Agenda item

To consider the report of the Chamberlain and the Executive Director of Community and Children’s Services

(Near top of agenda)

The Committee considered the report of The Chamberlain and the Executive Director of Community & Children’s Services setting out the annual submission of the revenue budgets overseen by the Education Board, noting that the proposed budget for 2025/26 has been prepared within the resource envelope allocated to each Director by the Corporation’s Resource Allocation Sub Committee.

Members noted that the provisional nature of the revenue budgets recognises that further revisions may arise from the necessary realignment of funds resulting from decisions at the Corporation’s Policy & Resources Committee and the final allocations of the school funding model, and that the provisional 2025/26 Original Budget, presented in the report, does not account for the increased rate of employer National Insurance (NI) contributions that will take effect from April 2025, at which point the budget will be revised during the financial year to incorporate these changes.

Members noted that the 2025/26 provisional revenue budget totals £3.161m, an increase of £70,000 when compared with the Original Budget for 2024/25 and that the main reasons for the increase are:

·       2025/26 local risk budgets include a 2% inflation uplift amounting to £17,000; and

·       2025/26 support services budget was increased by £53,000 due to a new basis of apportionment for all recharges.

Members commented that it would be beneficial to receive an overview of the contribution made by the Corporation to the education spend that could inform decisions on the direction of travel around education generally, noting the complexity of the wide range of funding sources.  

A Member asked for further information on the spend allocated in 2024 to City of London Academy Islington and for clarification on the ownership of the building. The meeting heard that the school building as a distinct separate entity is owned by the Trust (while the residential part is owned by the City of London Corporation), that there is a 125-year lease on the land, and that the project was undertaken by surveyors with input from the Corporation and the CoLAT. In response to a question on whether the lease specifically identifies elements held in common (such as perimeter boundaries) the meeting heard that there is no overlap though there are perimeter issues and that a joint-use agreement exists for some areas.

A Member asked that a clear delineation of the financial responsibilities around the matter be provided or circulated (see action point)

RESOLVED, That the Board

• Agree that the provisional 2025/26 revenue budget reflects the Committee’s objectives;
• Approve the budget for submission to the Finance Committee;
• Authorise the Chamberlain to revise these budgets to allow for further implications arising from the agreement by the Education Board of specific allocations of funding to individual Academies after finalisation of the schools funding model; and
• Agree that minor amendments for 2024/25 and 2025/26 budgets arising during budget setting be delegated to The Chamberlain.