Agenda item

Cabinet RESOLVED to:

2.1       note the findings from the MNS review at Appendix 1.

2.2       note that the current model of Croydon’s MNS is not financially sustainable to guarantee their future viability as funding is insufficient to cover the costs in some of the MNS, alongside declining birth rate. 

2.3       approve Croydon’s new operating model for its MNS, which is for each MNS to establish, at least, a ‘soft’ federation - formally collaborate - with the governing body of a primary school, special school, or academy trust through a Service Level Agreement (SLA). This is in line with Model – Aii – referred to in the MNS review at Appendix 1.

2.4       note that three of Croydon’s MNS – Thornton Heath, Tunstall, and Purley – are already linked successfully to a primary school via an SLA or a federation and have a balanced budget.

2.5       note that the other two MNS – Federation of Crosfield and Selhurst – are not linked to a primary school and have a deficit budget.

2.6       strongly recommend that the Governing Body of the Federation of Crosfield and Selhurst Nursery Schools accept and support Croydon’s new operating model for MNS and start the process immediately to establish a ‘soft’ federation with a primary school, special school, or academy trust through a Service Level Agreement (SLA), by January 2025.

2.7       authorise officers to work with Crosfield and Selhurst (Federation) Nursery schools to broker and identify a suitable primary school, special school or academy trust to create a ‘soft’ federation through an agreed Service Level Agreement. If the Federation of Crosfield and Selhurst, does not respond positively, robustly, or rapidly to the recommendation by the Council and the requirement to achieve a balanced budget by the 2025/26 financial year then the Council could intervene by issuing a warning notice to the governing body and appoint an Interim Executive Board (IEB) on the grounds of poor financial management.

2.8       As a consequence of recommendations 2.6 and 2.7, confirm that, if the MNS follow these proposal the need to reduce the number of Maintained Nursery Schools in Croydon through closures or mergers, will not be pursued, at this stage.

The Executive Mayor introduced the Future Options for Maintained Nursery Schools Report which highlights the significant steps taken, and proposed plans to keep all five of the maintained nurseries in the borough open.

The Cabinet Member for Children and Young People, Councillor Maria Gatland shared that she was pleased to bring Cabinet positive recommendations which will help to secure long term viability. Cabinet noted that three of the nurseries were already linked to a primary school and have a balanced budget. There is no assurance that the two maintained nursery schools in deficit can come to balance this year on their current plan without the soft federation which would enable them to share operating costs and crucially remain open.

The Director of Education, Shelly Davis was invited to provide advice. The Director of Education advised that the request from the Overview and Scrutiny committee for an additional 12 months is not recommended as the plans submitted by the maintained nursery school is demand led and predicated on the deficits being cleared fully by 2028/29 although with an in-year surplus in the next academic year. Whilst the plan indicates an in-year balance and surplus budget, regard is needed to the cumulative deficit and the time frame. A soft federation is necessary to secure the financial viability of the maintained nursery schools, further this action is needed urgently within this financial year.

The Executive Mayor brought the part B papers into Part A.

The Shadow Cabinet Minister for Children and Young People, Councillor Amy Foster asked whether there was willingness to explore the long-term impact that the decision has had on Crossfield and Selhurst’s funding and the length of time it is taking them to pay off that deficit?

The Director of Education, Shelly Davis responded that budgets received by the maintained nursery schools is through the dedicated schools grants, a budget predicated on pupil numbers and therefore the lowest budgets will be as a result of having the lowest numbers of pupils therefore over a significant number of years various options have been explored in relation to the deficit budget, enough time has been given to enable decisive action to be taken. The recommendations within the report for a soft federation is in order to bring some pace to the work that is ongoing.

The Shadow Cabinet Minister for Children and Young People, Councillor Amy Foster followed by seeking a response around the difference in spaces that are used in the morning and afternoon slots, the number of pupils and the disparity.

The Director of Education, Shelly Davis highlighted the additional funding the nursery schools also received through the supplementary funding, whilst there is funding through the number of pupil's all of the maintained nursery schools have received additional supplementary funding to enable them to meet their budget requirements.

Cabinet Member for Finance, Councillor Jason Cummings sought confirmation that there is nothing inherently different between the maintained nursery schools in how they are funded it is just due to circumstances which the Director of Education confirmed.

The Shadow Cabinet Minister for Children and Young People, Councillor Amy Foster questioned whether the council should be concerned about any measure that could see schools losing qualified and experienced special educational needs staff who work hard for families in the borough.

The Director of Education, Shelly Davis responded that it is important to note that the three maintained nursery schools that already sit under the federation model are judged by Ofsted to be good, it's also important to note that in developing a soft federation there's an opportunity to actually utilise the skills, knowledge and expertise across a wider staffing network across both of the schools which should be seen as a positive way of supporting children with special educational needs and disabilities.

The Cabinet Member for Finance, Councillor Jason Cummings asked if there was any evidence that moving to a soft federation leads to a reduction in standards.

The Director of Education, Shelly Davis confirmed that there is no evidence and provided reassurance to Cabinet that all schools in Croydon including maintained nursery schools are allocated a link advisor, it is the responsibility of the link advisor to provide challenge and support and would intervene if there were any issues in relation to a decline in standards

The Executive Mayor moved the recommendations as per the report and noted that Cabinet agree the response to the Executive recommendations concerning the future options for nursery schools from the Scrutiny Committee as discussed this evening. Cabinet

RESOLVED: to

2.1      note the findings from the MNS review at Appendix 1.

2.2     note that the current model of Croydon’s MNS is not financially sustainable to guarantee their future viability as funding is insufficient to cover the costs in some of the MNS, alongside declining birth rate. 

2.3     approve Croydon’s new operating model for its MNS, which is for each MNS to establish, at least, a ‘soft’ federation - formally collaborate - with the governing body of a primary school, special school, or academy trust through a Service Level Agreement (SLA). This is in line with Model – Aii – referred to in the MNS review at Appendix 1.

2.4     note that three of Croydon’s MNS – Thornton Heath, Tunstall, and Purley – are already linked successfully to a primary school via an SLA or a federation and have a balanced budget.

2.5     note that the other two MNS – Federation of Crosfield and Selhurst – are not linked to a primary school and have a deficit budget.

2.6     strongly recommend that the Governing Body of the Federation of Crosfield and Selhurst Nursery Schools accept and support Croydon’s new operating model for MNS and start the process immediately to establish a ‘soft’ federation with a primary school, special school, or academy trust through a Service Level Agreement (SLA), by January 2025.

2.7     authorise officers to work with Crosfield and Selhurst (Federation) Nursery schools to broker and identify a suitable primary school, special school or academy trust to create a ‘soft’ federation through an agreed Service Level Agreement. If the Federation of Crosfield and Selhurst, does not respond positively, robustly, or rapidly to the recommendation by the Council and the requirement to achieve a balanced budget by the 2025/26 financial year then the Council could intervene by issuing a warning notice to the governing body and appoint an Interim Executive Board (IEB) on the grounds of poor financial management.

2.8     As a consequence of recommendations 2.6 and 2.7, confirm that, if the MNS follow these proposal the need to reduce the number of Maintained Nursery Schools in Croydon through closures or mergers, will not be pursued, at this stage.