Schools facing nearly £3.8m overspend and ‘clear’ financial challenges

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Primary schools in Newport will receive a share of £600,000 to shore up their funds, as a new report shows the vast majority are expecting to go over budget this year.

All but nine of the city council’s 44 primary schools are forecasting an overspend and will have to dip into their reserves to balance the books.

In many cases, schools are predicted to use up the majority of their reserves this year, just to climb out of a deficit position.

In secondary and special schools, the financial pressure is also acute, with all facilities expecting to record an overspend by the end of March.

The total deficit balance for Newport’s schools is estimated to reach nearly £3.8 million, city council cabinet members heard on Monday.

Cllr Dimitri Batrouni, who leads the council, said it was “clear” from recent visits that the city’s secondary schools face “financial challenges”.

“We are getting the same message from primary heads and we are committed to supporting them as much as we can,” he added. “As well as giving this extra funding, our officers are also providing practical assistance to help them manage their budgets.”

The leader confirmed he and Cllr Deb Davies, the cabinet member for education, will visit every primary in Newport this year for “open and honest conversations” with headteachers about the pressures they face.

Cllr Davies said the local authority is “extremely proud of all our schools and the high standard of education they provide despite the financial pressures – we have some incredible teachers and support staff in our schools and this often goes unrecognised”.

Speaking about the financial outlook at the cabinet meeting, she said that the £600,000 “won’t solve it” but also noted the council plans to increase its schools budget by £11 million in April.

This “will help with the pressure”, Cllr Davies added.

Cllr Batrouni told colleagues the council had avoided proposing any savings targets – or cuts – to school budgets for 2025/26.

A public consultation on the council’s draft budget proposals runs online until February 5.