03 December 2015 Walsall College Steve Sawbridge, AoC … WM...Liverpool City Region (Nov 2015) West...
Transcript of 03 December 2015 Walsall College Steve Sawbridge, AoC … WM...Liverpool City Region (Nov 2015) West...
03 December 2015 Walsall College Steve Sawbridge, AoC West Midlands
A generally positive picture: Growth up
Inflation down
Employment up
But … Increased growth and employment are not generating the anticipated
level of tax receipts … at least we thought so six months ago
Debt continues at high levels so interest on debt remains high
Borrowing is slow to fall
So … Continued austerity and cuts to public funding but not as bad as we
thought
Source: Office for Budget Responsibility, Nov 2015
National base rate for 16-19 years maintained for 4 years
Core adult skills participation budget fixed in cash terms
Apprenticeship levy 0.5% on payrolls over £3 million
FE loans extended to 19 to 23 year olds on Level 3 and 4 courses
Sixth form colleges given an option to convert to academy status
But
£160million savings to be made in 16-18 budget
£360million savings from the adult skills budget
The commitment to maintain the 16-18 base rate together with the lagged funding methodology helps
Some certainty on the aggregate adult skills budget
But
Increased competition and a declining 16-18 cohort don’t
Continued shift towards apprenticeships with some funding uncertainty
Introduction of loans for 19-23 year olds
Devolution of the non-apprenticeship budget to Combined Authorities
Devolution and localism
Growth and productivity
3 million apprenticeships over lifetime of this Government
National colleges (and Institutes of Technology)
Area reviews and financial viability
Academisation - 500 more free schools and a UTC within reach of every city
Funding protection for 5-16 education along with a national funding formula
Source: SFA, College Finance Record/Financial Forecasts
85.2%
8.9% 0.4% 5.3% 0.2%
Funding body grants
Fee income
Research grants and contracts
Other income
Endowment and investment income
Source: Skills Funding Agency analysis of college financial records 2013/14
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
GFEC SFC All
EFA income
Skills Funding Agency income
European income
Higher Education income
All other income
Source: Skills Funding Agency analysis of college financial records 2013/14
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29
Source: Skills Funding Agency analysis of college financial records 2013/14
Some or all of the following:
Positioning the college to deliver apprenticeships
Managing the cost of curriculum delivery
Property sales to release cash (only open to some colleges)
Relentless focus on student/employer demand and quality
Collaboration and / or restructuring – Area Reviews
Robust strategy and sound strategic planning
Managed diversification …
… or retraction from adult provision
Planned risk-taking
Strong, positive, realistic leadership
Higher education (full-time and part-time)
International activity (here and overseas)
Pre-16 education (14-16, school partnerships/sponsorships)
High need pupils (16-25 or even younger age groups)
Back-to-work programmes (eg Work Programme)
Offender learning (prisons and probation)
Full-cost courses
Non-education revenue
On-line learning
Financial
How well does the college understand its current and future financial position, and what steps is it taking to remedy any issues identified?
Operational
How does the college identify, monitor, benchmark and respond to financial Key Performance Indicators?
Strategic
What steps has the college taken, or have planned, to respond to internal and external influences that impact on its capacity to offer appropriate and high quality provision ?
Constituent members
Birmingham City Council
Coventry City Council
Dudley Metropolitan Borough Council
Sandwell Metropolitan Borough Council
Solihull Metropolitan Borough Council
Walsall Metropolitan Borough Council
City of Wolverhampton Council
Non constituent members
Cannock District Council
Nuneaton and Bedworth District Council
Redditch District Council
Tamworth District Council
Telford and Wrekin Council
Black Country LEP
Greater Birmingham and Solihull LEP
Coventry and Warwickshire LEP
An overarching Strategic Economic Plan for the West Midlands
Access to finance and a Collective Investment Vehicle
Getting the transport offer right for the long term to improve connectivity and access to HS2
Creation of an economic policy and intelligence capacity to generate an evidence base
A joint programme on skills
Plus
The West Midlands Productivity Commission
The West Midlands Land Commission
The West Midlands Commission on Mental Health and Public Services
West Midlands Combined Authority launched July 2015
Submission of devolution deal September 2015
Shadow Board established September 2015
Devolution deal agreed November 2015
Vesting date April 2016
Elections for Mayor May 2017
Addressing poor skills and economic exclusion
System simplification
Strengthening the connectivity between supply and demand
Devolution of all employment and skills funding
Alignment with the WM CA Employment and Skills Strategy
Devolution deals (pre* & post election)
*Greater Manchester (Oct 2014)
Sheffield City Region (*Dec 2014, Oct 2015)
*London (Mayor) (Feb 2015)
*West Yorkshire (Mar 2015)
Tees Valley (Oct 2015)
North East (Oct 2015)
Liverpool City Region (Nov 2015)
West Midlands (Nov 2015)
City regions that want to agree a devolution deal in return for a mayor by the Spending Review will need to submit formal, fiscally-neutral proposals and an agreed geography to the Treasury by 4 September 2015.
Control of an additional £36.5 million per year funding allocation over 30 years focused on economic growth
A directly elected Mayor by May 2017
Significant responsibilities for transport including public transport and highways
Fully devolved funding for adult skills from 2018/19
Joint responsibility with DWP for employment support for ‘hardest to reach’
Creation of a further Enterprise Zone around the HS2 terminus
Support for extensions of the Metro in Birmingham and The Black Country
Planning powers which mirror those of the Homes and Communities Agency
Further public service reform including possible devolution of the youth justice service
Almost identical to proposals in other devolution deals (Liverpool, Sheffield, Tees Valley etc.)
Devolution of ‘other’ Adult Skills Budget i.e. not Apprenticeships nor 16-18 funding but does include funding for 19+ continuing students
Creation of an Employment and Skills Strategy taking into account the wider LEP geography
Outcome agreements with providers about ‘what should be delivered in return for allocations’
Employment and Skills Strategy developed in partnership with colleges and providers following Area Reviews
CA responsible for chairing subsequent Area Reviews which will include analysis of all post-16 education and training
For 2016/17:
Development of a series of outcome agreements with providers in return for 19+ allocations
‘Single block’ allocation for 19+
For 2017/18:
Freedom to vary allocations within an agreed framework
For 2018/19:
A new funding formula for allocation to Combined Authorities
Fully devolved responsibility for allocations to providers set against agreed outcomes
Contingent on readiness conditions being met
Legislation to transfer responsibilities is in place
Completion of Area Reviews
Agreed arrangements to secure a sustainable and financially viable post-16 provider base
Arrangements to share with central Government financial risk and management of post-16 providers
Arrangements for funding and provider management including financial assurance and minimum standards
The Mayor Who is this likely to be?
Level of public mandate / support
The political geography Metropolitan council versus three LEP geography
Telford and Wrekin Unitary Authority included as non-constituent member but is outside both the West Midlands metropolitan area and the three LEP area
Some district councils within the three LEP geography have not yet and may not opt for non-constituent membership
The position of Warwickshire County Council (in the LEP but not the CA)
Relationship with the three LEPs at individual and CA levels Creation of a single LEP?
Splitting Telford and Wrekin from The Marches LEP?
Public engagement Little sign of any meaningful consultation to date
Timescale Widely anticipated to slip
Outcome agreements At individual provider level or agreed collectively with groups of colleges / providers?
How will success be measured?
CA knowledge and capacity to agree and implement these effectively
Tendency for micro-management
New Employment and Skills strategy
An opportunity for colleges?
Evidence base drawn from existing strategies / Strategic Economic Plans
Area reviews Position of the Birmingham and Solihull review in relation to a future Combined Authority wide
review
Reviews chaired by the lead authority for skills across the CA (currently Chief Exec of Solihull MBC)
All post-16 provision to be included in the initial phase but recommendations focused only on colleges
Future funding methodology
A locally determined allocations methodology (‘agreed framework’) from 2017/18
Capability to develop this locally
Apprenticeships are now the cornerstone of the skills system
3 million apprenticeships will have started by 2019/20
Government spending on apprenticeships including income through the levy will be double that in 2010/11 (circa £2.2bn)
Employers in control of funding through a new levy
A new employer-led body to set standards and ensure quality
0
100000
200000
300000
400000
500000
600000
2010/11Not comparable with
subsequent years
2011/12 2012/13 2013/14 2014/15
Appr
entic
eshi
p St
arts
Academic Year
16-18
19+
All ages
Standards designed by employers will replace existing Frameworks, target date 2017/18.
New standards clear and concise, written by employers and no more than a few pages long.
All Apprenticeships will last a minimum of 12 months.
All Apprenticeships will have an independent end-point assessment.
Apprenticeships will be graded for the first time.
Employer-led ‘Trailblazers’ are leading the way in implementing the new apprenticeships.
They are working together to design apprenticeship standards and assessment approaches for key occupations in their sectors. More than 1000 employers in over 70 sectors are currently involved.
More than 230 standards have been developed, or are in development
More than 100 employer groups have been established
£2 from government for every £1 that an employer invests in delivery and assessment, up to a pre set cap
English and maths (Level 1 & 2) fully funded and additional learning support is available as needed.
Employer Incentive Payments (16-18s. Small business, completion)
Unclear what happens regarding incentives within the Levy