Education Business

In February, a commotion was caused as Jim Knight, Minister for Schools and Learners, announced that the government would begin taking money back from schools unless they significantly increased expenditure and stopped hoarding money. Naturally, any suggestion that schools would be forced to return funding was met with arguments from all sides.
    
On one hand, the National Association of Head Teachers said that there were many “underlying issues” that have caused schools to withhold funding, while on the other, The National Association of Schoolmasters Union of Women Teachers (NASUWT) said the actions by schools that were stockpiling money was “unacceptable”. Whilst I’m sure that both sides of the argument have merit, BESA (British Educational Suppliers Association) looked into this issue several months ago to obtain a clearer understanding of the current financial situation for UK state schools and how both the recession and changes to funding has affected spending.

How much is being withheld?
Research by BESA at the end of 2008 suggested that schools are being careful with their spending at the moment in the face of the current economic climate, despite funding being available to schools. In January 2009, BESA research showed that £222 million of the normal resources budget remained unspent, reflecting that 18 per cent of annual spend was still remaining for the year up until end of March 2009. This may be in part because of direct threats in some areas and rumours elsewhere that local authorities may try to recoup surpluses – despite schools now having three year budgets.
    
According to figures by the Department of Children, Schools and Families, in April 2008 schools had a total of £1.9 billion in bank accounts, which had increased by almost £250 million in 12 months.
    
In light of the announcement by the Commons Select Committee in December 2008 that investment in schools may be cut as a result of the recession, and the recent reporting of revenue balances of maintained schools, BESA research showed that education funding is still positive, but schools are being naturally cautious in their spending patterns.
    
Given the current economic uncertainty and the Commons Select Committee announcement, it is understandable that schools are spending carefully. However, it is important that school decision makers do not stop spending completely, but continue to make wise spending decisions for the continued benefit of learners and teachers.

Benefiting today’s learners
Commenting on this issue, Jim Knight MP said: “we expect revenue spending to be used ... on learning resources to support the education of pupils in school now, working towards raising attainment.” The funding that has been allocated to schools now is for the today’s learners, not for learners in the future.
    
In particular, the government is saying that schools should not be keeping this money aside for large capital works and building projects, but use it towards every day expenses such as books, ICT and teachers.
    
While it is only natural that schools are expected to keep aside a small amount of money for any urgent spending needs, up to a third of all schools are holding what is considered to be an excessive level of funds, defined as more than five per cent of budgets for secondary schools and eight per cent for primary schools.
    
Of course, BESA wants schools to keep their funding so they can continue to make informed decisions about how best to use it for the benefit of their learners. However, if they hold a moratorium on spending, this will not be of benefit to learners and the commercial sector and they will run the risk of this funding being recouped by the government. The education supplies industry has often led innovation in curriculum change, by the development of world-class resources, and we need to ensure this continuity. Not only that, but this money needs to be returned to the economy to help the entire sector thrive and overcome the risks faced in these troubling times.

Seek value for money options
Schools will always continue to receive funding, and three-year budgets give them the opportunity to plan and look forward. Of course, BESA understands that schools are currently experiencing very uncertain circumstances, not only regarding increased costs, but mounting pressure to meet targets and new initiatives. In hard times it is ever important to look for quality and reliable resources to achieve educational aims and improve learning outcomes.
    
To ensure that schools get the most value for their investment, we would recommend that they do as much research as they can about the quality and reliability of suppliers before making a commitment to expenditure. BESA is the trade association for educational suppliers, and represents over 320 members that operate in the UK. BESA members adhere to a stringent Code of Practice, ensuring safety, reliability and value for money. This helps assure school decision makers that when dealing with an educational supplier that is a member of BESA, they know the company has been evaluated and scrutinised by BESA first.
    
BESA values the importance of quality resources that provide educators with choice and value for money and this is why for over 25 years we have been involved in organising important education trade events, such as The Education Show and BETT. Free to attend, teachers can search for innovative and good value resources each year, in order to help their pupils and improve their skills, while using their funding to best support their school’s individual needs.
    
BESA also organises the judging for both the BETT Awards in January and the Education Resource Awards in March to help reward excellence in the industry, while giving school procurers a good understanding of some of the more innovative, relevant and affordable resources released on to the market each year.

Taking back funds
At this point, the government has not definitively confirmed that it will begin reclaiming surpluses. However, Jim Knight did say: “Ministers have been clear that the total national total of revenue balances was too high in 2007/08 – and want local authorities to use their powers to redistribute excessive surplus cash if they judge balances are building up year after year with no long-term purpose.” He has also said that if school leaders do not begin to reduce their surpluses significantly over the coming year, the government will begin to consider taking action in 2010/2011 to reduce school surpluses.
    
Rather than risk losing a portion of funding, school leaders need to assess expenditure needs for current learners and teachers while, if necessary, keeping in place a small portion of funding for any unexpected expenditure needs. We certainly understand that balancing budgets and planning for the future is one of the most difficult aspects of school decision makers’ roles. This is why BESA has undertaken research, and also liaises with many heads and teachers to gain a greater understanding of the issues affecting the sector. If you would like to get involved in any BESA focus groups, or if you would like to add your comments, we always welcome feedback. Please contact me at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it or at 020 7537 4997.

About BESA
BESA, the British Educational Suppliers Association, is the trade association representing over 300 educational suppliers in the UK, including manufacturers and distributors of equipment, materials, books, consumables, furniture, technology, ICT hardware and digital-content related services to the education market.

With 75 years of experience, BESA offers unparalleled support, research, events and advice on both UK and International markets, and the future of the education supplies industry. BESA is focused on promoting and providing support and advice to their members, the industry and to schools.
   
BESA has a Code of Practice to which all members must adhere, along with a stringent membership process, both of which assure buyers of a high standard of quality in both product and customer service.

For more information
Web: www.besa.org.uk