Schools Bill [HL]

(Limited Text - Ministerial Extracts only)

Committee stage & Lords Hansard - Part 1
Wednesday 15th June 2022 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Education (Baroness Barran) (Con)]

My Lords, with the leave of the House, I will say a few words following days one and two in Committee on the issues your Lordships raised about the Bill. Your Lordships heard me say that we are listening and that, after hearing concerns during the earlier days in Committee, I am acutely aware of the strength of feeling in the House. Your Lordships are aware that there is a process which is followed after Committee. Noble Lords can be reassured that, when we return to the Bill on Report, I will be able to clarify and confirm the Government’s position, having heard the views of the House in Committee. Any such statement will reflect the Government’s position, will be subject to usual processes of agreeing policy and will be shared ahead of Report.

[Baroness Chapman of Darlington (Lab)]

I will press the Minister. Should those amendments that she comes back with on Report, which is how I interpret what she has just said, be as substantial as we would hope and expect given our concerns, which I appreciate she says she had heard, would she perhaps consider reconvening the Committee for us to examine those new amendments? We expect that they will substantially alter the way the Bill is currently drafted.

[Lord Knight of Weymouth (Lab)]

Is the Minister intending to conduct some kind of regulatory review and consultation prior to Report?

[Baroness Barran (Con)]

I am sure all your Lordships understand that the timing and content of what we discuss at Report is a matter that will be agreed with the Chief Whip and through the usual channels. I really cannot say any more on that today.

[Lord Baker of Dorking (Con)]

Does the Minister still intend to have Report in July this year?

[Baroness Barran (Con)]

I repeat to my noble friend that this is not a decision that I can make; it is a decision for the Chief Whip and the usual channels.

[Lord Grocott (Lab)]

My Lords, the specific question my noble friend Lady Chapman asked was about a quite common procedure in this House: if very substantial changes are proposed between Committee and Report, involving large numbers of new clauses et cetera, it is common that a Committee stage should be resumed to consider those precise additions so that the conversation can take place under Committee rules rather than Report rules. I know that the Minister cannot decide on the procedures of the House, but she is—I hope my saying so does not ruin her career—a very accommodating Minister, as far as she is able to be, who does listen to the House. Having listened to most of the Committee so far myself, it is quite clear that many issues need to be discussed if and when there is some clarification about the content of the Bill. That needs to be discussed in Committee.

[Baroness Barran (Con)]

I am unable to give any more clarification on that point at this stage. I am sorry that I cannot say anymore to your Lordships.

[Baroness Blower (Lab)]

I realise that the Minister is not able to say anything further about the timing with regard to Committee and Report, but could she say anything further in response to my noble friend Lord Knight about regulatory review, leaving aside the question of Report?

[Baroness Barran (Con)]

I have already said at the Dispatch Box that the regulatory review will begin within weeks. I am unable to say anything further about the other stages of the Bill.

[Lord Blunkett (Lab)]

My Lords, may I just try this then with the Minister, who is doing her best in very difficult circumstances? Would she be prepared to talk with the Secretary of State, who is one of the most able members of the Cabinet—that might not mean a lot to others, but I think in this particular case it does—on whether it would be beneficial, not just to the passage of this legislation but to the whole education system, if he were able to see his way to taking time to reach a substantial consensus on the majority of this Bill, which I think we can do, if time were allowed to do so?

[Baroness Barran (Con)]

I am more than happy to commit to taking back the views of the House to the Secretary of State.

Clause 29: Local authorities: power to apply for an Academy order

Amendment 59

Moved by

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[Baroness Wilcox of Newport (Lab)]

For the second successive year, I am here in the Chamber debating an education Bill. At least when I taught, I could leave at 4 pm.

For the avoidance of doubt, this group is about consultation. I am grateful to my noble friend Lady Blower for proposing such a sensible way forward and reminding us of the value of governing bodies. We are supportive of the thrust of these amendments, which would give a greater voice to parents and staff and consideration to the local context and challenges. A struggling local authority may want to offload a school that is not equipped to academise yet—or indeed at all—so we cautiously note the government amendment in the name of the noble Baroness, Lady Barran, which requires consultation with appropriate persons before this can happen.

However, we have a genuine question about why this consultation can be carried out after a local authority’s application, as noted by my noble friends Lord Hunt and Lady Blower. It cannot possibly be meaningful, and it looks as if it is a done deal. It is another example of the cart before the horse. Many times in this Committee we have mentioned the word “consultation”, so we need to put it in the correct context and the appropriate order.

I will speak specifically to our Amendment 63, and I thank my noble friend Lord Grocott for his support. It aims to be proportionate. If the Secretary of State intends to accept an application for academisation and the school’s governing body opposes it, the Secretary of State must lay before Parliament a Statement explaining how academisation will benefit children’s education—it is as clear, simple and straightforward as that. Over the coming days, this whole debate will be about the benefit to children’s education.

These amendments speak to the Bill’s general approach of imposing academisation in a top-down fashion on schools, children and parents. If a governing body is opposed, the Secretary of State must give robust consideration to, and justify the case for, approval. After all, they are the arbiters of the community, and parents, teachers, governors and children will have a much clearer insight of the situated context of the school and the wider community issues than—with the greatest respect—a Whitehall official. Many great plays have been written about the disruption caused when a stranger enters a community and the chaos that subsequently unfolds.

[Baroness Barran (Con)]

My Lords, the amendments in this group are concerned mainly with rights of consultation and consent when a local authority intends to apply for an academy order on behalf of a maintained school.

The picture drawn by your Lordships of some kind of Machiavellian plan to impose multi-academy trusts on schools is not a fair representation of how the Government propose that the system should work in the future. I will come on to specific examples, but, in response to the remarks of the noble Baroness, Lady Bennett, and the noble Lord, Lord Grocott, on academies coming in and being imposed, I say that they are imposed because those schools have failed children—both noble Lords know that that is the case. When schools are judged to be inadequate, as was the case with the school that the noble Baroness referred to, academies come in to turn them around because they are failing children. I will leave it there, but I think that it is fair to set the record straight on that point.

Amendment 60, in the names of the noble Baroness, Lady Blower, and the noble Lord, Lord Hunt, would require a local authority to obtain the consent or support of the governing body of a school where it is proposed that the school join a strong trust. I will also refer here to Amendment 63, in the names of the noble Baronesses, Lady Chapman and Lady Wilcox. As the noble Baroness described, it would require the Secretary of State to lay a Statement before Parliament if they approved an application for an academy order against a governing body’s wishes. There is a requirement in the Bill for local authorities to consult a school’s governing body before applying for an academy order. We expect that local authorities and schools will have open discussions about the principle of joining a trust and which trusts schools might join.

Although we hope that any applications for academy orders would have the support of the local governing body, there may be genuine circumstances where agreement cannot be reached with individual schools. Whether the local authority includes such schools within its plans will depend on whether it is prepared to continue to maintain those individual schools.

The decision on whether to approve an order will rest with the relevant regional director. When considering local authorities’ applications, regional directors will of course take all relevant considerations into account. These will include the views of governing bodies, local authorities and other stakeholders—and, of course, the likely impact on children’s education. The regional director’s decision would be made public. Against this background, I do not believe that the additional requirements proposed in these amendments are necessary.

[Lord Deben (Con)]

I am rather attracted by the concept that the Government should be very clear about the reasons why this kind of change takes place and how it would benefit the children’s education. I do not understand why that is not absolutely necessary. I quite see that you do not have to have the agreement of everyone—if you did, you would never get anything done—but, when you have made a decision and there are differences of opinion, it seems that there is a lot to be said for explaining precisely why you have done so.

My worry about the Bill is that there seems to be an overemphasis on neatness—neatness is the enemy of civilisation. I am a believer in difference, and one reason that I like academies is that different academy trusts are different; that is a change from when this was under local authorities, when I am afraid there was a very considerable sameness. I like this, but, when there is a real row, it is incumbent upon the Government to explain why they have made a decision.

[Baroness Barran (Con)]

The Government are clear—we are talking about cases where a local authority wants a school to convert to an academy. I referred to the Government’s current criteria earlier in Committee. The criteria that the regional directors use when deciding which trust a school should join are set out clearly. I believe that I put the link in my last letter to your Lordships, so I encourage my noble friend to take a look—they are very fair and clear.

I am not sure that my noble friend was in the Chamber when we talked about the fact that this legislation is part of wider work that the Government are doing in relation to commissioning and regulation, where there will be extensive engagement over the summer. I reassure my noble friend that that will focus predominantly on how we can achieve better outcomes for children. He used the word “neatness” in perhaps a pejorative way; one could absolutely justify why we need clarity in a system the size of the school system in this country.

In responding to Amendments 61 and 62, in the names of the noble Baroness, Lady Blower, and the noble Lord, Lord Hunt, I will explain how the corrective Amendment 68, in my name, will introduce a new consultation requirement. The Government expect local authorities to engage widely with interested parties when considering supporting schools to join strong trusts. Amendment 68 explicitly requires local authorities applying for an academy order to

“consult such persons as they think appropriate about whether the conversion should take place.”

The noble Baroness gave an extensive list of the types of organisations and individuals who should be consulted, and she suggested, fairly, that in these cases there should always be a clear explanation of why the conversion should take place.

This amendment applies to local authorities the same consultation requirements as exist when governing bodies apply for maintained schools to be converted into academies. Local authorities should act reasonably in deciding who to consult, and it is therefore inevitable that parents and staff would be aware and able to express their views. As I said in response to my noble friend, the decision on whether schools should convert rests ultimately with regional directors, who will need to be satisfied that local authorities have consulted sufficiently and that their plans benefit children’s education. However, it is not necessary or appropriate to require local authorities to demonstrate that they have considered alternatives. The decision before the regional director is whether to approve the local authority’s plans for its schools to become academies. I hope but am not entirely confident that the noble Baroness, Lady Blower, and the noble Lord, Lord Hunt, will be reassured by the addition of this requirement.

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[Baroness Barran (Con)]

The noble Lord’s point is a little broader than what we are talking about at the moment. With the free school applications that have come across my desk I have certainly tried to be very aware of, and sensitive to, the challenges they can pose. The noble Lord is also very well aware that, historically, there were areas where new free schools have been really important in raising standards. There is not a single answer.

[Lord Hunt of Kings Heath (Lab)]

My Lords, I will take the opportunity of the Minister’s slight pause to ask her a question about my reading of her Amendment 68, which says:

“Before a maintained school in England is converted into an Academy following an application under section 3A (application for Academy order by local authority)”.


By the time the local authorities have made an application, that is, in effect, the decision. The point my noble friend and I were trying to make is that, surely, there should be mandatory consultation before the local authority makes the application.

[Baroness Barran (Con)]

I am glad that I have been promoted to be the noble Lord’s “noble friend”; things are looking up. I am very happy to take this offline with the noble Lord. It is just not case that the decision is made at that point, but I would be happy to meet with him and we can go through this in more detail, if that would be helpful.

Amendment 75 is concerned with existing stand-alone academies joining multi-academy trusts, which we discussed at length in the earlier group. The process by which an academy joins another trust is not set out in legislation; it is a matter for agreement between the two trusts and is subject to the approval of the regional director. I hope that noble Lords can forgive me for repeating myself. When considering any application for a stand-alone academy to join a MAT, the regional director will consider what stakeholder engagement has taken place, and the views expressed by stakeholders.

I do not believe that it is necessary or appropriate to provide for very specific consultation requirements in legislation. Stakeholder engagement is already embedded in the decision-making process. However, I agree that the process by which academies join trusts should be transparent—here, I am a little more optimistic about reassuring the noble Baroness, the noble Lord and other noble Lords opposite. As part of the regulatory review, which I have mentioned previously, we will consider the scope to clarify the arrangements for engaging with stakeholders when a stand-alone academy joins a multi-academy trust.

In the light of Amendment 68 in my name, and given these assurances, I ask the noble Baroness, Lady Blower, to withdraw her Amendment 60, and that other noble Lords do not move their amendments. I apologise to the noble Baroness, Lady Wilcox of Newport, that I did not echo the birthday wishes, but I wish her a very happy birthday.

[Baroness Blower (Lab)]

Before I begin my remarks, I wish many happy returns to my noble friend on the Front Bench.

Never in my wildest dreams would I think of the Minister as Machiavellian—absolutely not. However, the lived experience of many people is that discussions over issues to do with academisation, moving into MATs or other such things have not always been open and the system has not always been transparent. I am personally aware of representatives of particular unions who, after being called in to see head teachers, have been briefed and then been told that the matter is absolutely confidential, and that they must say nothing to any member outside that room. I am not saying that this is the position the Minister would take, but it is the lived experience of a lot of people who genuinely believe that there should be proper and open consultation. We can say that those head teachers were doing it completely wrongly, but the fact is that it would have impacted those union members, and there is the impact of someone in the school now knowing something which the parents and students do not know.

There is clearly something here about the need constantly to reinforce the fact that consultation should be open, appropriate and transparent. This is probably why, although the Minister said these things in very reassuring tones, I cannot see why we would not specify the need to consult with particular groups of people, including parents, staff and so on. This remains an issue. I am delighted that the Minister thinks that it is inevitable, but my experience is that consultation has not always been inevitable. However, I would like to believe that it was.

I will comment on the intervention by the noble Lord, Lord Deben, about neatness, which I thought was very entertaining. To him, I would add: I do not think that all local authority schools are like cookie cutters and exactly the same; they pride themselves on the fact that they have a particular ethos. That comes from the student intake, the particular group of staff they have, the governors and the head’s style of leadership, so I do not think that they are all the same.

I am sure that those who have visited very many maintained schools will agree with me that they are quite different, whether they have a uniform or not—all sorts of things do make them different. But I was entertained by the noble Lord’s remarks about neatness. Again repeating that nothing in my remarks suggests anything Machiavellian, although I am not completely reassured by everything, at this stage I beg leave to withdraw the amendment.

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Moved by

[Baroness Barran]

68: Clause 29, page 24, line 6, leave out paragraphs (a) and (b) and insert—
“(a) in subsection (1), after “Academy” insert “following an application under section 3 (application for Academy order by governing body)”;(b) after subsection (1) insert—“(1A) Before a maintained school in England is converted into an Academy following an application under section 3A (application for Academy order by local authority), the local authority must consult such persons as they think appropriate about whether the conversion should take place.”;(c) for subsection (2) substitute—“(2) But this section ceases to apply where, following an application under section 3 or 3A in respect of a school, an Academy order is made in respect of the school under—(a) section 4(A1) (duty to make Academy order in respect of school requiring significant improvement or special measures), or(b) section 4(1)(b) (power to make Academy order in respect of school otherwise eligible for intervention).””Member's explanatory statement
This amendment would require the local authority to carry out a consultation in relation to an application under new section 3A for conversion of a maintained school into an Academy. As with consultations by governing bodies who apply for Academy conversion, the consultation may be carried out before or after the application, or any Academy order, is made.

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Moved by

[Baroness Barran]

76: After Clause 30, insert the following new Clause—
“Secure 16 to 19 Academies(1) The Academies Act 2010 is amended as follows.(2) In section 2 (payments under Academy agreements), after subsection (2) insert— “(2A) Subsection (2) applies to an Academy agreement in respect of a secure 16 to 19 Academy as though the references to 7 years were references to 2 years.”(3) In section 9 (impact: new and expanded educational institutions), in subsection (1), after paragraph (b) (and on a new line) insert—“except where the institution, if the arrangements are entered into, is to be a secure 16 to 19 Academy.”(4) In section 10 (consultation: new and expanded educational institutions)—after subsection (2) insert—“(2A) But where the educational institution, if the arrangements are entered into, is to be a secure 16 to 19 Academy—(a) the person is not required to carry out a consultation on that question, and (b) they must instead carry out a consultation on the question of how they should cooperate with potential local partners in connection with the establishment and carrying on of the Academy.(2B) “Potential local partners” in subsection (2A)(b) means—(a) public authorities (within the meaning of section 6 of the Human Rights Act 1998), and(b) so far as not falling within paragraph (a), proprietors of educational institutions,with whom the person carrying out the consultation thinks it appropriate to cooperate.”;(b) in subsection (3), for “The consultation” substitute “A consultation under this section”.”Member's explanatory statement
This amendment makes special provision for secure 16 to 19 Academies as to the period for which funding must continue, the requirement to consider the impact of new or expanded educational institutions on other local institutions, and the consultation requirements applicable to new or expanded educational institutions.

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[Lord Davies of Brixton (Lab)]

My Lords, I very strongly support the remarks made by the noble Lord, Lord Shipley, but I will return to that issue in the next group. I was not going to participate in this debate, but I have been forced to because of the references made to rural and metropolitan areas. I say to my noble friend on the Front Bench as gently as I possibly can that comparisons between allocations to different regions are always difficult and complicated.

The noble Lord, Lord Deben, said that we metropolitan elites do not have much knowledge of what happens in the countryside. Equally, people from the rest of the country have surprisingly little knowledge of what happens in metropolitan areas. The levels of deprivation in London—a vast area in terms of population—are enormous. In terms of picking out individual figures, I have the brief from London Councils, which provides figures demonstrating to its satisfaction that London has been hard done by over the last few years, with bigger reductions in the allocation to schools than the rest of the country. I do not believe bandying figures in that way is that helpful. What we want is sufficient funding across the country as a whole, and I think that setting one part of the country against another should be done with great discretion.

[Baroness Barran (Con)]

My Lords, I genuinely welcome the chance to talk to your Lordships about reforms to the national funding formula. We will come on to this in more detail on Clause 33 in the next group. I want to start my response by noting that this part of the Bill delivers a long-standing commitment to achieve fair funding for schools and, I should say, a commitment where there have been multiple consultations over the years with the sector.

I will start by responding to Amendment 79 in the name of the noble Lord, Lord Hunt, and Amendments 79ZA and 79C in the names of the noble Baronesses, Lady Chapman and Lady Wilcox, on the financial arrangements of multi-academy trusts. One of the ways that the best multi-academy trusts transform outcomes for pupils is by focusing their expenditure and investment towards the right areas, whether this is investing in new IT across the trust or securing additional staff to work across all the trust’s schools.

Trusts can target funding to turn around underperforming schools they have brought into their trust or, indeed, as we discussed with the noble Lord, Lord Shipley, on a previous day, target funding to very small, rural schools which would otherwise not be viable. The academy model relies on trusts’ ability to harness and share expertise and resources. However, Amendments 79 and 79ZA would stifle trusts’ ability to do this, undermining one of the fundamental benefits of the model.

Moreover, academy trusts are already required to publish a full set of financial accounts annually, which are publicly available. The department publishes a full report and consolidated accounts for the academy sector each year. We believe this meets the intention of Amendment 79C. The report includes data on financial health across the academy sector, and the educational performance of the academy sector at a regional level, to which the noble Baroness alluded.

My noble friend Lord Deben suggested that we needed to do more with data. Again, I challenge my noble friend just to look at how much data on schools we share publicly. The website Get Information about Schools gives very detailed information on school and trust performance. You can look by constituency area, local authority area or trust area. It gives information on finance—including the voluntary income that was referenced in the debate—workforce, and educational outcomes. That allows one to compare academies and maintained schools. We also publish school-level funding formula allocations for every school every year and the Department for Education runs a website specifically to enable anyone to see school-level national funding formula allocations and understand what funding they would receive if the national funding formula was followed locally. That may be something to look at for the Devon schools; I have not looked but I will do. The webtool is called view NFF allocations—I will write to noble Lords with the link—and it is published on GOV.UK.

We continue, of course, to look at how we can improve transparency, and in the schools White Paper we committed to consult on future financial reporting arrangements. The noble Baroness, Lady Chapman, asked —again, I hope she will forgive me if I paraphrase inaccurately—why we were not including local authorities in the process. She will know that we worked hard with local authorities ahead of publishing the schools White Paper to get a much clearer role for them. We are clear that the Government’s responsibility is to make sure that local authorities are empowered to be the champion of the child. They will be at the heart of the system, championing all children in their area but particularly the most vulnerable children, so they will play a leading role, of course, in safeguarding, pupil place planning and admissions. They will continue to be responsible for the high-needs budget and will lead local delivery of provision for children with special educational needs and disabilities, and they will be supported by the new partnerships.

The noble Lord, Lord Hunt, alluded—again, I think I am right in saying—to related party transactions in trusts. The Government are extremely vigilant to make sure that related party transactions, whether they are in maintained schools or in trusts, are handled with the highest levels of governance. But I point out to the noble Lord that the £120 million is on a budget in 2019-20 of over £31 billion so, if my maths is right, it is 0.3%.

I turn to Amendments 85 and 86 in the name of the noble Lord, Lord Storey. As I have already said, transparency is critical and is at the heart of our reforms. In relation to Amendment 85, we will continue to publish information annually on the national funding formula, including how it is calculated, what factors it uses, school-level allocations, and an equality impact assessment. Based on this information, it is already possible to see the impact on rural schools, or indeed any other group of schools.

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[Baroness Chapman of Darlington (Lab)]

It is in some ways reassuring to hear what the Minister is saying. However, does she not accept that we have a situation where the lowest funding is going to parts of the country with the poorest outcomes? However much the Government think they are allowing for these factors, if something is going wrong, either the formula needs to be reconsidered in some respects or other measures need to be put in place to address this.

[Baroness Barran (Con)]

The Government have worked hard. I know the noble Baroness is familiar with the data, but if she looks at the most recent allocations, we are, dare I say it, trying to level up funding to the areas which she and the Government rightly care about. I think others in the Committee will understand very well that these are not things that can be moved quickly, and if we were moving quicker than we are there would be challenge on that. We expect this to be a slow process but the direction of travel is very clear. The noble Baroness will also be aware that in those areas beyond the core schools budget there is also significant investment, particularly through the education investment areas and the priority education investment areas, which cover—I think I remember rightly—55 local authorities across the country for the EIAs and 20 for the priority areas, where they are getting significant additional help.

On Amendment 84 in the name of the noble Lord, Lord Storey, and the noble Baroness, Lady Garden, on the affordability of home-to-school transport for 16 to 19 year-olds, it is for local authorities to determine the level of support available, including whether to offer free or subsidised travel, as many authorities do. Responsibility for securing home-to-school transport should continue to rest with local authorities because they are best placed to co-ordinate it locally. It would therefore be inappropriate to include it in the national funding formula, which directs funding to schools rather than local authorities. These funding provisions also apply only to pupils between the ages of five and 16.

On Amendment 97ZA, in the name of the noble Lord, Lord Knight, of course I welcome the opportunity to discuss sustainability, which is, as the noble Lord said and as all your Lordships are aware, an issue of paramount importance. Noble Lords may be aware of our recently announced strategy for sustainability and climate change, which was co-created with young people and which I think has been very well received. It includes setting sustainability leadership and the introduction of climate action plans, which will include mitigation.

I absolutely agree with the noble Lord on empowering pupils. He will be aware that part of the strategy relates to the National Education Nature Park, which empowers young people through both the information that they gather and the skills that they will learn in their work in relation to the nature park, which we very much hope will stand them in good stead in future life. More generally, the framework set by the Bill does not intend for the actual content of the funding formula to be specified in legislation, so any such detailed provisions would not be dealt with here.

Lastly, I turn to Amendments 92 and 93 in the name of the noble Lord, Lord Shipley. Many of his remarks were about the wider relationship between local authorities and central government. He will be aware that we have been working with local authorities over several years to implement this reform and we will continue to do so. Ultimately, however, if we want the same pupil to attract the same funding based on their needs, wherever they go to school, we must complete the move to a consistent national funding formula.

[Lord Shipley (LD)]

Has any staffing assessment been done by the department? My interpretation of what the Bill is now saying is that a huge growth is due in the number of staff who will be employed by the department in Whitehall.

[Baroness Barran (Con)]

I may have to write to the noble Lord on that. However, he will know that, through the Education and Skills Funding Agency—the ESFA—we already deal with payments to, as I think he said, roughly 10,000 schools. I would hope that the infrastructure that has been built to do that would allow scaling without having to increase staff in a direct proportion. However, I will write to him to clarify that.

Specifically regarding local authorities, there is a key interaction between schools and high-needs funding, which we are consulting on. The House will be aware that funding for high needs is increasing by £1 billion this year to a total of over £9 billion, which is an unprecedented investment in this area. Once we move to a direct national funding formula, local authorities will no longer calculate a local schools formula or transfer funding from the schools block to high needs. Clause 40 provides a new national-to-local budget reallocation mechanism from schools to high needs.

The Secretary of State will make final decisions to ensure national consistency, while still taking account of local circumstances. That could not occur if decision-making was left to 150 local authorities. Local authorities will still retain a key role in this process. They will initiate requests for funding transfers, setting out their rationale, and will consult with local schools. Overall, we think this strikes the right balance and aligns with the wider reforms in the recent SEND and AP Green Paper.

I hope that I have convinced your Lordships that the direct national funding formula will allow us fairly, consistently and transparently to fund schools on the basis of their needs. I ask the noble Lord, Lord Hunt, to withdraw his Amendment 79 and I hope that other noble Lords will not move theirs.

[Lord Hunt of Kings Heath (Lab)]

My Lords, this has been a fascinating debate which has ranged very far and wide. I put in only an innocent little amendment to talk about the reserves of schools going into an academy trust or multi-academy trust. It is the gentlest of amendments, which the Minister ruthlessly swept away, saying that it would stifle the innovation and leadership of the multi-academy trust. However, behind it was an issue of substance, which is that the integrity of a whole school and its leadership is very important, and having control over its own budget goes with that.

Obviously, we have a load of interesting amendments around the whole concept of fair funding of schools. The noble Baroness, Lady Humphreys, spoke on rural schools. I totally agree with my noble friend Lord Davies; he might have mentioned Birmingham schools in his analysis of the issues that metropolitan schools face. My noble friend Lady Chapman, in looking at a region’s ranking in the index of multiple deprivation, sought to bring a holistic solution to the undoubted different issues and tensions that are faced.

I noted the Minister’s helpful comments. Whenever you have a funding formula, it is easier to shift money when you have real growth in the overall funding settlement. One of the problems we have at the moment has been the squeeze on school funding—my noble friend Lord Adonis made a telling intervention in our previous day in Committee. From my own experience, the health service has gone through its own funding formula. We had RAWP for many years, and then ACRA. It was all about the same issues of teeing up deprivation in rural and urban areas, age factors, and a population who are growing older. However, my goodness me, it was much easier to shift money when you had real growth in the system.

[Baroness Barran (Con)]

Just to be clear, there has been significant growth in funding in the system. In 2022-23, schools in the north-east, to which the noble Baroness opposite referred, will see a funding increase of 6.1%, with 5.9% in Yorkshire and the Humber. Small rural schools are attracting per pupil increases of 5.6%.

[Lord Davies of Brixton (Lab)]

If my noble friend will allow me to butt in with some figures, London Councils points out that, between 2017-18 and 2020-21, 84% of schools in inner London saw a real-terms decrease in per pupil funding, compared with 55% in the rest of the country.