COUNCIL bosses have agreed to write-off millions of pounds of debt from two secondary schools as part of plans to form an academy trust.

On November 14, Durham County Council’s (DCC) cabinet discussed proposals for Wellfield School, in Wingate, east Durham, and Tanfield School, near Stanley.

This comes as both schools battle a deficit balance of around £4million, of which £3.4 million relates to Wellfield.

Since 2017, council bosses have explored a number of options to secure the future of the schools, from amalgamating the centres with shared leadership to potential closures.

While the preferred option of a multi-academy trust was backed this week, final approval lies with the regional schools commissioner.

Leader of DCC’s Liberal Democrats Group, Coun Amanda Hopgood, speaking at Durham County Hall, questioned how city leaders let the schools fall into debt and what had been learned for the future.

“What measures beyond the existing policy have been put in place to stop this happening again and how can we have any confidence that the council will follow them in future,” she asked.

Cabinet member for finance and deputy council leader, Coun Alan Napier, responding, said the “council takes its responsibility for education very seriously” in terms of governance, support and finance.

Issues around Wellfield School, he explained, were “at least in some part a legacy of the time taken trying to find a sponsor for the school but also a symptom of funding of schools more generally.”

Wellfield school’s financal issues started with a drop in pupil numbers in 2010 which was “accelerated” by a ‘inadequate’ Ofsted judgement two years later.

At the time, the school had a surplus of around £201,000 which steadily grew as the school tried, and failed, to find an academy sponsor.

The school was re-inspected as ‘good’ in 2014 – no longer needing an academy sponsor – and has now been able to set a balanced budget for the first time, the meeting heard.

Coun Napier added the academy plan will both “strengthen and complement existing leadership and governance” with actions also taken by the council to ensure it doesn’t happen again.

This includes an internal audit and an area by area review of school finances across the county.

Cabinet member for children and young people’s services, Coun Olwyn Gunn, added there was no reason to believe why the school wouldn’t “continue to thrive as an academy.”

Under new arrangements, she added, the school would still be closely monitored along with other academies across County Durham.

It is estimated that if school funding rates kept pace with inflation since 2009/10, the amount available for schools in Durham this year would be 15 per cent higher, a council report adds.

This is equivalent to £46 million, or around £120,000 per primary school and £600,000 per secondary school.

The academy trust plans follow both schools exceeding the council’s ‘three-year rule’ for schools carrying forward debts.

If they’re rejected by education bosses, DCC will be forced to put forward other alternatives.

DCC currently has an allocated reserve to pay off the current budget deficit for both Wellfield and Tanfield schools.