Converting all schools to academy status would cost council taxpayers £320 million, council leaders have warned.

The move would also result in local authorities losing £80 million a year in business rates income, according to the Local Government Association (LGA).

The LGA, which represents councils across England, insisted that converting all schools into academies would have a negative impact on educational standards, as it called on the government to spell out its controversial plans in greater detail.

In a Commons education select committee meeting this month, education secretary Justine Greening indicated that, although the government would continue to pursue all-out academisation, its main drive was to focus on underperforming schools.

A survey of LGA members found that the cost of academisation would fall to £120 million if the schools were allowed to operate as stand-alone organisations, rather than be sponsored. This is because under the sponsored model any debt built up by the school generally remains with the council, the LGA said, adding that there were high legal costs associated with changing to academy status.

Cuts to 'crucial grant'

Councillor Richard Watts, chairman of the LGA's children and young people board, said forcing schools to become academies would have “significant financial implications for councils”.

"The government has also offered academy chains £600 million to help them convert more maintained schools. But councils have seen that same amount cut from the Education Services Grant,” Mr Watts said.

"This crucial grant would have been used to help protect children and ensure that they do their very best in school. It would also have paid for background checks for staff, speech and occupational therapies, physiotherapy and tackling truancy.”

The LGA suggested that the money councils are predicted to lose would be better spent on recruiting, training and keeping teachers.

"Councils should be seen as education improvement partners. We want to work with government to ensure every child gets the very best from their years at school," Mr Watts added.

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