Notice to Improve

Dear all, 

Thank you for the excellent start to the new academic year. I have had the pleasure of visiting many ATLP schools since the start of term and it has been no surprise to see the key themes from our conference being lived and breathed across our family of schools. You continue to make a significant difference to our children and young people, their families and carers and to the communities that we serve.

The ATLP is a strong and respected multi-academy trust. This is because we continue to put children at the heart of everything we do. Our trust growth has come about because our commitment to children and young people is valued, as is the high-quality support that we provide to our learning communities. We have an enviable track record in terms of Ofsted outcomes and this includes significant improvements relating to sponsored academies that have joined us. We are a collaborative learning family where our staff make a significant difference each and every day, despite challenges that may present at any time which, in a post-Covid world, are more apparent now than they might once have been.

Whilst this success is to be applauded, we are operating in testing times as schools and key services are impacted by the cost-of-living crisis and diminishing budgets. The education sector is under significant financial pressure, with expenditure rising faster than income.  I shared with all staff at the start of term that the Kreston Reeves Academies Benchmark Report (2024) found that 49% of MATs that were surveyed are running at a deficit.

With this in mind, I would like to update you on our current financial situation. Despite our diligent efforts to manage resources efficiently, we find ourselves facing a budget deficit. The situation is complex and sector-wide and, in this letter, we would like to give some context and assurances.  

The deficit is the result of a variety of factors including climbing energy and catering bills, staff costs, inflation and our determined commitment to support all children including those who need it most in what remain complex times. While we have taken proactive measures to mitigate these issues and indeed have made significant progress, the current financial landscape presents challenges.   

As a result, the ATLP has been issued with a notice to improve (NTI) from the Education and Skills Funding Agency (ESFA). An NTI is a publicly available letter that outlines the actions an academy trust must take to bring about improvement in its financial position. A hard copy of the ESFA’s NTI letter is attached alongside this letter and a digital version is available at gov.uk/government/publications/notice-to-improve-the-arthur-terry-learning-partnership.

We have made significant progress but there is still more work required to achieve balanced budgets across all of our schools. The NTI recognises some of the actions that have been taken by the trust. Trustees and the executive team have responded robustly to the challenge, working closely with ESFA for a number of months to address the issues. The letter recognises the “open and constructive way the trust has engaged” and the “positive action taken to date to address concerns and mitigate the forecast deficit position”.

As part of this positive action, we have conducted a thorough review of our budgetary practices and have submitted a clear, robust and realistic recovery plan where we will see improved performance over the next three years. This will require the collective efforts from all ATLP colleagues and the first opportunity for us to ‘spot the gaps in hedges’ – a phrase I first used at our conference in relation to how we might seek to work differently but with even greater impact.

Children remain at the heart of everything we do. Despite the financial challenge, we will continue to provide support to sustain the improvement of schools and the services we provide for our learning communities. My sincere thanks for your understanding and support as we work collectively to navigate this financial challenge and continue to make a positive and lasting difference to the lives of those around us. 

Yours sincerely, 

Richard Gill CBE
Chief Executive Officer, the Arthur Terry Learning Partnership