The Minister of State, Department for Education (Mr Nick Gibb)
I congratulate my hon. Friend the Member for Finchley and Golders Green (Mike Freer) on securing the debate. Let me say at the outset that I will accede to one of his two requests, and that I will reveal which it is at the end of my speech.
I know that my hon. Friend is no stranger to the issues surrounding Finchley and Golders Green, as he has served the community well in local and national Government for a number of years. The Government are well aware of the pressures faced by many local authorities in London, including Barnet, in their attempt to provide enough suitable places to meet higher demand arising from the increase in birth rates and other demographic changes. I am also familiar with the argument advanced by London Councils—which my hon. Friend mentioned at the beginning of his speech—about the inequitable levels of funding received by London boroughs. The figures are not in line with our data, but I have asked officials to meet councils to discuss theirs in more detail.
The Government ascribe considerable importance to meeting the Department’s priority of ensuring that every child has a good school place. Responsibility for balancing supply and demand rests with individual local authorities. We look to members of those authorities —as the people with the best and most relevant local knowledge—to ensure that there are enough places and that local schools meet the needs of local communities. They are in the best position to know how many schools are needed, and where those schools should be located to serve local populations.
For its part, the Department for Education supplies capital funding directly to local authorities to help them to provide school places. Through the recent spending review and this year’s Budget, the Department secured £15.9 billion of capital funding over the four-year period starting in April this year. By taking early action to stop the wasteful Building Schools for the Future programme, the Secretary of State has been able to ensure that funding is available for the most pressing needs. He has allocated £800 million to local authorities for pupil places in 2011-12, and has indicated that he expects that level of support to continue for the other years of the spending review. That is twice the previous annual level of support that was given for those needs. It has been targeted on the areas of greatest demand, based on forecasts of pupil numbers provided by each local authority, and in addition to allocating the £800 million for additional pupil places the Secretary of State has informed local authorities of their overall share of capital funding for 2011-12.
Local authorities have been asked to prioritise spending to provide new places in areas experiencing severe demographic pressures, as well as to address the needs of the schools in the very worst condition. The London borough of Barnet and its schools have been allocated almost £17 million of capital funding for 2011-12, which includes £9.4 million for the provision of basic need places. Local authorities are also able to use money allocated to school maintenance to address basic need and vice versa. They have that flexibility. Barnet has also benefited from a substantial contribution from Government to JCOSS, or the Jewish Community secondary school, which will over time provide an additional 1,300 places in the area.
Forecasting future pupil numbers cannot be an exact science. That is why the Department has used the school census returns of the number on roll for 2010 as the starting point for basic need funding. As well as giving actual numbers on roll, the census collects information from each local authority on forecast growth areas for the three years to 2013-14. That information was used by the Department as the basis for the basic need funding calculation for 2011-12.
By using that informed approach, the Department has been able to target funding to where growth in demand has been forecast by the local authority. However, it must be stressed that, as a result of the actions taken, we have been able to allocate all of the basic need funding to the local authorities as the providers of places in their local area, and as a consequence I am afraid to say that no unallocated or additional funds are available for local authorities to call upon during 2011-12. Alas, we are therefore unable to make an exception for Finchley. I think I have now answered one of my hon. Friend’s two requests.
We are serious about getting education funding right in the future. I agree with my hon. Friend that the current capital allocation system is overly complex and unfair, which is why the Department is taking steps to ensure that future capital expenditure delivers greater value for money for everyone involved in the education sector, and that the maximum number of children benefit. We have already made changes to the allocation system to address one of my hon. Friend’s main concerns. I recognise that some local authorities were in practice unable to use supported borrowing. That is why for all schools we have allocated capital funding in 2011-12 as capital grant. That means authorities at the floor receive real funding to address their need for school places.
Last year, the Secretary of State commissioned Sebastian James to conduct a full and independent review of the Department’s capital programmes. That review has now been published, and the Secretary of State is currently considering its recommendations. They include the proposal that there should be a new approach to the future allocation and use of all the available capital funding. The Secretary of State hopes to respond to the recommendations shortly.
Future capital allocations and the management of funding for 2012-13 until 2014-15 will be informed by the outcome of the capital review. However, as I have said, the Secretary of State has already indicated that local authorities can expect that the headline amounts of capital available in future years will be in line with those of 2011-12. As well as providing funding to meet basic need pressures and radically reviewing the way in which capital funding is allocated and spent in future, the Government are pressing forward with their academy and free school programmes. I am aware that my hon. Friend’s constituency contains two open academies, the Wren academy and the Compton school, both of which he mentioned. By giving those involved in education the freedoms to shape the future of our schools and by opening up the opportunity for others to enter the education sector, we believe that we are offering an education system that will meet the needs of local communities.
I hope that the House will acknowledge that the steps the Government have taken and continue to take to ensure that future capital investment benefits those in most need represent the correct approach. By tackling the areas of greatest need first and then developing a new approach to future investment that delivers value for money, I believe that we are making the best use of limited taxpayers’ money to improve the fabric and quality of our schools. I know that my hon. Friend is aware of the very difficult fiscal situation faced by the country, but I would be pleased to meet him and his colleagues from Barnet council to discuss these issues further. On that note, Madam Deputy Speaker, may I wish you and the House a very fruitful recess?
Question put and agreed to.