There are many good reasons why Oxfordshire County Council should review the way it distributes its funding to primary and secondary schools.

It is good practice to undertake a periodical review to ensure that the system is fair and that it reflects the priorities laid down by the council.

Indeed, given Oxfordshire’s undistinguished record in major exams when compared with its peers, one could argue that the formula for distributing funds to schools is a means for tackling pockets of underperformance.

The danger, however, is that this review is being undertaken for the wrong reasons.

By that, we mean it appears to target schools that have built up healthy cash reserves under the present system.

The county council has made no secret of its dismay at the cash balances built up by some schools, which it says have exceeded Government guidelines.

Money it distributes to schools should be spent on educating today’s children, it says, not saved for projects that will benefit children in the future.

One could argue that good management of a school by the head and governors includes setting aside some money for the continual development of facilities to the benefit of all children.

The county council formula should not discriminate against schools that manage their budgets well with a view to developing and improving the service they offer.

We would go further than that. Any formula developed by the council should actually encourage this, in particular by devolving even more of Oxfordshire’s education budget to the schools where decisions about development and facilities are best taken.