Every year since I have been headteacher of my current school, we have reached this point in the calendar and projected a budget deficit for the following year. But each year, we have somehow avoided it by scrambling enough funds by the summer to carry forward more than expected.

However, this year, I am pretty certain that a last-minute reprieve won’t come. We have already had a visit from representatives of our local authority’s financial services department, who asked the usual questions about size of our senior team, the number of promoted posts and the percentage of budget spent on staffing. I disappointed them on all counts as only 76 per cent of my budget is focused on staffing and benchmarking exercises have shown us to have average or below-average spending in all areas.

Weather the storm

The problem is this: in a school of 700 students, we do not attract a small-schools funding stream yet we are not big enough to weather the storm.

I am aware that many headteachers don’t talk to staff about the budget: they feel it is their role to deal with it and that they should let the teachers teach. But I work on the basis that we are all adults, we all have a stake in the school and, therefore, we all need to be, at the very least, informed. Talking openly about the issues is more productive than hiding them.

For example, I have had to talk to staff about the budget twice during my current headship - once in the first year and, again, just recently. The majority of staff, especially the more senior and experienced ones, understand the funding position and are able to help put the situation into perspective for those less experienced.

Honesty breeds honesty. I have been approached, on several occasions, by colleagues following such a meeting, who confidentially informed me that they would be retiring or resigning at the end of the year. They offered this information as one professional to another, as a mark of respect, and did so in the knowledge that this might help me to avoid a redundancy or make a difficult decision slightly easier.

Taking resignations offered and reviewing whether or not to replace them can be a viable alternative to forced redundancies. For example, I have had two unexpected resignations in the past month. Neither of those roles will be replaced. It is important to note that this has been done with the full agreement of the staff most significantly affected by the decision.

Again, it’s about being honest. When you explain a situation, most colleagues can see the issue and why you are looking at certain solutions. One of the resignations affected the senior leadership team directly and caused me a lot of personal angst, but the way it seemed to me and other members of the senior team was that we had to lead by example and operate a slightly smaller SLT. We reached this decision after an extensive meeting, which included the colleague who was resigning.

Proper explanation

Another benefit of being open is that some of the most significant cuts can be properly explained. The one area in our benchmarking exercise where we spend more than average is on CPD. This has been a deliberate policy over the past five years as we have been heavily committed to school improvement. But, reluctantly, I have decided that this budget, too, must be cut, initially for one year. This will be painful but sustainable in the short term.

I have discussed this with staff and given parameters for the external CPD we will remain involved in and that which we will have to step back from. This has led to creative ideas about what we can do and understanding rather than resentment about what we can’t.

How honest will I continue to be as the cuts bite? I will conduct a baseline budgeting exercise in the next month. I will do this with the senior team, chair of governors, chair of finance and the school’s business manager. Such an exercise ensures that you take everything out of the budget and analyse every budget line and amount allocated before allowing it to go back in. Savings are always found as colleagues realise that they don’t require certain items or can do without.

All of this must be done with minimum effect on our students’ education. My concern this year is that we are sailing perilously close to the wind. Budgets can only be trimmed so far without the impact being felt throughout the system. And yes, I will be honest about that. Because staff need to know. And so, for that matter, do the students.

Julia Vincent is headteacher of Warblington School in Hampshire