at the time and it was not.

 

Sally Eaton confirmed that LHPA had been the first free school to open in the area and the original business case showed that the school had consulted with SBC, who had been fully aware of the planned expansion.  It was understood that other free schools claimed back such rental monies.

George Grant highlighted the impact to schools on the appendix (page 42) which was based on the current formula.  Cate Duffy pointed out that the outcome could result in funding being removed and transferred to LHPA. It was agreed the list of schools provided should be checked to ensure that it contained accurate details.

 

The purpose of the report was to obtain the agreement of Schools Forum to consult with all schools and feed back to the November Schools Forum meeting. It was agreed this issue should be consulted upon.

It was suggested it would be worth establishing what the arrangements were for free schools elsewhere and that there should be a joint approach by the LA and Schools Forum to the ESFA. Cate Duffy proposed the LA could contact both the ESFA and Regional Commissioner and offered to progress this, parallel with the consultation.

 

It was agreed the consultation should contain reference to the matter being progressed with the ESFA and should include further financial information from LHPA which would be forwarded to Nic Barani or George Grant. The time frame was tight with SASH due to meet the following week.

 

It was confirmed there was 23 years rental left to run for the main lease. Concern was expressed about the amount of money over 23 years and about revenue funding an essentially capital cost. One member asked who owned the land and it was stated that it was a private landlord.

 

It was pointed out that a number of schools were now in a deficit position and it was questioned whether LHPA was in a similar situation. Mr Eaton confirmed there had not yet been a need to submit a deficit budget but the school had cut back on educational resources which were all documented. It was stressed that such savings were having to be made by a number of local schools who were already in deficit.

 

It was noted that the name of the school needed to refer to Langley Hall Primary Academy.

 

It was agreed that a ‘Survey Monkey’ survey would be circulated to all schools with the necessary supporting information and that the outcome would be reported back to Schools Forum at the November meeting for decision.

 

9.00am: Mr Eaton and Mr Carlton were thanked for their presentation and left the meeting

 

The meeting returned to the running order of the agenda:

Supporting documents: