Cheshire East’s children’s services committee was told this week that almost half of the authority’s maintained schools were operating with a negative balance at the close of the financial year. The council’s finance lead for education set out the scale of the shortfalls and the steps officers are taking to assist affected schools.
Scale of the problem
There are 49 maintained schools in Cheshire East; officers reported that 23 of those were in net deficit at the end of March. Overall the local authority recorded a consolidated surplus of £2.698 million, but that headline figure masks the number of individual schools with financial pressures.
Targeted support and scrutiny
Finance officer Diane Green told councillors the council will continue to deploy Department for Education school resource management advisers, using a sector-led, peer-to-peer model to provide practical guidance to schools in difficulty.
“We’ve got 49 maintained schools in Cheshire East and at the end of March, there was a reported consolidated surplus of £2.698 million. “However, we have 23 schools that were in net deficit.”
Councillors pressed for further analysis of the causes of deficits. Cllr Stewart Gardiner asked for future reporting to examine whether the shortfalls are driven by factors such as small, rural roll numbers or geographic patterns that could point to structural issues rather than one-off pressures.
Planned interventions
Director of education Helen Wallace described how officers are prioritising support, establishing a "team around the school" approach for those with the most serious budget concerns. According to the council, 10 schools had already taken part in the DfE adviser process during 2025/26, with a further 12 schools expected to join.
- Eight schools are scheduled for team meetings in September.
- Six more schools will follow after those initial sessions.
- The authority has also identified additional schools that could develop deficits if current trends continue.
Officers told the committee they are preparing for the new school year to take a mix of proactive and reactive steps aimed at preventing further deterioration in school budgets.
Next steps for the council
The committee agreed to receive an updated paper at its December meeting setting out progress on the schools in deficit and any emerging patterns identified through the DfE adviser visits and local intervention work. The follow-up report is intended to give councillors greater clarity on the causes of deficits and on the effectiveness of the council’s support arrangements.
| Item | Figure |
|---|---|
| Maintained schools in Cheshire East | 49 |
| Schools in net deficit | 23 |
| Consolidated surplus (end of March) | £2.698m |
| Schools in DfE adviser process (2025/26) | 10 |
| Additional schools expected to join | 12 |
The position raises immediate questions for headteachers, governing bodies and the council about whether savings can be found locally, whether reorganisation or collaboration might be needed in some areas and what financial risks remain for the authority. Councillors will return to the issue later in the year with a request for detailed analysis of causes, geographic trends and the impact of intervention measures.
