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The drift, without the LibDem veto, would seem to have been towards state-funded Free Schools being run for a profit.
The issues, of course, are not quite as clear cut as the above BBC news article might suggest.
The partner organisations to Free Schools are allowed to pay their directors a salary. But they are not permitted to pay them dividends, as one might expect in a "pure" profit- making company.
Having said this, the ability of Free Schools to manage their own budgets and set their own salary arrangements, does imply that they should run within budget. Indeed, through letting of their buildings and other money-raising initiatives, it would be unusual if such schools were expected to run at a loss.
For now, however, the idea of "for profit" companies running and profiting from state-funded schools seems to be on hold.
At the moment.
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