My Lords, this third group of amendments relates to the opening of new schools, including new maintained schools, academies and free schools, and the financial governance of maintained schools—but not to the noble Lord’s Amendment about local elections, so I will not respond to that.

Clause 57 relates to how new schools are opened, and the noble Baroness, Lady Barran, opposes it standing part of the Bill. The clause ends the legal presumption that new schools should be academy schools. It requires local authorities to invite proposals for academies and other types of school when they think a new school should be established and gives them the option to put forward their own proposals for new schools. The current system allows local authorities to propose new schools only as a last resort or in very limited circumstances. Local authorities hold the statutory responsibility to secure sufficient school places in their area, and it is right that we give them greater ability to fulfil that duty effectively. These changes will enable consideration of any local offer that meets the needs of children and families.

Amendment 480, tabled by the noble Baroness, Lady Barran, relates to the opening of projects in the free schools pipeline. I understand the noble Baroness’s desire—and the passion and enthusiasm of the noble Lord, Lord Harris, who, as others have said, has played an enormously important role in improving the quality of schools for many of the children who need it the most—to ensure that the approved free school projects open as planned. I know that trusts and local authorities commit significant time and energy to supporting these projects.

However, noble Lords will also understand the need to consider carefully the use of a limited amount of school capital. Agreeing the amendment would commit the Secretary of State to opening all projects in the current pipeline, regardless of whether they are still needed or represent value for money. That is why the department is giving careful consideration to these proposals in relation to the need for places, their value for money and the extent to which they provide a distinctive local offer. It would be wrong to spend funding on new schools that cannot be financially viable while existing schools urgently need that funding to improve the condition of their buildings.

Amendment 481, tabled by the noble Lord, Lord Agnew, would require local-authority-maintained schools to have an annual external audit. In response to the noble Lord’s contribution, I am afraid I must clarify that he was wrong to state that maintained schools do not have to publish salaries over £100,000 and that they do not have to submit three-year budget plans. Those requirements were introduced by the last Government in 2021 following a consultation put out by the noble Lord as a Minister. He has had more of an impact even than he realises.

I nevertheless understand the points the noble Lord made about the responsibility on all school leaders to ensure that public money is being spent as effectively as possible in order to maximise the amount that can be spent directly on supporting and educating our children. However, the Government do not believe it is necessary to mandate all maintained schools to have an annual external audit. Maintained school accounts form part of local authority’s accounts. A sample will be audited each year as part of the local authority audit process. Any maintained school that wants a separate audit has the right to commission one. We can argue about whether, as the noble Lord has suggested, auditing would save money. However, we are clear about how much it would cost. School audits can cost £10,000 or more—the total cost of separate audits for all maintained schools would be at least £100 million a year.

I hope that, given my explanations, the noble Baroness will feel able to withdraw her clause stand part notice, and other noble Lords will not move their amendments.