Councils are borrowing money or diverting funding from other budgets in order to plug a £1bn shortfall for new school places, according to new research.
The research from the Local Government Association (LGA) reveals that three-quarters of councils did not receive enough funding from government to create extra school places between 2011/12 and 2016/17.
As a result, 38% of these councils said they had to borrow money to ensure every child had a school place, with 50% using money earmarked for renovating school buildings and classrooms.
Cllr David Simmonds, chairman of the LGA’s Children and Young People’s Board, said: ‘This research lays bare the financial impact on councils of providing school places, which stands at more than £1 billion over a five-year period.
‘The scale of this black hole is such that the cost of the creation of new school places cannot be met by council taxpayers. The underfunding of free school meals pales in comparison to this but both show that Government’s rhetoric must be matched by its chequebook rather than leaving local authorities to pick up the tab.
‘The lack of school places is no longer confined to primary schools but is spreading to secondary schools, and across the country we estimate more than 200,000 places will be needed.’
The LGA is calling for the Government to fully-fund this ‘back hole’ and give councils the power to create new schools and work locally to find the best academy provider. It also wants councils to be given a single capital pot, with an indicative five-year allocation to mirror the next parliament.
Mark Robinson, group chief executive of Scape, said the research makes for 'sobering reading'. He said: 'To tackle the dual challenge of population growth and migration we need to see more creativity with respect to the design and delivery of the schools and classrooms we build and also work closely with councils to assess the individual needs of an area to create a bespoke solution. We often encourage the councils we work with to think practically about the challenges they face and are currently piloting a number of new models across the UK.
'Education budgets can go a long way if spent wisely and there are a number of new development techniques and methods, such as standardised design, which could quickly improve the current situation if explored with an open mind.'
Last week, the LGA also warned councils were diverting cash to fund the government’s free school meals promise.
