Who is responsible for any debts/overspends incurred by the governing body?
A Trust cannot be liable for a Trust schools deficit. In the first instance, any deficit that occurs is the responsibility of the governing body. As with any maintained school in deficit, a local authority will have licensed the deficit and agreed a recovery plan that will return the school to balance over an agreed period of time. Local authorities have the power to support schools in financial difficulty: such support could apply equally to Trust schools as to any other maintained school, but before providing such support the local authority would need to consult with its Schools Forum. Any support offered would be subject to the overall resource constraints of the local authority. Ultimately, any deficit (or surplus) from a closing school would revert the local authority.
