Hounslow schools could soon have more flexibility in managing their finances, with a proposal to raise the threshold for surplus balances. The Hounslow Council Schools Forum met on Monday, 17 November 2025, to discuss raising the threshold at which school balances are considered excess, potentially allowing schools to retain a larger percentage of their funding.

The council intends to review and update the Scheme and Financial Regulations for Financing with the intention to:

  • Better support and equip schools in the overall dispensation of financial and budget management responsibility
  • Improve schools' strategic financial planning of resources
  • Empower schools
  • Limit the number of schools heading to deficit budgets
  • Provide assurance to the Council

Currently, school balances exceeding 8.3% of a school's funding are classified as excess. The proposed change, outlined in the Scheme Regs Consultation, would increase this threshold to 10%. Schools holding balances above this new 10% threshold for three consecutive financial years could face having the excess amount clawed back by the council. Schools with uncommitted balances in any year should also expect excess balances to be clawed back by the Council. However, any balances clawed back will be held within schools balances as a contingency to support schools maintain financial sustainability.

The Schools Forum was also asked to agree to the de-delegation of budget to fund:

  • The administration of free school meals £52,372
  • Trade Union facility time £77,269
  • Schools Improvement services £471,234
  • Schools support services (education function) £568,184
  • Introduction of a new contingency fund to support maintained schools facing significant financial difficulties - £203,131

The de-delegated budget includes funding for 'Statutory School Improvement' and 'Support services'. Specifically:

  • Statutory School Improvement: A 50% contribution to the cost of delivering statutory school improvement services which includes the cover of the loss of grant following the complete removal of the School Improvement Monitoring and Brokerage Grant in 2023-24.
  • Support services for maintained schools: To fund core services such as Asset management, finance and HR support that the LA provides to maintained schools following the removal of the Education Services Grant.

The Expenditure Funded from Schools Block Report noted that if the Schools Forum did not agree to the de-delegated budgets, it would have a financial impact on council budgets which would need to be considered as part of its financially planning for 2026/27.

The contingency fund is part of the Hounslow Schools Financial Sustainability Programme (HSFSP) and is intended to support maintained schools in financial difficulty. The report states that this is for the 'Schools Causing Concern element of the HSFSP contingency budget'.