Cost-cutting is to be a key agenda item for school leaders over the next 12 months, according to a new report.

The study, carried out by The Association of School and College Leaders (ASCL) and Browne Jacobson, found that three quarters of respondents are dissatisfied with the government's funding policy.

School leaders feel that not enough money has been earmarked for education and, consequently, over half have indicated that prudence will be a major priority over the next academic year.

The annual School Leaders Survey, which canvasses the opinions of headteachers, principals, deputies, finance directors and school business managers, is keen for policymakers to review the government's school funding policy.

Changes made to special education needs (SEN) provision was cited as being one of the biggest pressure points on school budgets, with two-thirds of school leaders saying they are concerned about the impact the new system is having on their finances.

Nick MacKenzie, education partner at Browne Jacobson and author of the School Leaders Survey 2014, said that based on the results of the report the growing financial pressure experienced by schools is leading to an "environment of growing uncertainty and falling morale".

"The decision not to proceed with a fairer national funding formula for schools for the time being will have only added to the growing frustration felt by many school leaders," he continued.

"Whilst the survey shows school leaders are increasingly exploring more avenues to balance the books, there is a real and growing concern over the impact on schools’ finances."

Mr MacKenzie highlighted other changes that will also impact on school finances. For example, in 2015, employer contributions to the Teachers Pensions Scheme will increase, while in 2016, National Insurance contributions are also set go up.

This, the expert said, will "heap more pressure on squeezed budgets". He is keen to see how politicians from all of the major political parties respond to the findings, given that the General Election is next year.

Brian Lightman, general secretary of the ASCL, added that schools have been "at the sharp end of far-reaching change", so it is no surprise that funding is a major concern of school leaders.

"With these reforms come additional pressure on schools, not only in planning and preparation, but staff training, communication to pupils and parents, and managing the transition processes: all of this costs money," he expanded.

"With the election looming, we are pressing all political parties to commit to a national funding system that ensures all schools are funded equitably, adequately and in the context of the demands required of them."

Mr Lightman went on to say that despite the negative findings, all is not "doom and gloom". He explained that school leaders are, nevertheless, still optimistic about the general state of education and the future prospects of their respective students.

Other notable findings from the study include 82 per cent of schools redirecting their funds from overall budgets to support SEN activities; and 38 per cent of schools increasing the number of fines they hand out to parents for taking their children out of school during term-time.