The Liberal Democrats have described government plans to claw back a percentage of unspent school budgets as ‘outrageous'. The party's children, schools and families spokesman, David Laws, called for the idea to be scrapped, saying the ‘most prudent' schools would be hit. He added it would also create an incentive for schools to spend money quickly, and could undermine long-term plans. But the Department for Children, Schools and Families, which is currently consulting on the best way to take the scheme forward, said the money would not come back into the Government's pockets, and would be spent locally on education. ‘We support schools accruing revenue balances from one year to the next in support of long-term planning. That makes good financial sense,' a DCSF spokesman said. ‘But excessive revenue balances, built up year after year, are denying today's pupils educational opportunities.' He said £1.6bn had been accrued nationally at the end of 2005-06 and the scheme could claw back £85m of unspent money a year. The money will be held by councils and head teachers within the area who will jointly decide on how the money can be ploughed back into education and schools locally.
