Tackle failing academy chains or let town halls take over, Ministers told
MINISTERS ARE being urged to take control of “faltering” academy finances or let local authorities oversee them, the body representing town hall leaders has warned.
The Local Government Association, which represents 370 councils in England and Wales, claims the fact so many academies are in financial trouble, shows the pressures that schools are under and that the current system of oversight is not working.
This follows a series of reports which have raised concerns over the financial management of academies.
According to the Kreston UK accountancy network, eight in 10 academies are in deficit.
MPs on the Public Accounts Committee have also said that academy trusts needed to show the highest standards of governance, accountability and financial management, and that many trusts were falling short.
Chair of the association’s Children and Young People Board, Coun Richard Watts, said: “We urge the Government to get faltering academy finances under control, or allow councils to step in and oversee them, as they do with council-maintained schools that face financial challenges.
Coun Watts added: “What we need is greater transparency in how academies are managing their finances and urgent action taken to balance the books where necessary.”