Agenda item

Cabinet:

• Agreed to vire funding of £1.2m from the DfE Basic Need Capital Grant - Phase 4 School Expansions contingency budget to the Royal Liberty expansion.  
• Agreed to release funding to the ESFA (Education and Skills Funding Agency) to proceed with expansion build works.
• Agreed to review the feasibility process to ensure more accurate forecasting of costs.

Councillor Robert Benham, Cabinet Member for Education, Children and Families presented the report to Cabinet.  In October 2016, Cabinet approved the inclusion of the Royal Liberty School to the Phase 4 School Expansions Programme.  The proposed expansion was to increase capacity from a four form of entry school to a five form of entry school proposed from 1^st September, 2018 to meet the growing demand for secondary school places in the Borough.

The Local Authority undertook the non-statutory consultation following Cabinet approval and the decision was taken to expand the school on 29^th August, 2017, subject to the school submitting a business case to the Department for Education (DfE), as the school is an academy.

The business case was approved.  The Cabinet report detailed an estimate at that time of £4 million for the associated building works to enable the school to accommodate the additional pupils.  The estimate was based on a feasibility assessment carried out by council departments and external stakeholders.

As the school was included in the DfE Priority School Building Programme it was agreed that the DfE should incorporate the building works associated with the expansion as part of the wider condition works to minimise disruption to the school and maximise the tendering opportunities.

Following the initial feasibility, further work was undertaken including significant dialogue with local Planners and other interested parties including English Heritage due to the fact that the existing building was listed.

The further work led to changes being required to the originally planned project and this had the effect of increasing the programme budget.  In particular the shape of the sports hall building had to be changed.  Building and cladding requirements had to be put in place and tree protection measures implemented.  There were further inflationary increases due to the extended tendering procedures.

The project costs now total £5.2 million which do not reflect good value for money when compared to other Havering Projects, although it should be noted that Havering has provided excellent value for money in respect of other matters and has recently been commended by the DfE. 

However, it was not feasible to abort the project given the significant amount of money already invested and whilst the increase is unfortunate, the costs are affordable within the Basic Needs Grant that Havering receives from the DfE.  There would be no impact on council funds.

Cllr Benham stated that he and the Leader had requested a review as to how the budget gap occurred and this is underway to ensure lessons can be learned and factored into any future project.

Cabinet:

• Agreed to vire funding of £1.2m from the DfE Basic Need Capital Grant - Phase 4 School Expansions contingency budget to the Royal Liberty expansion.  
• Agreed to release funding to the ESFA (Education and Skills Funding Agency) to proceed with expansion build works.
• Agreed to review the feasibility process to ensure more accurate forecasting of costs.