RISING debt levels for school finances pose a ‘material risk’ to Bournemouth, Christchurch and Poole Council – according to the authority's leader.
The latest figures show almost a £3million increase in the 2021-22 end of financial year figures for the Dedicated Schools Grant for 2021-22, an in-year deficit of £12.5million, compared to an expected deficit of £9.6million.
At the same time the accumulate deficit has grown from £7.9m to £20.3m at March 2022 with the need for the amount to be carried forward and recovered from future Dedicated Schools Grant allocations.
BCP Council leader Drew Mellor said the local figures amount to a ‘material risk’ for the authority and is an overspend the council was unable to make financial provision for to pay off.
He said many authorities wanted to see the money taken off council balance sheets.
“It is a big risk, it is a big number and it is eye-watering,” he told one of the council’s overview committees.
"There is a significant piece of work that going on to address that and we are starting to generate more confidence that we are able to.
Cllr Mellor said that lobbying was continuing nationally to find a solution to the national problem.
"The risk to us is if the Government effectively turn off the ability to off balance sheet it or don't offset it with investment for us."
Cllr Mellor said while the deficit was large it was not among the largest in the country. He said a significant number of authorities across the country would have massive difficulties.
“The Government are going to have to do something,” Cllr Mellor added.
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