Recommendation 12

We asked the Department about the regional differences in the financial health of the sector. In 2019/20, 8% of academy trusts in the North of England were in a cumulative deficit compared with 2% in South East England & South London.26 The Department informed us that the number of trusts in cumulative deficit were “quite small” and that it was seeking to address these through one-to-one work between Regional Schools Commissioners and the affected trusts. The Department explained that the variation seen in the North of England was driven by four academy trusts that were in deficit in 2019/20, including two University Technical Colleges. The Department outlined how it was working with these trusts, including Durham UTC which it stated was a continuing priority and the trust was working with the ESFA on the options available to it.27