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Robin Squire, Parliamentary Under Secretary of State at the Department for Education, today confirmed details of th...
Robin Squire, Parliamentary Under Secretary of State at the Department for Education, today confirmed details of the funding arrangements which will provide self-governing (grant-maintained) schools with faster and more reliable budget figures for 1994-95.

Mr Squire said: 'We are determined that self-governing schools should begin the new financial year with a reliable basis for budgeting.'

Commenting on the outcome of consultations with the self- governing schools and local education authorities, Mr Squire said: 'We are grateful for the many constructive responses to the consultation paper we issued in October. The vast majority recognise that schools must have reliable budget figures early in the financial year if they are to budget effectively for the year ahead.'

Mr Squire also announced the additional funding GM schools would receive for services which the LEA previously provided. This is in the form of a percentage addition to schools' Local Management of Schools (LMS) entitlement.

Mr Squire said: 'These percentage additions represent self-governing state schools' fair share of the spending which LEAs hold back from their own schools.

'Announcing these percentages in advance will help self- governing state schools and those considering self-governing status to establish at once what funding will be available to help meet the cost of services which a local authority would otherwise provide.'

A letter sent today to LEA Chief Education Officers and Chairmen of Governors of self-governing schools sets out changes to the rules which have applied in 1993-94.

The main features are: the direct costs element of Annual Maintenance Grant will be based on LEA details of LMS schemes and budgets. LEAs will also provide full estimates of GM schools' entitlements so as to provide an early figure for GM schools; the central percentage addition for self-governing schools will continue to be based on data about central spending in the previous year; the existing provision under which the cash value of central AMG cannot decrease is to be modified so that it cannot decrease by more than 10 per cent in any one year.

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