Micon Metcalfe<\/figcaption><\/figure>\n\n\n\nThe Confederation of School Trusts\u2019 (CST\u2019s) annual survey last month revealed that financial sustainability was CEOs\u2019 number one priority this year \u2013 for the second year running. Many are looking at cutting classroom staff and leadership redundancies to balance the books.<\/p>\n\n\n\n
The trust did not respond to a request for comment.<\/p>\n\n\n\n
But finance expert Micon Metcalfe noted that Catholic MATs more generally may be \u201cdisproportionately affected\u201d by financial pressures.<\/p>\n\n\n\n
This is because \u201cthey are wanting to deliver the bishop\u2019s plan for the area and protect small Catholic schools\u201d, which are harder hit by cuts.<\/p>\n\n\n\n
iPads and job cuts<\/h3>\n\n\n\n The Arthur Terry Learning Partnership (\u00a33.9 million) and the Sherborne Area Schools\u2019 Trust (\u00a31.9 million) had the next-highest deficits. They ran 23 and 18 schools at the time.<\/p>\n\n\n\n
Schools Week previously revealed how Arthur Terry had racked up seven-figure losses after purchasing iPads as part of an initiative to provide 11,000 devices for all pupils and staff.<\/p>\n\n\n\n
In a letter sent to parents last week, the trust said it was \u201cconsulting with staff regarding voluntary redundancy and early resignation programmes\u201d.<\/p>\n\n\n\n
But the trust added that the \u201cmajority of staff will not be affected by these programmes\u201d, and this was \u201cone of several measures being considered to manage resources responsibly\u201d.<\/p>\n\n\n\n
Sherborne\u2019s accounts cited pressures including \u201cthe increasing cost and challenge around alternative provision\u201d.<\/p>\n\n\n\n
This was \u201cfurther compounded by high levels of staff absence in the form of the associated costs of backfilling essential frontline teaching roles\u201d.<\/p>\n\n\n\n
Andi Brown, of academy consultancy firm SAAF Education, has been called in to help more trusts in financial difficulty over the past six months.<\/p>\n\n\n\n
This is due to pay rises not being fully funded, \u201chigher than expected inflation and a general reduction in pupil numbers, particularly in primary schools\u201d, among other things, he said.<\/p>\n\n\n\n
\u201cWe\u2019re now starting to recommend trusts aim for staff costs to be 75 per cent of total income. Three, four years ago it was 80 per cent.\u201d<\/p>\n\n\n\n
The price of inclusion?<\/h3>\n\n\n\n The Beckmead Trust \u2013 which also appeared on the list \u2013 was this week issued with a notice to improve after approaching the government for an emergency bailout amid concerns it would be plunged into a \u201ccashflow deficit\u201d.<\/p>\n\n\n\n
A spokesperson for the MAT, which runs 12 special and alternative provision schools, said it went into the red due to \u201csignificant delays\u201d for cash \u201cto build new free schools approved by the DfE, and in receiving funding from local authorities\u201d.<\/p>\n\n\n\n
Last year, we had to make some very difficult decisions<\/p>\n\n\n\n
Broad Horizons Education Trust CEO Owen Jenkins also said its \u00a3670,000 deficit reflected \u201cthe complexities of bringing together a very diverse family of schools\u201d, including two special schools.<\/p>\n\n\n\n
\u201cThe commitment to inclusion is not easy to deliver within the current funding context,\u201d he added. \u201cLast year, we had to make some very difficult decisions \u2026 and sadly this meant some redundancies, but this did not come at the cost of inclusion.\u201d<\/p>\n\n\n\n
Broad Horizons \u201cis now outperforming its approved financial recovery plan and moving into an in-year surplus position\u201d, he added.<\/p>\n\n\n\n
Problems not confined to trusts<\/h3>\n\n\n\n CST CEO Leora Cruddas stressed that trusts \u201care not immune from the financial pressures facing all public services\u201d, highlighting that 15 per cent of maintained schools also have a budget deficit.<\/p>\n\n\n\n
A separate FOI lodged with the DfE showed 159 local authority-run schools across 26 councils were subject to a notice of financial concern in 2023-24, up from 94 the year before.<\/p>\n\n\n\n
These are similar to academy improvement notices, also issued when funding rules are breached. Council schools do not publish details of their accounts, so the reasons for deficits are not as transparent as in academy trusts.<\/p>\n\n\n\n
Michael Barton, the National Governance Association\u2019s head of policy, added: \u201cWhile the summer\u2019s spending review was relatively positive for schools and may offer some short-term relief, it fell short of delivering the scale of investment needed to fully address the financial pressures facing the system.\u201d<\/p>\n\n\n\n
Brown warned that even those which \u201chave built up large reserves and can weather this storm a bit better\u201d are \u201cgoing to start burning through\u201d their savings.<\/p>\n\n\n\n
\u2026 but some weren\u2019t in deficit<\/h3>\n\n\n\n But 28 of the 75 trusts listed in our FOI for flagging concerns were in surplus.<\/p>\n\n\n\n
Despite registering a \u00a31.4 million surplus, the Bishop Wheeler Catholic Academy Trust forecast a future \u201cin-year deficit that could deplete [its] remaining cash reserves\u201d.<\/p>\n\n\n\n
Among other things, the 16-school trust also pointed to \u201csignificant underfunding through the national funding formula over a 10-year period that has become more acute in the last three years\u201d.<\/p>\n\n\n\n
Bishop Wheeler said the issue has left its schools \u201cfunded at 82 per cent of the minimum level necessary to operate as indicated\u201d by the department\u2019s efficiency benchmarks.<\/p>\n\n\n\n
This was \u201cacknowledged\u201d by the DfE, which \u201cindicated\u201d it would \u201cconsider providing short-term funding \u2026 should it be required\u201d.<\/p>\n\n\n\n
The Cornelius Vermuyden School made similar projections, despite recording a \u00a3110,000 surplus. This prompted department officials to advise that it \u201cneeds to join a multi-academy trust\u201d.<\/p>\n\n\n\n
The South East Essex Academy Trust, which is working with the school, said budgets were squeezed, in part, by \u201creduced pupil numbers\u201d brought on by \u201clocal demographic changes and the impact of an Ofsted report\u201d.<\/p>\n\n\n\n
A report by the Kreston group of accountancy firms suggested that \u201cif the sector is trying to ensure that it is financially sustainable, then the obvious solution would be for MATs to become large or at least for the smaller MATs to become larger\u201d.<\/p>\n\n\n\n
Push for groups of schools<\/h3>\n\n\n\n Cornelius Vermuyden was one of 52 single-academy trusts (SATs) included in the list. Just nine were responsible for 10 or more schools.<\/p>\n\n\n\n
Of the SATs, 30 (58 per cent) were either secondaries or all-throughs. Thirteen (25 per cent) were in the east of England, 10 (19 per cent) in London and nine (17 per cent) were based in the South-west.<\/p>\n\n\n\n
Salvatorian College was the SAT with the largest deficit (\u00a31.4 million). This came after the ESFA \u201capproved a financial facility\u201d of \u00a31.4 million in 2019, of which \u00a31.3 million had been \u201cdrawn down\u201d by the end of August 2024.<\/p>\n\n\n\n
But trustees believed that \u201csome additional support may be required\u201d and they had \u201ca reasonable expectation\u201d this \u201cwould be forthcoming\u201d.<\/p>\n\n\n\n
Groups of schools coming together makes absolute sense<\/p>\n\n\n\n
The Kreston report showed small MATs \u2013 those with fewer than 3,000 pupils \u2013 had, on average, surpluses \u201cof just \u00a31,000 [last year] compared to \u00a3203,000 in 2022\u201d.<\/p>\n\n\n\n
Primary and secondary SATs also tended to be in deficit, according to the analysis.<\/p>\n\n\n\n
Institute of School Business Leadership chief Stephen Morales believes Labour\u2019s schools white paper is \u201clikely\u201d to include \u201cencouragement for schools to collaborate and not operate as islands\u201d.<\/p>\n\n\n\n
\u201cGroups of schools coming together makes absolute sense and it’s probably the most sustainable way for our system to prevail given the fiscal backdrop.\u201d<\/p>\n\n\n\n
Definition of ‘group’ unknown<\/h3>\n\n\n\n The Conservative government tried through various white papers to force schools to join trusts, but the plans always failed. <\/p>\n\n\n\n
The 2022 white paper included a target for all schools to be in \u201cstrong\u201d multi-academy trusts by 2030<\/a>. There was also an expectation most trusts would have at least 10 schools, or 7,500 pupils. However the plan was later ditched.<\/p>\n\n\n\nIt is not known how Labour would define a school “group”. Multi-academy trusts would fit the bill, but also less formal partnerships like council federations could come into consideration.<\/p>\n\n\n\n
\nThe government has to do everything possible to keep things running<\/p>\n<\/blockquote>\n\n\n\n
However it is understood any potential new plan would not force schools into new ownership. \u00a31m bailouts<\/p>\n\n\n\n
In all, 22 trusts either received bailouts or had received “indications” they would be given additional financial support.<\/p>\n\n\n\n
Among them was Sherborne, which \u201canticipated future funding\/cashflow support from the DfE of up to \u00a31.3 million\u201d. Arthur Terry was also offered a \u00a31.5 million government loan to stay afloat.<\/p>\n\n\n\n
Morales said some trusts were \u201cgetting too big to fail [as] they have so many children in their care\u201d.<\/p>\n\n\n\n
When academies in big struggling MATs cannot be rebrokered, \u201cthe government has to do everything possible to keep things running. In the end, it’s their duty to ensure thousands of children in any community are educated.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
Seventy-five trusts \u2013 one with a deficit of almost \u00a36 million \u2013 raised concerns about their ability to continue operating in 2023-24<\/p>\n","protected":false},"author":311204,"featured_media":236541,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"footnotes":""},"categories":[4],"tags":[32],"post-theme":[2381],"class_list":["post-236556","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-academies","post-theme-academies"],"acf":[],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t
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