A prominent academy trust that issued six of its central team with Teslas will make huge cuts after plunging almost £500,000 into the red.
Aspirations Academies Trust plans to make more than £3 million of savings by “remodelling” its curriculum and staffing, reducing central support and “reshaping senior leadership structures” after racking up seven-figure losses last year.
The chain of 16 schools in west London, Oxfordshire and Dorset blamed unfunded pay awards and falling rolls for the downturn, as well as “unfavourable government policies”.
‘Unfavourable government policies’
A spokesperson said it was in regular contact with the Department for Education and had “a clear plan to rebuild reserves”, adding: “Our priority remains providing an exceptional education for every pupil, and we are confident in the steps being taken to secure the trust’s long-term stability.”
Accounts show Aspirations ended the last financial year £486,000 in the red, having been just over £1 million in surplus 12 months earlier. Its policy is to have £3.1 million, equating to 4 per cent of income, in savings.
The board acknowledged “a material uncertainty exists, which may cast doubt on the trust’s ability to continue as a going concern”.
In its accounts, the trust attributed the issues to “unfavourable government policies”, inflation and increased pressures from external alternative and special needs provisions.
But the spokesperson stated the “small deficit” was mainly due to unfunded pay awards and falling pupil numbers in some schools.
“These are challenges facing trusts up and down the country. The accounts also reflect the write-off of some historic bad debts,” they continued.
Millions in savings
“We continue to have strong cashflow and a healthy cash balance and are not seeking financial support from the department.”
In a bid to address the problem, the trust is planning “curriculum and staffing remodelling”, which is expects to save it £1.4 million over the next two years.
It will reduce central support costs “through restructuring, role consolidation and efficiency reviews” to generate £200,000 in the first year, rising to £600,000.
Plans also include “reshaping senior leadership structures”. This will involve implementing “benchmarked salary ranges, limits on senior posts, and alignment of school leadership structures to the trust model”.
It expects these changes to generate £1.5 million of savings over two years.
Schools Week previously revealed that Aspirations had paid about £90,000 over three years to provide leased Tesla company cars to six of its central team.
Sector’s money fears
The spokesperson did not respond when asked if the trust would continue to provide the cars.
Research by the Kreston group, a network of accountancy firms, found that all types of trust except medium-sized MATs are forecasting that reserves will fall by up to 43 per cent over the next two years.
The Confederation of School Trusts’ annual survey revealed many chief executives were looking at leadership redundancies and cutting classroom staff to balance the books.
The accounts also show Aspirations chief executive Steve Kenning’s pay rose to between £275,000 and £280,000 in 2024-25.
His salary was the 10th highest in England, according to our chief executive pay audit last year.
Paula Kenning, his wife and deputy, earned £225,000 to £230,000.
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