EDUCATION ESTATES STRATEGY

Primary Head Teachers – Slide Pack

26 February 2013

The remit of the education estates strategy is to make entrepreneurial proposals to bring investment into the education estate. It builds and draws on work in 2011 on developing a needs analysis.

This involves a range of approaches from seeking alternative funding sources such as DSG on an invest to save basis from Schools’ Forum, to property development opportunities by rationalising accommodation.

The on-going challenge of meeting basic need, including for special education, requires new approaches as the availability of land and the extent of the Capital Programme will not meet the future demand.

This presentation covers:-Proposed objectives, scope and timetable for the work-Examples of data showing demands on the education estate-Examples of the proposed alternative funding approaches for debate

Milestones-Capital Programme Board November 2012 and July 2013-Schools’ Forum February 2013 and June 2013

Education Estates Strategy – Executive Summary

The Education Estates Strategy will set out proposals as to what land and buildings are proposed to be used where and when to meet the emerging demands on the Education Estate. This may require investment in order to achieve.It will set out proposals in respect of the following elements:•Mainstream primary •Mainstream secondary and post 16 •Special Education Needs•CSS•ACL

The Education Estates Strategy is supported by two further papers:•Alternative Funding Strategy – ‘getting more’•Procurement Strategy – ‘getting more for less’

In the Spring a series of specific business cases are proposed to be put forward for consideration which apply the Alternative Funding and Procurement Reports to the demands identified.

Education Estates Strategy – What is it?

• To create adequate capacity in the estate to meet Essex’s statutory responsibility to provide places for school age children.

• To provide learning settings that are in good condition and fit for purpose.

• To secure as much land as possible for use by ECC in order to meet future demands.

• To secure alternative funding sources from the government, third and private sectors to invest in the education estate.

• To create capacity of the right sort of SEN provision to reduce out-County placements and failure at defending tribunals and duty to provide to 25.

• To improve and rationalise the CSS estate.

• To extend diversity, eg offer world class performing arts provision

• To reduce the NEETs by providing adult community learning for those with disabilities

Objectives of the EES – Why?

Strategic Business Case for EES programme by November 2012

•Procurement Report - How can you get more buildings for your money? - A review of procurement and delivery opportunities e.g. off-site construction.•Alternative Funding Report - What alternative funding streams might be available? What are the strings attached to each? E.g. - invest to save business case to schools’ forum - development for alternative uses of existing sites - Cornerstone model of development - Free Schools - Social investment bonds - Schools Priority Building Programme

Outline Business Cases for specific projects to be completed between March 13 and July 13

Full Business Cases for specific projects to be completed between May 13 and September 13

Timeline of the EES – When?

2011 2016 2021

Capital investment inSEN + CSS + Maintenance

Education Capital Investment Strategy

Capital Investment inMainstream Expansion

Key FactorsAcademisation & Free schools +Historical provision imbalance +

Invest to save possibilities + Relatively static pupil population +

Falling revenue fundingKey Factors

Significant pupil growthMature National Policies on Academies

and Free Schools

Key outcomesRevenue savings +

Reduced maintenance liability + Better outcomes for most vulnerable children

Key outcomesMeeting statutory demand for places

North East

Mid

South

WestNorth EastColchesterTendring

MidBraintreeChelmsfordMaldon

SouthBasildonBrentwoodCastle PointRochford

WestEpping ForestHarlowUttlesford

Provision organisation is undertaken in three layers over different time horizons

Area District Planning Area (up to 15 per district)

Special Schools+ Post 16 + CSS provision

Secondary Schools + Special SRP

Primary Schools + Early Years

School organisation areas

Demand by District – Primary and secondary capacity up to 2034 by district (forms of entry)

Red means more places requiredGreen means less places requiredAmber means no material change

North East

Mid

South

West

CLD6) Kingswode Hoe, 7) Market Field, SCLD8) Shorefields, 9) Lexden SpringsBESD – No primary10) Ramsden Hall (secondary)

CLD1)ThriftwoodSCLD2) Edith Borthwick, 3) ColombusBESD – No Primary4) Ramsden Hall (Secondary)PD5) Southview

CLD11) Castledon, 12) Cedar Hall, 13) EndeavourSCLD14) Pioneer, 15) GlenwoodBESD – None

CLD - NoneSCLD16) Harlow Fields, 17) Oak ViewBESD – No secondary18) Wells Park

SEN Primary and Secondary Schools – Existing Provision Map

SLCN – Speech Language and Communication Needs SpLD – Specific Learning DifficultiesHI – Hearing impaired ASD – Autistic Spectrum Disorder PD – Physically DisabledCLD – Complex Learning Difficulties SCLD – Severe and Complex Learning DifficultiesBESD – Behavioural, Emotional and Social Difficulties

6 7

8

910

1

2

3

4

5

1112

13

14 151817

16

North East

Mid

South

West

Primary

Secondary

32

347

Size of arrows are indicative of numbers

40

1

45

124

7

245

11

10

3

There is no BESD provision in this area

SEN Primary and Secondary Schools– BESD Pupil migration map

North East

Mid

South

West

Primary2) CSS Centre Wivenhoe

Secondary3) CSS Centre, Colchester, Mile End4) CSS Centre Clacton5) CSS Centre Copford

PrimaryNone

Secondary1) CSS Centre HeybridgeAll age

6) CSS Centre Langdon HillsSecondary7) CSS Centre Hadleigh8) CSS Centre Fairview Basildon

PrimaryNone

Secondary9) CSS Centre Commonside 10) CSS Centre Tany’s Dell

CSS Primary and Secondary Provision – Existing Provision Map

1

2

4

3

5

6

7

8

109

Invest to Save Business Case on DSG to Schools Forum

•Does Schools Forum support the production of business cases to build new SEN provision within Essex, rather than sending children out County at higher cost to DSG?

•This is only suitable when there is evidence of a growing demand for special school places of a specific type and currently there are children with those needs in out County placements – such as Autism Spectrum Disorder (ASD) and Behavioural, Emotional and Social Difficulties (BESD).

•Would require ECC Capital Programme to loan the money to fund the construction in advance of DSG paying back the capital required.

•If new SEN provision is constructed within Essex, pupils may not have to travel so far to school and so RSG funded transport should be cheaper. The business case would also model the saving to RSG.

•If you do nothing the costs to DSG will continue to rise, this approach won’t reduce costs but will mitigate the increase in costs.

Views Sought from Primary Heads

ECC – Developer Activities•What is your view of proposing business cases that test whether through the rationalisation of the use of sites, investment in new facilities might be funded? We acknowledge that from an ECC perspective no capital receipt can be ring-fenced for a specific purpose.

E.g. CSS accommodation North East. Currently they operate across Green Lodge, Clacton, Wivenhoe, Mile End and Copford (leased). All accommodation is dilapidated and (except Copford) is not fit for purpose. Ideally all provision could be co-located on the Mile End site if there were capital to invest in new

accommodation and refurbishment of existing accommodation.

•Co-locating primary provisions on secondary sites to create all-through schools.

•Co-locating schools with CSS, ACL and other Council services.

•Undertake business case to test the benefit of moving Special Schools to less valuable sites e.g. Wells Park, Kingswode Hoe?

•Local Asset Backed Vehicles – a range of developer partners who will partner with LA or academies to develop assets

Views Sought from Primary Heads

Other areas considered

•Social Investment Bonds

•Free Schools

•Schools contributing to maintenance fund (£10k cap currently)

•When a school being replaced completely, schools contributing DFC to project

•Priority Schools Building Programme

•Supporting academies to seek funding directly from central government

•Lobbying for grant funding

•Cutting energy costs and borrowing against these savings to fund capital works

Views Sought from Primary Heads

Cornerstone Model

•Cornerstone was set up by Tim Byles (formerly CE of Partnerships for Schools and Norfolk CC) to offer a social dividend to Local Authorities through sharing development profits with them arising from developing Council owned land.

•The deal is structured around a land deal only and so is exempt from public procurement rules. ECC’s usual supply chain arrangements would construct any new facilities required.

•E.g. Could offer Cornerstone the two CSS proposals for the North East and the South. There is a lot of community use at Wivenhoe, could this be retained in a new community facility there as part of the Cornerstone social dividend?

•Cornerstone have development expertise and capacity and a supply chain which are offered at no cost to the authority during the development of schemes. They take their payment from the development profit after development completed.

Views Sought from Primary Heads

• Firstly evidence has to be provided to Schools Forum of the growing demand for special school places for children and young people where significant numbers are currently being placed in independent settings at higher cost e.g. ASD and BESD and could be PMLD (depending on analysis of data). This should be scrutinised by Schools Forum members.

• A financial model has been developed and used in three other authorities, which can be used to test out the options to meet this demand. This financial model has a number of inputs that will need to be agreed with schools forum, as follows:- The numbers of children who will require a place over time- The average cost of maintained (includes academies) and independent placements- The average cost of transport to maintained and independent placements- The cost of constructing any new provisions - The cost of borrowing the capital needed (ECC so opportunity cost of interest rate on reserves only?)

Invest to Save Business Case to DSG – Proposed Process #1

• The average cost of maintained and independent settings will need to be established e.g. typically circa £20k pa for maintained day, £40k pa for independent day and £65k for independent residential (typically 35 weeks pa). The range can be from £25k cheapest day place to £250k most expensive 52 week placement.

• Transport costs in Essex may not provide a RSG saving due to the size of the County. Independent settings may be closer to pupil’s homes than maintained settings.

• The cost of constructing new facilities. This will involve the following:- finding potential sites - a business case will be put to ECC if suitable land is in Council ownership, but if an existing school could provide land this could save land acquisition cost- developing a design brief to show the accommodation required for each provision in m2- seeking planning authority view of proposals- working with an architect to develop initial outline proposals- pricing these proposals, possibly with soft market test with contractors

Invest to Save Business Case to DSG – Proposed Process #2

• As with all business cases, the first option for consideration is “do nothing”. This will involve modelling the increased cost to DSG if the numbers of pupils grow and have to go into independent settings. This can be shown as a total cost to DSG and also as a per pupil reduction in delegation to schools. Last year £20M (up from £17M previous) and next year £23M on independent settings.

• Then the cost of other options can be compared to this baseline.

• The cost of creating new provision in Essex – when will children be able to access this? What will admissions criteria be?

• Is it possible to bring young people back into maintained provisions at point of transition – particularly back at post 16?

• What is best governance route to secure providers? Expand existing schools, free schools, academy chains, competitions?

Invest to Save Business Case to DSG – Proposed Process #3

Questions for Primary Head Teachers’ consideration too:

1.Moral question of all schools’ obligations to plan to meet the needs of children with SEND i.e. less independent (out County) expensive placements.2.What are your views of using DSG in principle to support borrowing on an invest to save basis to invest in SEND provision?3.Should we develop more capacity in mainstream schools to support children/young people with challenging behaviour or should we build more BESD special schools using DSG?4.What are your preferred options for meeting basic need in each geographical location? This question will be raised at each area meeting in due course.5.What are your views about all-through schools (are you a secondary that would host one?) and the developer activities proposed? Are you engaged in any developer activities of your own?6.What is your view of seeking Free Schools in areas to meet evidenced basic need?7.What are your views of the draft proposal to rationalise and invest in CSS centres?

Questions previously raised at ASHE Meetings