Purpose

Governing Boards are required to set balanced
budgets each year. In circumstances where they are not able to do
so, the LA may licence their deficit. There are 23 schools in
2024-25 seeking licenced deficit which are expected to be
£7.5m in aggregate. Cabinet Member approval is part of a
systematic approach to improve scrutiny and accountability on
financial management for maintained schools.

Decision

 

To approve the
licensed deficits for the 23 deficit schools totalling £11.3m
(as detailed in Appendices 1 and 2), noting the significant risk of
depleting reserves for the end of the financial year 2024/25 (1
April 2024 to 31 March 2025).

 

To approve that
options for addressing the licensed deficits are brought forward
that mitigate the risk to the Council’s financial position
and deliver value for money.