The Synergy Multi-Academy Trust, which runs 15 schools in Norfolk, is grappling with a significant financial crisis. The trust is facing a daunting £2.7 million deficit, prompting plans to implement drastic measures including staff cuts and curriculum reductions. This critical situation has raised concerns over governance, risk management, and control for the 2023/24 academic year.
To address the financial shortfall, the trust is considering reducing both teaching and support staff. The initial redundancy plans detailed 30 potential job losses across three schools; however, these numbers remain uncertain due to ongoing staff resignations. In addition to personnel cuts, the trust is also streamlining school curricula as part of its cost-saving strategy.
The financial accounts of the trust reveal issues that have triggered alarm among stakeholders. Notably, the number of staff earning between £70,001 to £80,000 rose from one to nine between 2022 and 2023. Meanwhile, figures for those earning between £80,001 to £90,000 went from one to two, and those earning between £90,001 to £100,000 decreased from two to zero in the same period. In 2023, one staff member earned above £100,000.
In response to the crisis, the trust is launching a comprehensive review aimed at closing the deficit. A three-year phased programme is being constructed to ensure financial stability. However, despite these efforts, all three schools ended the last financial year in a deficit position as costs have outstripped income.
"The decisions we as a board are having to take are difficult and sensitive in the extreme." – Synergy Multi-Academy Trust
Adding complexity to the situation, the trust plans to incorporate two additional primary schools at undisclosed locations. This expansion raises questions regarding its timing and potential impact on the already strained financial resources.
Spending on education by the trust amounted to £34.3 million last year. Despite this significant investment, financial challenges continue to mount. The potential impact on students is a cause for concern among parents and educators alike.
Martha, a student affected by these developments, expressed her worries:
"Obviously GCSEs are really tough as it is."
"With all this stress on us already, it's very worrying to think what might happen to the future of the school on top of that." – Martha
Similarly, Scott Lyons noted the determination among individuals involved in the situation:
"They feel really strongly that they're going to fight this." – Scott Lyons
Parents are also considering their options amidst this uncertainty. Karen, a parent concerned about her child's education, mentioned:
"It would be a shame to now have to look somewhere else but it's probably now too late anyway," – Karen
