Last December this blog published a post headed ‘Figures back heads views on funding pressures’. https://johnohowson.wordpress.com/2017/12/14/figures-back-heads-views-on-funding-pressures/ it was, therefore, interesting to read the report issued by the Education Policy Institute that appeared today and effectively says much the same thing.

You might want to compare Education Policy Institute’s (EPI) key finding with my post last December. EPI have said that:

• The number of local authority maintained secondary schools in deficit reduced from 14.3 per cent in 2010-11 to 8.8 per cent in 2013-14. Strikingly, however, over the period of four years up until 2016-17, the proportion of local authority secondary schools in deficit nearly trebled, expanding to over a quarter of all such schools – or 26.1 per cent. The average local authority maintained secondary school deficit rose over this 7 year period, from £292,822 in 2010-11 to £374,990 in 2016-17.

• The number of local authority maintained primary schools in deficit has also risen. In 2010-11, 5.2 per cent of local authority primary schools were in deficit – this reduced in the following year to 3.7 per cent, before staying at a level of around 4 per cent until 2015-16. However, in 2016-17, the proportion of primary schools in deficit increased significantly, to 7.1 per cent. The average primary school deficit also noticeably increased, from £72,042 in 2010-11, to £107,962 in 2016-17.

• At a regional level, the South West had the highest percentage of local authority maintained secondaries in deficit over this period – with 22.1 per cent of schools in deficit in 2010-11, rising considerably to over a third of schools (34.9 per cent) in 2016-17. The East had the lowest – with 7.5 per cent of local authority maintained secondary schools in deficit in 2010-11, rising to 17.5 per cent in 2016-17.

• The North East had the highest number of local authority maintained primary schools in deficit in 2016-17 at 10.1 per cent. The East of England consistently had the lowest, with 2.6 per cent in deficit in 2010-11, rising to 3.4 per cent in 2016-17.

• A large proportion of local authority maintained schools are now spending more than their income. Over two-thirds of local authority maintained secondary schools spent more than their income in 2016-17. Significantly, such events are not just occurring for one year – we find that 40 per cent of local authority maintained secondaries have had balances in decline for at least two years in a row.

• Similar figures are found for local authority maintained primary schools – in 2016-17, over 60 per cent were spending more than their income. A quarter of local authority maintained primaries have had a falling balance for two years or more.

Where the EPI report does go further than I did last December is in looking at implications as well as the regional breakdown of schools for concern. However, the latter points may be affected by the asymmetric distribution of academies across England.

Implications for schools: financial pressures and deficits – EPI report

• For a significant proportion of schools in England, being able to meet the cost of annual staff pay increases from a combination of government funding and their own reserves looks highly unlikely, even in the short term.

• In response to pressures, schools have undertaken various efficiency measures to deliver cost savings, such as switching suppliers, reducing energy usage and reducing the size of leadership teams.

• However, education staff account for the majority of spending by schools – around two-thirds. It is likely that schools will find it difficult to achieve the scale of savings necessary without also cutting back on staff. Many schools will face the challenge of containing budget pressures and reducing staffing numbers without impacting on education standards.

Either way, the outlook for schools and their pupils is bleak, but so it is across the whole of the public sector just as George Osborne warned it would be in the second half of this decade when he became Chancellor. It was just that few wanted to believe him.