https://substack.com/@theromileygazette?

8th January 2026

When Stockport Council closed ten primary schools in the recent past, residents in areas such as Reddish were told that money from selling the sites could not be used to help fund a new local school. Years later, when the replacement school opened in 2011 at a final cost exceeding £11 million, many residents were left asking the same question: where did the money actually go?

A Freedom of Information response at the time provides part of the answer, but not the full picture.

Borrowing Came First

According to the Council, the first use of expected sale proceeds was to repay prudential borrowing. Because the school sites had not yet been sold, the Council borrowed money to fund extensions and improvements to other schools so they could take pupils displaced by the closures.

Once sales were completed, the capital receipts were used to pay back that borrowing. In effect, the money from the school sales was used to plug gaps created by earlier decisions, rather than to fund new provision.

The Schools Capital “Pot”

After borrowing was repaid, any remaining money was placed into the Council’s Schools Capital Programme. This was a borough-wide fund used for a range of purposes, including:

  • Expanding existing schools
  • Building refurbishments
  • Accessibility and safety works
  • ICT and infrastructure upgrades

Crucially, this funding was not ring-fenced by area. Reddish did not receive a dedicated share of the proceeds from the sale of its closed schools. Any surplus was spread across Stockport according to council priorities at the time.

The Money That Can’t Be Traced

Campaigners argue that the lack of transparency lies in what was not disclosed. The Council did not publish a clear breakdown showing:

  • The total amount raised from the ten school sales
  • How much borrowing was repaid
  • Whether any surplus remained
  • Whether a new school for Reddish was ever costed as an option

As a result, residents were told there was “no money” for a new school, only for the project’s final cost to more than double early estimates and exceed £11 million by the time it opened.

A Question of Choice, Not Law

Experts note that there was no legal rule preventing capital receipts from being used to part-fund a new school. Instead, decisions were driven by strategy and policy: prioritising extensions over new builds, managing borrowing levels, and distributing funds across the borough.

For campaigners, the case illustrates how pooling capital funds can obscure accountability. “The money didn’t disappear,” one campaigner said. “But it was spread so thinly, and explained so poorly, that communities like Reddish never saw the benefit.”

Diagram: How the Money From School Sales Was Used

Sale of 10 Closed Primary Schools
              │
              ▼
     Capital Receipts Received
              │
              ▼
   Repayment of Prudential Borrowing
 (used to extend other schools after closures)
              │
              ▼
     Schools Capital Programme (Borough-wide)
              │
     ┌────────┴─────────┐
     ▼                  ▼
Extensions & Works   Refurbishments /
at Other Schools    Infrastructure / Safety
     │
     ▼
 No ring-fenced funding
 for a new school in Reddish
              │
              ▼
New Reddish School eventually built
with separate funding – final cost
exceeded £11 million