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Turning red over financial pressure

Financial pressure may put more schools in the red and lead to a drop in achievement, the spending watchdog in England has warned. If schools struggle to contain their costs, they could end up making "inappropriate" cuts that damage the quality of education on offer, a National Audit Office report says. The total budget for schools was planned to increase by 0.1 per cent in real terms each year between 2011-12 and 2014-15, the report says, but schools are expected to save pound;1 billion in "back office and procurement costs" over the same period.

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