Member

Under the new proposal, the local authority will be able both to define the scope of a new project and to bid for its own contract. This has three negative consequences. First, it creates an inherent conflict of interest, such that a new approval process will be needed by the Secretary of State in these cases. This conflict risks resulting in new schools being opened and run by local authorities which do not have the expertise in this area, unlike some of the most experienced trusts. Secondly, it will leave us with schools that have far less transparency and accountability than an academy. As my noble friend Lord Agnew spelt out in Committee, local authority schools do not have to prepare accounts, and many trusts have found considerable inefficiencies that can be addressed when they join a trust, so more can be invested in the education of children. Finally, it will push up costs, although the department does not know by how much; in its letter, it clearly hopes this will be absorbed by existing budgets—we will see how well that works.