Schools Update

Debate between Baroness Kramer and Lord Nash

Monday 17th July 2017 Lords Chamber

[Baroness Kramer (LD)]

My Lords, I agree that this is a sleight of hand. Perhaps the Minister will confirm that there is not one single new penny coming into education for our young people in the Statement. I agree that it is robbing Peter to pay Paul and I hope he will tell us a lot more about Peter and the losses to programmes that schools have been relying on. More importantly, will he confirm that in the Statement there is actually a cut in funding for education—£315 million—which will be cut from the healthy pupils capital funding,

“to reflect reductions in forecast revenues from the soft drinks industry levy”?

So in fact this is an announcement of a £315 million cut in the budget for education and schools.

The Statement refers to 30 schools that will be removed from the free schools programme and delivered through the local authority route. Is the Minister expecting local authorities to provide substantial funding to support these 30 schools and, if so, can he tell us which local authorities are now so flush with money that they are in a position to provide significant numbers of additional schools if there is not a single penny coming from the central budget to support them?

As the Minister talks about efficiency for schools, I join many others in saying that, looking at schools today, you can see remarkable efficiencies introduced by one head teacher after another, but it looks as though a significant amount of the savings is meant to come from new energy efficiencies: a 10% cut in energy bills overall. The Minister will be well aware that the largest component of an energy bill is the cost of energy. Will he tell us how he will prevent volatility and price rises in the energy bills that are presumed within the Statement?

I actually think it is beneath the Government to come up with this announcement when after a moment’s reading it becomes apparent that there is sleight of hand and a difference between the announcement and its implications and the reality that is contained within the Statement. I suggest that if we are to encourage the British people to recognise the importance of politics and to respect any party in this House, it is time for that to stop.

[Lord Nash]

My Lords, the noble Lord, Lord Watson, asked why the Statement was being made today. It is so that schools can go away for their summer break knowing that we will be introducing a national funding formula. No doubt that will be welcome to them.

All schools have to run themselves more efficiently and we as a Government have to make efficiency savings. We have already predicted that our scheme to self-insure academies will save £600 million by 2020. We have introduced LocatED, an organisation set up specifically to find free school sites. It is already showing that it is buying sites very effectively and we believe there will be significant savings from that. Our efficiency advisers are not an insult to head teachers. They are a support. I invited the noble Lord, Lord Watson, to look at the efficiency tools on our website. I am disappointed to hear that he obviously has not done so, particularly given the Labour Party’s appalling record of spending money in the past.

So far as free schools are concerned, since 2014 90% of them have been located in areas where there is a recognised need for places, which of course is many areas, given that despite a massive increase in immigration, the Labour Party actually reduced the number of school places in this country. As for listening to its proposals across the board, doing so would result in bringing us back to the edge of bankruptcy, as it did the last time that it was in government. As I said, we have increased the core school funding. In answer to the point about local authorities, we are working extremely collaboratively now with them on free schools. We believe that we can do so more collaboratively, and that energy is only one part among many of the savings we can make.