COUNTY BOROUGH OF BLAENAU GWENT
REPORT TO: /THE LEADER AND MEMBERS OF THE EXECUTIVE COMMITTEE
REPORT SUBJECT: / 21st CENTURY SCHOOLS – REALLOCATION OF FUNDINGREPORT AUTHOR: /
M. JONES – EDUCATION TRANSFORMATION MANAGER
LEAD OFFICER/ DEPARTMENT /interim DIRECTOR OF EDUCATION
Summary Report
1.0 /PURPOSE OF REPORT
The purpose of the report is to determine where the residual funding, in respect of the 21st Century Schools programme, should be spent and to also respond to the recommendations contained in the recent Gateway Review.2.0 /
LINK TO CORPORATE STRATEGIES
- Medium Term Financial Strategy;- Corporate Improvement Plan;
- Post Inspection Action Plan (PIAP);
- 21st Century Strategic Outline Plan (SOP); and,
- Strategic Asset Management Plan 2012-2015
3.0 / SUMMARY/PROPOSALS
The report provides a clear direction for the residual funding for 21st Century Schools programme and provides an update on the overall cost of the programme.
4.0 /
RECOMMENDATIONS
It is recommended that the Chair of the Recovery Board approves the following;- the reallocation for the funding for the Band A proposals;
- confirms that the enlarged Glyncoed Primary School will now not take place and that consultation on a new primary school in the Abertillery area should take place; and
- reinforces the previously agreed approach on the use of revenue savings to contribute to the Council’s savings, targets and/or raise prudential borrowing on a project by project basis.
INTERIM DIRECTOR OF EDUCATION
DETAILED REPORT
1. PURPOSE
The purpose of the report is to determine where the residual funding, in respect of the 21st Century Schools programme, should be spent and to also respond to the recommendations contained in the recent Gateway Review.
2. BACKGROUND
2.1 In December 2011, the Welsh Government announced their in-principle allocation of capital investment, to support the Council’s 21st Century Schools Programme, to improve learning environments and raise educational outcomes.
2.2 In 2010, the original schemes contained within Band A are as follows;
Welsh Medium Secondary £1m
Abertillery (primary) £8.5m
Tredegar (primary) £8.9m
Remodelling of Coedygarn, Ystruth
and Roseheyworth £1.85m
Total £20.25m
3. PRESENT POSITION
3.1 In the Autumn Term 2013, the Education Commissioner agreed that the consultation in respect of the Ebbw Fawr North proposal be concluded and requested that a further report be produced detailing where the residual capital funding should be spent to deliver the 21st Century Schools Programme (Band A).
3.2 During the Autumn term, Council also participated in a Welsh Government Gateway Review process and the delivery confidence assessment for the Band A programme was assessed as “Amber”. The definition of this being “successful delivery of the project/programme appears feasible but significant issues already exist requiring management attention. These appear resolvable at this stage and if addressed promptly, should not present a cost schedule over-run”.
3.3 The Gateway Review report had five recommendations and this report responds to the first three recommendations, which were;
3.3.1. The programme team should re-confirm in conjunction with the corporate/executive team, the strategic and other parameters for inclusion of projects within the programme to avoid further false starts.
3.3.2. The programme should review how costs and funding arrangements are derived and used to achieve clarity and consistency in budgeting and financial reporting.
3.3.3. The programme should consider the ability and benefits of capitalising the costs of the programme/project team and technical and professional services.
3.4 In the original Strategic Outline Programme which is summarised in 2.2, Welsh Government were briefed on the outcome not to proceed with the closure of Rhosyfedwen Primary School. Welsh Government colleagues were approached on their views regarding the reallocation of 21st Century Schools funding to alternative projects. The view was that a review of Blaenau Gwent’s Band A proposals was acceptable, however, they were also clear that the Council would need to remain within the overall cost profile of the programme i.e. £20.25m. Moreover, Welsh Government had already received the Outline Business Case for the Abertillery project and were unable to seek 21st Century Schools panel endorsement until appendix A was submitted. This course of action was agreed with Joint Chief Education Officer and the former Education Commissioner.
3.5 The revised 21st Century Schools Band A proposals include the following changes;
§ Welsh Medium Secondary
The budget allocation has increased from £1m to £2m. There are ongoing regional meetings (Greater Gwent) to find a solution and the primary options involve either a new build and/or a significant investment to an existing building. Consequently, the budget estimate has been increased to reflect Blaenau Gwent’s contribution to meet our statutory obligation to secure places for Welsh learners, subject to the development of the Strategic Outline Case across the region and precise costings and how they are allocated proportionately to each council.
§ Abertillery Primary Replacement
The replacement Abertillery Primary proposed costs have increased from £8.5m to £9.182m. A detailed cost analysis identified additional costs associated with the challenging topography of the existing Abertillery Primary School site. Welsh Government have visited site following the submission of the Strategic Outline Case, and understand the rationale for increasing the budget estimate. The Council has now received confirmation from WG on the Outline Business Case and has been invited to proceed to full Business Case.
§ Additional Primary School in the Abertillery area (Six Bells)
In the Autumn 2013, the former Education Commissioner/ Executive decided not to proceed with the publication of a Statutory Notice to close a primary school in Ebbw Fawr Valley. Consequently, the funding that was earmarked to support this school reorganisation needed to be reallocated to an alternative proposal. The Council has reviewed the performance of primary school provision within the Sirhowy valley and found that standards were improving, surplus places were reducing and therefore, the need to undertake statutory school reorganisation at this time would not be appropriate and a decision was taken to monitor the situation. However, in the case of primary school provision in the Abertillery area, significant places still exist, the conditions and suitability of buildings were classified as a “C” and the improvements in standards were not evidential as in other areas of the Council. The Council now intends to bring forward further school reorganisation proposals in the Spring term 2014 to close a further two primary schools and open a second new primary school in the Abertillery area.
An initial feasibility study (at no cost to the Council) has been carried out on the former Six Bells Colliery site. The site can accommodate a primary school and the cost estimate £6m is considered appropriate to develop a standardised design building.
§ Tredegar Comprehensive School
The Council’s capital programme includes a sum of £1m to invest in Tredegar Comprehensive School. This was primarily driven by the need to reduce secondary surplus places following post 16 reorganisation. Recently, an in-house condition assessment has categorised the building as ‘D’ which is defined as ‘Life Expired’. Consequently, Blaenau Gwent are seeking to match the capital programme investment of £1m with £1m from the Welsh Government’s 21st Century Schools programme.
§ Welsh Medium Primary Provision and Ystruth
The original plans of remodelling Coed y Garn and Roseheyworth have become a lesser priority (£1.85m). The revised Band A proposal is now £1.068m to deal with the need to stimulate Welsh medium primary provision and the completion of a previous scheme at Ystruth Primary School.
3.6 The revised Band A programme remains within the £20.25m cost envelope and is detailed below;
£Welsh Medium Secondary / 2.0m
Abertillery (Primary) / 9.182m
Additional Primary School in the Abertillery area / 6.0m
Tredegar Comprehensive / 2.0m
Welsh Medium Primary provision and Ystruth / 1.068m
20,250,000
3.7 The revised 21st Century Schools programme will require statutory consultation.
4. PROPOSAL
It is proposed that the Chair of the Recovery Board approves the following;
- the reallocation for the funding for the Band A proposals;
- confirms that the enlarged Glyncoed Primary School will now not take place and that consultation on a new primary school in the Abertillery area should take place; and
- reinforces the previously agreed approach on the use of revenue savings to contribute to the Council’s savings, targets and/or raise prudential borrowing on a project by project basis.
5. STATEMENT ON FINANCIAL IMPLICATIONS
5.1 The Council has secured an in-principle £20.25m funding for a range of new school buildings/improvements across the school estate. During the full Council meeting held on 11th July 2013, Members confirmed the match funding element for the programme. The match funding requirement is 50% against WG funding, therefore, the £10.125m (match funding) as agreed by Council is still required to fulfil the Band A proposals.
In addition, the Executive Committee are asked to note that SLT and the Director of Resources had agreed to review the prudential borrowing arrangements on a project by project basis. As there is a new project (Six Bells), the Executive Committee are asked to approve that the premises related costs for Bryngwyn and Queen Street Primary School of £60,536 (based on 2012/2013 budget) are earmarked to support the 21st Century Schools programme and in doing so, achieve a fully funded programme.
Funds for each project within the programme are accessed using H.M. Treasury five case business model approach.
5.2 Capitalising Costs
The 21st Century Schools programme (Band A) represents a further significant investment into the infrastructure of the Council. Such a large scale programme of works will require an increased level of support from officers with specialist knowledge in shaping the programme. It is, therefore, proposed that officer posts at a cost of £122,000 per annum are charged to the programme and are included within the £20.25m cost envelope.
6. STATEMENT ON PERSONNEL/STAFFING IMPLICATIONS
There are personnel implications associated with this large scale programme and these are detailed in 5.2.
7. STATEMENT ON CONSULTATION WITH OTHER
DEPARTMENTS
HUMAN RESOURCES / CHIEF LEGAL OFFICER / MONITORING OFFICER / DIRECTOR OF RESOURCES / S.151 / OTHERü / ü / ü / SLT
CMT
Chair of the Recovery Board
8. STATEMENT CONFIRMING THAT CONSIDERATION
HAS BEEN GIVEN TO
All appropriate legislation has been complied with.
9. CONCLUSION
The Council in implementing the Band A proposals contained within the 21st Century Schools programme aims to provide an improved school infrastructure that will support the raising of standards.
10. RECOMMENDATIONS
It is recommended that the Chair of the Recovery Board approves the following;
- the reallocation for the funding for the Band A proposals;
- confirms that the enlarged Glyncoed Primary School will now not take place and that consultation on a new primary school in the Abertillery area should take place; and
- reinforces the previously agreed approach on the use of revenue savings to contribute to the Council’s savings, targets and/or raise prudential borrowing on a project by project basis.
INTERIM DIRECTOR OF EDUCATION