Labour MP Bill Esterson exposes Tory-Lib Dem government subsidy

Bill Esterson


Sefton Central Labour MP Bill Esterson has identified a hidden subsidy to academies which is provided by the government at the expense of schools which remain with the local authority.

It emerged in the Finance Bill Committee today that the government subsidises academies by £250,000 for VAT which academies pay on supplies such as books and equipment.

Bill said: “The government confirmed that the subsidy for academies was at the expense of the majority of local authority schools as the subsidy for VAT is paid to academies out of the money given to local authorities for all schools."

Academies are also given extra money for being academies, money which is also taken from other schools. The subsidy for academies puts local authority schools at a disadvantage and is of great concern to many parents in Maghull, Crosby and Formby.

Bill added: “That's why it is important that those schools which are considering becoming academies listen to the views of parents, staff and the wider community including the views of those schools which are staying with the local authority."