New funding regulations have been approved at a London council after it was revealed that almost half of its state schools are in debt.
During a cabinet meeting on Tuesday Haringey Council decision-makers gave the green light for new financial regulations to improve budgetary controls over the borough’s indebted schools.
At the meeting, council officers revealed that, of the 75 council-run schools in the borough, 34 – or just over 45% – are in debt, with the largest single debt coming in at £900,000.
The new measures, part of the council’s scheme for financing schools, mean that any council-run school with “significant” debts will have to get approval directly from the local authority for any planned expenditures costing above £25,000.
Speaking ahead of the decision, Labour councillor Zena Brabazon, the council’s cabinet member for children, schools and families, said: “This is really important because we really need to get some sort of handle on school deficits.”
Schools currently have delegated budgets, with the governing body of each school in charge of how the money given to them by the council is used. The matter affects the local authority directly as it is responsible for school funding and debts.
The new measures represent a reduction of control – and an increase in oversight – for those governing bodies in charge of schools which are struggling financially.
The restrictions will apply to every area of spending which could, for example, see schools needing to ask the council for permission to spend money hiring additional teachers.
As part of the National Funding Formula, schools receive central government money per pupil. Cllr Brabazon explained that declining numbers of pupils in borough-run schools have compounded financial difficulties.
The most recent figures released by the government’s Department for Education show that the rate of increase in primary school places across England has slowed “dramatically” in recent years due to a reduction in the number of pupil numbers since 2019/19.
At the same time, in the 2023/24 financial year around 18% of state-funded schools were at or in excess of capacity.
A recent report found London has been disproportionately impacted by dropping pupil numbers, with primary school classes in the capital emptying out almost twice as fast as in any other part of the country.
Earlier this month London Councils warned secondary schools in the capital have become the worst hit for first time as pupil numbers continue to plummet.
The new financial regulations being implemented by Haringey Council are part of broader plans to get the borough’s school budgets under control within the next three years. As was confirmed on Tuesday, this will also mean reducing the number of state school places by 45 from the start of the September 2027 school year.
Most affected by this change is Rokesly Junior School in Crouch End, which will lose one-third of its 90 places. Park View Secondary School in South Tottenham will lose nine, while Highgate Wood School in Crouch End and Gladesmore Community School in Tottenham will lose three each.
