Top Harrogate schools leader's dire warning on potential new 'budget crisis' in UK and how it will impact

In a letter to staff which has also been sent to the Government, Mr Richard Sheriff OBE, CEO for Red Kite Learning Trust, issues a stark warning that the trust’s schools in North and West Yorkshire, serving more than 9,750 children and young people and their families, could face a budget shortfall of, potentially, £3 million.

Despite the size and efficiency of the award-winning trust, whose schools include Harrogate Grammar School, Rossett School and Western Primary School, Mr Sheriff says years of financial challenges mean it is inevitable the consequences of the latest funding allocation will hurt.

Speaking to the Harrogate Advertiser, Mr Sheriff said: "I’m able to speak not as a teacher but as a National Leader of Education.

"My worry is that in the constant quagmire of bad news about Gaza and the NHS and justice that the public will not even know about the major problems now facing our education system.

"I talk to school heads across the country and I can see Trusts everywhere are running out of money.

"The challenges are now identical for all schools no matter who or where they are.

"Cuts are already happening in schools and key services are going.

"Things parents and pupils take for granted will no longer happen.

“Being a larger Trust, Red Kite Learning Trust is still in a stronger financial position compared to smaller schools and smaller trusts.

"We are fortunate here in having strength in depth.

“We are in a position to get through the latest storm.

"But you can only spend your reserves once.

"We will need to reform and change, as we have always done before.

"We will button down the hatches but, this time round, we will see the impact.

"All schools will have to make difficult choices, even us, and it is likely we will have to reduce what we offer.

"Unless things change, it is difficult to see how the current network of schools nationwide can continue.”

The alarming letter, which is co-signed by Chris Tulley, Red Kite Learning Trust’s Chair, and has been sent to the Secretary of State for Education, Gillian Keegan, her shadow in the Labour Party, Bridget Phillipson, as well as local MPs in North Yorkshire, spells out in detail why this funding crisis is worse than previous ones.

The letter outlines the key challenges now facing such a successful Trust as Red Kite Learning Trust:

1 The funding figures for schools released at the end of March mean the money that our Trust schools receive will increase by less than 1%.

2 In addition, the government is planning to withdraw significant funding which was initially implemented to help with Covid catch-up.

This equates to over £0.5m for RKLT schools.

3 General inflation at over 7% in the last year has meant costs for almost everything has risen substantially.

There is widespread expectation that pay rises for teachers and support staff will rise by above 1% this year.

In the past schools would have known the outcomes of the pay awards much earlier and have been able to plan better.

4 With a national recruitment and retention crisis for teachers and support staff, together with the cost-of-living challenges people are facing, a significant pay rise will rightly be expected.

Mr Sheriff, who received an OBE in King Charles's first New Year Honours list in January 2023 for services to education, was headteacher at Harrogate Grammar School for 11 years and is not someone to get involved in politics.

But, as someone who has also worked as an Ofsted Inspector and serves as a Trustee of the Professional Teaching Institute, Chair of the ASCL Trust Leaders Advisory Board and member of the National STEM Advisory Board, his warning on the dire situation which potentially faces schools is one that will be taken seriously.

In the letter, Mr Sheriff makes clear the cumulative effects of previous under-funding over the last decade.

It says: “Our finance team have modelled various scenarios and if we go for the middle option, a 1% gap between our funding and the pay increases, we are faced with a £3m shortfall.

"The largest gap in cash terms will be in our secondary schools, they are simply larger and therefore have more staff costs that are subject to the increase.

"Each school is funded slightly differently through the National Funding Formula and phase, size and demographic all make a difference.

"Last year we faced very similar challenges and the government only announced some additional funding in the autumn term.

“This funding did not cover the full costs of last year’s pay rises so this year the effect is cumulative.”

Mr Sheriff emphasises that Red Kite Learning Trust is not powerless and will make the necessary decisions to continue to support its pupils after a broad consultation about a range of options.

Over the next six months, he adds, the Trust is looking forward to having “productive and open” discussions with its Trustees, school leaders, People Board, Education Board and Youth Board about what they can do together to ensure that Red Kite Learning Trust remains a leading Trust.

But, after tough times for years, the time has come for a proper debate on what is possible for schools.

"It’s been 20 years since the national remodelling programme in education and we need a new examination for the new context we find ourselves in.

"Schools will always do their very best to look after pupils who only come their way once.

"Everyone hopes for the best but there is no indication it will get better.

"We need to be honest and say schools need more money or we will have a very stripped back education system with a narrower offer of services."

Red Kite Learning Trust consists of 14 schools in North and West Yorkshire.

They are:

Coppice Valley Primary School, Harrogate Grammar School, Oatlands Junior School, Rossett School, Rossett Acre Primary School and Western Primary School (North Yorkshire Council).

Austhorpe Primary School, Colton Primary School, Crawshaw Academy, Meadowfield Primary School, Templenewsam Halton Primary School, Temple Learning Academy, Temple Moor High School and Whitkirk Primary School (Leeds City Council).