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WHITEHALL

Education assets 'underestimated by £40bn'

Spending watchdogs have criticised the Treasury for underestimating the value of assets held by local authority-maintained schools.

Spending watchdogs have criticised the Treasury for underestimating the value of assets held by local authority-maintained schools and academies by around £40bn.

In their analysis of the 2010/11 Whole of Government Accounts (WGA) – a consolidated financial statement for the whole of the UK public sector – the National Audit Office (NAO) qualified the accounts because of the Treasury's failure to include assets worth £32.5bn held by local authority-managed schools, and £9bn of academies' assets.

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