Forty-Second Report - Financial sustainability of schools in England
Select Committee
Public Accounts Committee
HC 650
4 March 2022
Recommendations
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Conclusions (2) Observations and findings — click to expand
8
Conclusion
Acknowledged
We asked the Department why so many maintained schools were in deficit. The Department highlighted that the financial health of the school system had held up well and that most maintained schools and academy trusts were in surplus. The ESFA noted that only four local authorities had a net deficit …
Government Response Summary
The government agrees with the Committee’s recommendation and states that the national funding formula (NFF) distributes funding to schools fairly, regardless of geographical location. They are introducing a consistent approach to budget planning and monitoring across local authority-maintained schools, including analysis of reserves in different phases, and a local authority level breakdown.
16
Conclusion
Acknowledged
We have heard examples of local schools taking steps such as cutting staff, particularly teaching assistants, and reducing provision for pupils with SEND, in order to make savings.34 We also received written evidence from stakeholders in the sector about how schools had responded to financial pressures and the damaging impact …
Government Response Summary
The department will commission research on how a sample of schools has experienced and responded to previous financial pressures and on the anticipated impact of additional funding, with results expected by end-March 2023.