Decision details

To consider a report of the Assistant Director for Children’s Services and Learning seeking approval for deficit budget for 2011-2012 for various schools.

The Southampton Scheme for Financing Schools, made in accordance with the Schools Standards & Framework Act 1998, makes provision for schools setting deficit budgets in accordance with DfE rules.  As part of the Southampton Scheme, schools must request Cabinet Member approval to set a deficit budget. 

(i)  that the deficit budgets for the following schools for 2011/12 be approved:

(ii)  that unless the school can demonstrate at a meeting in September that their recovery plan is achievable, notice will be given that a deficit application in 2012/13 will not be supported.

(iii)  to note that the approval of the above deficits does not confirm the Council's acceptance of the management of the overall financial position in relation to the schools in question, or in any way limit or remove the Council's power to undertake intervention action in schools in accordance with the Scheme for Financing Schools or otherwise, as provided for under the Education Acts.

(iv)  to delegate Authority to the Director of Children's Services and Learning, following consultation with the Head of Finance and the Cabinet Member for Children's Services, to take any intervention action necessary under the Scheme for Financing Schools or otherwise as provided for in the Education Acts, to secure to good management and governance of Southampton schools or to otherwise address the financial or performance management of maintained schools in Southampton.

Approval of the recommendation will allow schools to adjust to changes in pupil numbers without making significant cuts in staffing or other costs and without detrimentally affecting standards.

The alternative is not to allow any deficit budgets.  This would have a detrimental effect on school standards and would not allow some schools time to adjust to changes in pupil numbers or make the required changes to staffing structures.