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 on 14 August 2019, following consultation with all schools and agreement with the Schools Forum.
Tower Hamlets is required under section 251 previously know as section 52) of the Schools Standards and Framework Act 1998 to prepare an annual Section 251 (previously know as section 52) Budget Statement.
Regulatory provisions directly affecting the education content of these budget statements are also made in the School Finance (England) Regulations 2010.
It is a statutory duty that Local Authorities (LA) must publish their budget 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, so budget statements are the means of informing schools and the public in general about the funding plans of the LA.
The copy of the statement that schools receive for that period is intended to provide a clear picture of the authority's planned spending:
- how much the LA intends to spend on the LA budget outside the SB
- how much the LA is proposing to retain centrally within the SB for school services
- how the local formula is working to produce budget shares for each school in the LA's area.
It is important that school forums and others can compare funding and methodology between different LAs, so as to inform debate about budget levels and such issues as the balance of funding between nursery, primary, secondary and special schools. It is therefore essential that all statements are prepared to a common format.
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