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The Minister of State, Department for Education (Mr Nick Gibb)
I congratulate the hon. Member for Bristol East (Kerry McCarthy) on securing this important debate. I know she is no stranger to the issues surrounding education provision in Bristol, as she has served the community well in local and national politics for a number of years. As she said, earlier today we met with the right hon. Member for Bristol South (Dawn Primarolo) and my hon. Friends the Members for Bristol West (Stephen Williams) and for Bristol North West (Charlotte Leslie) to discuss the issues facing Bristol in terms of population increase.
I am aware that the hon. Member for Bristol East has been active, as she has been today, in raising the difficulties faced by schools in her area, especially with respect to her concerns surrounding the establishment of the proposed Bristol free school. I hope that, by now, she has received a response from my noble Friend Lord Hill to the letter regarding the Bristol free school. There is overwhelming demand for a Bristol free school from parents in that area. She is right to point out that it was in the BS9 area that the community campaigned for a new school. That community felt that too many pupils had to leave the local authority to receive a good standard of education. In fact, hundreds of parents attended a recent parents’ evening for the September 2012 year 7 intake, which demonstrates that there is significant demand for the new free school.
The hon. Lady referred to capacity issues. She is right: the reception to year 6 primary population in Bristol is forecast to increase from 27,000 in 2009-10 to around 33,500 by 2014-15. She is also right to point out that, at the moment, there are 3,074 surplus places across 70 schools, 15 of which have more than 25% spare places. However, the council is also projecting a deficit of primary places from 2012-13 based on the May 2010 school capacity figures.
The greatest demand for places is in the east central area of the city, but the surplus places tend to be in schools located in the north and south city boundary areas. That is why the hon. Lady is concerned with the methodology of how capital is allocated to local authorities. She made that point powerfully, with other hon. Members, at the meeting this morning. I also understand, and am sympathetic to, the logistical problems. I think that representatives from the local authority said that 94% of parents in the Bristol area achieve one of their first three primary school choices, but that still leaves 6% who do not. Some parents find themselves having to travel significant distances to secure a primary school place.
The Government are aware of the pressures that many local authorities face in light of population increases and the very tight spending review capital settlement for the Department. We must never forget why we are in this difficult position and why we have to make these difficult decisions. It is, of course, due to the difficult state of the public finances that we inherited. That has made it necessary for our top priority to be to reduce the country’s budget deficit, rather than being able to provide significant additional money for capital funding of school projects. We are now paying £120 million in interest every day of the week. Those interest payments could have been used to rebuild or refurbish 10 schools every day of the year, but we are not in that position.
Despite the difficulties we face, we have still been able to announce that the Department for Education’s capital spending will be £15.9 billion in the four years of the spending review period. We know only too well that there are schools in need of refurbishment that missed out on the previous Government’s unsustainable capital programmes. We appreciate fully that some people will feel that they have been unfairly treated. Even though we have had to take some very difficult decisions on spending, we will still be able to continue putting money into the schools estate at an average of almost £4 billion a year. I am sure that hon. Members will agree that that is still a significant sum. More importantly, we believe that it is affordable in the current financial circumstances.
It is essential that we maintain buildings properly to ensure that health and safety standards are met and to prevent an increasing backlog of decaying buildings. However, by stopping the wasteful Building Schools for the Future project, to which we were not contractually committed, we have been able to allocate £1.4 billion to local authorities to prioritise their local maintenance needs. That includes £195 million of devolved formula capital that has been directly allocated to schools themselves for their own use. In addition—the important point as far as the hon. Lady is concerned—we allocated £800 million of basic need funding for 2011-12, which is twice the previous annual support for new school places in areas of population growth.
As the hon. Lady pointed out in her opening remarks, in July the Secretary of State announced that, in addition to that £800 million in 2011-12, he could announce a further basic need allocation of £500 million to provide extra school places where there was greatest pressure caused by the increasing pupil population. That additional funding has been made available thanks to efficiencies and savings that the Department, working with Partnerships for Schools, has been able to identify in the Building Schools for the Future projects that are continuing. Officials in the Department are working on the allocation methodology for notifying local authorities of their share of that additional £500 million. The intention is to use the 2011 school capacity and forecast information that was submitted to the Department by local authorities in August 2011. By using those data, we can ensure that the additional money is indeed allocated to those in greatest need.
Bristol’s capital allocation of the £800 million is approximately £9.36 million in 2011-12. In addition, in 2011-12 it has received more than £6 million in capital maintenance allocations, as well as £1.1 million in devolved formula capital. Therefore, Bristol is already due to receive £17.1 million of capital this year. Once we have allocated the £500 million, based on the 2011 statistics, other sums should be forthcoming to ensure that there are sufficient school places for primary school pupils, particularly in the Bristol area.
We have been working with stakeholders, including local authorities, to understand better their basic need forecasts and pressures. It is clear that some authorities face greater pressures, as the hon. Lady highlighted.
Stephen Williams (Bristol West) (LD)
Does the Minister agree that the key point that the four MPs and the city council tried to get across to him in his office this morning is that, while there are several authorities around the country that face population pressure, Bristol’s pressures are more significant than those for the family of core city authorities and indeed outstrip the population growth of inner London? Of all the family of urban centres in the country, Bristol faces the greatest pressure from demographic change, and therefore has the greatest need and perhaps the greatest call on that extra £500 million of welcome resources.
Mr Gibb
My hon. Friend makes a valid point; it was made strongly at the meeting this morning and I took it on board. A 20% increase is significantly higher than most others. There are one or two areas—such as Plymouth, I think—that have a higher increase. Nevertheless, looking at the country as a whole, Bristol is significantly high in terms of its population increase in that age group compared to other parts of the country. That will be taken into account when we analyse the 2011 data, which will be used to allocate the £500 million.
As the hon. Member for Bristol East knows, last year the Secretary of State commissioned, from Sebastian James, a full and independent review of the Department’s capital programmes. That review has been published and the Secretary of State has commented on—indeed, has already agreed with—some of its recommendations. The recommendations propose a new approach to the future allocation and use of all available capital funding, including that funding continue to be prioritised to the provision of pupil places and addressing condition needs. The Department is consulting on the proposals made in the James review. In fact, the consultation ends today.
Future capital allocations and the management of funding for 2012-13 until 2014-15 will be informed by the outcome of the capital review. That was raised in this morning’s meeting by the local authority and by the hon. Lady. They want a degree of certainty about future capital allocations. The outcome of that consultation and its conclusions will, I think, steer her and her local authority in that general direction. 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 broadly in line with those allocated for 2011-12. I hope that that will help her local authority to engage in a planning process to help to eradicate the shortage of places in the Bristol area.
As well as radically reviewing the way capital funding is allocated and spent, the Government are continuing to press forward with their academy and free schools programme. That includes a focus on funding an academy solution for the weakest primary schools in the country. Bristol has a number of open academies. Indeed, I had a very informative visit to Merchants’ academy in July. The introduction of the academies and free schools programme should be viewed as an additional tool in the armoury of local authorities as they seek to eradicate any basic need pressures that they are encountering. By giving those involved in education the chance and the freedom they need to shape the future of our schools, and by opening up the opportunities for others to enter the education sector, we believe that we are offering an education system that will meet the needs of local communities.
The meeting this morning with the hon. Lady and other hon. Members who represent Bristol was very constructive and helpful. Officials will continue to work with local authorities to find a solution to the basic need problems facing Bristol.
Question put and agreed to.