Camden schools facing £25 million budget squeeze, council warns

Camden Council is predicting a budget squeeze for schools of up to £25 million by 2025, a new report has revealed.

A document shared at Wednesday’s schools forum meeting stated that rising inflation had caused net real terms spending pressures of 22.7 per cent.

The figure is “equivalent to nearly £25m based on the current level of schools’ dedicated schools grant (DSG) income”, the report added.

Other financial pressures on Camden’s schools are expected to continue over the next two years, including a forecasted £1.7m decline in higher needs funding.

The council said it was awaiting detailed proposals for 2025/26 schools funding from the new government, and had appealed for financial support.

“The big fiscal choice for the new government going forward is how they will provide more funding to public services to compensate for rising costs and the significant challenges they face,” the report said.

“It will be that much harder for schools to meaningfully contribute to wider government aims for the UK if they face real-terms cuts from next year onwards.”

The forecasts paint a difficult picture for the borough’s schools budgets moving forward, and highlight the impact of a decade of austerity.

At the same meeting, councillors were shown figures projecting an in-year overspend of up to £1.85 million of its higher needs funding for pupils with special educational needs and disabilities.

The next forum meeting will take place on 5 November.