More than a quarter of maintained secondary schools were in debt in the last academic year, according to a new Ofsted report on school finances.

The watchdog said that 28 per cent of maintained secondary schools were in debt by an average of more than half a million pounds.

The inspectorate’s report, published today, said that 8 per cent of local authority maintained primary schools were in debt in 2018-19.

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However, the report also found that many maintained schools were in surplus.

It said that 43 per cent of local authority maintained primary schools and 36 per cent of local authority maintained secondary schools had balances deemed to be “excessive” by the Department for Education (DfE) in 2018-19. 

Ofsted also said that on average the multi-academy trust sector has “accumulated a surplus”.

The new report says that schools in debt had responded by reducing the numbers of teachers and other staff; cutting spending on school premises and learning resources; and asking for parental contributions.

It also reveals that 42 per cent of primary school headteachers and 48 per cent of secondary school headteachers, who responded to an Ofsted survey, predicted that their school would be in debt by the end of 2019-20.

The publication of today’s report follows a controversial blog by Amanda Spielman earlier this week, in which she suggested schools could “squander” any additional funds they received.