Survey reveals 2,000 schools may be unable to balance their books

Thousands of schools are already experiencing a funding squeeze and are expecting to be unable to balance their books by the end of the year, research by the Liberal Democrats has revealed. At a time when public expenditure is under increased scrutiny it appears some schools are already struggling to cope.

The figures were obtained through Freedom of Information requests to all county and unitary authorities. Two-thirds (101) of councils responded, revealing that 1,373 schools are currently projecting a deficit. Repeated across the country, this would leave at least 2,000 schools facing a deficit.

Commenting, Liberal Democrat Shadow Schools Secretary, David Laws said:

"This is the tip of an iceberg which is likely to emerge rapidly as the squeeze on education budgets really bites over the next few years.

"We are likely to see school cash balances being rapidly run down, and we could soon be back to the bad old days of endless budget pressures and regular staff cuts. The knock-on effect could be rising class sizes and schools left without the other resources they need.

"It is essential that we help young people through the recession. We must continue to build an education system which is able to raise standards and close the yawning gap between the performance of rich and poor children."

Liberal Democrats would like to see a pupil premium to be paid for schools that have higher levels of disadvantaged children (where the level of resource need is highest) and a reduction in central government red tape to help reduce the administrative burden for teachers. Additionally it may be some schools could make savings by working together more, with a recently leaked government report showing money is sometimes wasted on inefficient procurement, and highlighting the increase in the number of administrative staff in schools, up by 76% between 1997 and 2008.

West Sussex Liberal Democrat Spokesman for Children and Young People, Dr Colin Wilsdon commenting on the deficits in schools added:

"There are a lower percentage of West Sussex schools in this position (9%) than in some parts of the country. But West Sussex schools face serious challenges in raising educational standards particularly of disadvantaged children and this requires investment. Cuts in school spending can create problems for the future, and these problems are usually expensive."