What happens to a converter academy that has a committed capital surplus alongside a revenue deficit?

For converter academy capital projects, where the Department of Education is notified of a committed capital surplus alongside a revenue deficit, DfE advise LA’s to preserve the capital surplus so that the school can use it on the capital project they have in mind to pay that capital surplus over to the school, rather than netting it off against revenue deficit. This ensures that capital funding is not spent on revenue. Revenue surpluses, on the other hand, can be used to reduce or clear a capital deficit.