Council and democracy

Introduction and background (Section 52 2003/2004 Archived Document)

Background

The format of this year's Section 52 budget return has been amended to tie in with the new LEA/Schools Budget split, in accordance with the new Education Funding System.

We have also taken the opportunity to review thoroughly the way the information is completed. For example, personnel costs, which previously had been spread out over other heads within the LEA Budget, are now more accurately reported as statutory and regulatory duties, in strict accordance with guidance notes.

The changes in the format of the return for 2003/4, and in the way we have treated overheads, make year on year comparisons more difficult.

The common format of the return, as set by statute, provides an opportunity for schools and others to compare funding and methodology between different LEAs and to inform debate about budget levels and the distribution of resources.

2003/04

With the introduction of the new funding system from April 2003, formal delegation targets have been dropped. The relationship between an authority's LEA and Schools Budgets is now largely determined by the split in the funding system.

The DfES has now established a target Schools Budget figure for each Authority. The target Schools Budget calculated by the DfES is consistent with the Authority passing on the increase in schools funding and the Schools Budget. The Authority agreed a Schools Budget of £532.95m for 2003/04, equivalent to passporting a Schools Budget of 103.4%.

Members made a decision to protect the Schools Budget this year, following the disappointing settlement for Hertfordshire alondside the discontinuation of a significant number of Standards Fund grants. These grants include those for:

• School Improvement
• Social Inclusion
• Newly Qualified Teachers
• Recruitment and Retention

The Schools Budget figure includes funding to recognise the lost grants, together with an additional £1.4m to assist schools in budget management and planning for the challenges that are predicted for 2004/05.

In addition, funding from the School Standards Grant and the Standards Fund totalling a further £56.6m, is available within the Schools Budget block.