School budgets under pressure

Brent Council has written to local schools regarding budgets over the next few years. It is clear that there are difficulties ahead in terms of maintaining staffing and resourcing and  therefore the overall quality of provision:

The current economic climate and government announcements point to the fact that cash-flat funding settlements are likely to continue for schools over the foreseeable future. I would like to alert all schools of the need to construct budgets for at least the next 3 years on the assumption of cash flat settlements in order to identify any financial difficulties over the short and medium term.

The DfE requires under the Schools Financial Value Standard, that schools should be producing a 3 year budget forecast. Ideally, you should be using some kind of budget forecasting tool, to highlight any potential deficit issues, so that governors can start to implement, at the earliest opportunity, any possible cost reductions that may be necessary to maintain a balanced budget. If at any time you think there may potentially be deficit issues at your school, then you should contact the Schools Finance Team.