Deficit at large academy trust swells by more than �1 million in a year as continued existence depends on government loans

One of England’s largest academy chains saw its debts rise to more than �4 million last year –but it still managed to pay its highest-earning person at least �180,000.

The 21-school Academy Transformation Trust (ATT) admitted in its annual accounts that it had had to rely on emergency loans from the government totalling £3.35 million over the years 2017-19, with cash advances possible even into 2019-20, as it works to get its deficit under control.

Auditors reporting on the Birmingham-based trust’s annual accounts said that its “dependence on the ESFA [Education and Skills Funding Agency] for financial support” meant that “a material uncertainty exists that may cast significant doubt on the group’s or the parent academy’s ability continue as a going concern”.

However, the trust, which has had a clearout of management and trustees in the past year as it has come under pressure from the government over its governance and finance, says that this “turnaround” effect is seeing results and thus that it will keep going, with debts forecast to stop growing this year.

The trust has said it is "incredibly proud" of its work with its schools (see update with full response at end).