Schools 'may be wasting millions'

Schools need to plan for a more austere future, the report says.

Schools are being urged to make up to £400m a year in savings as the recession continues to bite.

Government spending watchdog the Audit Commission said England's schools could save huge sums just by buying desks, equipment and services more sensibly.

It also claimed the focus on standards had led schools to neglect their duty to spend taxpayers' money efficiently.

The government said record funding for schools - increased by 76% since 1997 - had shown clear benefits.

Audit Commission chairman Michael O'Higgins said accountability for spending in schools had been weak over the past decade, as inspections had focused on standards rather than value for money.

Hoarding money intended for education is poor value Michael O'Higgins Audit Commission chairman

He said: "'The commission supports the principle of devolved school budgets and decision making, but taxpayers must be confident that public money is well spent."

Now was a good time for schools to look for better value for money, he added.

"Budgets are growing more slowly and schools need to start planning for a more austere future.

"We believe savings could be made without adversely affecting pupils or their education."

And he claimed 40% of schools were sitting on unnecessarily large surpluses, amounting to some £2bn, that could be spent on pupils.

"Hoarding money intended for education is poor value," Mr O'Higgins said.

'Hard questions'

The commission analysed what schools of similar size were spending on different services and found they could save up to £80m nationally on cleaning and caretakers, and £65m on administrative supplies.

It also suggested schools should ask themselves hard questions about their staffing levels in the light of the falling pupil numbers.

Teacher numbers have grown in England by 32,000 since 1997 and there has been a massive expansion in the number of teaching assistants and support staff.

Mr O'Higgins said: "It is not clear whether the money spent on this increase in resource has been spent as well as possible and we need to look at this in greater depth."

Schools Minister Vernon Coaker said: "Schools should be able to keep a small balance from year to year but we expect local authorities to take action where necessary to ensure there is proper value for money.

"We already provide guidance and experts who can visit schools to advise on how to purchase goods and services more effectively and efficiently.

"However, we believe that record funding for schools, which has increased by 76% since 1997, is showing clear educational benefits, with record numbers of children reaching expected levels in English and maths and excellent results at GCSE and A-level."