CLAW BACK OF SCHOOL BALANCES

That this House condemns the Government plans to claw back up to £225 million over the next three years from the cash balances held by some 20,500 English schools; notes that such a policy would penalise schools which have budgeted prudently, including those which have saved up for a major capital investment scheme; further notes that the five per cent. claw back will be imposed on balances as of March 2007, even when these balances have been spent since that date; believes that this is a backward step which will undermine the freedom of individual schools; considers that head teachers and governing bodies of schools are better able to make judgements about managing their financial positions than ministers and civil servants in Whitehall; and calls upon the Government to withdraw immediately its plans to claw back money from school balances.