A funding agreement is contract between the Secretary of State and an academy trust. The model funding agreement states that the agreement can be terminated under the following grounds: termination by either party; by warning notice; by the Secretary of State after inspection; by the Secretary of State; and a change of control.
The Regional Schools Commissioners (RSCs) are civil servants, and as such, carry out their duties in the name of the Secretary of State. The RSCs have powers to make a decision, on behalf of the Secretary of State, to replace a sponsor or trust, where they have not been able to secure necessary improvements. In some circumstances, the funding agreement may be terminated as part of the process.
As with other areas of their responsibility, RSCs escalate decisions to the National Schools Commissioner or the relevant minister where they are sensitive, raise issues of interpretation of government policy, or relate to urgent safeguarding or extremism concerns.
The decision to terminate a funding agreement that results in the closure of an academy is made by the Secretary of State.
Listed below are the numbers of academy closures and re-brokerages by region since the RSCs’ appointment in September 2014:
East Midlands & Humber
Lancashire & West Yorkshire
North East London & East
North West London & South Central
South London & South East