This money will then be taken back by local authorities, and then in a complex arrangement the government will reduce the funding to the authorities in order to recover the money.

Further the government will then reduce the school’s funding for the following year.

For an average sized secondary school the sum will be around £35,000.

It is understood that plans are afoot to issue a series of rules against which any claims for “long term” projects which would qualify for holding money back will be measured.  These are thought to include

…. Clear evidence of completive tendering for the project – three tenders will need to be on the table

…. Clear evidence of the work having started or a non-refundable payment having been made

If this holding back of 3% more than is allowed is indeed the average for schools then the government will in a matter of weeks after the end of the financial year, cut the education by £2bn, and will deflect any criticism of their cutting of the budget by referring to their requirement of efficiency savings.

Schools can of course beat this system by spending their money, but at the moment the evidence is uneven.  Some schools have significantly held back on their budgets, and have spent 25% less than during the first half of last academic year.

ii@schoolsare.us