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Funding shortfall to worsen in local schools
Calculations by PricewaterhouseCoopers shows increase in costs higher than government investment
The National
Union of Teachers (NTU) is warning over continued funding shortfall
in primary and secondary schools. NTU commissioned researcher at PricewaterhouseCoopers
to look at 36 schools in six local authorities to assess the funding
conditions. Local schools and Hammersmith and Fulham LEA were surveyed,
together with Birmingham Metropolitan borough council, Brighton and
Hove city council, Durham county council, Essex county council and Wiltshire
county council.
According to researchers, the primary schools surveyed will face an
increase in costs of 16% in 2003-04 while government funding will be
of 12.9%. For the following financial year, 2004-05, costs will increase
21% compared with 18% extra investment planned by government and in
2005-06 the rise in costs will be of 27% against 23% extra funding promised.
In total, TCU predicts £1 billion shortfall in schools budges
over the next three years.
Secondary school costs were set to rise 14% in 2003-04, 19% in 2004-05
and 24% in 2005-06. That would leave them facing a 1.1% deficit in 2003-04,
a 0.8% shortfall in 2004-05 and a 0.6% gap in 2005-06, according to
PriceWaterhouseCoopers survey.
TCU claimed that schools would continue to face financial problems despite
the government's plan to put an extra £800m into their budgets.
According to the Union, mistakes made by the government in funding this
year deepened the difficulties for the future. "Our schools cannot
afford to live on borrowed money. There can be no borrowed time for
children's education", says TCU.
Although researchers at Price Waterhouse Coopers say it is not possible
to draw national conclusions from the study, local schools did participate
in survey that points out once again a funding crisis.
September 19, 2003