Thirteen Bradford schools attempting to reverse a decision to claw back unspent cash have all had their appeals rejected.
They face paying back Bradford Council and Education Bradford a total of £463,045 because they failed to return forms on time explaining what the money was needed for.
Secondary schools are allowed by the Government to retain five per cent of their budgets as a surplus and primary, nursery and special schools can retain eight per cent. Any surplus and how it will be spent must be detailed in a form.
Appeals against the clawbacks were lodged by 13 schools which returned their forms late – but all have been rejected by Education Bradford. A further five schools did not appeal.
The Council’s executive will have the final say on the appeals in the New Year, but it will be urged to uphold the recommendation of the Schools Forum.
Councillor Ralph Berry, the Labour group’s education spokesman, said: “This is very bad news for all the schools involved. I have serious reservations about an appeals process in which nothing changes at all.
“Some schools have legitimate reasons for building up balances in order to deal with demographic changes and impending re-organisations. None of these factors have been taken into account.”
An emergency meeting of the finance committee of Carlton Bolling College is being held tomorrow to consider legal action against its failed appeal to reverse a decision to take back £170,000.
Councillor David Ward, who is chairman of its governors and the Liberal Democrats’ education spokesman, said: “It amounts to a £170,000 fine which will have to come out of the school’s budget.
“How can such treatment of its staff, students and ultimately the local community be justified?”
Among the other schools affected are: Lilycroft Primary in Manningham (which faces losing £30,000); Lowerfields Primary in Fenby Avenue, Bradford, (£23,000); and Keighley St Andrew’s Primary (£1,538).
Councillor Michael Kelly, Bradford Council’s executive member for services to children and young people, said: “The Schools Forum discussed this fully last week and they are satisfied that the schools where the clawback is required did not follow the correct procedures to retain their surplus balances and agreed this money should be taken back.”
The money would be distributed to schools across the district.
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