COUNCIL chiefs have agreed to write off a County Durham school’s £1.6 million deficit as it prepares to join a multi academy trust.

St Bede’s RC Comprehensive, in Peterlee, has been supported by the Northern Saints Academy Trust, now the Bishop Chadwick Catholic Academy Trust, since 2015.

This followed the school receiving a ‘requires improvement’ rating from Ofsted followed by a sharp decrease in pupil numbers which raised financial viability concerns.

Due to the specific circumstances of the school and risks around providing faith school places in the area, Durham County Council has worked to support the school with its financial issues.

Measures included permission for the school to set up an in-year deficit budget for the last two years while a viable long-term solution was found.

To safeguard the school’s future, the council also secured temporary leadership support from St Wilfrid’s RC school in South Tyneside, which is part of the academy trust.

As a result, St Bede’s saw rapid improvements in Ofsted ratings, with a ‘good’ judgement in 2017 helping to transform performance and pupil numbers.

As part of plans for the school to join the Bishop Chadwick Catholic Academy Trust, the county council’s ruling cabinet agreed to write off the school’s historic deficit.

According to a report for councillors, the estimated £1.6 million would be a one-off cost and help support the school and sixth form going forward.

The plans were signed off by council chiefs at Wednesday’s virtual cabinet meeting, which was broadcast live on YouTube in line with social distancing guidelines.

The council's corporate director for children and young people’s services, John Pearce, said the funds would be drawn from an earmarked school reserve.

He added financial liability for future years will transfer to the academy trust at the point of conversion.

At the meeting, cabinet member for children and young people’s services, Councillor Olwyn Gunn, praised the Bishop Chadwick Catholic Academy Trust for helping to improve standards at the school.

This included “excellent outcomes” in 2019 in terms of progress and attainment with pupil numbers now on the “upward trajectory.”

Cllr Gunn said: “Whilst the academy trust have been interested in formalising the arrangement with St Bede’s, the financial situation and pupil numbers have prevented this happening.

“The trust are now seeking to proceed with academy conversion and have requested council to write off the significant cumulative deficit which would enable a permanent solution for St Bede’s and secure its future.

“Pupil numbers indicate that the school will continue to operate an annual financial deficit for a minimum of two years while the improved admission numbers work their way through the school.

“Improvements in outcomes and the reversal of falling pupil numbers could not have been achieved without the strong commitment of the academy trust over the last five years.

“Without this arrangement, the school was moving to an unviable position with poor educational outcomes.

“The council has a statutory duty to provide sufficiency of school places and for the educational outcomes for all children and young people in County Durham.

“This recommendation will enable us to meet those duties and most importantly, provide a bright future for the school and our children and families living in the community.”

Deputy council leader and cabinet member for finance, Councillor Alan Napier, added the plans would help deliver a “financially viable future” for St Bede’s.

He told the meeting: “The proposed deficit write-off will enable the school to convert [into an academy] although as we all know, there are many pressures facing all of our schools across the county.

“I wish the school well as they look to continue their improvement as part of the diocesan trust arrangements that are in place.”

St Bede’s RC Comprehensive in Peterlee remains the only diocesan maintained secondary school in County Durham.

The other RC secondary schools have all converted to academy status over the last eight years.

According to a cabinet report, the closure of St Bede’s would put “significant strain on pupil placement in other faith and non-faith schools.”

It goes on to say: “According to current pupil-place planning data there is insufficient spare capacity in County Durham to disperse all pupils to existing schools within reasonable travelling distance of their homes. 

“The closure of the school would not therefore be within the educational interests of local children or local communities.”