Homewood School faces forced takeover threat as Tenterden Schools Trust battles financial crisis

Kent’s largest school, Homewood School, is facing a potential forced takeover due to financial difficulties within the Tenterden Schools Trust (TST). The Department for Education (DfE) has issued a formal “Notice to Improve” to TST, highlighting serious concerns regarding its financial management and long-term viability.

The notice raises doubts about the trust's ability to operate as a "going concern," and warns that failure to comply with the requirements could lead to the termination of its contract to run the schools. TST oversees Homewood School, which has 1,863 pupils, along with four primary schools and two nurseries.

The DfE's intervention follows the collapse of a planned merger with Aletheia Academies Trust (AAT), which would have integrated Homewood and the other schools into AAT. Following this setback, Homewood School has entered a restructuring process that may involve redundancies to cut costs.

The DfE's notice outlines 15 conditions that TST must meet to lift the intervention. These include submitting a viable financial plan by the end of May, providing monthly management accounts and cash flow forecasts, and improving governance and audit arrangements. The trust has also been instructed to consider joining a multi-academy trust and to appoint more independent trustees to enhance oversight.

Additionally, TST has lost certain financial freedoms, requiring government approval for actions such as writing off small debts or making staff severance payments. The trust reported a loss of £941,537 for the year ending August 2024, reversing a previous surplus of £2 million. Contributing factors to the financial strain include rising salary and pension costs, decreasing pupil numbers, and increasing operational expenses.

The schools under TST include Homewood School, St Michael’s Pre-School, St Michael’s Church of England Primary School, Tenterden Primary Federation, Home Farm Children’s Nursery, Rolvenden Primary School, and John Mayne Church of England Primary School. The trust is currently working with government officials to address the outlined issues and has implemented a programme of improvements to strengthen financial oversight and governance.