Schools: Academies

Lord Storey Excerpts

Tuesday 3rd March 2015 Lords Chamber

[Lord Nash]

As I already said, we regard the cash management of academies to be very prudent. We see no reason why efficiently run schools should not be involved in careful financial planning. It may well be that the Labour Party would like to run the school estate like they ran the economy—borrow, borrow, borrow and nearly go bust. We do not think that that is a sensible approach and we do not think that we should penalise successful schools.

[Lord Storey (LD)]

My Lords, my noble friend will be aware that this works out at an average of £1.2 million per secondary academy and £1.8 million per academy chain school. He will also be aware of the suggestion that we are setting up schools to be run as businesses. Will he tell us, in no uncertain terms, that there never have been and never will be any attempts to run schools as profit-making businesses?

[Lord Nash]

My noble friend will know from his experience over 25 years as a primary head that all schools are facing cost pressures from national insurance and pensions, so any prudent school will have some level of cash reserves. I mentioned capital requirements for academies. The education sector has a lot to learn from the business sector in terms of efficiencies. We have found that when business people and educationalists work well together through the academies programme the effects can be quite dramatic. I cannot make promises for ever, but there are no plans as far as this Government are concerned to bring profit-making to the school system.