As many as half of all the maintained schools in some areas are expected to go into financial deficit this year, putting councils in an 鈥渦tterly untenable and unsustainable鈥 position and 鈥渏eopardising鈥 education. Policy experts said the dire situation could 鈥渇orce鈥 local authorities to 鈥渞elinquish鈥 their maintained schools to balance the books, with the government keen for new powers to allow academy conversions en-masse. Brighton and Hove, the local authority with the fewest academies in the country, expects at least 30 of its 62 maintained and faith schools to end the current financial year in deficit. Only 14 of its schools were in deficit in April. The trend is similar in other councils with high numbers of聽maintained schools. A spokesperson for Lewisham council said 14 of its schools are in deficit and another 14 with small reserves are expected to – 40 per cent of its schools. 鈥淭his figure will significantly rise over the next two years unless the Government reviews schools funding in order to maintain and safeguard the education of Lewisham鈥檚 children and young people,鈥 they added. Nearly one in four (22 per cent) of the 56 maintained schools in Wakefield are also projecting a deficit at the end of the financial year, up from 2 per cent last year, when just one was in arrears. Meanwhile, over a quarter (28 per cent) of the 107 local authority schools in East Sussex are expecting to end the year in the red. Previously less then one per cent of schools were in deficit. ‘Many schools’ fear for financial sustainability The Local Government Association told Schools Week that 鈥渕any schools鈥 were concerned about their financial stability as rising costs of fuel, energy and school meals ate into budgets, alongside the need to fund the teacher pay rise. 鈥淭his comes as the financial sustainability of councils and local services is already at a cliff-edge, with the dramatic increase in inflation undermining councils鈥 budgets,鈥 a spokesperson said. Alongside national living wage and higher energy costs, this had added 鈥渁t least 拢2.4 billion in extra costs on to the budgets councils set in March this year,鈥 they added. We simply do not have any spare cash to bail out schools 鈥淭his is why we are calling on the Government to come up with a long-term plan to manage this crisis as part of our campaign to save local services.鈥 A spokesperson for Brighton said its schools could be forced to cut staff. The situation was 鈥渦tterly untenable and unsustainable鈥, he said. 鈥淲e believe this could seriously jeopardise the quality and provision of education to children and young people in the city.鈥 Like many other councils, Brighton was facing 鈥渧ery severe financial pressures鈥. 鈥淲e simply do not have any spare cash to bail out schools that are suffering financial hardship,鈥 the spokesperson said. Almost 1 in 10 maintained schools in deficit show 8.4 per cent of local authority-maintained schools nationally were in deficit last year. Academies were much better off, with only 2.6 per cent of trusts reporting they were in deficit in 2021. Tom Richmond Lincolnshire said just over 10 per cent of its schools have set a deficit budget or believe they will have one by April. Thirteen of Wiltshire鈥檚 123 schools (11 per cent) are in deficit, at a cumulative cost of 拢2.6 million. Both expect numbers to rise, too. The schools bill proposed giving local councils the option to convert some or all of their remaining schools into academies at the same time. Tom Richmond, the director of the EDSK thinktank, said councils 鈥渕ay be forced to consider relinquishing schools to balance the books鈥. Councils are also dealing with huge funding black holes in their high-needs budgets. Estimates from earlier this year put the combined deficits at 拢2.4 billion. The government has pledged 拢780 million to bailout some councils in return for cost-cutting pledges under its 鈥渟afety valve鈥 programme. Don’t ‘prop up’ academies drive with cash problems Richmond in west London said it would be 鈥渧ery disappointing for the drive towards full academisation to be propped up by schools falling into financial difficulty, rather than conversion being seen as a positive choice鈥. Heather Sandy, who chairs an educational achievement policy group for the Association of Directors of Children’s Services, was sceptical about academisation. 鈥淭rusts also face financial pressures and schools that want to join academy trusts, but aren鈥檛 able to fund their provision, would present a real challenge.鈥 She said schools faced 鈥渧ery hard decisions 鈥 and all of those impact on children, whether that鈥檚 staffing decisions, curriculum or sometimes, unfortunately, decisions 鈥 around extra support within schools to protect the most vulnerable pupils.鈥 She suggested maintained schools could find efficiencies by working with others. Jeremy Hunt, the chancellor, has signalled public spending cuts are on the way as the government grapples with plugging its own deficit. Nick Brook, the deputy general secretary of school leaders’ union NAHT, said: 鈥淪chools are in the grip of a major funding crisis. Without further investment, education 鈥 like many other public services 鈥 will be harmed, and ultimately it will be pupils that suffer.鈥