‘UNPOPULAR’ cuts to Royal Borough schools may need to be taken as its budget blackhole could reach £13.7m in five years.

James Norris, head of finance at Achieving for Children, which delivers children’s services on behalf of the council, warned their current deficit of over £2m within the dedicated schools grant (DSG) could grow to £13.7m by 2027 if no action is taken.

The DSG is a ring-fenced grant from central government that must be used to support school budgets.

Royal Borough headmasters heard at a school forum that they should expect an overspend this year of £257,000 which adds to the overall deficit of £2.048m.

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More than five years ago, the Royal Borough had a DSG deficit of £752,000 where it has now grown into the millions.

This is mainly due to increased spending on the high needs block, which funds and supports children and young people with special educational needs and disabilities (SEND). It saw a £1.5m overspend but underspends in other areas managed to bring this down to £257,000.

A five-year deficit management plan has been drawn up and will be submitted to the Department for Education on how it will address its money issues and outline what savings it will make.

Mr Norris predicts they will be able to reach the £13.7m savings target but warned there is no room for any “slippage”.

If things don’t go according to plan, they could only end up saving £8.3m, leaving a £5.4m deficit and would result in the DSG budget not being able to be balanced.

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Speaking at the meeting on Thursday, May 26, Mr Norris said: “We need to be looking at all of our saving plans and we need to look as soon as it is reasonable and appropriate.

“But also, we need to make sure that we are maximising fully every opportunity because there isn’t room for slippage.

“If we slip or see costs increase, such as inflation or demand – basically if we see anything going the other way – it means in five years we won’t be meeting our requirement to have a balanced budget.

“So, the pressure really is on.”

He also said if they do not reach their targets within five years and the Department for Education does not allow an extension, then they might need to take ‘unpopular’ decisions and make cuts to services that they “wouldn’t normally like to cut”.

But they will regularly monitor their progress and revisit this if they find they are “well behind” in making the required savings.