Member Article

How are schools bridging the funding gap?

With significant changes on the cards for academies in both funding and costs, specialist accountancy firm MLG Education Services has been holding workshops for academies this week to help them avoid a future funding shortfall.

Funding for schools is set to change with the introduction of the National Fair Funding over the next two years, while teachers’ pay, pensions and other costs are set to rise. With three-year budget forecasts due to be sent to the ESFA by academies by the end of July, schools need to address the potential shortfall as a matter of urgency as managing director of MLG Education, Mike Giddings explains.

“In order for frontline education services to thrive, these schools need to face up to the realities of potential funding constraints and not make any assumptions, especially when it comes to the scale of local authority contributions.

“They need to look for economies either by restructuring, looking to share resources, or combining purchasing power, and they need to take a realistic view of where costs are going to rise and account for this fully in their plans.”

The free workshops in Dudley and Coventry in the Midlands are part of a dedicated campaign being run by MLG Education Services to sharpen up the running of academies and advise schools on the pros and cons of becoming an academy or joining multi-academy trusts (MATs).

“There is enormous potential for schools especially in MATs to run more efficiently by pooling expertise and resources and using their combined power to procure services in a more cost-effective way. Minimising operational waste and improving forecasting and financial planning ensures that resources are fully focused on achieving the best possible outcome for pupils,” explains Mike Giddings.

“While many of the headlines around academies have recently centred on salaries, the picture is far more complex and much more positive than the headlines suggest.

“Strong leadership is key to unlocking the true potential of schools that become academies and we are hoping to see more clarity around performance standards for this critical role when the Government publishes its next set of financial guidelines for academies in the summer. When properly run, academy schools and MATs are an effective way to create efficiencies that help to optimise budgets without compromising teaching capabilities and results,” he concludes.

This was posted in Bdaily's Members' News section by MLG Education Services .