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Agenda Item 20 Agenda Item 20 Not for publication Exempt information relating to the financial and business affairs of any particular person (including the authority holding that information). The information contained in this report is strictly confidential and in accordance with the appropriate Codes of Conduct, must not be disclosed to unauthorised persons. Report to Cabinet 22 June 2016 Subject: Schools Capital Programme 2016/17-18/19 (Key Decision Ref. No. LR04) Presenting Cabinet Leader of the Council Member: 1. Summary Statement 1.1 This report seeks approval to continue with the provision of new school places through the Schools Capital Programme following the Department for Education (DfE) announcement in March 2016 of the Authority’s Basic Need funding allocation for 2018-19 in the sum of £X…...........X. The announcement follows confirmation in February that the DfE had allocated £X…………X School Condition funding to the Authority. 1.2 The proposed projects reflect the funding levels and priorities identified by the present Government to create new school places and maintain existing school buildings. Having addressed the demand for primary places across the borough the council’s attention now turns to focus on ensuring a sufficient supply of school places are provided within the secondary estate, as those children born in 2007/08 start to enter year 7. Based on current projections the council needs to deliver an additional 10 forms of entry by September 2019. What is more difficult to predict is the continuing impact that retention and inward migration rates will have on the future school population. 1.3 In order to meet the demand for places in September 2018 three secondary schools have already been identified for expansion: [IL0: UNCLASSIFIED] (i) Q3 Academy Langley allowing the Academy to move to a full Published Admission Number (PAN) of 240 for September 2017 rather than 2018 to meet the demand for places in Smethwick/ Oldbury; (ii) Ormiston Sandwell Community Academy (OCSA) increasing its PAN to 210 from September 2018 to meet the demand for places in Oldbury / Tipton; and (iii) RSA Academy increasing its PAN from 190 to 240 from September 2017 to meet the demand for places in Tipton. 1.4 The programme will ensure the council can continue to meet the demand for places across the six towns. Feasibility work will also continue to be undertaken on those secondary schools who have expressed an interest in expanding. 1.5 The recent White Paper ‘Educational Excellence Everywhere’ set out the Government’s aspiration to make every school an academy by 2022. If enacted, this would take away all responsibility from local authorities to maintain local schools in good condition unless there is a change to the roles and responsibilities of LAs. However, whilst the Government has now stepped back from this blanket approach to academisation there will be some further academy conversions for underperforming schools in the coming years. Therefore, for the foreseeable future, the council will remain responsible for the majority of schools in the borough and will continue to receive School Condition funding to address building and site issues. 1.6 The programme aligns to service needs so that the Council is able to meet its statutory responsibility of ensuring every child in Sandwell has access to a good school place by seeking to build on its commitment to expand successful and popular schools. 1.7 It is proposed to meet the estimated capital cost of £X…………..X from the total available resources of £X………...X: [IL0: UNCLASSIFIED] £ Unallocated resources X…………..X Reallocation of approved Basic Need funding (1 X…………X additional secondary form of entry in Smethwick) Basic Need Allocation 2018/19 X…..………X School Condition Allocation 2017/18 X………..X Total available resources X………….X 1.8 A full appraisal has been undertaken by Strategic Finance. A copy of the report can be found at Appendix 1. Some risks have been identified as a result of the appraisal and action points recommended to mitigate these risks. 1.9 An Equality Impact Assessment (EIA) initial screening has been undertaken. The screening identified that there will no adverse impact on people or groups with protected characteristics as a result of the proposals contained within the report. A full EIA is not therefore required. However, it has revealed that as the council has a statutory duty to provide a sufficient number of school places for all children in Sandwell, all groups are potentially affected by the policy of expansion. This proposal demonstrates that this is uniformly applied in response to where pupil demand is expected although size and type of expansion is restrictive as it is dependent on the availability of government capital funding. Further details are attached for your information. 2. Recommendations 2.1 That the Schools Capital Programme 2016/17-18/19 be approved as follows:- • - Q3 Academy Langley (Phases 1(b) and 2), Moat Road, Oldbury, B68 8ED; - The expansion of Ormiston Sandwell Community Academy, Lower City Road, Tividale, Oldbury, B69 2HE; - The expansion of RSA Academy, Bilston Road, Gospel Oak, Tipton, DY4 0BZ; - Lightwoods Primary School (lower site), Wolverhampton Road, Oldbury, B68 0LP; - One form of entry in Wednesbury North Ward; - Summerhill Primary School, Upper Church Lane, Tipton, DY4 9PF. • Feasibility work for future secondary school expansions. [IL0: UNCLASSIFIED] 2.2 That £X………X of the Department for Education School Condition Allocation be used to support cyclical maintenance. 2.3 That subject to 2.1 and 2.2 above, the remaining £X…...……...X funding be retained until feasibility has been undertaken on proposed schemes for 2016-2019, which will be subject to a further report submitted to Cabinet. 2.4 That subject to paragraphs 2.1, 2.2 and 2.5, the Director – Governance enter into any legal agreements on terms agreed by the Director of Children’s Services, as required, to allow building works to be completed on all proposed sites. 2.5 That in connection with 2.1 and 2.4 above, the following action points identified within the appraisal report be implemented to reduce any risk to the council:- • Regular financial monitoring updates on individual projects should be provided to the Cabinet Member for Finance and Resources, highlighting variations of spend against original estimated costs. Remaining funds should be returned to the unallocated Schools Capital Programme; • Approval should be sought from the Cabinet Member for Finance and Resources to utilise the 5% contingency; • Individual Risk Registers for each project should be produced to manage the risk to the Council; • Ensure that procurement of contracts is undertaken in accordance with the Council’s Procurement and Contract Procedure Rules, and Standing Order Regulations; and • That the Council enters into such form of legal agreements as required to allow extension works on all proposed sites. Matthew Sampson Director of Children’s Services Chris Ward Director - Education [IL0: UNCLASSIFIED] Darren Carter Section 151 Officer Contact Officers Martyn Roberts, Team Lead – Planning, Education Support Services, Learning Services Tel: no. 0121 569 8341 3. Strategic Resource Implications 3.1 The estimated cost of the identified new work is £X…………….X and is allocated as follows: Project Contractor Design F&E Total £000’s £000’s£000’s £000’s Q3 Academy Langley X.….X X….X X...X X.….X (Phase 2) Ormiston Sandwell X.….X X..X X..X X.….X Community Academy RSA Academy X.….X X..X X..X X.….X Lightwoods Primary School (Wolverhampton X..X XX XX X..X Road Site) One form of entry in X..X X..X Wednesbury North Ward Summerhill Primary X.….X XX XX X.….X Programme Contingency X..X X..X XX X...X (@5%) Feasibility – Secondary X..X X..X Schools expansions School Condition X.….X X..X X.….X X….…X X.….X X..X X…...X The direct allocation of Basic Need funding received from the DfE is based on the annual School Capacity return submitted to the Department. With the latest announcement of £X……….X for 2018/19 this provides total available resources to the Authority of £X……….X to fund the Schools Capital Programme. [IL0: UNCLASSIFIED] Approval to the Schools Capital Programme 2016/17-2018/19 is sought to allocate a proportion of those resources to fund individual school projects and ensure a sufficient supply of school places. School Condition funding continues to be allocated on a yearly basis and is based on the number of maintained schools the council remains responsible for. This provides a total available budget of £X…………...X and is made up as follows: £X…..X Unallocated resources X…….X Reallocation of resources X…..X Basic Need 2018/19 X……X School Condition X…..X There is no time limit on the resources being spent. The Government’s recent White Paper, “Education Excellence Everywhere”, sets out proposals to move to a system where every school is an Academy by 2022, taking direct responsibility away from Local Authorities. Until the outcome of the White Paper is fully understood and implemented, the council will continue to be responsible for the maintenance of its maintained schools. Therefore the intention is to continue to support the School Repair Account with an allocation of £X…X. The remaining balance of School Condition will be held back pending a decision on the replacement of Causeway Green Primary School. Provision must also now be made for the next phase of school expansions to ensure the sufficient supply of places as the 2007/08 birth cohort of pupils enter Year 7 in 2019/20. Without the further expansion of schools there would be an immediate shortfall in supply of places to meet demand. Q3 Academy Langley, which opens in September 2016, have agreed to move to a full PAN of 240 from September 2017 rather than 2018 in order to assist the Authority in meeting demand for places in Smethwick and Oldbury.
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