The directors present the strategic report for the year ended 31 March 2026.
Barnet is the second largest borough by population in London and home to over 389,000 people. It is well known for the excellent quality of its schools and settings and the diversity of its educational offer. These are at the heart of Barnet’s continuing success as a desirable place where people want to live, work and study. Excellent educational outcomes and ensuring children and young people are successful in life and equipped to meet the needs of employers are vital to Barnet’s future success.
Barnet Education and Learning Service (BELS) is a limited company wholly owned by the London Borough of Barnet, to provide the council’s education services. The company was established in 2020 in consultation with Barnet schools and other stakeholder groups.
The company is governed by the Board on which the council, schools, parent/carers and BELS staff are represented. The Board steers the strategic direction of the company in delivering services including school improvement, services for children with special educational needs and school place planning.
Vision
Our vision is that Barnet Education and Learning Service will continue to be seen as a highly effective provider of education support services to schools, families, and the council. This vision sits alongside the strategic vision for education in Barnet, which is set out in the Education Strategy 2024 to 2027. The vision and objectives for the business are intended to ensure we play a full part in helping to deliver the education strategy and the council’s aim of Caring for People, our Places, and the Planet.
Business Purpose
On behalf of the council, BELS delivers statutory education and learning/skills services and provides traded services to schools and educational settings in Barnet.
Business Aims
Maintain and continue to develop Barnet’s excellent education offer.
Maintain and continue to develop the excellent relationship between the Council and schools.
Achieve further budget savings if required.
The London Borough of Barnet contracts with Barnet Education and Learning Services Ltd (BELS) to deliver the council’s education and skills services. BELS’ main source of income is a management fee paid by the council which it uses to deliver the council’s services. In addition, BELS operates a traded services function for schools and settings which generates additional income.
BELS works energetically to support Barnet schools and settings. At the point of writing this report there were no schools in Barnet which have been judged by Ofsted as being below Expected Standard (previously Good) in every judgement area i.e. 100% of schools expected or above in every area. In the financial year 2025-2026 all schools inspected in Barnet were judged Expected Standard or better in every area. 68% of judgement areas in schools were graded as ‘exceptional or a strong standard’ in 2025-26; very high compared to the national average of 27%. Barnet is in the top 10% for the majority of achievement measures and the top 5% for many of these.
The council and BELS continue to face financial challenges having to make savings whilst facing inflationary pressures and growing demand particularly in the area of Special Educational Needs. Inflation exceeded 3% leading to increases in employee and third-party costs for BELS. In addition, the continued growing number and complexity of children with SEND continued, leading to a sizeable overspend on the SEN Transport budget. Fortunately, the council assigned additional income to BELS to cover this demand led area and our own efficiencies have minimised these increases.
For the last nine years we have checked how satisfied schools are with our services via satisfaction surveys on individual services, both statutory and traded. The overall satisfaction rating for BELS services have been over 90% for the last five years and is now 95%, which is the third highest we have had and an increase on the 2024 figure of 94%. 8 services (out of 13) achieved a satisfaction rating of 100%, the highest we have ever had.
We continue to benefit from the use of Oracle Cloud for Finance, HR and Payroll and, over the last year have implemented and utilised AI software (Magic Notes/BEAM and MS Co-Pilot) to further improve efficiency.
In overall terms BELS operated close to budget and generated a small underspend of £143k. In total BELS now has retained earnings of £554k. The Balance Sheet at the reporting date shows good liquidity. The directors consider the financial performance and position of the company as satisfactory at the balance sheet date.
Other performance indicators
The ongoing increases in statutory demand and subsequent budget pressures have been stretching capacity in many teams. We continue to carry out capacity reviews where necessary and identify opportunities for creating efficiencies especially with the help of new technology. The Council paid £550,000 in 2025/26 increased SEN investment, and have agreed to additional funding to BELS £992,455 in 2026/27 in order to continue with this additional capacity to our SEND teams.
BELS manages the High Needs budget on behalf of the council. Over the last few years, most local authorities have faced significant pressure on their High Needs budgets as demands have increased. To mitigate these ongoing cost increases the council commissioned an external review of the High Needs Block spend. The purpose of the review was to ensure High Needs income is being used as cost-effectively as possible and that deployment of resources is equitable and matched to need. We are beginning to implement some of the recommendations from the review. In addition, as the Lead LA for London in the DfE’s SEND and AP Change Programme Partnership, we continue to pilot some of the initiatives, which are included in the DfE’s SEND and AP Improvement Plan. The associated funding has enabled us to increase capacity in a number of key areas.
The SMT scoped and assessed business priorities for BELS for 2025-26 and these continue in 2026-27. These priorities cover the four service areas and overall operational and business development, providing business level focus for BELS. Outcomes from the priorities feed into improvements for the business, company employees and the services provided to the council and schools. To ensure that BELS remains financially sustainable, operationally effective and responsive to increasing statutory demand, the following strategic priorities guide business delivery during 2026-27. These priorities reflect the main pressures and opportunities facing the organisation and will be monitored through Senior Management Team review, the Contract Monitoring Board and the Board of Directors.
Priority 1 – Financial Sustainability
Maintain delivery within the approved balanced budget for 2026-27, while managing the impact of statutory demand pressures, inflation and reduced traded service income. Budget monitoring will continue monthly, with early identification of pressures and mitigating actions where required.
Priority 2 – Managing Statutory Demand
Maintain statutory service delivery standards, particularly across SEND and Inclusion, Educational Psychology, SEN Assessment and Placements, and Transport, while responding to continued growth in EHCP demand and emerging national SEND reforms.
Priority 3 – Growth of Traded Services
Protect and strengthen traded income through the promotion of key traded services, implementation of “The Big 5” offer, development of new external opportunities, and increased focus on product development and customer engagement. Barnet’s role as the Lead London Borough for the DfE’s SEND and AP Change Programme Partnership means that there are opportunities for supporting other Local Authorities with the implementation of their SEND and AP Reform Plans.
Priority 4 – Workforce Capacity and Retention
Improve staff experience, retention and organisational resilience through targeted recruitment, leadership development, flexible working arrangements, and improved opportunities for progression and professional development. Ensure the BELS Pay Policy is clear, transparent and communicated to all.
Priority 5 – Digital and Operational Improvement
Strategically plan for increased efficiency and improved customer experience through better use of technology, including AI-enabled tools, case management systems, website development and digital process improvements across services.
Finally, in summary, despite the volatility around SEND related costs and economic uncertainty the Directors remain confident for the future. The current contract with London Borough of Barnet runs until 31 March 2026 but the Council brought forward the decision about a new contract and, in February 2025, agreed to a new five year contract from April 2025 with a possible three year extension
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 March 2026.
The company has chosen in accordance with Section 414C of the Companies Act 2006, to set out in the strategic report information which will otherwise be required to appear in the directors report.
The results for the year are set out on page 10.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
It is company policy to agree and clearly communicate the terms of payment as part of the commercial arrangements negotiated with suppliers and then to pay according to those terms based on the timely receipt of an accurate invoice.
Trade creditor days based on creditors at 31 March 2026 were 16 (2025: 34).
Azets Audit Services were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006.
We have audited the financial statements of Barnet Education and Learning Service Limited (the 'company') for the year ended 31 March 2026 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 101 Reduced Disclosure Framework (United Kingdom Generally Accepted Accounting Practice).
Basis for opinion
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the directors' report has been prepared in accordance with applicable legal requirements.
A further description of our responsibilities is available on the Financial Reporting Council's website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Reviewing minutes of meetings of those charged with governance;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Use of our report
This report is made solely to the company’s member in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s member, those matters we are required to state to the member in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s member, for our audit work, for this report, or for the opinions we have formed.
Barnet Education and Learning Service Limited is a private company limited by shares incorporated in England and Wales. The registered office is 2 Bristol Avenue, London, England, NW9 4EW. The company's principal activities and nature of its operations are disclosed in the directors' report.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
As permitted by FRS 101, the company has taken advantage of the following disclosure exemptions from the requirements of IFRS:
inclusion of an explicit and unreserved statement of compliance with IFRS;
presentation of a statement of cash flows and related notes;
disclosure of the objectives, policies and processes for managing capital;
disclosure of key management personnel compensation;
disclosure of the future impact of new International Financial Reporting Standards in issue but not yet effective at the reporting date;
related party disclosures for transactions with the parent or wholly owned members of the group.
Where required, equivalent disclosures are given in the group accounts of the London Borough of Barnet. The group accounts of the London Borough of Barnet are available to the public and can be obtained as set out in note 16.
For Traded services, when income is received in advance of the service being provided, it is deferred and released to the income statement on a monthly basis over the academic year. Any income received in advance relating to a subsequent academic year is recognised as deferred income.
For Barnet Education Special Projects, income is recognised in line with the contract for services as established with the customer. Any amounts that are unspent at year end are deferred and utilised against the provision of the service in the next financial year.
For Services to council bodies, income is determined in advance based on the contracts in place and invoiced and recognised on a monthly basis.
For Grants, income is deferred and released to the income statement when the corresponding expenditure has been incurred.
Determining the transaction price
The company’s revenue on sales is generally based on the fixed price contract or cost of services per the entities traded services website.
Allocating amounts to performance obligations
Where the contracts include multiple performance obligations, which are determined to be separate performance obligations, the transaction price will be allocated to each performance obligation based on the cost of services.
Trade and other payables are recognised at transaction price.
The tax expense represents the sum of the tax currently payable.
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The directors consider that there are no significant judgements or estimates in the preparation of these financial statements.
The average monthly number of persons employed by the company during the year was:
Their aggregate remuneration comprised:
The charge for the year can be reconciled to the profit/(loss) per the income statement as follows:
The directors consider that the carrying amount of trade and other receivables is approximately equal to their fair value.
No significant receivable balances are impaired at the reporting end date.
A general provision exists over the value of trade receivables where no credit losses are expected.
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.
During the year sales totalling £24,675 (2025: £22,572) were made to Henrietta Barnett Academy, an organisation with a common director.
During the year sales totalling £6,494 (2025: £12,830) were made to Garden Suburb Infant School, an organisation where a director is the head teacher. At the year end a balance of £900 was receivable (2025: £Nil).
During the year sales totalling £Nil (2025: £14,755) were made to Christ's College Academy, an organisation with a common director. There was no outstanding balance at the year end (2025: £855).
During the year sales totalling £Nil (2025: £23,599) were made to The Pavillion Study Centre, an organisation with a common director. There was no balance outstanding at year end (2025: £1,563).
During the year sales totalling £33,743 (2025: £32,196) were made to Danegrove Primary School, an organisation with a common director. At the year end a balance of £78 was receivable (2025: £78).
During the year sales totaling £8,409 (2025: £9,074) were made to Ashmole Academy, an organisation with a common director. At the year end a balance of £989 was receivable (2025: £Nil).
During the year sales totalling £17,401 (2025: £16,145) were made to Brookland Junior School, an organisation where a director is the head teacher. At the year end a balance of £1,067 was receivable (2025: £437).