By Richard Johnstone
5 May 2011
More than 20 local authorities are taking legal action against the government, claiming it has cut too much from their funding for services transferred to academy schools.
The 23 councils have had their grants reduced by £148m by the Department for Communities and Local Government. The government says this reflects the fact that some services the authorities used to provide for schools will now be undertaken by independent academies, who receive their funding direct from the Department for Education.
But the councils are bidding for a judicial review of the funding cut. They argue that the reduction is based on the cost of the services to academies rather than the savings to local authorities.
Although they accept that some money needs to be transferred, they say the funding cut considerably exceeds what is saved. They also argue that it breaches the government's guidelines on funding transfers, known as the New Burdens Rules.
In an impact assessment of the Academies Act before it became law, the Department for Education described the savings on the transfer of the services as ‘negligible’. This was because authorities would still have to maintain the services, which include support for children with special educational needs, even though they would be provided to fewer schools.
The councils also claim that Local Government Secretary Eric Pickles unlawfully failed to consult adequately on what the appropriate cut should be, and that he should have, if possible, sought independent corroboration of the savings figures.
Emily Heard, a partner with law firm Bevan Brittan who is representing the councils, said that a response from the DCLG is due within 21 days of filing the claim.
Both the DCLG and DfE say they are aware of the proposed judicial review and will respond in due course.
The councils seeking judicial review are: Blackburn with Darwen Borough Council, Blackpool Council, Bradford Metropolitan District Council, London Borough of Camden, Dudley Metropolitan Borough Council, Durham County Council, London Borough of Ealing, London Borough of Enfield, the Borough Council of Gateshead, London Borough of Hackney, London Borough of Hounslow, London Borough of Islington, London Borough of Lambeth, Leicester City Council, London Borough of Lewisham, Newcastle City Council, Portsmouth City Council, Sunderland City Council, Thurrock Council, London Borough of Tower Hamlets, Wakefield Council, London Borough of Waltham Forest, Warrington Borough Council.
The number of academies has tripled since the coalition came to power in May 2010.
