Recommendation 25

The reporting framework for academy trusts was established on a temporary basis through agreement between ministers of the Department for Education (DfE) and the Treasury.48 This arrangement reflected the significant practical challenges and financial costs associated with collecting timely and accurate data on the financial performance of more than 9,000 academy schools at a time when the academy sector was 41 Q 43 42 Q 43 43 Q 46 44 Q 47 45 DfE, Academies sector annual reports and accounts, accessed 18 February 2026 46 DfE, DfE annual reports and accounts, accessed 18 February 2026 47 HMT, Whole of Government Accounts: year ended 31 March 2024, HC 917, 17 July 2025, p 297 48 ESFA, Academies accounts direction 2023 to 2024, 27 March 2024 15 undergoing rapid and sustained expansion. It was agreed with Parliament that this regime would be reviewed to determine when it is feasible for a more standard reporting regime to be implemented.49 We have repeatedly raised concerns about the non-coterminous year ends of academy trusts at recent Public Accounts Committee sessions. In January 2025, as part of the Whole of Government Accounts 2022–23 session, Treasury responded that forcing 9,000 schools to run two sets of accounts every year would create a disproportionate and ongoing administrative burden at only marginal benefit to the Whole of Government Accounts.50 The Treasury confirmed at our Whole of Government Accounts 2023–24 session that its position remains unchanged.51 Devolved spending