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balancing budgets…

29 November 2013
Staffing costs typically account for anywhere between 70% and 80% of a school’s budget. With the medium term prospects of school finances looking like flat-lining income at best, staffing costs are likely to come under increased scrutiny when setting budgets. The position could be compounded for many schools by the introduction of a national single funding formula and increased pension costs. Browne Jacobson’s school leaders survey 2013, a survey of school leaders from right across the sector and the country, shows 54% of maintained school leaders saw changes to terms and conditions as a major priority compared to 34% of academy leaders. This is surprising when you consider this is one of the academy freedoms. Undoubtedly balancing budgets is getting more difficult for schools. Whilst benchmarking costs and shared services will play an important part in budget discussions, with salary costs representing such a large proportion of a school’s expenditure they cannot be ignored. It will be interesting to see how PRP is used in future years.

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