Nearly one-fifth of academy trusts are not confident in their long-term finances, a new survey of trust leaders shows.
Almost one in five (19 per cent) of trust chief executives said they were not very or not at all confident in their future financial sustainability - a big increase on last year, when just 4 per cent reported that they weren’t confident in their finances long-term.
Less than half of respondents to the National School Trust Survey, organised by the Confederation of School Trusts (CST), said they felt very or quite confident in their financial sustainability.
“While many trusts have embraced efficiency measures, often working with Department for Education advisers to find cost savings, some are now struggling to balance budgets. The levels of confidence in their financial futures are deeply concerning,” say the report authors.
Financial sustainability was reported by trust leaders as one of their biggest priorities and challenges in the survey conducted in partnership with Edurio. Previously, financial sustainability had been a bigger problem for small trusts but this year trusts of all sizes said it was a key priority.
School funding: academy trusts under pressure
Trust chief executives flagged up teaching staff costs, inflation, planning difficulties, energy costs and special educational needs and disabilities support costs as some of the factors driving their fears about financial sustainability. Balancing budgets was their biggest financial concern.
The survey was conducted before the reinforced autoclaved aerated concrete (RAAC) crisis emerged, but more than half of leaders still said they had at least one building at risk of failure or past its economic life.
The vast majority - 79 per cent - said at least some of their buildings had major defects or were not operating correctly.
A significant proportion of trusts also reported that they did not expect to be able to match the funding needed for the National Tutoring Programme this year. Just 58 per cent said they planned to use it this academic year, compared with 75 per cent in 2022-23.
The report authors say: “Many trusts see the value of tutoring to support some pupils but are sceptical about the bureaucracy surrounding the National Tutoring Programme. CST suspects most trusts would rather have increased core budgets and the freedom to target spending where it can best reflect local needs.”
Squeezed budgets and teacher recruitment and retention difficulties were the two factors trust executives said were the biggest barriers to delivering priorities.
Meanwhile, one-fifth of CEOs said they would focus on looking at flexible-working options next year. More than a quarter said they didn’t currently offer any flexible-working options.
Challenges in governance were also reported: 77 per cent of leaders reported vacancies in their local governance. Four in 10 trusts also reported that they did not have a dedicated governance professional in place.
MATs ‘worrying about the basics’
CST chief executive Leora Cruddas said: “No one in public services ever feels they have enough money to do all they could, but the long-term impacts of the pandemic, the shock of high inflation on energy and wage costs, and concerns about the school estate means too many school trusts are now worrying about the basics.
“They are often stepping in to fill the gaps left by overstretched council and NHS services, even as they find their own budgets under intense pressure.”
Despite their financial challenges, trust leaders still reported that improving the quality of education was their key priority.
Ernest Jenavs, co-founder of Edurio, said: “Each of the last years has presented the sector with different challenges that trust leaders have navigated with courage, grace and devotion to their pupils and staff.
“It is encouraging that education quality, workforce development and organisational culture remain key priorities for trust leaders. The sector is committed to rising above the operational challenges and driving school improvement in their schools and beyond.”
