Council doubles down on schools claw back cash

West Berkshire Council has doubled down on its decision to clawback more than £2m from schools in the district.

A meeting of the council’s executive committee tonight (Thursday), heard the schools High Needs Block deficit is estimated to rise to £16.3m by March 2025 – which could send the council under.

“We need the money now,” said council leader Jeff Brooks (Lib Dem, Thatcham).

But the council heard that four schools are now threatening legal action.

“We would be technically insolvent if we were in a commercial organisation if this was shown on our balance sheet,” said Iain Cottingham (Lib Dem, Thatcham Central), finance portfolio holder.

The council only has around £4m left in its account, and has other big overspends to deal with, apart from the High Needs Block.

“There is high risk this debt gets called in and we would have difficulty servicing it,” he added.

In an at times heated meeting the controlling Lib Dem council heard that four schools are now taking legal action against the council for clawing back cash from their budgets.

Mr Brooks made a statement to the meeting warning that the district was seeing huge increases in SEND (special educational needs and disabilities) demand –  a 50 per cent increase in four years.

“Numbers continue to grow,” he said. “We do not resent that, but we need to find money for it.”

He said the council is already forecasting an overspend of £7m on supporting SEND pupils and a further £3m in transport for children with disabilities.

“The Conservative government allowed councils to roll up deficits on the SEN blocks,” he added.

“We budget to spend £29m but spend £35m. It is unsustainable. We can’t go on like this and it will bankrupt this council if not addressed.”

He added the council is now writing to MPs to get the new Labour government to take up SEND debt on to their balance sheet.

Both Ross Mackinnon, the Tory group leader and David Marsh for the Greens, doubled barrelled the council leader and the executive portfolio holder for education Heather Codling saying that headteachers were forced to decide the claw back moves after being threatened by the council going to the Secretary of State.

But the council once again doubled down on the move, claiming that 68 per cent of schools were in favour of adopting the approach to bring forward the claw back of ‘excess’ funds by a year.

“No one threatened anyone,” said Ms Codling.

The council leader started banging his gavel as tempers rose in the chamber.

“If someone is telling me there is a consequence…I consider that as a threat,” said Mr Mackinnon.

More gavel banging.

“There is a discrepancy that no one is going to be affected this year,” said Mr Marsh. “Heads and parents are concerned. Four schools taking legal action. Business managers are in tears. Are you concerned about the reaction this is having?”

“Banging your gavel when we are talking about people being in tears is not the way to deal with this,” said Mr Mackinnon.

Mr Brookes took that on, admitting “there is anger out there”.

“I accept that,” he added. “But there are other schools out there who will be pleased there is money coming their way. When you are in control you have to make tough decisions.”

“There are more schools in deficit than in credit in West Berks,” said Mr Brookes, defending how the council had managed to upset schools who had fundraised their own money, to then face having that taken away.

“Schools should separate this money from income the school generates,” added. “We applaud how schools with reserves manage their finances.

“Some schools have reserves we consider to be in excess of their needs.

“I’d expect all headteachers to want all the schools in the district to do well.  No school is an island.  We are looking for a sense of teamwork.”

He reiterated that surplus funds were not being taken if it would put schools in difficulty this year.

“It is not the council’s intention to take monies raised by PTAs,” he said.

“The money is to be used now to mitigate what the debt will rise to. Fairness is at the heart of everything we do at this council.”

Mr Marsh quoted from a headteacher he’d spoken with and said the schools forum was 68 per cent in favour of the clawback because the council threatened to appeal to the Secretary of State and for no other reason.

Anne Marie Dodds, the executive director of children’s services explained that the 68 per cent figure was a consultation response.

“The mechanism available to local authorities where they don’t agree with Schools Forum decision is to appeal to the SoS. The SoS may choose one way or another whether or not to agree with the School Forum decision.“

The council said that two schools originally included in the claw back list were no longer being asked to hand back cash – although no school names were given.

The last word went to Mr Brooks: “Any school that believes it will be impacted this year then come and talk to us. Don’t talk to the press. Come and talk to me.”