Question to the Department for Education:

To ask the Secretary of State for Education, what assessment he has made of the adequacy of the budgets of the (a) Collective Spirit Free School in Oldham and (b) Manchester Creative Studio in each year since those academies were established.

We remain committed to an ambitious free schools programme that delivers choice, innovation and higher standards for parents.

Schools which are new or growing may be funded on the basis of the pupils which the school estimate will be on roll within the same academic year. A reconciliation is carried out later in the academic year to match against the pupil numbers recorded in the October census. This is to ensure new and growing schools receive adequate funding for period which they are expanding year groups. Both Manchester Creative Studio and Collective Spirit Free School were funded on the basis of the trust’s estimates since established.

Capital budgets of all free schools, including University Technical Colleges and studio schools, are allocated on a case by case basis and will consider the specific needs of the school. Costs are controlled very carefully to deliver value for money to the taxpayer.

It is the responsibility of academy trusts to manage budgets. The Education Skills and Funding Agency (ESFA) monitors the performance of all trusts at regular intervals including through annual budget forecast returns and intervenes quickly when trusts are in difficulty. The ESFA has worked closely with both trusts to ensure the adequacy of budgets in the run up to closure.