Haringey school budgets come under new attack

3.35.00pm UTC (GMT +0000) Wed 24th Oct 2007

Haringey Schools that ended the last financial year in surplus face a '5% tax' under new proposals being considered by the Labour government. Local MP, Lynne Featherstone this week has strongly backed a Parliamentary motion calling on the government to drop this unfair levy that is likely to adversely affect a number of schools in her constituency.

Commenting, Lynne Featherstone MP says:

"This is quite literally a tax on the financial prudence of those few schools that managed to buck the local trend and put aside extra money in the last financial year. This cash claw-back could jeopardise major projects that schools have been diligently putting money aside for.

"Our local schools are already seriously disadvantaged because of the unfair per pupil funding system. Now, to add insult to injury, head teachers will have to give back five per cent of their reported surplus from last April - whether they have it or not."

Councillor Gail Engert, Lib Dem Schools Spokesperson adds:

"I dread to think what cuts schools will have to make. More worryingly, there are schools actually in deficit this year, that will still have to pay this unfair levy because they were in surplus last year. If the Government doesn't drop these plans, it will be Haringey pupils that will suffer. I will be requesting an urgent assessment of how much this will cost our schools."

Notes:

• Text of the Parliamentary Motion being backed by Lynne Featherstone MP

Early Day Motion 2159

GOVERNMENT LEVY ON SCHOOL BALANCES

That this House notes that school balances have been charged in the past; expresses concern at Government proposals for a universal five per cent. levy on unspent balances to be imposed on schools in England; further notes that many schools prudently plan for the future and save for special projects; considers that schools should not be penalised for building up balances to cover planned education projects that will deliver the best possible education to students; stresses that excessive school balances have fallen in the past five years; further notes that the National Association of Head Teachers has stated that attempting to cut surpluses already committed to projects would be unacceptable and that the Association of School and College Leaders has said that schools should not be penalised if they have a significant balance when it is part of their planned expenditure programme; and calls on the Government to take into account the legitimate concerns of schools, head teachers and governors in consulting on the Draft School Finance Regulations 2008."