Wirral schools facing debt crisis (From Wirral Globe)

Wirral schools facing debt crisis

1:38pm Monday 28th June 2010 in News By Geoff Barnes

Combined debts of more than £1.2m have been accumulated by a score of Wirral schools as falling rolls continue to impact on funding allocatiions.

Wirral Council figures reveal that five secondary schools and 15 primary schools were in the red as of last March with average debts of £246,000 and £16,344 respectively. The secondary schools' average financial deficit had increased from £141,00 the previous year.

Schools receive funding based on the number of children on roll. Across the borough surplus school places top 10% and reduced pupil numbers have been blamed for the rising deficit levels.

Cllr Sheila Clarke, council cabinet member for children's services and life-long learning said: "The schools involved will be talking to the local authority for permission to have this kind of deficit. But they must have recovery plans to get themselves into balance in three years time."

She said the deficits were worrying but the situation was being studied by two separate scrutiny groups - one local-authority led and the second a school forum comprising teaching and non-teaching representatives from education establishments across Wirral.

She added "We are concerned about the deficit and officers are addressing the issue. We need to look at innovative ways to support schools but the council does not have a lot of opportunity to intervene. A lot of schools have changed status under measures to give them freedom to manage their own affairs."

There are fears that school debts could rise further if education funding is targetted following a Government spending review in October. The coalition Government has announced that all non-protected departmental budgets will be reduced by an average of 25% over the next four years. Former Wirral education cnhief Cllr Phil Davies said: "With falling rolls continuing and the likely big cuts in the pipeline, it will make life really difficult and schools will be hard-pressed to make ends meet."

Cllr Clarke said the council were carrying out a rolling programme to determine possible schools closures. The council, she said, had a statutory duty to review surplus places.

This had resulted in school closures or amalgamations. The latest had involved closure of Cole Strett and Cathcart Street schools in Birkenead and the creation of a new combined school on the Cathcart Street site.