Derek Deedman

Towards the end of the last Parliamentary term, the government put out for consultation a proposal to take away 5% of the surplus cash left in each school’s budget and to redistribute it to local authorities. This money, £225 million in total, falls within the delegated budgets under which schools pay for their running costs. Many schools build up reserves to pay for forthcoming projects or to cover them for a “rainy day”. Many have foreseen that growth in school budgets will be halved over the next three years and are looking to use their reserves to cushion the effect of this.

LIBERAL Democrats in Arundel & South Downs have warned that a proposal by the government to take away cash reserves that local schools have built up will damage children’s education.

The government have put out for consultation a proposal to siphon off 5% of the cash held in reserve in school budgets. Many schools build up reserves to invest in new equipment or as cover for a rainy day.

Derek Deedman, Chairman of Arundel & South Downs Liberal Democrats said, “Frankly, I am appalled that the government can even think of doing this. Taking money from school budgets in this way is little more than a smash and grab on careful schools that have planned for the future. The effect could be felt by many school children in Arundel & South Downs.

“The government claims the money will be given back to councils to spend on education. My fear is that all they want to do is claim they are spending lots of new money on education when the reality is the government is spending the same money twice.

“This proposal by the government should be dropped immediately. The money built up by schools in Arundel & South Downs should stay with the schools for the benefit of children.”

Commenting, Liberal Democrat Shadow Children, Schools and Families Secretary, David Laws MP said:

“The Government’s plan to raid £225m from over 20,000 schools throughout the Country is outrageous and must be scrapped.

“This dotty idea will hit the most prudent schools, including those who have saved up money for a special project, such as a new school building.

“Most bizarrely of all, ministers say that they will take money from schools based on their balances almost 18 months ago, even if they have since spent that money.

“This is the economics of the madhouse, and takes us back 10 or 20 years to the ridiculous rules that used to force Government departments into blowing their money on almost any old scheme at the end of the financial year.

“At a time when the growth of the schools budget is set to be cut in half, it is absurd to be penalising schools who manage their budgets prudently.

“The Liberal Democrats will oppose these regulations when they are brought before Parliament. The Government already has powers in relation to uncommitted balances - there is no need for any further draconian steps.”

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About Mr David Laws