State of Education Report 2017 state-of-education-booklet-Final-WEB - Page 8

Budget pressures mean making savings, but how much? Financial autonomy and economies of scale: how are MATs faring? Across the board, more than six in 10 (64%) school leaders say they need to make savings to balance their budget in the 2017-18 financial Three-quarters (74%) of leaders in standalone academies need to make year. The NAO reports that schools are facing the greatest cuts in savings to balance their budget in 2017-18, alongside nearly two-thirds spending power since the mid-1990s , so these findings are as expected. (65%) of those in MATs and just over six in 10 (62%) in maintained 2 schools. Many schools in MATs, though, are having to make bigger The secondary phase is worst-hit: a quarter (26%) of secondary savings: nearly a quarter (22%) need to cut more than 8% of their schools will need to cut more than 8% of their expected costs, expected costs in 2017-18, compared to 20% of single academies and alongside nearly two in 10 (17%) primaries. A further 23% of secondary 18% of maintained schools. and 16% of primary schools will need to make savings of 5-8%. While financial autonomy was the most-cited reason for academy While the majority of school leaders in every region need to make some conversion 3 in a 2014 Reform/SSAT survey, there is clearly more to be savings, one in four (25%) in the south east needs to cut more than 8% done to help these schools stay solvent. Academy chains are expected of expected costs, in comparison to just over one in 10 (13%) in Yorkshire to play a role: the government expects high-quality sponsors to deliver and Humberside and the east Midlands. The impact of budget pressures economies of scale and stronger financial sustainability 4 – and with is also more wide-reaching in coastal areas: 71% of coastal schools need 97% of all academies which opened in 2015/16 now part of a MAT 5 , to make savings in 2017-18, compared to 63% of those inland. now is the time for sponsors to step up. To balance the budget in the 2017-18 financial year, my school would need to make savings of: 0-2% of our expected costs 7% 2-5% of our expected costs 21% 5-8% of our expected costs 17% STATE OF EDUCATION 2017 | WWW.STATEOFED.THEKEYSUPPORT.COM More than 8% of our expected costs 19% Don’t know N/A – we expect to achieve a budget surplus N/A – we expect to balance our budget without making savings 3% 5% 28% PAGE 8