Agenda item

26.1     The Chief Operating Officer introduced the report. The report has been produced in response to the discussion of the Strategic Risk Register at the September Audit Committee meeting. The Brexit risk is currently reflected as part of the risks that are on the Strategic Register Risk Register. The report seeks the Committee’s views on the way in which the risk from a disorderly Brexit should be dealt with on the Register. The report also outlines the work that has already been undertaken on this area of risk, including work that has been carried out with our South East Seven (SE7) partner authorities. The engagement with local government outlined in the report reflects the position 6 months ago, and there has been further engagement since this time.

Brexit Risk

26.2     The Committee discussed the likelihood and risks arising from a disorderly Brexit (i.e. with no transitional arrangements in place). The Committee agreed that there should be a separate item on the Strategic Risk Register for a disorderly Brexit, which should show details of the contingency planning and potential mitigation measures for the main risks. It will be especially important to cover the disruption effects related to a disorderly Brexit and displacement activity (e.g. Newhaven port which may take traffic from Dover).

26.3     The Chief Operating Officer responded he will take the advice from the Committee and create a disorderly Brexit item on the risk register. This will include the work that has already been done such as assessment in the workforce risk and the contingency planning that is taking place for national issues.

26.4     Councillor Bowdler asked if the Council has assessed the risk of further illegal immigration. The Chief Operating Officer outlined that asylum seeking placement activity and unaccompanied children is unrelated to the Brexit risk, and is covered in the Reconciling Policy, Performance and Resources (RPPR) budget setting process.

Risk from Funding Formula changes to Smaller Schools

26.5     The Committee discussed the risk arising from changes to the national funding formula for schools, which may have a particular impact on smaller schools. The Committee’s concerns centre around the potential impact on primary schools, where a change in emphasis towards per pupil funding may make it more challenging to meet fixed costs. The risk to the Council arises from the possibility of smaller schools getting into financial difficulty and the impact this might have on school place planning and home to school transport costs. Some members of the Committee considered this is a developing strategic risk for the Council in the longer term, and should be on the Strategic Risk Register.

26.6     The Chief Operating Officer outlined that the risks are covered in the departmental risk register. These issues relate to the Council’s statutory responsibility for school place planning and school performance, which are undertaken by the Children’s Services department. As such they are within the programme of work being dealt with by the People Scrutiny Committee.

26.7     The Committee agreed that it would like further assurance that there are measures in place to deal with the financial risks arising out of the impact of funding changes on smaller schools. The Committee agreed to form a small working group comprised of Councillor Barnes and Councillor Fox who will meet with the Director of Children’s Services to seek further assurance over the financial risks and report back to the Committee.

26.8     The Committee RESOLVED to:

1) have the disorderly Brexit risk as separate item on the Strategic Risk Register; and

2) seek further assurance on the risks arising from the impact of changes to funding on smaller schools from the Director of Children’s Services via a small working group of Committee members.