Yorkshire council warns schools heading for major overspend

East Riding Council told Ms Greening its schools are heading for a £5m overspend next year unless “significant action” is taken.

While the Government is routinely criticised by Labour-run councils over funding, the call by a Conservative authority will be harder to ignore.

East Riding is among councils that have been calling for a change to the formula used to distribute schools funding.

David Cameron’s government set out plans for changes that would have taken effect next year but after Theresa May took office Ms Greening said the new formula would not come into force until 2018.

In a joint letter to Ms Greening asking for extra money, East Riding Council leader Stephen Parnaby and coun Julie Abraham, the portfolio holder for education, wrote: “Schools in the East Riding of Yorkshire are forecasting to overspend in 2017/18 by £5 million.

“Pressures facing schools are well documented and include increases in national insurance and pension contributions, as well as pay awards, the living wage and apprenticeship levy.

“As a result of these pressures, the level of school balances in the East Riding is likely to reduce significantly, with many schools now finding themselves with budget deficits.

“Many schools have already made significant savings and are continuing in their search for further savings and it is now difficult to see how further savings can be achieved without it affecting the outcomes of pupils.”

Coun Abraham said their letter had been made public to reassure schools that local politicians are “extremely concerned” and are supporting them.

She said: “It has taken many years of campaigning to get to the position that the Government under David Cameron totally appreciated the situation that the 40 worst funded authorities were in.

“It was really good news when [then Education Secretary] Nicky Morgan promised to introduce a fair funding formula from 2017/18.

“Naturally there would be huge disappointment from our schools that we would have to wait for another 12 months.”

Under the current formula, East Riding Council received £5,066 per pupil in the current academic year.

In contrast, the London borough of Hackney was given £8,906 per pupil.

Labour increased the pressure on Ms Greening by backing East Riding’s request for extra cash.

Shadow Education Secretary Angela Rayner said: “The council have put together an irresistible case for extra investment in East Riding’s schools.

“They are facing problems for reasons which are largely outside their control and I would urge the Government to intervene now and provide the urgent support needed by local children and their teachers.”

Announcing the delay to the change in the funding formula in July, Ms Greening said the proposed changes had been met with an “overwhelmingly positive response from head teachers, teachers, governors and parents”.

However, she also argued the change was a “once-in-a-generation opportunity for an historic change” and it was important to get it right.

A Department for Education spokesman said: “We are introducing a national funding formula for schools, high needs and early years because we believe that all pupils should be funded at the same rate, no matter where they live.

“This will be introduced in 2018-19 to allow time for full and proper consultation on these important changes. No local authority will see a reduction in its funding for schools or high needs for the 2016-17 year and we are retaining the minimum funding guarantee for 2017-18.”