Jess Phillips – 2016 Parliamentary Question to the Department for Education
The below Parliamentary question was asked by Jess Phillips on 2016-04-29.
To ask the Secretary of State for Education, what plans her Department has to mitigate the cost to local authorities of schools that are in deficit transferring to academy status.
Edward Timpson
Deficits for schools which convert to become sponsored academies remain with the local authority. These deficits remain with their local authority as these schools were the responsibility of the authority when they were found to be failing or underperforming and it is the authority’s responsibility for ensuring the school managed its expenditure satisfactorily. Guidance on how deficits for converter and sponsored academies are dealt with is available on GOV.UK at: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/416430/School_balances_on_conversion_submission.pdf
Local authorities are responsible for ensuring the financial viability of maintained schools and ensuring any deficits are cleared within 3 years.
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