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<p>The Safety Valve programme targets the local authorities with the highest Dedicated
Schools Grant (DSG) deficits. The programme requires the local authorities involved
to develop substantial plans for reform to their high needs systems, with support
and challenge from the department, to rapidly place them on a sustainable footing.
If the local authorities can demonstrate sufficiently that their DSG management plans
create lasting sustainability and are effective for children and young people, including
reaching an in-year balance as quickly as possible, then the department will enter
into an agreement to hold the authority to account for delivery.</p><p>Through the
agreements, the authorities are subsequently held to account for their reform and
savings targets via regular reporting to the department. The department will help
the local authorities with additional revenue funding over time to contribute to their
historic deficits, but this is contingent on delivery of the reforms in the agreements.</p><p>Capital
funding is a necessary feature of many local authorities’ DSG management plans, in
cases where investment in local infrastructure will result in the availability of
more appropriate provision and subsequent revenue savings. Local authorities with
Safety Valve agreements are therefore invited to apply for additional high needs capital
funding, to be provided as a one-off ‘top-up’ to their high needs provision capital
allocations (HNPCA).</p><p>Out of the 34 local authorities that currently have Safety
Valve agreements, we have allocated additional capital funding to 22. The funding
allocated to these local authorities is set out below:</p><table><tbody><tr><td><p><strong>Local
Authority</strong></p></td><td><p><strong>Additional capital funding allocated through
the Safety Valve programme</strong></p></td></tr><tr><td><p>Bury</p></td><td><p>£3,780,514</p></td></tr><tr><td><p>Hammersmith
and Fulham</p></td><td><p>£1,220,814</p></td></tr><tr><td><p>Kingston upon Thames</p></td><td><p>£3,616,603</p></td></tr><tr><td><p>Richmond
upon Thames</p></td><td><p>£3,851,165</p></td></tr><tr><td><p>Stoke-on-Trent</p></td><td><p>£7,530,904</p></td></tr><tr><td><p>Hillingdon</p></td><td><p>£6,962,000</p></td></tr><tr><td><p>Kirklees</p></td><td><p>£8,200,000</p></td></tr><tr><td><p>Merton</p></td><td><p>£8,270,367</p></td></tr><tr><td><p>Rotherham</p></td><td><p>£4,323,436</p></td></tr><tr><td><p>Surrey</p></td><td><p>£8,558,437</p></td></tr><tr><td><p>York</p></td><td><p>£3,000,000</p></td></tr><tr><td><p>Bolton</p></td><td><p>£9,903,319</p></td></tr><tr><td><p>Cambridgeshire</p></td><td><p>£11,290,000</p></td></tr><tr><td><p>Haringey</p></td><td><p>£7,000,000</p></td></tr><tr><td><p>Medway</p></td><td><p>£7,188,479</p></td></tr><tr><td><p>Southwark</p></td><td><p>£3,000,000</p></td></tr><tr><td><p>Bath
and North East Somerset</p></td><td><p>£4,000,000</p></td></tr><tr><td><p>Bexley</p></td><td><p>£9,500,000</p></td></tr><tr><td><p>Blackpool</p></td><td><p>£6,153,346</p></td></tr><tr><td><p>North
Somerset</p></td><td><p>£2,918,000</p></td></tr><tr><td><p>North Tyneside</p></td><td><p>£4,681,000</p></td></tr><tr><td><p>Wokingham</p></td><td><p>£6,332,300</p></td></tr><tr><td><p><strong>Total</strong></p></td><td><p><strong>£131,280,684</strong></p></td></tr></tbody></table><p>The
12 local authorities that did not receive additional capital either did not apply
or did not successfully demonstrate to the department that capital support was necessary
to support their DSG management plans.</p><p>In order to receive additional capital
funding, local authorities’ proposals must demonstrate how investment would align
to the reform plans and savings targets in their Safety Valve agreements. Proposals
also need to show how capital plans will meet identified gaps in provision and improve
the local provision offer. Once funding is allocated, local authorities have appropriate
flexibility to make sensible adjustments to their plans, reflecting that the statutory
duty to provide sufficient school places remains with the local authority.</p><p>6
local authorities are currently in Safety Valve negotiations with the department and
have also been invited to apply for capital funding. The outcome of those negotiations
and any additional capital funding being allocated will be communicated to local authorities
shortly, and additional capital funding will be paid to local authorities as part
of their 2024/25 HNPCA allocations later this year.</p>
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