Lytham Schools: Charity Commission decision - summary
Published 11 November 2011
Applies to England and Wales
© Crown copyright 2011
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This publication is available at https://www.gov.uk/government/publications/lytham-schools/lytham-schools-charity-commission-decision-summary
The charity operates a day school for boys and girls, the King Edward VII and Queen Mary School. As well as operating the school, the charity owns the premises occupied by two voluntary aided primary schools and provides other support to the two primary schools and other schools in the area.
In July 2011 the trustees of The Lytham Schools told the Charity Commission that the future of the King Edward VII and Queen Mary School was threatened because of financial challenges and a continuing decline in pupil numbers. The trustees proposed merging the King Edward VII and Queen Mary School with another school (Arnold School) operated by the United Church Schools Trust.
The Charity Commission drew up a draft scheme in discussion with the trustees’ legal representative, which would change the purposes of the charity, appoint a corporate trustee and allow a lease of the King Edward VII and Queen Mary School site to the United Church Schools Trust. The draft scheme was published in September to allow members of the public to comment on the proposals. The Commission received approximately 120 representations, the majority of which opposed the making of the scheme.
A review was conducted by the Commission’s Head of Operations Wales. The reviewer carefully considered all of the representations and gave the people who had commented on the draft scheme the opportunity to clarify their representations by telephone. There was great concern about the lack of consultation with parents and other stakeholders regarding the proposed merger.
The Commission may only make a scheme to change the purposes of a charity in certain circumstances (known as the ‘cy-pres principles’). The test for the Commission was whether a cy-pres occasion has occurred. The test in this case is whether the property “can be more effectively used in conjunction” with other charitable property given for similar purposes.
On considering the representations, including a briefing prepared by a Parents Group and further information supplied by the trustees to support their decision, the reviewer concluded that the scheme should be made with some modifications.
The scheme has been made under sections 13 and 16 of the Charities Act 1993.
The Commission’s decision was subject to challenge in the First Tier Tribunal (Charity) and amendments to the scheme were ordered by the Tribunal. For more details, see the Judgments on the FTT website, comprising a decision and order.