Agenda item

Lisa Potts introduced the report (Agenda Item 11), which provided details of the schools in deficit in 2025/26 and information on lessons learnt from monitoring schools in deficit. She reported that ten schools had been granted licensed deficits, with three additional submissions pending review. The total deficit across the ten licensed schools amounted to £945,900, as detailed in Table 4.3 of the report. Lisa explained that the table also outlined the recovery plans for each school and the rationale behind the licensing decisions.

Underlying causes of these deficits were largely consistent with previous years, including falling pupil numbers, increased support needs for high-needs pupils, rising costs, and reduced income. Lisa Potts expressed concern that more schools were now entering deficit positions, reflecting broader systemic pressures.

Reverend Mark Bennet raised concerns about the pressures faced by school business managers, noting that whilst their expertise contributed to better financial outcomes, recruitment was challenging and the role often carried disproportionate responsibility. He also highlighted the operational considerations for schools of merging year groups and suggested that sharing best practice could help schools manage such changes more effectively. Lisa Potts acknowledged the challenges raised and explained that while the LA’s Schools’ Accountancy Team provided support for schools, it was not possible to know the finer detail of each school’s budget. Lisa Potts agreed that cultural change was needed to ensure governors and leadership teams took more ownership and noted that many business managers did seek advice from the LA on this.

Neil Goddard added that the business manager role was highly skilled and vital to school outcomes. He mentioned national support networks and emphasised the need for innovative thinking across schools. He also updated the Forum on the LA’s strategic response to falling pupil numbers, noting that a consultation on managing surplus places would be launched after half term. It was noted that the schools struggling with pupil numbers were not entirely the same as those struggling with financial issues, which was often due to a much broader set of issues. He hoped to bring an update on this back to the next Forum meeting in December, so that it could form part of the consultation process.

Reverend Bennet suggested that financial communications should be directed to governors and senior leaders as well as business managers, to ensure shared responsibility. Neil Goddard agreed and confirmed this was one of the areas of communication the LA needed to review. 

Paul Davey called for a clear, overarching education strategy for West Berkshire, developed collaboratively with schools and Forum members. Neil Goddard noted and agreed with the points raised. Whilst individual strategies existed there was not a broader children’s strategy. He was confident that this area would progress, supported by the recent recruitment. It was confirmed that Councillors would be briefed on school place planning and that it was not something that could be done without there being impact in some areas, and these would need to be managed as carefully as possible. Neil Goddard reiterated the importance of consultation and acknowledged the political dimensions of the issue. Paul Davey emphasised the value of the Forum as a powerful resource and urged greater involvement in strategic planning.

Michelle Harrison raised concerns about support for deficit schools following the retirement of a key staff member. Lisa Potts confirmed that rather than appointing a direct replacement the plan was to train additional team members to provide support to deficit schools, recognising the growing number and scale of deficits.

RESOLVED that the Schools’ Forum noted the report.