Agenda item

To receive an update on the Academies Act 2010 and its subsequent financial implications for both Academies and the Local Authority (LA).

Fintan Bradley attended to provide an update on the Academies Act 2010, which received Royal assent in July 2010, and its financial implications for both Academies and Cheshire East.

It was reported that there are currently two confirmed Academies in Cheshire East; Fallibroome High School, Macclesfield and Brine Leas School, Nantwich. Sandbach High School was anticipated to become an Academy on 1 November 2010. Attention was drawn to the fact that the schools that moved to academy status had all been rated ‘outstanding’ from Ofsted, as this was part of the Government’s criteria. It was explained that this criteria was expected to be opened up to schools that had been rated ‘good with outstanding features’. As Cheshire East had a number of schools in this category, it was expected that more schools would move to academy status in the future.

Fintan Bradley continued to elaborate on a number of policy implications that the Act would bring to Cheshire East. These included issues around:

·        Land Transfer

·        Transfer of Employees

·        Property and Asset Transfer

·        Finance

·        Governance

Of particular attention, was the issue around the financial implications for Cheshire East if a large number of schools decided to change to academy status. It was explained that as money would go directly to schools rather than through the local authority, it was possible that certain services would not be purchased thus having an impact on the viability of maintaining certain services for Cheshire East.

A concern was raised from Councillor Flude regarding opening up certain services such as HR and legal support to market forces. It was suggested that companies would offer services as loss leaders and then increase the price at the end of the contract having a detrimental effect on education provision.

A point was also made regarding the idea that primary schools would not make the move to academy status as readily as secondary schools due to issues around economies of scale. It was suggested that this could create a ‘mismatch’ and have a number on unintended consequences for the authority.

Fintan Bradley noted both points but suggested that at the current time, much was based upon conjecture and that things would become clearer as the Act established itself.

It was queried whether there was any obligation on academies to support other schools. It was reported that a number of academies did help other schools and that the academies in Cheshire East currently helped schools outside of the Borough. It was commented that opportunities should be sought for Academies, either inside or outside of the Borough, to assist some of Cheshire East’s challenging schools if required. 

It was questioned whether there were would be any implications for the admissions policy for Cheshire East. It was confirmed that Academies, as comprehensive schools, would have to adhere to national admissions policy criteria.

RESOLVED –

a)     That the Committee note the report

b)     That updates be brought to the Committee on a quarterly basis

c)      That opportunities are sought for Academies, both internal and external to the Borough, to provide assistance for Cheshire East schools if required.