The purpose of this report is to inform Cabinet of the process undertaken by the Strategic Review Operation Board (School Modernisation) in establishing Band B priorities for the School Modernisation Programme;           advise Cabinet of Welsh Government’s elemental funding approach for Band B; and seek Cabinet approval for the recommended schemes included within Bridgend’s 21st Century Schools and Education Strategic Outline Programme submission to Welsh Government.

The Interim Corporate Director Education and Family Support reported on the process undertaken by the Strategic Review Operation Board (School Modernisation) in establishing Band B priorities for the School Modernisation Programme and advised of Welsh Government’s elemental funding approach for Band B.  He also sought approval for the recommended schemes included within Bridgend’s 21^st Century Schools and Education Strategic Outline Programme (SOP) submission to Welsh Government. 

He reported that Council in September 2006 approved a vision for the County Borough’s schools in which they would be fit for the 21^st century and achieve the best use of resources and since then, school modernisation has been established as one of the Council’s main strategic programmes.  He stated that a Schools Task Group was established in 2014 to ensure the Council planned for a high quality education system.  Approval was sought from Cabinet in September 2015 to build on the work of the Schools Task Group and for officers to undertake a Strategic Review into the Development and Rationalisation of the Curriculum and Estate Provision of Primary, Secondary and Post-16 Education.  He informed Cabinet that a Strategic Review Overarching Board was established in May 2016 and four operational boards identified.  One of which was specifically related to the consideration of Band B investment priorities.  He stated that it was considered that Band B priorities identified within the 2010 SOP may no longer be of primary importance and the issues facing the Council and schools need to be reviewed to establish a strategic approach for investment and establishing a priority list of schemes for delivery within the Band B timescale (i.e. 2019-2024). 

The Interim Corporate Director Education and Family Support reported on the outcome of the Band B work stream which considered data to determine prioritising the future investment in schools.  Based on the projected pupil population, housing development identified within the Local Development Plan and pupil places, the following had been identified as proposed priorities;

·         Primary school provision in Bridgend South East area

·         Primary school provision in the Bryntirion area

·         Primary school provision in Bridgend North East area

·         Primary school provision in the Valleys Gateway area

·         Special school provision in the Bridgend area

·         Welsh-medium primary provision in the Bridgend West area

·         English-medium primary provision in Bridgend West

·         Primary provision in the Kenfig Hill area

·         Post-16 provision

The Interim Corporate Director Education and Family Support reported that it was anticipated that following Band B, there would be a further two bands of the Welsh Government’s 21^st Century Schools Programme.  He stated that in order to inform future bands of the programme, it was considered essential to undertake a review of provision within the Llynfi Valley and Porthcawl areas during the Band B period, which would help inform the future strategy for delivering education in these areas.  It would also be necessary, following the outcome of the post-16 review, to undertake a review of secondary school catchment areas to ensure there are sufficient places available to accommodate the pupil yield from areas of growth.  He informed Cabinet that all schemes being taken forward to Band B will require an options appraisal detailing the longlist of options leading to a shortlist and taking forward one or two options to feasibility and more detailed design.  Where appropriate, it was important that opportunities to create all-through 3-19 or co-located schools, which could include extended services e.g. health, as part of the options appraisal. 

He also reported that the Welsh Government had identified two different mechanisms for Band B funding; namely, through the capital grant or mutual investment model (MIM).  Funding by capital grant was based on an intervention by the Welsh Government of 50:50, with the local authority being required to meet 50 of all capital costs, including furniture, equipment and ICT.  He stated that the MIM is a new approach is a new approach to investment in public infrastructure in Wales, with the Welsh Government’s intervention rate being 75%, paid in the form of a revenue grant, with the remaining 25% met from local authority revenue budgets over a 25 year contract period.  He outlined the key risks of the Band B schemes not progressing and outlined the following Band B projects considered as priority schemes:

·         Bridgend North East area;

·         Bridgend South East area;

·         Bridgend Special School;

·         Bridgend West - Welsh-medium; and

·         Bridgend West - English-medium.

He informed Cabinet of the remaining need to re-consider primary school provision in the Kenfig Hill area.  He stated that any such future work would be outside of Band B funding, with the full cost falling to the Council. Consequently, priority was currently being given to condition surveys of the existing school infrastructure to identify any urgent or necessary remedial works.  He also informed Cabinet that in relation to the Strategic Outline Programme submission, the Welsh Government has confirmed the funding mechanisms and intervention rates for Band B and requested local authorities to submit a revision to the original SOP, this Council complied with this requirement in July 2017.       

The Interim Corporate Director Education and Family Support reported on the financial implications in that the Welsh Government had confirmed the intervention rate for the capital grant would remain unchanged to that used for Band A projects (i.e. 50:50); with the caveat that only the approved cost on an elemental basis will secure this rate.  Any abnormalities or “additional” design features will require 100% BCBC funding.  Schemes being progressed via the MIM will benefit from a 75% Welsh Government contribution, with the same caveat as for schemes funded by capital grant.  He stated that Section 106 funding may be available from certain housing developments and there may be the potential to benefit financially from the sale of sites through rationalisation.     

The Leader questioned whether there would be flexibility within Band B should Welsh Government funding become available or circumstances change as some schemes had not been considered as a priority.  The Interim Corporate Director Education and Family Support commented that there is potential for some flexibility to be allowed within Band B although this is limited, which would be dependent on large scale development happening. 

The Deputy Leader questioned whether the intervention rate of 75% for schemes funded through the MIM model would be sufficient for the Council.  The Group Manager Financial Planning and Budget Management informed Cabinet that schemes funded through the MIM model would be a revenue budget pressure.  She stated there would be a need for a Welsh Government steer on which schemes would fit which model.  She also stated that there would also be a need to maximise Section 106 funding from housing developments.  Officers were also looking at the future funding of schemes in detail.  The leader requested a further report once the outcome of Welsh Government funding was known.

RESOLVED:           That Cabinet:

(1)          Approved discontinuing with the proposed Band B schemes as approved by Cabinet in 2010; and

Approved the revised schemes as set out in Bridgend’s 2017 Strategic Outline Programme submission to Welsh Government, detailed in paragraph 4.16.1 of the report.