Financial support for schools
We support schools and budget managers in setting their budgets according to the priorities included in the school and children and young people’s plans.
We work to promote best financial practice and aim to ensure that schools and budget managers implement best value guidelines when procuring services.
Tower Hamlets’ Scheme for Financing Schools
Section 48 of the School Standards and Framework Act 1998 requires Local Authorities (LAs) to publish a Scheme for Financing Schools. The Scheme sets out the financial relationship between a LA and its maintained schools; it does not apply to academies.
The latest Scheme came into effect from 1 April 2022, following consultation with schools and agreement by the Schools Forum.
Budget and Outturn statements
Tower Hamlets is required under section 251 of the Schools Standards and Framework Act 1998 to prepare an annual Section 251 Budget Statement and Outturn Statement.
Regulatory provisions affecting the education content of these statements are also made in the School Finance (England) Regulations 2010.
It is a statutory duty for Local Authorities (LA) to publish their statements as and when prescribed by the section 251 and section 230 regulations.
The size of the schools budget (ISB), and the amounts to be allocated to each factor depend on budget decisions taken by the LA before the prescribed period. Budget statements inform schools and the public in general about the funding plans of the LA. The outcome of these decisions are issued in an Outturn statement at the end of the financial year.
It is important that school forums and others can compare funding and approaches between different LAs. This will inform the debate about budget levels and issues around the balance of funding between nursery, primary, secondary and special schools. It is essential that all statements are prepared in a common format.
4th Floor, Mulberry Place
5 Clove Crescent