Blackburn headteacher warns of financial timebomb

In an unprecedented move, Robin Campbell, head of the borough’s first BSF school, said he had struggled to balance the school’s budget because of repayments on the school’s building costs.

He warned that in future years teachers’ jobs would have to go to meet the financial burden.

Under BSF - Building Schools for the Future - schools have been constructed by private sector funding that has to be repaid over 25 years.

Pleckgate High School head Mr Campbell warned jobs were at risk in future years as the repayments are set to outstrip the budget handed to the school.

Unions said they also feared the borough’s other schools, which are being remodelled under the council’s BSF scheme, would face similar problems when they open.

Mr Campbell said he had been forced to ask Blackburn with Darwen Council for special dispensation to put aside almost half-a-million pounds just to stay in the black over the next financial year.

Without the money jobs could be lost and exam results would drop, he said.

“The impact of not taking these reserves through into 2012/2013 would be a need for a substantial reduction in staffing costs during the next academic year.

“This could result in the potential for lower levels of achievement at a time when the school faces considerable competition from other sources.”

The Pleckgate Road, Blackburn, school was the first to open under the Blackburn with Darwen Council’s Building Schools for the Future, BSF, programme in September.

Mr Campbell said that last year it was agreed that funds had been set aside as a ‘one-off’ for ‘exceptional circumstances’ due to BSF.

But after moving into the £25million school, which was build by contractors Balfour Beatty, Mr Campbell said expenses for caretaking and site maintenance for example have shot up considerably.

Mr Campbell said: “Last year was a one-off because we were moving into a brand new school as a PFI build.

“In the old school the costs of caretaking, site maintenance for example were much lower. The PFI costs we are paying for services like this are a lot more than we used to pay.

“We have not paid for a full year’s costs yet. Next year the extra amount we need to pay is £255,000.

“We have had to make a plan so the budget doesn’t go into deficit and so we have to carry forward money.

“Meeting the payments potentially could be a challenge for the future. How will we balance the budget?

“Inflation is going up but this isn’t being built into the budget.

“It is an uncertain future, we don’t know how schools will be funded in the future.

Council bosses granted the school permission to carry over £457,000 for next year to meet £255,000 for ‘unexpected’ costs due to the PFI contract.

An additional £82,000 for the new building and Mr Campbell said that he could lose around £120,000 of funding for around 40 boys who could transfer to the new Tauheedul Islam Boys’ School, the new free school in Blackburn that is opening in September.

Mr Campbell said: “The future is unknown.We are trying to plan ahead for the future but we don’t know how much the government will distribute to fund schools.

“We would not cut back on resourcing but if we had to cut our budgets we would look at all areas first and staffing but our aim is to keep teaching and learning as a top priority.”

“We are one of the few BSF schemes in the country and are very fortunate.

“In 25 years time this building will be handed back to the local authority in the same condition. That is quite challenging they have to replace furniture if it’s damaged for example.” Union bosses said Pleckgate was not the only school facing a funding gap.

Lesley Ham, NASUWT negotiating secretary in Blackburn with Darwen, said she was aware of another BSF school which was hit by a shortfall.

She said: "Pleckgate and the new Blackburn Central High School are facing inordinate costs for repaying the PFI funding.

"The reality is the authorities engaged in this have not said what the real cost is to the community. The deal has not filtered down to the parents and local communities. That is immoral.

"They are paying the developers back over 25 years. The private companies have had a good return on this. The cost will be to the taxpayer will be massive as this is money coming from the school's budget.”