The Formula Review the story so far

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The Formula Review the story so far

• David Smith
• Executive Director Business Support Services
• Wigan MBC
• Treasurer
• Greater Manchester Fire and Rescue Authority

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• Settlement Working Group meetings and sub-groups
• Dedicated Schools Grant formula review
• Alternative approaches?

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Settlement Working Group

• Outline DCLG work programme
• Suggestions from Local Authorities
• Continuation with settlements based on the
  consultation for November 2008 and 2009

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Area Cost Adjustment

• Scope
• General Labour Market
• Lower limit
• Data sources
• Geography
• Labour cost weights

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• Worcestershire paper
• Use of private sector wages alone
• Revealed preference
• Impact of equal pay?
• Some support for GLM
• Some questioning of role of ACA

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Highways maintenance

• How long are your roads?
• GIS data
• Own data returns
• Urban / Rural split
• Regression updates forcing factors

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Fire and Rescue

• Update of the expenditure data
• Deduction of pension costs
• Change in weights
• Major shifts in grant
• Start of the review two initial meetings

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EPCS

• Re-run regressions with new data
• Flood defence and Coast protection formula vs
  past spend
• Fixed costs uprate?
• Concessionary fares in two tier areas

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Data and Capital

• Day visitors
• Income support / Tax credit
• No MRP requirement replace it?

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FRS17 and the expenditure figures

• Include or not?
• Changes in definitions
• One for the technical experts?

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Students

• Students and Council Tax base
• Manchester City Council / Core cities paper
• 31st May
• May and October
• Long term trends in numbers

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Further work?

• Suggestion from Local Authorities
• Younger Adults? DH no
• PSS Peer Review? DH no change
• Consultation on Social Care funding long term
  issue
• DCFS Youth and Communities possibly?

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• Suggestions from Local Authorities 2
• 2011 Census outside the time frame
• Resource equalisation no
• Data collection on concessionary fares impact
  yes for Counties and Unitaries to undertake

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Settlements 2009/10 and 2010/11

• Debate about re-opening
• Formal process November 2008 /2009
• Credit Crunch initiatives?
• Capital
• Special grant?

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School funding - aims of the system

• Deliver resources to where most needed and can be
  used most effectively, to raise educational
  achievement, narrow achievement gaps and improve
  well-being
• Create incentives to support efficient use of
  resources
• Do so in a way that ensures stability, simplicity
  and transparency

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Childrens plan

• Raise educational achievement of all children and
  young people
• Narrow gaps in educational achievement between
  all children, including those from disadvantaged
  backgrounds
• Improve all aspects of childrens well being

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Dedicated School Grant Formula Review

• Focus on outcomes for Children
• Further review of the formula started Feb 08
  decisions in Summer 2010
• 14-19 agenda
• Early years
• Additional needs and deprivation
• Sparsity / Home to School Transport

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• Slow start to discussions
• Background of less cash in the system
• Complex 14-19 agenda with transfer of LSC funding
  / diplomas etc
• Pupil Count
• Connexions and Youth / Community block
• Early years

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Incentives?

• Ministers keen to explore this
• Collaboration
• Pupil premiums
• Efficiency and value for money
• Workforce improvement
• Supporting wider outcomes

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Deprivation and other factors

• Link between SEN and AEN
• Aspiration and motivation
• Mobility causes and impact limited benefit?

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Sparsity and Home to School

• Protection of small rural schools?
• Impact of school size?
• Collaboration?
• Change before 2011 census data?

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Council Tax

• Below 5 again
• Any prospect for reform?

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Alternatives?

• Council Tax freeze for at least two years?
• Full funding for first 2.5 of spending increases
  floor at 2.5?
• Wasteful consultants and advertising
• End of final salary pension schemes

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• Independent grant commission?
• Australian example? Commonwealth Grants
  Commission / State level funding commissions
• End of ring-fencing

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Summary

• Tougher climate
• Little sign of re-opening of discussions on
  funding
• Early days but reluctance to change formula
  unless it is necessary? Focus on stability?

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Thank you - any questions