Licensing Deficits

• A school must apply for a licensed deficit if it is unable to produce a financially balanced budget. (Application forms will be emailed to schools this week)
• A licensed deficit is the amount agreed by the school and the Local Authority, which the school allowed to overspend in the current financial year.
• Only the financial year 2024-25 deficit will be licenced.
• The approval is be based on the three-year recovery plan and the detailed action plan provided.
• A school cannot assume that approval will be automatically given.
• If a request for a license deficit is declined, the local authority will contact the Head Teacher and the Governing Body to discuss the next steps.