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Academies

Question for Department for Education

UIN 219279, tabled on 17 December 2014

To ask the Secretary of State for Education, what estimate she has made of reserves held by academies in each year since 2006-07.

Answered on

5 January 2015

The table below sets out academy trusts’ total cash holdings at the end of the four most recent financial years. Academy trusts’ cash is the best representation of reserves available to trusts.

Date

Number of academy trusts open

Total cash,

£ millions

Average cash per academy trust,

£ thousands

31 March 2011

377

62

165

31 March 2012

1,524

1,199

130

31 March 2013

2,108

1,859

88

31 March 2014

2,585

2,469

96

We do not have comparable records of academy trusts’ cash holdings for financial years 2006-07 to 2009-10.

The average cash held by academy trusts has fallen over the four years partly due to many smaller academy trusts opening more recently and holding less cash. We regard academy trusts’ cash holdings as reasonable, typically representing enough to fund one month’s operations after deducting current liabilities. Academy trusts cannot borrow and need to hold enough cash to manage their solvency prudently.

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