William Eichler 18 March 2016

£560m ‘black hole’ in chancellor’s school plans

The chancellor’s plan to transform every school into an academy faces a £560m funding shortage, according to a new analysis.

In his Budget speech on Wednesday, George Osborne declared his intention to convert every primary and secondary school in the country into an academy by 2020.

‘We are going to complete the task,’ he said, ‘of setting schools free from local education bureaucracy, and we’re going to do it in this Parliament.’

An analysis of his plan by Labour shows, however, the schools system is facing a black hole of £560m.

There are 15,632 schools in England that are not yet academies, and the costs for conversion to academy status is £44,837.

There is, however, only £140m allocated to academisation, which leaves a shortfall of £560m.

‘The chancellor’s plans for education are unravelling,’ Lucy Powell MP, Labour’s shadow secretary of state for education, said.

‘Schools are already facing an 8% cut to their budgets, the first time education spending has fallen since the mid-1990s.

‘This half a billion pound black hole in the education budget means that schools will be further out of pocket as a result.’

‘The chancellor needs to come clean about where this money is going to come from,’ she added.

Council leaders have also issued warnings about the plans, saying the move 'defied reason'.

SIGN UP
For your free daily news bulletin
Highways jobs

Senior Practitioner - Woodlands Family Centre, West Essex

Essex County Council
£48205.0000 - £57988.0000 per annum
Senior Practitioner - Woodlands Family Centre, West EssexFixed Term, Full Time£48,205.00 to £57,988.00 Per Annum Location
Recuriter: Essex County Council

Senior Practitioner - Placement Finding Team

Essex County Council
£48205.0000 - £57988.0000 per annum
Senior Practitioner - Children & Young People's Placement Service - Placement Finding TeamPermanent, Full Time£48,205 to £57,988 Per AnnumLocation
Recuriter: Essex County Council

Cleaner

Durham County Council
£24,796 (Pro Rata)
Permanent Contract - Part Time 10 hours per week 4.00pm to 6.00pm Monday to Friday. Whole Time. Required to start 1st August 2026.   Governors wish to Newton Aycliffe
Recuriter: Durham County Council

Social Worker MHSOP

Durham County Council
£35,412 - £39,152 / £40,777- £45,091 p.a. ( pro rata for part-time) i.e. grade 9 pre progression/grade 11 post progression (Pay Award Pending)
We are looking for a MHSOP Social Worker to join our Adult Care Service, supporting older people and adults with a physical disability.   WHAT IS INVO Durham
Recuriter: Durham County Council

Clerical Officer Receptionist

Durham County Council
Grade 3 £25,185 - £25,989 Pro rata (Pay award pending)
WHAT IS INVOLVED? We are looking to appoint a temporary (18 months) part time Clerical Officer/Receptionist within Business Services to provide a pr Newton Aycliffe
Recuriter: Durham County Council
Linkedin Banner