Setting 22,000 school budgets from Whitehall won't work, says councils

Children could miss out on the education they deserve if councils and schools do not retain an element of flexibility over how schools funding is distributed locally, council leaders said today.

The Local Government Association, which represents more than 370 councils in England and Wales, says local government leaders are supportive of the national funding formula but are clear that setting 22,000 school budgets remotely from Whitehall will not work.

The Government’s manifesto commitment to ensure that no school is worse off as a result of the national funding formula, and subsequent reassurance for a fair funding arrangement for all schools in last week’s Queen’s Speech, is positive, however we need to see further details. Councils know their local schools best and are uniquely placed with up to date local knowledge to ensure funding is distributed fairly, and therefore must be in a position to agree a different allocation of funding locally if necessary.

A strict application of the national formula will see councils lose their ability to work with head teachers, governors and schools forums to determine need in their local areas. Decisions about providing additional funding for more teachers or providing higher allocations for small rural schools to ensure they can stay open cannot be made from Whitehall. Some flexibility over these decisions should remain with councils and schools who are well versed in the needs of their communities.

Councils are particularly concerned about the proposed changes to high needs funding which will reduce council and school flexibility to make additional funding available where there are rising demand pressures for special educational needs and disability (SEND) support.

Schools should also be given greater certainty of future funding, with three-year budgets as opposed to annual, to help them better plan for the spending pressures they face. 

It is crucial that the Government urgently makes clear its intentions for the national funding formula so that councils can get on with necessary budget planning.

Cllr Richard Watts, Chair of the Local Government Association's Children and Young People Board, said:

"Councils have long called for a fairer funding system for all schools to ensure that all children have equal opportunities. It is not right that pupils with similar needs could receive different funding depending on where they live.

"Currently, there is a real fear amongst councils that a strict national funding formula will not reflect local need and that children could potentially miss out on receiving the education they deserve. 

“This is particularly concerning for those with special educational needs and disability support as councils will no longer be able to make additional funding available under current plans. 

"The setting of school budgets works best when done at a local level, with councils working with head teachers, governors and schools forums to determine need and priorities. The Government should allow councils to have some flexibility over how the national formula is implemented locally to ensure the widest possible success and acceptance.

“The national funding formula should not be delayed any longer as councils, schools and families need certainty. A three year budget cycle will also allow schools to better plan for the future. The Government should make clear its intentions for school funding so that councils can get on with the job of providing a decent education for our children.”