School cash fears played down

SCHOOLS in Oldham will not be able to get into serious financial trouble because of current council measures.

That’s the view of Councillor Kay Knox, Cabinet member for children, young people and families, who said budget monitoring and financial measures would prevent schools running out of cash.

An information request from the Liberal Democrats revealed six Oldham schools — 6 per cent of the total — feared they would run out of cash and end the year in the red.

Neighbouring Tameside feared one in five of their schools would run out, while nationally, 1,373 schools believed they would not be able to balance their books.

Shadow Schools Secretary David Laws said: “This is the tip of an iceberg which is likely to emerge rapidly as the squeeze on education budgets really bites over the next few years.

“We are likely to see school cash balances being rapidly run down.

“We could soon be back to the bad old days of endless budget pressures and regular staff cuts.”

However, Councillor Knox said council budget monitoring would ensure this was not the case in Oldham.

She added: “Through effective budget management, the council is clear on the financial situation of all the schools for which it is responsible.

“There are many reasons why schools can temporarily go into deficit, however I am confident that the current budget monitoring and financial measures in place are effective in ensuring that no school is able to get into serious trouble.

“With some 107 schools in the borough, the fact that only six had a deficit is, I believe, a clear indication of the council’s effective financial management. The figure is low when compared with many other authorities.”