Tag Archives: Private finance initiative

Schools prevented from becoming academies by bank fears over PFI deals


“Michael Gove may have to rewrite legislation for his education flagship policy after 16 schools have their plans put on hold

The government’s flagship programme to convert hundreds of schools to academies has been delayed after banks refused to sign private finance contracts.

At least 16 schools that were due to leave local authority control at the start of this term have been put on hold after banks questioned whether councils would still be liable for PFI repayments.

Councils have been forced to step in to run the schools while the problems are resolved. Teachers have been transferred back to local authority payrolls and the disbanded governing bodies reformed.

The delay could hit dozens more schools that were rebuilt under PFI schemes, and the government is calling in lawyers to reassure the banks. Ministers could be forced to rewrite legislation, which was fast-tracked in the weeks after the coalition was formed, to clarify the situation.”

Read the article by Polly Curtis and Jeevan Vasagar -> here