Academy sponsors taking on indebted schools will no longer face financial ‘millstone’

The Department for Education is removing a ‘millstone’ of debt that has made academy trusts wary of sponsoring some schools in financial difficulties.

It comes despite the opposition of local councils, which have warned that the change could saddle them with millions of pounds of debt.

Currently, when a maintained school that has a deficit is forced to become an academy, the deficit remains with the local council, and the incoming academy trust does not have to pay it off.

However, if the council gives a school a loan instead of licensing a deficit, the responsibility for repaying the money goes to the academy trust.

These new rules will aim to encourage more academy sponsors to take on challenging schools.

Read the full article on Tes.

SCHOOLS NorthEast is hosting its inaugural Academies Conference on the 10th May at St James’ Park on the 10th May, and will be joined by Sir David Carter, National Schools Commissioner, as key note. To find out more about the conference and to book your place, click here.

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