THE Government has abandoned plans that could have forced schools in Kent to hand back than £3million from their reserves.

The proposal was designed to claw back money from schools that was unspent at the end of the financial year.

It was condemned by schools, governors and the opposition parties and County Hall’s Conservative administration said it amounted to a tax on those schools that managed their budgets well.

Under the scheme, schools would have been compelled to hand over five per cent of any money they had not spent each year, even if it had been earmarked for specific projects.

This year, Kent schools held about £63million in reserves and had the plans gone ahead, would between them have been forced to hand over £3.2million.

Ministers now say they intend to abandon the plan and instead will ask local education authorities to monitor more closely schools’ reserves.

Schools minister Jim Knight: “I know that where schools retain a small surplus they are using sound financial management, such as putting money aside for extra staffing costs the following year or against unforeseen changes. Rather than proceed now we will continue to discuss these detailed concerns with schools and work with local authorities to lower excessive surplus revenue balances.”

Cllr Chris Wells (Con), KCC cabinet member for education, said the decision was a victory for commonsense. “I am relieved on behalf of all our schools. This would have created an environment in which schools will be rushing to spend money on things they do not have any wish for.”