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Frequently asked questions - what does the policy mean in practice?

As a business involved in a Trust, would this mean that we would effectively take on the day to day running of a school?

This isn’t about running schools. Business foundations and other partners can support the school through a Trust and take a role on the governing body, but not take the school over. A school’s governing body remains the strategic leader, accountable for the operation of all aspects of the Trust school and the headteacher remains in charge of the day-to-day running of the school. Trust schools are still maintained (funded) by the local authority and the authority has all the same powers of intervention as for other maintained schools.

The extent of influence which an individual business involved in a Trust would have over a school will depend on how many (if any) other members of the Trust there are and how many governors the Trust appoints to the governing body:

• Trusts may be formed by one organisation or by a group of organisations. For example, a range of partners (such as a business, a higher education institution and the LA) could come together to form a Trust for the benefit of the schools involved. In most cases a business would not be the sole member of a Trust, although this is possible
• In deciding to acquire a Trust, the school’s existing governing body will decide whether the Trust should appoint the majority or minority of governors. This decision should be taken in consultation with the proposed Trust partners

At one extreme, if a business was the sole member of a Trust and that Trust appointed the majority of governors to the school’s governing body, the business would effectively have control of all major strategic decisions taken by the governing body about the school. At the other extreme, where a business had a minority stake in a Trust which in turn appointed a minority of the governing body, the extent of control would be substantially less. What matters is to find a model which is right both for the school and for the partners involved in the Trust.

Will businesses be responsible for pay negotiations with teachers/unions?

Staff in a Trust school will be employed by the governing body and not by the Trust. There is no question of Trust partners getting involved in negotiations with the unions regarding pay for teaching staff. Like all other maintained schools, Trust schools will have to employ teachers under the terms of the School Teachers’ Pay and Conditions Document.

The school’s governing body will set terms and conditions locally for non-teaching staff although employment terms for support staff already in the school will be protected through TUPE regulations.

Is this a back door way to get business to increase financial support for schools?

Ministers have been very clear that there is no requirement or expectation that Trusts will contribute financially to the schools that they support. Trusts are not about generating income for schools. We want a range of organisations to be able to form Trusts and contribute their skills and expertise to the running of schools. Of course, Trust partners may contribute financially if they want to.

Trust schools will be funded via the local authority in the same way as other maintained schools.

Isn’t there an 'opportunity cost' for business, even though there is no direct financial requirement?

At its most basic level, the role of the Trust and its trustees is to hold the assets of the school on trust and to appoint governors. Responsibility for the day-to-day management of the school’s land and assets remains with the governing body.

Governors appointed by the Trust would not necessarily have to be employees of the business but should be committed individuals who the trustees believe will be able to bring a range of skills and experience in order make a difference to the school.

There is significant scope, however, for businesses involved in Trusts to take on a fuller role in supporting the school and helping to create a culture of innovation and enterprise. The extent of the role which a particular business is willing to play should form part of the initial discussions with the school, although clearly relationships will also develop and evolve over time.