School Funding Formula (London)

Bob Blackman Excerpts

Wednesday 28th June 2017 Commons Chamber

[Sir Vince Cable]

Yes, indeed. The right hon. Gentleman makes the important point that it is not just a question to read having a basic amount of funding, but an evidence base for what the cost of running a school actually is. I worry that as the formula is currently devised, there is no evidence base. Wild guesses have been made about the differential costs of secondary and primary schooling, and we need objective studies of what it costs to run a school, so that the formula can work well.

[Bob Blackman (Harrow East) (Con)]

rose—

[Sir Vince Cable]

I just want to round up and come to a conclusion, to give the Minister a plentiful opportunity to reply.

My final point is that in addition to all the difficulties I have mentioned, there is a high level of uncertainty about how the new formula will be applied. Some of our secondary schools, which will face deep cuts, are protected up to a point by the maximum 3% cut—the floor that has been introduced—but we do not know for how many years that will continue. If they take painful corrective measures now, will they have to continue to do so? There is uncertainty about how the growth of pupil numbers will be accommodated. I believe that a system of retrospective prompt rebating could easily be set up and would make the planning of school finances much easier.

To round off my comments, I think there is an acceptance on both sides of the House that funding distribution needs to be looked at in a fair framework. That cannot happen in the current environment of large-scale cuts across the board, and I sincerely hope that the Minister will look at some of the other points that I have made about the need for much more decentralisation and flexibility in decision making, which will make it much easier to carry the reform through.

--- Later in debate ---

[Nick Gibb]

I accept my hon. Friend’s point. We have had many discussions on these and other issues—regarding not only schools in his constituency, but f40 schools across the country. I feel strongly that schools with children who come from deprived backgrounds, with all the challenges they bring, should receive extra funding through the formula in addition to the money that comes through the pupil premium. I also strongly believe that we need to ensure that children who start school behind their peers catch up. Funding, I hope, will help ensure that they do. My hon. Friend is right, however, that we want to ensure that schools without any of those characteristics are properly funded. We can do that when a strong economy is generating the revenue to pay for those funds.

[Bob Blackman]

One of the issues that the right hon. Member for Twickenham (Sir Vince Cable) did not raise was rising rolls, particularly in London. The birth rate and the influx of people coming to London with young children require schools to accommodate more children, but the money lags. Will the Minister consider that aspect? If schools are not going to lose out over all, the per-pupil funding will be crucial in London to make sure that money goes to the schools as rolls rise.

[Nick Gibb]

My hon. Friend is absolutely right: as pupil numbers rise, so funding for schools will rise as well, because it is based on a per-pupil approach. We are spending record amounts on school funding—£41 billion this year—and that is set to rise further as pupil numbers rise.

In December last year, we launched the second stage of the consultation on the detailed design of the formula. As part of the consultation and to ensure maximum transparency, we published detailed illustrative impact data for all schools and local authorities, and that enabled us to hold a truly national debate during the three months of the consultation. During that period, as I said, I met parents, teachers and governors. Both the Secretary of State and I met hon. Members from across the House. We received more than 5,000 letters on the national funding formula and held more than 10 debates in the House. We received more than 25,000 responses to the consultation itself.