School Funding Formula (London)

Debate between Bob Blackman and Vince Cable

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.