Two primary schools could have to pay back more than £60,000 in surpluses under a Bradford Council ‘clawback’ policy introduced last year.

National rules allow secondary schools to save up to five per cent of their yearly budget, and primary schools eight per cent. Any amount over these limits could have to be paid back to the Council unless the school can prove it has been assigned for a specific task.

The system came under fire in 2008 after 18 schools were told to hand back a combined total of £500,000 of unspent funds.

The new rules saw the start of regular discussions with schools to make sure they were aware of likely surplus balances.

Despite the changes, two primary schools could still have to pay back thousands.

Ley Top Primary, in Allerton, Bradford, had a surplus balance of £109,336 as of the end of March, and is being asked to pay back £27,960. Oakworth Primary at Keighley had a surplus balance of £147,931 and is being asked to refund £33,526 to the Council. Both schools appealed. Ley Top claimed it had some funds set aside for fencing and Oakworth said interim changes at head-teacher level had left the governors ill-informed about the school’s financial position.

The Schools Performance Group and Schools Forum did not uphold the appeals, and the Council’s executive is being asked to approve the clawback on Tuesday.

Councillor Michael Kelly, executive member for services to children and young people, said: “I think the new protocol has been effective in raising the profile of the statutory requirement that we have to claw back excess balances. I am disappointed we had two this year, but it’s certainly different from last year.”

Councillor Ralph Berry, the Labour group education spokesman, said: “While I accept these schools have not been able to come up with adequate reasons to prevent the clawback, I have to ask why we have allowed the situation to get to this.”

Councillor David Ward, the Liberal Democrats’ education spokesman, said: “What we argued last time was there needed to be a fair system and that was acknowledged by the protocol being improved. I understand that the process has been much better this time.”

The meeting is held at City Hall on Tuesday from 2pm.