14.2 Factors based on historic spend Unfunded pressures on high needs expenditure are forcing local authorities are unlikely to meet actual costs and schools to balance support for in high growth areas such as children in mainstream schools. London. For example, the business rates factor will not meet the cost of bills for new and expanding schools. A mechanism for retrospective or in-year adjustment should be introduced for these factors. 15.1 Many of the cost pressures facing The Area Cost Adjustment does not reflect the reality of spending pressures schools are the direct result of in Inner London schools. government policy, such as changes to national insurance Schools face other pressures which they and pension contributions. Any do not separate from the impact of the action the government can take to NFF. Unfunded pressures together with ease these cost pressures would the impact of the NFF will require make the introduction of a fair schools to make up to 10% revenue 15. Are there further considerations funding formula less challenging. savings, the majority of which will have we should be taking into account to be on staffing which increases the risk about the impact of the proposed 15.2 For example, the apprenticeship on sustaining the educational attainment schools national funding formula? levy will apply inconsistently of children in Westminster Schools. across schools. Whilst standalone academies are likely to be exempt, community and voluntary schools will be eligible for the levy because the local authority is classed as the employer. London Councils does not believe that this
14.2 Factors based on historic spend are unlikely to meet actual costs in high growth areas such as London. For example, the business rates factor will not meet the cost of bills for new and expanding schools. A mechanism for retrospective or in-year adjustment should be introduced for these factors. Unfunded pressures on high needs expenditure are forcing local authorities and schools to balance support for children in mainstream schools. 15. Are there further considerations we should be taking into account about the impact of the proposed schools national funding formula? 15.1 Many of the cost pressures facing schools are the direct result of government policy, such as changes to national insurance and pension contributions. Any action the government can take to ease these cost pressures would make the introduction of a fair funding formula less challenging. 15.2 For example, the apprenticeship levy will apply inconsistently across schools. Whilst standalone academies are likely to be exempt, community and voluntary schools will be eligible for the levy because the local authority is classed as the employer. London Councils does not believe that this The Area Cost Adjustment does not reflect the reality of spending pressures in Inner London schools. Schools face other pressures which they do not separate from the impact of the NFF. Unfunded pressures together with the impact of the NFF will require schools to make up to 10% revenue savings, the majority of which will have to be on staffing which increases the risk on sustaining the educational attainment of children in Westminster Schools.
a2_national_funding_consultation_appendix_1.docx