Question to the Department for Education:

To ask the Secretary of State for Education, whether local authorities will retain responsibility for school deficits under the proposals in her Department's White Paper, Educational excellence everywhere, published in March 2016.

Deficits for schools which convert to become sponsored academies remain with the local authority. These deficits remain with their local authority as these schools were the responsibility of the authority when they were found to be failing or underperforming and it is the authority’s responsibility for ensuring the school managed its expenditure satisfactorily. Guidance on how deficits for converter and sponsored academies are dealt with is available on GOV.UK at: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/416430/School_balances_on_conversion_submission.pdf

Local authorities are responsible for ensuring the financial viability of maintained schools and ensuring any deficits are cleared within 3 years.