Sue Ashley, Traded Services Manager, presented a report which described the current and projected financial position for schools together with action that was being taken. The position remained challenging due to increased costs during 2023-24, even with additional funding provided for 2023-24 financial year.

The report noted that there were ongoing cost pressures in schools arising from pay awards, utilities, other inflationary pressures, changes in pupil numbers and the continuing effects of COVID. There had been additional funding through the Mainstream Additional Grant Grant for 2023-24, which would be added to the formula budget for 2024-25 (Additional funding for Special schools) and Teachers Pay Additional Grant from September 2023 to cover the additional cost of Teachers Pay awards. There would be further increases in DSG for 2024-25 financial year but at a much lower rate then 2023-24.

The report continued to explain tha the deficit position was increasing for all phases but remained particularly difficult for Special Schools. Those schools with small credit carry forward balances in March 24 were most likely to move into a deficit by March 2025. Figures at period were more cautious, so although an increase in deficit budgets was likely, some schools would be able to make savings to stay in credit.

Members discussed the difficulties schools faced to remain on budget and noted that they should not do nothing when they are aware that they are struggling with their budgets. They queried what the cut off was for schools to go into a deficit budget for those with an agreed licence budget. They were informed that it would be as soon as they went into deficit and that the amount would depend on the school and the size of their budget.

The Chair noted that schools were working hard to remain within their budgets.

Resolved – That:

1. The report be noted.

2. The school budgets continue to be monitored.