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Education and Inspections Bill

We are very clear about the fact that contractual agreements relating to PFI would transfer with different arrangements in respect of schools. We have to be very cautious about that scenario. We issued guidance on the renegotiation of PFI in certain circumstances relatively recently— I think that it was to do with school food—but, as far as I am aware, PFI obligations would transfer to a community school. If I receive further advice, I will update the hon. Lady. The updating has proceeded smoothly, and I can now clarify the position. PFI contracts are always with the local authority, so if a contract reverts to a community school, it will remain with the authority. I believe that in amendment (a) to Lords amendment No. 24 the hon. Member for Brent, East might be trying to revisit the question of whether foundations should be able, when the governing body wishes it, to appoint a majority of the governors. That question is fundamental to the whole policy of trust schools as set out in the schools White Paper, and we believe that it has been debated pretty thoroughly during the Bill’s passage through both Houses. The amendments would simply create bureaucratic burdens for voluntary controlled schools wishing to become foundation schools, when their existing arrangements with their foundations currently work perfectly well. Amendment (a) would extend the application of clause 32, which sets out what is required of new trusts—for example, that they are incorporated charities of a particular description. It would apply those requirements to voluntary controlled schools—schools with foundations with which they are working well—that changed category to foundation, even when they did not wish the foundation to appoint a majority of the governors. We do not think that it is necessary or desirable to disrupt arrangements that are working, and I hope that the hon. Lady will not press her amendment.