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Schools: Academies — Question

Part of the debate – in the House of Lords at 2:45 pm on 3rd March 2015.

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Photo of Lord Nash Lord Nash The Parliamentary Under-Secretary of State for Education 2:45 pm, 3rd March 2015

My Lords, academies are independent, self-managing organisations. Academies cannot borrow, except in exceptional circumstances, and so can build up reserves in order to accommodate longer-term plans that reflect their success and popularity, such as capital investment to fund maintenance or expanding provision for greater pupil numbers. They also need to hold cash to pay short-term obligations such as salaries.

Comparing net current assets of academies with the closest equivalent measure in local authority maintained schools shows that academies have 51 days’ cash, whereas local authority maintained schools, which can obtain money for capital from their local authorities, have 25 days’—51 days is a prudent buffer.

Annotations

Sue Pryce-Jones
Posted on 4 Mar 2015 1:35 pm (Report this annotation)

Did Lord Nash at any point in this debate declare his interest Vis a Vis his links to the Futures academy chain? It seems odd and possibly anti democratic that a person with a vested interest in promoting the efficacy of academies should be answering questions on the subject. He is hardly likely to give a balanced perspective.
It would appear also that someone who runs an academy chain is automatically an education expert. As a retired teacher I would strongly dispute this premise.