SCHOOLS staring at a combined £9 million deficit were able to make savings when closed during the Covid lockdown, a top councillor has claimed.

Ben Callard made the comment when he was asked about the decline in the finances among schools in Monmouthshire.

However the leader of the council’s Conservative opposition group disputed the lockdown had reduced costs for schools.

Cllr Callard was questioned about the school deficits which he described as a “significant concern” to the county council’s finances when he presented its updated medium term financial plan to the cabinet’s November meeting.

The report shows by the end of the financial year its schools and pupil referral unit are expected to have drawn down £9.3m from their combined reserve to cover shortfalls in spending.

Schools had a £7m surplus in 2022 said Cllr John when Labour succeeded the Conservative administration he led at County Hall and asked: “Somehow in less than five years you’ve turned that into a projected £9.3m deficit by the end of this financial year.

“What savings can schools realistically make to address that and what is the impact do you think those savings will have on staff and additional learning needs provision?”

In response Cllr Callard, who is the cabinet member for finance, said the premise of Cllr John’s question was “absolutely right” but said: “I can add some context.

“That £7m balance that was held in 2022, you’ll remember that was off the back of significant additional funding put into our schools as a result of the Covid pandemic. And not only was that additional funding put into schools during those years the schools were closed and so the costs borne by those schools were not so great so these significant reserves built up in schools.”

Since then, Cllr Callard, said pressures including inflation, increased additional learning needs or ALN costs and “the tail effect” of the pandemic on pupils has increased costs.

He said the deficit is “concentrated on a relatively small number of schools” and the figure expected to “improve slightly” this year due to some additional funding.

The council is also supporting schools with recovery plans and Cllr Callard acknowledged some “slippage” against recovery plans which the council is working with the particular schools on.

The Llanfoist and Govilon member also said Monmouthshire isn’t unique in Wales with only two local authorities not holding a combined schools deficit and said: “There may well be some structural issues at play that have to be remedied.”

Cllr John, who represents Mitchell Troy and Trellech, replied: “90 per cent of a school’s budget is usually spent on staff. It’s not correct just because a school is closed it is saving a significant amount of money, that’s just not the case.”

Council leader Mary Ann Brocklesby said many local authorities, including Monmouthshire, were beginning to see school deficits before the 2020 pandemic allowed them to build a surplus and said: “It’s over a longer period of time that schools have slipped into deficit and that is a result of funding in schools not being commensurate with the needs of pupils and schools across the whole of the UK.”

The finance report states the council faces a “favourable” funding shortfall for the 2027/28 financial year of £3m to an adverse situation of £6.5m while over the four-year medium-term the planning range is between £19.3m to £31.4m.

Cllr Callard said the figures are indicative rather than requirements and subject to change as the council receives further information including on UK Government budgets and the Welsh Government’s local government funding settlement.