Classrooms' cash crisis

Evening Chronicle (Newcastle, England), Jan 31, 2006

Byline: By Nicola Juncar

Schools in the North East are facing a cash crisis with debts totalling more than pounds 2m.

The Government statistics have prompted leading opponents to warn of teacher shortages and class cuts as headteachers struggle to cope with the deficits.

The worst-hit school in Sunderland is Sandhill View, which is more than pounds 137,000 in debt.

In County Durham, there are 16 primary and secondary schools in the red. Durham Johnston Comprehensive owes the most, as its debt reaches pounds 52,242 and Dene Community School of Technology follows with debts adding up to pounds 33,334.

In our region, primary and secondary schools are pounds 2.3m in debt and a fifth of that is from one school in North Tyneside.

As Education Secretary Ruth Kelly prepares to announce today the next wave of specialist schools, Seaton Burn College, a specialist business and enterprise college, revealed debts of pounds 432,409.

Falling pupil numbers were blamed for part of the problems being experienced at Seaton Burn, which is one of a handful of specialist schools facing mounting debt in the North East.

The statistics have come from a list of 1,866 schools across the country published by the Department for Education and Skills (DfES).

The Newcastle school facing the most debt is Lemington Middle School, which is in the red by pounds 103,248.

Seven of the city's primary schools also make the list and include Wharrier Street Primary, which owes more than pounds 34,000.

In Northumberland, the worst affected school is Blyth Community College, which faces debts of more than pounds 168,000.

North East Euro MP Martin Callanan criticised the Government's failure to keep on top of the cash crisis. He said: "We could see classes cut, books cancelled or even teachers sacked. We have already seen health trusts told to cut back their spending and now we are seeing schools seriously in debt."

A DfES spokesman said last night: "New multi-year budgets will be introduced from April and will give schools continued stability in their funding and enable them to plan ahead on a much more certain and predictable basis, thereby further reducing deficits."

The revelations come as Tony Blair faces a backbench rebellion over his flagship school reforms. Labour MPs yesterday demanded major concessions after Ms Kelly said she wanted to reach a deal.

The Commons education select committee called for new safeguards to make sure the controversial schools White Paper plans do not exclude the poorest children.