Powys secondary school budgets face financial meltdown

Secondary school budgets are set to fall off a cliff edge as a report predicts they could be cumulatively be £5.736 million in deficit by 2026.

At a meeting of Powys County Council’s Learning and Skills scrutiny committee on Wednesday, June 21, councillors and lay members will get a first look at the state of school finances from recently submitted budget plans.

Schools are supposed to hand in their budgets to the council’s education service by May 1 each year,

In recent weeks headteachers and governing bodies have been busy crunching the numbers to produce budgets for this year and forecasts for the next two years.

By the end of March 2024, it is predicted that secondary schools will already be cumulatively £3.2 million in deficit.

But bolstered by the primary school sector, which is expected to post a £3.175 million surplus, overall Powys schools are expected to total a £611,951 surplus.

The report shows that the position in the three all through combined primary and secondary schools will also deteriorate with only Ysgol Llanfyllin predicted to be in a surplus position by March 2026.

The report notes that a warning notice remains in place at Brecon High School which was £1.65 million in deficit at the end of last March.

According to the report, Crickhowell High School expects its deficit to reduce – and the report shows that it could be the only school to buck the trend and see an improving financial situation by 2026.

Welshpool High School, Ysgol Calon Cymru have been asked to submit “recovery plans.”

Likewise, Ysgol Maesydderwen is expected to submit a recovery plan and a warning notice remains in place on it.

Ysgol Bro Caereinion – a merged primary and secondary school has also been asked for a recovery plan and an “in depth review” will take place as the newly formed all through school is predicting posting deficit budgets soon.

Schools finance manager, Mari Thomas said: “Cumulative deficit balances in future years remain a concern and a significant risk to the authority.

“Schools are generally working constructively with council officers to bring in-year budgets into balance and prevent the deficits increasing further.

“Once this position has stabilised, work continues on reducing the cumulative deficits.”

The report says that all schools’ forecasts are updated and reviewed on a monthly basis.

Any concerns are highlighted with the head of education, Georgie Bevan and head of finance, Jane Thomas and raised with individual schools.

Head of finance, Jane Thomas said: “Historic deficits particularly in the secondary sector continue to challenge governing bodies.

“It is essential that all governing bodies work with schools service, human resources and finance officers to take action to provide an appropriate curriculum that can be delivered within the funding provided.”

Secondary schools:
Brecon High School – March 2023 – £1,647,127 deficit – March 2024 £1,733,745 deficit – March 2025 £1,692,395 deficit – March 2026 – £1,503,342 deficit.
Crickhowell High School – March 2023 – £510,860 deficit – March 2024 – £485,284 deficit – March 2025 – £397,445 deficit March 2026 – £248,083 deficit.
Gwernyfed High School – March 2023 – £308,669 surplus – March 2024 £256,10 surplus, March 2025 – £10,049 deficit, March 2025 –  £158,057 deficit.
Llanidloes High School – March 2023 – £269,777 surplus – March 2024 – £134,401 surplus – March 2025 – £10,464 deficit – March 2026 – £169,901 deficit.
Newtown High School – March 2023 – £913,253 surplus – March 2024 £441,852 surplus – March 2025 – £188,241 deficit – March 2026 – £857,386 deficit.
Welshpool High School – March 2023 – £203,055 deficit – March 2024 – £202,132 deficit – March 2025 – £296,252 deficit – March 2026 – £467,054 deficit.
Ysgol Calon Cymru (Llandrindod Wells and Builth Wells) – March 2023 – £951,819 deficit – March 2024 – £1.32 million deficit – March 2025 – £1.55 million deficit – March 2026 – £1.875 million deficit.
Ysgol Maesydderwen (Ystradgynlais) – March 2023 – £86,692 deficit – March 2024 – £84,098 deficit – March 2025 – £220,265 deficit – March 2026 – £456,788 deficit.
All through schools:
Ysgol Bro Hyddgen (Machynlleth) – March 2023 – £235,600 surplus – March 2024 – £78,054 surplus – March 2025 – £122,431 deficit – March 2026 – £335,402 deficit.
Ysgol Llanfyllin – March 2023 – £540,021 surplus – March 2024 – £357,650 surplus – March 2025 – £223,013 surplus – March 2026 – £55,574 surplus.
Ysgol Bro Caereinion (Llanfair Caereinion) – March 2023 £54,280 surplus – March 2024 – £29,894 deficit – March 2025 – £324.483 deficit – March 2026 – £753,596 deficit.