Plans to build 6 brand-new City Academies in Manchester are in turmoil after a shock report to the Council's top-level Executive Committee revealed that the amount City Academy Sponsors will pay to take control of the 6 proposed new schools has dropped from £2 million each (£12 million in total) - to just £40,000 a year.
At Wednesday's Executive Committee meeting, Labour agreed to exempt sponsors from paying the full £12 million up-front contribution to set up the 6 new secondary schools, in exchange for an annual contribution of just £40,000 each year to the local community.
Manchester Liberal Democrat Deputy Leader Councillor Paul Shannon criticised the new funding arrangements:
"After years of poor leadership from Labour, educational attainment in Manchester is below average. Drastic action is needed to improve standards. So Manchester Liberal Democrats welcome the high-quality local companies and organizations who have come forward to sponsor the 6 new Academies."
"But it is simply unacceptable that Labour are allowing them to escape their financial responsibilities. Instead of giving £2 million up-front for each school as originally agreed, sponsors will now be asked to pay just £40,000 per year - and even that is still being debated."
Councillor Shannon believes that Labour have betrayed many people who supported the City Academy plans thanks to the financial contribution coming in from businesses:
"Many people were uncomfortable with the private sector running Manchester's 6 new secondary schools but agreed to support the plans because of the £12 million total contribution from local businesses. But without this hard cash from business, many will wonder why the elected Council is giving away control of the 6 new schools."
"Labour now say they want the "hearts and minds" of companies rather than their money, but the fact is that business only understands the bottom line. Businesses were expected to pay £2 million up-front to take control of each new school. Now Labour are letting them get away with just £40,000 a year, with the details still not agreed. This is scandalous."
End
Councillor Paul Shannon is Manchester Liberal Democrat Deputy Leader and a member of the Council's Executive Standing Consultative Panel.
Timeline of funding changes:
2005:
Manchester Council agrees to open 6 new City Academy Secondary Schools. Sponsors to pay £2 million up-front as contribution to each new school.
Sep 2006 Executive Committee:
"Negotiations with sponsors regarding financial contributions are at an early stage and there may be a need for the City Council to provide financial support."
Nov 2006 Executive Committee:
"Negotiations with DfES and sponsors regarding financial contributions are at an early stage and there may be a need for the City Council to provide some or all of the financial contribution required."
27th June 2007 Executive Committee:
£2 million requirement from each Sponsor waived. Council to pay for £12 million of funding gap. Discussions ongoing with sponsors to try to agree £40,000 per year.
Sponsors:
List of City Academy sponsors includes Manchester Airport, MANCAT, BBC, ITV, Microsoft, BT, Willow Park, Bovis Lend Lease/ Laing O'Rourke
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