Whilst the best time to talk about budget planning will always be 'yesterday', this blog provides realistic reforecasting guidance to react confidently when unforeseen (and combined) expenditure challenges arise, such as right now.

What's happening and when?

Staffing budget

As covered in our previous blogs, following the announcement on 19th July, the starting salary for teachers will rise by 8.9% in September this year to £28,000 outside of London. Teachers in the early stages of their careers will have salaries increased by 5% to 8% and more experienced teachers and school leaders will receive a 5% increase. In addition to this, staffing budgets are challenged by a proposed one year pay deal for support staff of between 4.04% and 10.5% and changes to the legality of term time-only contracts.

Other expenditure

Away from staffing, the school budget is facing significant pressure in all areas. In particular, schools are facing enormous hikes in electricity and especially gas rates - this has been common knowledge since February, but it is a developing, unsettling story with energy price caps due to rise on October 1st, and again in January. Building improvements and IT is capital expenditure that is dealt with separately and school trips are funded by parents generally, sometimes Pupil Premium for eligible children.

So. This is a perfect storm of demands that will have a strain on budgets, and now more than ever we need to acknowledge the piling pressure on school leaders who have just last month submitted a budget forecast return (BFR), and the knock on effect on the delivery of education, with the cost-of-living impacting households, parents and pupils. As finance consultants and supporters of school business staff and leaders, we are pooling together resources to help combat these challenges. Most of the content in this blog is free, the rest is in reference to our services and products.

Guidance

• From our Finance & Accountancy Support team (fundamentals, best practice, cost-savings) >
• From our Budgeting Software team (software-focused advice) >
• Further reading >

• Does the school have a contracts ledger and do you have access to it?
• Are they value for money?
• Is there a more cost-effective solution?
• If you are a MAT, are their opportunities for economies of scale?
• When are the contracts up for renewal?
• When does notice need to be given?
• Will the supplier offer a discount for a multi-year deal?
• Would changing a supplier trigger a tender process?
• What would the impact be on processes, procedures and staff if a contract changed?