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Academies accrue debt to councils ... £30million

Discussion in 'Education news' started by lanokia, Sep 30, 2015.

  1. lanokia

    lanokia Star commenter

    http://www.bbc.co.uk/news/uk-england-33136997

    Millions of pounds of debt has been inherited by councils across England as schools convert to academies, a BBC investigation has revealed.

    Opponents say local authorities are forced to use their government education grant to clear the debts.

    A BBC Freedom of Information request shows more than £30m has been cleared.

    The Department for Education said local authorities should pay the debts as they were accumulated when the schools were under council control.

    The Local Government Association said vital cash was being taken from schools not involved in the scheme.

    So money that should be for local authority schools is instead being used to pay off the debts of Academy chains, causing financial short falls for LA schools that remain?

    Sadly, not surprised.
     
  2. phlogiston

    phlogiston Star commenter

    I got the feeling that when my old school academised, it had to pay off its own debts rather fast. This was a reason for the lack of the promised money.
     
    lanokia likes this.
  3. Middlemarch

    Middlemarch Star commenter

    Interesting. Does this mean that any academies that get into debt will get their debts paid off by the government? Fair's fair.
     
  4. MrMedia

    MrMedia Star commenter

    You've got be thinking, take a headship at an LA school, run up the debts pushing up the grades, switch to an academy and away you go. You look a hero.
     
  5. Middlemarch

    Middlemarch Star commenter

    Yes!
     
  6. Rott Weiler

    Rott Weiler Star commenter Forum guide

    DfE have a nerve to say that!

    So what if the school has a surplus when it converts to an academy? By DfE's logic local authorities should keep the surplus as it accumulated when the school was under council control. But it doesn't. The school keeps it and it's given to the academy chain!

    But when did a lack of logic ever stop the DfE steamrollering through its pet projects.
     
  7. drek

    drek Lead commenter

    Once again loan shark logic. Secondary value being that councils will be too cash strapped to compete with neighbouring academies thus forcing any stubborn state leftovers to convert too. Was it not their goal to make every school an academy and declare each one outstanding so that the public buy into the rebranding?
    Internally nothing changes. The converted school now has money to pay for management packages, jaunts and foreign trips, but none for children's resources or teacher's salaries.
     
  8. xena-warrior

    xena-warrior Star commenter

    One of the reasons one of my previous schools hoped to attract an academy sponsor was the impossibility of tackling its massive historic debt. It was running a skeleton staff and not attracting pupils, but still someone was dumb enough to take it on. The council tax payer is still footing that particular bill.
     
  9. lanokia

    lanokia Star commenter

    I was told of a local Academy that is running at a half million deficit today. I'm ... amazed.

    I'm fairly sure the source is trustworthy.
     
  10. xena-warrior

    xena-warrior Star commenter

    The school I'm thinking of was running almost a million. I'm convinced the chain that took it on, having only the year before taken on two other failing local schools, cannot have serviced the debts unless there is far more money in sponsoring than even I believed. I know someone who works for the organisation who created the sponsor group, and the parent organisation was going bust before this. They are taking money from the parent organisation to fund the sponsorship and making redundancies to cover it.
     

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