Select Committee on Public Accounts Fifty-Second Report


4   Academies' impact on their community

22. Academies are one of a number of possible responses to problems of very low achievement in schools in deprived areas. Some more affluent areas also have poorly performing schools, but the problems are usually easier to solve and improvements can be achieved in other ways. Through the Building Schools for the Future programme, the Department intends to renew all secondary schools over a 15-year period, so setting up an academy is not the only means to renew a school building. Some deprived areas such as Hartlepool have achieved big improvements without setting up any academies.[51]

23. Academies are independent of local authorities, as will be schools that gain trust status.[52] Local authorities' role in the schools sector generally is becoming more strategic, with less involvement in the day-to-day running of schools and more emphasis on securing the right mix of schools for their area. Establishing an academy can present the local authority with other opportunities to meet local needs, for example by looking beyond education provision to identify other community services that could be located within an academy building. For example, an academy might provide space for a children's centre or for social workers.[53]

24. An intention of the Academies programme is for the new buildings to be used by the local community. Academies had been liable to pay VAT on their entire building cost, where paid-for usage exceeded 10% of the available area, time or people using the building. As a result, local communities have not been able to derive maximum benefit from their buildings. The same VAT regulations also affected newly built voluntary aided schools.[54] The 2007 Budget Statement announced in March 2007 that the Government would remove VAT constraints for current academies and all those planned for the future, to further the effectiveness and value for money of the Academies programme.[55]

25. In considering whether to support the establishment of one or more academies, local authorities should take account of any need to rationalise secondary school places. Local authorities monitor the number of surplus places in their area, and provide annual statistics to the Department. In January 2006, 7% of the 3,485,000 secondary school places were surplus (including sixth-form places in secondary schools but not including any places in academies, city technology colleges or further education colleges). When a new academy is first proposed, the Department requires the 'Expression of Interest' to provide an analysis of the impact of the proposed academy on the number of school places in the area.[56]

26. In 17 cases examined by the National Audit Office, the academies could be expected to reduce the number of surplus places. For example, Djanogly City Academy, Nottingham, replaced a city technology college and another secondary school, but the capacity of the academy was much less than the total capacity of its two predecessor schools. In other cases, it was less clear what effect the academy would have, because the impact on the number of pupils requiring places in the area was not known, for example because a relatively high number of children were attending schools in the independent sector or in neighbouring authorities.[57]

27. The Government made a commitment that 60 of the first 200 academies should be in London. In September 2006, 23 of the 46 open academies had been established in London, and the National Audit Office's analysis of the location of existing and planned academies showed that there were fewer academies in the north of England than might be expected. While the levels of deprivation alone do not justify London having such a high proportion of academies, there are special circumstances such as shortages of school places in parts of London and many pupils travelling to a school in a different borough. Much of the early interest from sponsors was also concentrated in London. The Department considers that there will be a greater spread of academies across England as the programme expands. More local authorities are planning to set up, and some to sponsor, academies.

28. Academies are expected to improve the performance of neighbouring schools within four years of opening, for example by the academy collaborating with other secondary schools in the area as part of a 'family' of schools. The National Audit Office's survey of neighbouring secondary schools showed, however, that there had been little collaboration yet, with fewer than half of the neighbouring schools reporting that they had met with senior managers at academies and none having used the academies' sports facilities.[58] Academies had given early priority to the internal performance of the academy before starting to make such links.[59]

29. One objective of the Academies programme is to increase the proportion of students who stay in education beyond the age of 16. The City Academy in Bristol is an example of an academy that is working with other providers and schools to introduce the new 14-19 specialised diplomas.[60] Forty-two of the first 46 academies have a sixth form, generally in response to views, for example of the sponsor, that having a sixth form helps raise students' aspirations to stay in education.[61] There is a risk however that a new sixth form could reduce the viability of existing sixth form providers in the area. North East Lincolnshire has three academies, all with sixth forms, in addition to the two existing post-16 providers; and the academies have plans to provide vocational sixth-form education opportunities to encourage pupils to stay on who might not otherwise have chosen to remain in education after 16. The Department believes that the new academies will increase the staying on rate among students in the area, in part by expanding the choice available.[62]



51   C&AG's Report, para 3.9; Qq 75, 113 Back

52   The Education and Inspections Act 2006 enables all schools to become Trust schools by forming links with external partners. Trust schools will own their own assets, employ their own staff, set their admission arrangements, and be able to apply for additional flexibilities. More information is available at www.dfes.gov.uk/publications/educationandinspectionsact  Back

53   Qq 13, 20 Back

54   C&AG's Report, paras 3.47-3.49; Qq 21-26 Back

55   http://www.hm-treasury.gov.uk/budget/budget_07/bud_bud07_speech.cfm Back

56   Qq 42-43; Ev 20 Back

57   Qq 42-43; Ev 20 Back

58   C&AG's Report, para 2.31 Back

59   Q 41 Back

60   Qq 41, 57 Back

61   C&AG's Report, para 2.16; Q 56 Back

62   Qq 58-60 Back


 
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