Redbridge schools experienced a collective drop of £3.6 million in their revenue balances as of 31 March 2025, according to a report presented at the Redbridge Schools Forum meeting on Tuesday, 8 July 2025. The local authority (LA) recognises that schools face significant financial challenges due to increasing costs and funding uncertainty.
The report detailed that maintained schools held £20.529 million in revenue balances, a decrease from the previous year's £24.148 million. Capital balances also saw a reduction, standing at £0.442 million compared to £1.236 million in 2023-24.
The Schools Forum also discussed the School Organisation Plan 2025-33, which is based on recent trends and population projections. The report pack noted that reception rolls across schools have been falling and are projected to decline further between now and 2033, in line with current trends for London and neighbouring authorities.
By 2026/27, the Published Admission Number (PAN) will have dropped by 360 places, equivalent to 12 classes, since the 2019/20 academic year. Despite this reduction, an additional 15 classes' worth of surplus places for reception are expected in the borough by 2027/28. This high surplus of school places creates financial pressure on schools causing reduced budgets, which in turn can affect the overall sustainability and quality of education standards at the school. When school rolls are low, the more popular schools will always fill places leaving some schools more vulnerable.
The balance control mechanism sets the threshold for excessive balances at 5% for secondary schools and 8% for primary and special schools. The report indicated that 41 maintained schools held balances under this threshold, while 18 schools exceeded it, holding a total of £0.977 million in reserves over the limit.
Two schools reported a revenue deficit balance at the end of the financial year 2024/25. Ongoing discussions have been taking place with both schools to address these deficits.
The Schools Forum was informed that the LA will continue to monitor school balances during 2025-26 and expects schools to have clear plans for using their balances within a reasonable timeframe. All schools were required to submit their final approved budget and evidence of all commitments against the surplus balance to the LA by 1 May 2025. The LA is reviewing these plans in view of the level of balances held. Where schools have held balances significantly more than the threshold for the past three years, the LA is intending on writing to those schools to request further details including copies of governing body minutes discussing and agreeing to the use of balances.
The Public Reports Pack contains further details on all topics discussed at the meeting.