The Hounslow Council Schools Forum met on Monday 13 October 2025, to discuss school finances, budget updates, and future plans. The forum was scheduled to review school balances, discuss financial sustainability, and consult on school finance regulations. They were also expected to hear updates from the Director on SEND¹ and alternative provision, and to review the forward plan.

School Balances

The Schools Forum was scheduled to discuss school balances as of 31 March 2025. According to the reports pack, schools with balances exceeding 8.3% of their funding for the 2024/25 financial year were considered to have excess balances. The number of schools with excess balances, changes in these numbers, and how long the balances had been held were all scheduled to be reviewed.

The report pack noted that at 31 March 2025, excess balances totalled £0.6 million, whereas at 31 March 2024, the figure was £1.2 million.

The Schools Forum was expected to consider the use of balances returns submitted by schools, which detail their plans for using excess balances. The report pack listed approved purposes for holding excess balances, including:

• A revenue contribution to an agreed capital scheme
• A contribution to a 'spend to save' scheme
• Managing costs associated with SEN
• Balances earmarked to support the costs incurred by the review of contracts of a significant value, where expenditure is not even year-on-year
• Managing the costs of expansion of pupil numbers
• Managing financial difficulties associated with a budget reduction in the following financial year, resulting from either a significant reduction in pupil numbers or a loss or significant reduction of a specific funding stream
• Managing exceptional circumstances in such a way as to avoid significant financial turbulence that may impact on standards. This may include, for example, outcomes of HR processes.

The Schools Forum was also scheduled to discuss the clawback of excess balances, and to make recommendations for the council to consider.

The report pack noted that schools holding excess balances for three consecutive financial years should expect the council to claw back the excess at the end of the third year, and that any balances clawed back would be used to offset shortfalls in the High Needs DSG² budgets.

The Schools Forum was expected to discuss individual schools with excess balances as at 31 March 2025, including Woodbridge Park Education Service, Cranford Primary School, Sparrow Farm Primary School, VA St Lawrence Primary School, Bedfont Primary School Isleworth and Crane Park Primary School.

Financial Monitoring

The Schools Forum was scheduled to receive an update on financial monitoring for 2025/26. This included a summary of the General Fund Quarter 1 position, highlighting areas of significant overspends such as Waste and Recycling, Social Care Academy, Leisure service, Adult Social Care, and Unallocated Savings.

The report pack included a projection for the Dedicated Schools Grant (DSG) for 2025/26 as of August 2025, showing budget, projection, and variance for the Schools Block, High Needs, Early Years, and Central School Support Block (CSSB). It also included a projection for DSG and schools delegated balances, and an update on schools balances, including the number of schools in deficit and net balances.

Consultations

The Schools Forum was scheduled to discuss the need to update the Scheme for Financing Schools and Schools Finance Regulations. The consultation was expected to include the introduction of an earlier deadline for 3-year budgets, a request for completion of Integrated Curriculum Financial Planning workbook alongside 3-year budgets, and the introduction of a loan scheme. A two-week consultation with maintained schools was planned, with the Schools Forum expected to agree on updates in the November meeting.

Other Updates

The Schools Forum was scheduled to receive updates on various financial matters. This included the National Insurance Contributions (NICs) grant, which is intended to help schools with increased costs of employer National Insurance contributions from April 2025. According to the report pack, £4.1 million was allocated for London Borough of Hounslow mainstream schools, with special schools' NIC costs covered via the Core Schools Budget Grant, and early years settings covered via the early years National Insurance contributions and teachers' pay grant (EY NTPG).

An early years update was also planned, including a reminder that there is a 97% minimum pass-through requirement, which the London Borough of Hounslow already meets.

CSSB and De-delegation

The Schools Forum was scheduled to discuss the Central School Support Block (CSSB) and de-delegation of funding. The CSSB covers funding allocated to local authorities to carry out central functions on behalf of pupils in maintained schools and academies in England. De-delegation refers to funding for certain services that may be de-delegated, meaning funding for the services are allocated to schools through the National Funding Formula but can be passed back to the local authority by maintained schools with forum approval.

The report pack noted that the local authority intends to review the de-delegation from the Schools Block from 2026/27. Initial proposals were expected to include the removal of the de-delegation of the School Uniform Grant following a policy review, and the creation of a contingency within from the Schools Block to assist with managing the cumulative deficit.

Forward Plan

The Schools Forum was scheduled to review the forward plan for future meetings. The forward plan included items for discussion at the meetings scheduled for 17 November 2025, 19 January 2026, 23 February 2026, 6 July 2026 and 12 October 2026.