Secondary schools in Machynlleth and Llanidloes face deficits of £440,000 and £206,000 respectively by 2027 despite currently being in surplus, councillors have heard as Powys schools face ‘crisis’.
At a meeting of Powys County Council’s Learning and Skills scrutiny committee on Monday, 15 July councillors and lay independent members looked at schools financial performance for 2023/2024 and looked ahead to the budget plans for this financial year which also included the projections up to March 2027.
Members heard that school budgets are set to fall off the cliff edge and are predicted to have a total budget gap of nearly £15.8 million in deficit by the end of March 2027.
Figures show nearly all secondary and all ages schools facing financial crisis.
.jpg?width=209&height=140&crop=209:145,smart&quality=75)
At Ysgol Bro Hyddgen in Machynlleth, the all-through school is projected for a deficit of £440,646 by 2027, even though it recorded a surplus of more than £250,000 this year.
Llanidloes High School is projected for a deficit of £206,278 in 2027, despite recording a surplus this year of £146,616.
School governing bodies across Powys had been given a 1 May deadline to submit their budgets to the council.
School finance officer Nancy Owen explained that this year schools will receive 4.2 per cent more funding this year than last year, but stressed that future school budgets had to assume a “cash flat position” with no increase expected in the school’s delegated budget for several years.
Committee members were told this is due to the “gloomy predictions” that the Welsh Government will not increase funding to local authorities in the near future.
Ms Owen explained that for the 2024/2025 financial year schools have planned to spend £3.3 million more than the council has budgeted for them.
Ms Owen said that the council is “trying significantly” to suggest ways for schools to “mitigate” any problems that occur before getting into dire financial straits.
Ms Owen: “Ultimately it’s the governing bodies decision what budget it puts forward and once we have those, we work with them.”
Committee chairman, Conservative Cllr Gwynfor Thomas said: “We don’t underestimate the work that is going on, but we have some massive deficits and schools aren’t coping.
“School are saying to there’s no more low hanging fruit left, there’s nowhere to go and it’s either curriculum or teachers that are going by the wayside.”