Academies blamed for school cash woe
Reporter: Karen Doherty
Date published: 28 September 2015

An artist’s impression of the Oasis Academy Oldham
OLDHAM taxpayers have forked out £1.266million to pick up the debts of poorly performing schools-turned-academies.
The amount is the fifth largest in the country. Oldham Council paid debts of £690,000 and £36,000 respectively for the former Counthill and Breeze Hill schools when they merged as Waterhead Academy.
It also paid £169,000 and £371,000 when Kaskenmoor and South Chadderton became Oasis Academy Oldham.
Opponents say allowing some schools to walk away from their debts leaves less money for other local schools. Christine Blower, general secretary of the National Union of Teachers, said: “As a direct consequence of the academies programme, local authorities have less money to spend on other schools.”
Councillor Shoab Akhtar, Oldham Council’s Cabinet member for education and skills, said the situation called for change.
“The Government does not allow a school to convert to an academy if it has a deficit,” he said.
“As a result, back in 2010 the council was forced to pick up the costs when new academies were created. It is not fair that the taxpayer is left out of pocket and some schools are burdened with a deficit while others can walk away from their arrears.”
A Department for Education spokesman said: “Councils are only required to cover a school’s deficit when it has become a sponsored academy after a prolonged period of underperformance and the deficit was accumulated under council control.”
Academies are state-funded independent schools which receive their funding directly from the Government, giving greater freedom.
Oldham now has 18 primary, secondary and special school academies. Three more are in the works
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