Six grant-maintained secondary schools have savings of more than Pounds 500,000 each and nearly 300 have reserves that exceed Pounds 100,000, figures obtained by The TES reveal.

Analysis of the budgets of 812 opted-out schools in England reveal that most GM heads will be much better placed than their local authority neighbours to meet the teachers’ pay rise, expected to be announced next week.

Details obtained from the Funding Agency for Schools reveal that GM heads had total surpluses of more than Pounds 74.5 million at the end of March last year. While most had savings, 48 were running deficit budgets totalling almost Pounds 1.8 m.

The extent of surpluses accrued by GM heads is certain to anger governors in local authority schools. Many are threatening to resign at the prospect of widespread cuts and teacher sackings.

Labour this week calculated that an inflation-linked 2.9 per cent pay rise for teachers - which has been widely tipped - would cost councils Pounds 90 million. The Liberal Democrats have claimed only four LEAs will escape cuts to education budgets in April.

Local authority representatives this week lobbied MPs as Parliament held its annual debate on council spending.

GM funding has been a constant target of criticism, particularly the rules which allow many GM schools to be paid twice for services they previously received from the local authority.

A breakdown of GM budgets reveals a 60 per cent difference between the average amount of money held in reserve by opted-out secondaries - Pounds 124,000 - compared with Pounds 76,000 in a random sample of 480 schools still under local authority control.

Among GM primary and middle schools the average surplus was Pounds 26, 000 - about Pounds 4,000 or 17 per cent more than a sample of 3,300 similar LEA schools in 11 areas.

No fewer than 278 secondary and middle schools had surpluses exceeding Pounds 100,000. Of these 61 had more than Pounds 250,000 and 17 more than Pounds 400,000. A total of 15 primary schools had reserves greater than Pounds 50,000.

Dunraven GM school in the London borough of Lambeth - double-funded in the past year by more than Pounds 200,000 - heads the list of GM big savers. The school, which opted out in April 1993, has reserves of Pounds 926, 650.

It is followed by Kingsbury in the London borough of Brent with Pounds 714,066, Watford girls’ grammar with Pounds 578,516, Branston school and community college in Lincolnshire with Pounds 575,490, the Plume School in Essex with Pounds 532,085 and Ashton on Mersey in Trafford with Pounds 500,000.Four GM primary schools - Chelmsford Cathedral and Great Totham in Essex, Selsdon in Croydon and St Bede’s infants in Lambeth - have savings of more than Pounds 100,000 each.

Despite the savings, figures obtained by Stephen Byers, the Labour MP for Wallsend in a parliamentary answer, reveal that pupil-teacher ratios in GM secondary schools are worsening. In 1991, the pupil-teacher ratio was 15:3. Last year it had risen to 16:3.

Hayes Manor in the London borough of Hillingdon, had run up the biggest deficit - Pounds 266,078 - and it was followed by the London Nautical on Pounds 131,848 and Kirkbie Kendal in Cumbria with Pounds 125,374. And while the average deficit was Pounds 37,000 the Government has approved loans of Pounds 100,000 for Hayes Manor and Crypt in Podsmead, Gloucester, and one of Pounds 130,000 for de Stafford in Caterham, Surrey.

This week Chris Woodhead, the Government’s chief inspector of schools, claimed that some schools were “exhibiting undue caution” in retaining substantial sums of money for no particular purpose.

Meanwhile the National Association of Governors and Managers urged governors to spend their savings to avoid cuts and highlight the financial crisis now facing local authority schools.

“A degree of financial brinkmanship is now in order,” said Peter Morris, chair of the association. “The time has come for governors to create the prospect of a financial crisis in 19967.”

In Shropshire, policy-makers agreed to set a budget Pounds 6 million above the level allowed by Government and 40 governing bodies passed a resolution to resign or refuse to set a budget.

One governing body has already resigned.