Lessons over school finances

Of course, there is scope to do better. There has not been a sufficient correlation between this investment and improvements in academic attainment.

As Richard Lambert, the director-general of the CBI, said so forcefully, Labour's tinkering – he described it bluntly as "messing around" – continues to fail a disproportionate number of pupils from poor backgrounds.

The question now, following years of record funding, is what happens to schools when the public sector spending is finally squeezed.

Schools certainly don't have sizeable cash reserves to fall back on – despite the protestations of Ministers.

The total amount of uncommitted money at Yorkshire schools is just 51m, a tiny fraction of the overall education budget. A proportion of this money is for emergency contingencies.

Indeed, one in five of Yorkshire's secondary schools are in the red, with the combined deficit amounting to 10.7m. And, while Ministers will say this figure has reduced in recent years, it, nevertheless, shows the precariousness of the public finances before the more challenging spending decisions are taken.

Headteachers, who increasingly find an accountancy qualification more beneficial than a teaching background, have little, if any room for manoeuvre, as yesterday's figures demonstrate.

Town hall budgets are stretched to the limit. The only option open to councils is further increases in the council tax levy. And, despite the statements from Ministers, Whitehall spending on key policies, like education, will have to contract if the budget deficit is to be reduced.

In many respects, schools require more resources if they are to raise standards and target help at those youngsters with a poor command of basic skills. As this is not going happen, it is imperative that existing budgets are spent more effectively. The sooner this new

reality is recognised, the better.