Governors’ financial fears at record high

Six in 10 governors and trustees say that balancing their school budget is now their biggest challenge
12th July 2024, 12:01am

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Governors’ financial fears at record high

https://www.tes.com/magazine/news/general/school-governors-worried-about-school-funding-budgets
Majority of governors fear financial sustainability

Less than one in five governors believe their schools and trusts are financially viable in the medium to long term, and two in five are concerned about the financial impact of falling pupil numbers, a National Governance Association poll shows.

In the survey of more than 3,000 governors and trustees, 60 per cent of respondents reported that balancing budgets is now their biggest challenge - the highest proportion since the National Governance Association (NGA) began its annual survey in 2012.

Governors’ leaders have warned that budget worries have reached an all-time high and say that financial pressures are now “profoundly” impacting all aspects of education in schools.

The poll findings come after Tes yesterday revealed that four in 10 chief finance officers expect their trust to be in a worse financial position next year, according to a separate survey.

School governors’ biggest issues

Here are eight key concerns highlighted in today’s NGA report.

1. Falling pupil numbers

Around four in 10 respondents said their school finances have been impacted by falling pupil numbers. This is more of a concern for primary schools (45 per cent of respondents) than secondary schools (23 per cent).

A further 23 per cent of respondents have not yet been impacted but are worried about this becoming a problem in the near future.

The NGA said this was the first time it had asked members directly about the impact of falling pupil numbers on school finances.

The responses also show regional variation: some 28 per cent of governors and trustees in London said falling pupil numbers was their top challenge, while only 14 per cent in the West Midlands and 15 per cent in the North West flagged this as the biggest issue they face.

2. Balancing budgets

Some 60 per cent of governing board members surveyed said balancing the budget was their top challenge, up from 52 per cent in the previous year and 40 per cent in 2020. The NGA says that six in 10 respondents listing balancing budgets as the top challenge is the largest proportion saying this since its survey began more than 10 years ago.

Respondents were asked to identify the top three challenges facing their school or trust from a list of 16 options.

Primary school governors were more likely than their secondary counterparts to report that balancing the budgets was their top challenge. Almost seven in 10 nursery governors (69 per cent) and a similar proportion of primary school respondents (67 per cent) chose this as their top concern. The NGA suggests that this could be in part because of the impact of falling pupil numbers.

3. Financial sustainability

Only 19 per cent of governors said they perceived their school or trust to be financially sustainable in the medium to long term without the need to make major changes.

Boards are increasingly pessimistic about their financial future. When asked about their medium- to long-term financial position (three to five years), only 59 per cent of respondents believed they were financially sustainable, and 40 per cent of those said this was contingent on making efficiency savings or using unspent funds.

Just over a third of governors believed their school or trust was financially unsustainable without significant changes.

4. Compromising curriculum breadth

Almost six in 10 respondents reported having to reduce teaching or cut certain subjects because of budget constraints. The NGA warns this situation is “compromising the breadth and quality of education offered”.

Some 27 per cent of respondents cited a lack of qualified teachers as the top challenge for schools and trusts in delivering a broad and balanced curriculum. Many respondents mentioned difficulties in recruiting staff for sciences, computing, food and design technology.

Just under one in five governors said that a lack of time was a challenge when delivering a broad and balanced curriculum.

5. SEND funding challenges

When it comes to supporting pupils with special educational needs and disabilities (SEND), nearly three-quarters of governors said the biggest challenge was accessing funding. This was up from 66 per cent the previous year.

The report adds that obtaining education, health and care plans remains a significant hurdle for over half of governors. It says that governors find recruiting and retaining qualified support staff is a pressing issue, particularly for special schools.

And 37 per cent of respondents said that supporting pupils with SEND was their top overall challenge this year. This figure was up from just under a quarter last year.

6. Attendance remains a high priority

Attendance features prominently as both a top challenge (32 per cent) and a key strategic priority (33 per cent) for governing boards.

For governors and trustees of secondary schools, attendance was the most commonly cited top strategic priority - chosen by 44 per cent of respondents - compared with 30 per cent in 2023.

Governors said the most successful method for improving attendance, cited by more than eight in 10 respondents, is open communication and providing guidance to parents.

7. Safeguarding issues

Some 49 per cent of respondents reported an increase in safeguarding concerns in the past 12 months, with bullying, neglect and domestic abuse the most commonly cited issues.

Another 47 per cent of respondents said that safeguarding concerns had remained the same and only 4 per cent reported a decrease.

Those governing in secondary schools were more likely to report an increase (55 per cent) than those governing in primary schools (47 per cent). The North East was the region where the highest proportion of governors reporting an increase in safeguarding concerns (54 per cent).

8. Education recovery a declining priority

In the 2022 version of the NGA’s annual survey, 25 per cent of respondents listed education recovery from the Covid pandemic as their top challenge. In 2024’s report that figure is 5 per cent.

Sam Henson, deputy chief executive of the NGA, said: “This year we are seeing budget concerns reach a climactic point, even when compared to 2016-2019, when financial concerns rose almost to a fever pitch before additional money was finally pushed into the system.

“The number of governing boards citing their top challenge as balancing the budget is the highest in our survey’s history. This financial strain is not merely a matter of numbers; it profoundly impacts every aspect of education, from curriculum breadth and staff wellbeing to SEND provision and environmental sustainability initiatives.”

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