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

Social Worker (Family Worker, Link Role) - Family Solutions

Essex County Council
£38487 - £51834 per annum
Interviews will be held in person at Greenstead Youth Centre, Colchester on Monday 8th June 2026.We have an exciting opportunity to join our high-per England, Essex, Colchester
Recuriter: Essex County Council

Adults Social Worker - Tendring Neighbourhood Team

Essex County Council
£38487 - £51834 per annum + Flexible Working, Hybrid Working
This advert is open to Experienced and Newly Qualified Social Worker's (NQSW). The starting salary for a NQSW is £36,124 per annum, rising to £38,487 England, Essex, Clacton-On-Sea
Recuriter: Essex County Council

Apprentice - Business & Administration

Essex County Council
Up to £15435.00 per annum
Apprentice - Business & AdministrationFixed Term, Full Time£15,435 Per AnnumLocation
Recuriter: Essex County Council

Street Lighting Project Engineer

North Yorkshire Council
£38,220 - £42,839 per annum
Office base is the Leeming Bar Street Lighting Depot. Leeming Bar, Northallerton
Recuriter: North Yorkshire Council

LGV Driver

North Yorkshire Council
£31,537-£34,434 per annum pro rata
Would you like a rewarding role that allows you to work outside in some of the most scenic places in the country? Harrogate, North Yorkshire
Recuriter: North Yorkshire Council
Linkedin Banner