On Election Day, the DfE published the annual dataset for expenditure by local authorities on children services, including maintained schools. The figures, as they relate to schools, are generally meaningless on a year by year comparison basis as the DfE doesn’t remove the new academies from the previous years’ data when they were still maintained schools.

For children’s social services and youth Justice, the data does have meaning over several years because local authorities still administer these services. However, there are few indicators to link expenditure to demand. In areas such as ‘children taken into care’, where numbers of children have been increasing in some areas this fact isn’t clear from the presentation of the data.

Research by the Reform think tank using this data shows that 28% of local authority maintained secondary schools in England were in the red at the end of 2018-19, with an average deficit of £570,000.

Reform found that since 2010-11, the proportion of local authority-funded secondary schools with no cash reserves has almost doubled. However, this is not surprising since to become an academy a school must normally not have a deficit.

The proportion of primary schools in deficit is smaller at 8%, having increased by 2.1 percentage points over the same period. The study also found “drastic” variations between schools, with 36% of maintained secondary schools having an “excessive surplus” of cash in the bank – on average more than £390,000.

Generally, in 2018-19 the gap between the average surplus and the average deficit has doubled over the period since 2010-11. At the end of 2018-19 there was more than 30 secondary schools with deficits in excess of £1 million. Only six of these schools were in London, with the Boroughs of Croydon and Enfield each containing two such schools. There were no schools in either the East of England or the East Midlands with deficits in excess of £1 million. The West Midlands, on the other hand, had six such schools.

The largest deficit, of more than £3 was linked to a school in West London that has run deficits in excess of £400,000 in each of the last four years, according to the DfE financial monitoring site for schools https://schools-financial-benchmarking.service.gov.uk/school/detail?urn=102449&tab=Balance&unit=AbsoluteMoney&format=Charts#financialSummary Its revenue reserve per pupil were running at a staggering minus £4,614 per pupil at the end of 2018-19. Interestingly, an Ofsted monitoring visit report from October this year doesn’t mention the financial situation at all, so presumably there isn’t seen to be an issue with a deficit of this magnitude? The last full inspection report from October 2018 also fails to mention the financial situation, and any effect it might have on the school’s ability to perform its core function of teaching and learning.

The data on maintained school finances does seem to suggest that there might be a lack of accountability for financial stability and the methods of managing deficits. There seems little point in a National Funding Formula if some schools can drive a coach and horses through the outcomes and rack up large deficits.

What is probably revealed is that some schools need more funding to achieve their aims, and with devolved budgets and governance it isn’t clear who has to take overall responsibility in the present climate.