School reserves will have been used up in two years’ time, school business professionals have warned.

About three-quarters of those taking part in a joint Tes survey with the National Association of School Business Management (NASBM) say that cash reserves will have run out by 2019.

The survey results, released today, reveal how schools are trying to make ends meet and highlight a significant number turning to parents for help.

More than 240 school business professionals have taken part in the survey.

In a bid to raise income, 23 per cent have already asked parents for donations and 11 per cent are planning to do so.

And to make savings, some 40 per cent have reduced staff and a further 23 per cent plan to do so.

Class sizes have been increased, according to 30 per cent of respondents, with another 10 per cent saying this was being planned.

Under pressure

The vast majority (90 per cent) say that their school is under financial pressure this year. While 85 per cent of the business managers say they are prepared for this, many respondents do not have the same confidence in the senior leadership teams (SLTs) in their own schools. Almost half (44 per cent) say their SLT does not have the skills nor the time to cope with the financial pressures.

NASBM chair Tracey Gray said: “Respondents are split on whether the whole senior team has the skills and time to cope with financial pressures, but it is good news that respondents report that they, as school business professionals, are fully prepared to deal with the funding gap.”

Commenting on the issue of schools dipping into their reserves, she said: “We are aware of many schools that are using surpluses to close the current funding gap. We believe it is imperative that these schools start to look at financial efficiencies now”.

Most of those surveyed, 71 per cent, are planning for funding cuts of at least 3 per cent over the next three-to-five years.

Support and supply staff, professional services and capital projects are among the areas likely to face cuts, according to the survey.

In terms of potential areas for making savings, equipment for teaching and learning tops the list - cited by 29 per cent of respondents.

School business professionals are facing “significant challenges” and “difficult decisions around what to cut to save money”, according to Gray.

She said: “School business practitioners play an essential part in identifying innovative ways for schools to relieve these pressures and ensure financial stability and sustainability.”

Improving procurement, renegotiating contracts and working with other schools are among the ways in which school business professionals are saving money, she added.

Responding to the findings, a DfE spokesperson said: “The introduction of the National Funding Formula from 2018-19, backed by £1.3bn of additional investment, has been widely welcomed and will put an end to historic disparities in the system. In 2016, schools in England had a net cumulative surplus of £4.3billion and now every school will see an increase in funding through the formula from 2018”.

New Institute of School Business Leadership

The survey results have been released on the final day of the last ever NASBM annual conference, with the organisation set to become the Institute of School Business Leadership (ISBL) on Monday, as part of a bid to provide a stronger voice for school business professionals.

Commenting on the change, Gray said: “Our transition to become the Institute of School Business Leadership will provide our business professionals with stronger representation, while supporting them through our professional standards, interpretation of policy detail, accountability and regulations.”

Speaking ahead of Monday’s ISBL launch, its chief executive, Stephen Morales, said: “This is perhaps the most significant period in the history of school business management, and our move to institute status comes at a time when the role of the school business professional has become critical to the survival and sustainability of all state-funded schools.”

Raising the status of its members will be a core part of the new institute’s work, he said.

Speaking about the ISBL launch, school standards minister Nick Gibb said: “School business professionals have an important role in helping schools deploy their resources efficiently to ensure a maximum focus on delivering high-quality education and a rigorous curriculum for their pupils.

“I welcome the work of the ISBL to raise the status of business professionals in our schools, helping them deliver ever-improving educational outcomes for young people.”

Geoff Barton, general secretary of the Association of School and College Leaders, said: “As the education landscape becomes increasingly complex, the role of school business leaders has never mattered more. The rebranding of NASBM as the new ISBL provides a stronger foundation for the profession, with access to advice and guidance on career development and other opportunities.”

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