Impacts on Academy Trusts – Autumn Budget 2024

A historic moment in time as the UK hears its first Budget delivered by a female chancellor of the exchequer.

Rachel Reeves was clear that the government must balance their intention to “invest, invest, invest” whilst balancing the public finances.

The government promised to give children the opportunities they deserve.

What are the key changes for Academy Trusts?

• Investment into breakfast clubs is promised to be tripled
• A £2.3bn increase to core school’s budget to ensure hiring of teachers into key subjects
• National insurance contributions for employers will increase to 15% from April 2025
• National insurance threshold reduced from £9,100 to £5,000
• National insurance employment allowance to rise from £5,000 to £10,500
• £6.7bn additional funding to the Department of Education to include £1.4bn to rebuild schools and £2.1bn to improve school maintenance – all children need to learn somewhere safe including RAC affected schools
• £1bn increase in funding for special educational needs and disabilities

Additionally, whilst not a direct impact for academy trusts, the VAT on private school fees was confirmed from January 2025 and business rates relief to be removed from private school fees in April 2025.

It will take time for guidance to be given on how exactly the additional funding will be distributed to Trusts, however the national insurance cost rise is clear. Trusts should consider the impact on their budgets from April 2025.

So in summary, significant funding announcements as the government looks to invest, however an additional cost to be borne by Trusts who may have already been struggling to balance budgets.

If the Autumn Budget has raised any questions for you, book your place on our question time webinar this Friday at 9:30am.  Alternatively, if you would like any further information or guidance on this topic, get in touch with your usual Kreston Reeves contact or contact us here.