Academies

Lilac Sky scandal: £3m of ‘contentious, irregular or improper’ payments revealed

Government investigation 'outcome' report comes eight years after intervention, but contains just three pages and few details

Government investigation 'outcome' report comes eight years after intervention, but contains just three pages and few details

24 Oct 2024, 16:09

More from this author

More than £3 million of spending by the since collapsed Lilac Sky Schools Trust was deemed “contentious, irregular or improper”, a government report today has stated.

Eight years after starting its investigation into the trust, the Department for Education has published the “outcome” of its probe.

It follows a BBC documentary last month, based on Schools Week’s reporting into the case which led to the trust’s founder Trevor Averre- Beeson being banned from schools.

Government has refused repeated attempts to publish its full investigation. And it has, for what looks like the first time, instead published an investigation “outcome” report.

Unlike full investigation reports, it has few details about what the probe found. But it does provide for the first time the scale of the issues.

24 rule breaches, report suggests

The report states £3.3 million of expenditure by the trust was “deemed either contentious, irregular or improper” – making it one of the biggest academy scandals in monetary terms.

This includes “expenditure with companies, and recruitment of individuals where connections existed, without following a due process” and breaking funding rules. There was also “some instances of misuse of public funds, including expenditure on alcohol”.

The report also suggests the trust breached academy funding rules at least 24 times.

But only short summaries of what the breaches were are outlined. They include “connected party relationships”, “tax arrangements”, “trading with connected parties” and “borrowing”.

The new government said it would publish the outcomes of the investigation last month after Beeson’s attempt to overturn his ban was dropped.

Still no investigation report (after 8 years)

The Lilac Sky Schools Trust was closed in 2016. Its nine schools were rebrokered as the government investigated financial “impropriety”.

Last year the government barred the trust’s founder and chief executive Averre-Beeson and his successor Christopher Bowler from managing schools, citing “inappropriate conduct”.

Government troubleshooters sent in to the trust at the time had found “significant irregular financial and governance practice”.

Annual accounts detailed spending on luxury alcohol, council grants paid straight into Averre-Beeson’s consultancy bank account and severance paid to staff who were then hired as consultants the next day.

But the previous government repeatedly refused to publish its report, previously claiming the investigation was ongoing eight years later.

The DfE has been approached for comment.

Averre-Beeson has previously claimed in court a lot of the DfE’s evidence was a “broad character assassination”. Some of it was “not accurate” and other elements were “hearsay”, he said.

The court heard that his ban was based on five allegations, with evidence from the government’s witness in an “enormous file” that had “dozens of pages”.

Averre-Beeson has been contacted for comment.

Latest education roles from

Interim Chief Executive Officer

Interim Chief Executive Officer

Cheviot Learning Trust

Head of Finance

Head of Finance

Education for Industry

Head of Business Development (Apprenticeships and Skills) – Ravensbourne University London

Head of Business Development (Apprenticeships and Skills) – Ravensbourne University London

ULA

Executive Director of Finance

Executive Director of Finance

Newham College London

Sponsored posts

Sponsored post

Equitas: ASDAN’s new digital platform putting skills at the heart of learning

As schools and colleges continue to navigate increasingly complex learning needs, the demand for flexible, skills-focused provision has never...

SWAdvertorial
Sponsored post

Bett UK 2026: Learning without limits

Education is humanity’s greatest promise and our most urgent mission.

SWAdvertorial
Sponsored post

Six tips for improving teaching and learning for vocabulary and maths

The more targeted the learning activity to a student’s ability level, the more impactful it will be.

SWAdvertorial
Sponsored post

From lesson plans to financial plans: Helping teachers prepare for the Autumn budget and beyond

Specialist Financial Adviser, William Adams, from Wesleyan Financial Services explains why financial planning will be key to preparing for...

SWAdvertorial

More from this theme

Academies

Suspensions tumble as trust embraces ‘emotional intelligence’ 

Influential turnaround trust criticised for high suspensions bidding to cut exclusions and 'keep children in school'

Jack Dyson
Academies

Call for ministers to settle debate over make-up of MATs

Debate comes as huge trust gives up two special schools and another says some are 'impossible' to take on

Jack Dyson
Academies

New powers to close academy trusts ‘must be used with caution’

Sector responds to news government is set to gain new intervention powers once MAT inspections start

Lydia Chantler-Hicks
Academies

Lift academy trust set to hand over two special schools

The 58-school MAT believes both academies will be 'best supported within a specialist trust'

Jack Dyson

Your thoughts

Leave a Reply

Your email address will not be published. Required fields are marked *