Almost half of borough's schools in debt as London pupil exodus compounds financial woes

"Speaking ahead of the decision, Labour councillor Zena Brabazon, the council's cabinet member for children, schools and families, said: This is really important because we really need to get some sort of handle on school deficits. Schools currently have delegated budgets, with the governing body of each school in charge of how the money given to them by the council is used. The matter affects the local authority directly as it is responsible for school funding and debts."

"The new measures represent a reduction of control and an increase in oversight for those governing bodies in charge of schools which are struggling financially. Rokesly Junior School, one of three state schools that will be losing pupil places The restrictions will apply to every area of spending which could, for example, see schools needing to ask the council for permission to spend money hiring additional teachers."

Haringey Council approved new financial regulations to improve budgetary controls over the borough's indebted council-run schools. Of 75 council-run schools, 34 are in debt, representing just over 45%, with the largest single debt recorded at £900,000. The measures require any council-run school with significant debts to obtain local authority approval for planned expenditures above £25,000. Governing bodies of struggling schools will face a reduction of control and increased oversight. Restrictions apply to every area of spending, potentially including hiring additional teachers. Declining pupil numbers have compounded funding pressures under the per-pupil National Funding Formula.

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