Decision details

The Cabinet Member:

1)    To approved the closure of Parnwell Primary School, and authorise the execution and completion of a Commercial Transfer Agreement (CTA) between Peterborough City Council, the Governing Body of Parnwell Primary School and The Lime Trust;

2)    To authorised the grant of a 125 year lease of the land and buildings occupied by the School known as Parnwell Primary School at a peppercorn rent to The Lime Trust; and

3)    To authorised entering into a Deed of Assignment with The Lime Trust to assign the benefit of the Council’s contract dated 21 August 2009 with Frederick F Smith Builders Limited, to The Lime Trust, to give effect to the terms of the CTA.

The Council is obliged under the Academies Act 2010 to cease maintaining a school on the date it opens as an Academy. The DfE expect Local Authorities to co-operate with the Academy conversion process, once approved by the Secretary of State for Education.

The Council’s consent is not required for a school to convert to an Academy and if the Council does not cooperate with the conversion process and negotiate and enter into lease arrangements and a CTA, the Secretary of State has the power to make transfer schemes under the Academies Act 2010 in relation to property, land, rights and liabilities (including rights and liabilities in relation to staff) which would be binding on the Council. It is therefore preferable for the Council to reach agreement with the Governing Body of the School and Trust and enter into the lease arrangements and CTA in respect of these matters, rather than be subject to transfer schemes made by the Secretary of State.

The proposed lease to the Trust includes the land currently occupied and used for the purposes of the School. The separate Children’s Centre will not be included in the lease to the Trust, and will be retained by the Council.

The CTA sets out the respective obligations of the Governing Body of the School, the Council and the Trust arising from the academy conversion in relation to employees, contracts and assets (other than land), and the liabilities of each of the parties in that regard.

As part of the CTA, the Council will transfer the sum of £42,500 to the Trust shortly after conversion. The reasoning for this is explained in paragraphs 9.2.3 and 9.2.4 below. 

Under the proposed terms of the CTA, the Council is obliged to assign the benefit of contracts entered into by the Council for the purpose of operating the School, to the academy trust, and recommendation 3 therefore requests authority to enter into a Deed of Assignment with the Trust to give effect to the terms of the CTA.

The Trust have asked the Council to consider the possibility of expanding the School and the Council have agreed to consider a potential expansion, however this will be subject to the Council’s usual processes regarding school expansions, and will not be part of the conversion process.

Refuse the closure of Parnwell Primary School and the transfer to academy status:  Once the school has been accepted for academy status by the Secretary of State, the Council is required to support the decision. Failure to cooperate could result in the Secretary of State making transfer schemes which would be binding on the Council. 

Not to transfer the premises:  This option was rejected because the Department for Education guidance specifies that the land held by the Local Authority is to be leased to the academy on a 125 year lease for a peppercorn rent and failure to follow the guidance and cooperate could result in the Secretary of State making a transfer scheme in relation to the land.

Sell the site to the Trust:  This option was rejected because there is no requirement for the Trust to buy land (for which no funding has been made available) and the Council would prefer to retain ownership.

Not to assign the benefit of the Council’s Frederick F Smith Builders Limited contract to the Trust:  This option was rejected because if the Council retained the benefit of the contract, if any claim in relation to those works in respect of the school were to arise, it is likely that the Council would then have to become involved or take action on behalf of the Trust.  Assigning the benefit of the contract allows the Trust to deal with any such claims directly. 

None.

None.