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Councils seek judicial review over loss of academies cash

Government ministers are facing a legal challenge over their decision to cut council funding by 148m to finance support services for ever-increasing numbers of academies.

A group of 23 local authorities, including ten London boroughs, have lodged a claim for a judicial review in the high court.

In the past, the Department for Education (DfE) used money from its central resources budget to help academies run the equivalent of services that councils supply for maintained schools, such as extra support for pupils with behavioural problems.

But CYP Now revealed earlier this year that government planned to start financing support services in academies by cutting the "formula grant" it gives to local authorities – by £148m in 2011/12 and a proposed £265m in 2012/13.

At the time the government claimed that the old method of calculating financial support for academies equated to "double funding" schools and would be unsustainable given the expansion of the academies programme.

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