Education Funding: Cheshire Debate

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Department: Department for Education

Education Funding: Cheshire

Esther McVey Excerpts
Wednesday 13th February 2019

(5 years, 1 month ago)

Westminster Hall
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Esther McVey Portrait Ms Esther McVey (Tatton) (Con)
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I beg to move,

That this House has considered education funding in Cheshire.

It is a real pleasure to serve under your chairmanship, Mr Hosie, and I am grateful to the Minister for being present to respond to this important debate. I am also grateful to the Secretary of State for agreeing to meet headteachers in my constituency, and I am delighted to be joined by my hon. Friends the Members for Congleton (Fiona Bruce) and for Eddisbury (Antoinette Sandbach), who share my concerns about this important matter—I know that there might not be enough time for my hon. Friend the Member for Congleton to make a full speech, because this is only a short debate. I also notice that friends from across the House are present, including the hon. Member for City of Chester (Christian Matheson).

I acknowledge the support that has been provided nationally to date, including the £1 billion increase in funding, the extra support for teachers’ pay and pensions and for capital spend, and the increase in overall education funding since 2010. However, increases in costs are outstripping that extra funding, and there are discrepancies and differences in school funding in different parts of the country. The funding of Cheshire’s schools is, and will be, seriously negatively impacted by its geography, rurality and perceived needs, or lack of needs. We will explain some, and hopefully most, of the key issues in the time that we have, so that if the Minister does not have time to go through everything, he will be able to meet us and address those funding shortcomings.

First, Cheshire East Council is considering its three-year budget forecast to 2020-21 and its calculations for its maintained schools, and it says that by March 2021, 50% of maintained schools in the borough will be reporting a deficit in excess of £100,000. The total forecast deficit will equal £9.2 million—that is 10% of those schools’ funding—which will affect 38 schools in the borough. Cheshire’s national funding formula consultation identified cost increases of 8% from 2016-17 to 2019-20, but funding in Cheshire East has only increased by approximately 2%. As the lowest-funded authority, our schools already have lean budget plans, which makes addressing those pressures even more challenging than in other areas. The current national formula is shifting resources away from areas—such as Cheshire East—with relatively low deprivation levels, reducing basic funding levels and not leaving enough to run the schools.

Under those conditions, it is not possible in Cheshire East to meet the headline minimum per pupil levels in all cases. Where school deficits are exceeding £100,000, schools will have to look at reorganising, whether that means creating federations or possibly closing. That will not meet the needs of families and children in Cheshire East, because the money will be diverted into transportation to get children to their schools. The pressures on special educational needs services continue to grow, particularly given the contribution of £6,000 that schools need to make. I have been told that because of that contribution, some schools might refuse to take children with special educational needs, or that schools that are all-inclusive and do accept those pupils will face an extra strain on their budget.

Mike Amesbury Portrait Mike Amesbury (Weaver Vale) (Lab)
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Presumably, the right hon. Lady was sitting at the Cabinet table in July when the latest school funding formula was discussed. I do not know whether she made representations to the Chancellor at the time, or even pressed the Cabinet for a vote, as there are well-documented claims that she did in the case of Brexit. We share some of her analysis of school funding cuts, but this matters when it comes to the Division Lobby, and in the right hon. Lady’s case, when it comes to her collective responsibility as a member of the Cabinet.

Esther McVey Portrait Ms McVey
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As the hon. Gentleman will know, the fact that the extra £1 billion was put in place was particularly due to the pressure applied by my hon. Friends the Members for Congleton and for Eddisbury. As I only returned to the House at the 2017 election, I too applied pressure, because I think it is vital that schools get the money they need for education. For me, education is one of the key building blocks of social mobility that every child needs, so I did indeed make sure that we pressed for further funding. I would like that to be on the record.

Antoinette Sandbach Portrait Antoinette Sandbach (Eddisbury) (Con)
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Does my right hon. Friend agree that the pressure that was put on by my hon. Friend the Member for Congleton and myself, and indeed by other hon. Members who met with the Minister to ensure that a minimum level of funding was applied, resulted from the particular problems in Cheshire East and Cheshire West and Chester? Does she also agree that those problems are linked to the formula by which rurality is calculated, which is as the crow flies, rather than as the car or bus travels?

Esther McVey Portrait Ms McVey
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My hon. Friend is correct in what she says and in the work that she has done. I am glad that I have entered the House again, enabling me to unite with my friends and push these important points.

Laura Smith Portrait Laura Smith (Crewe and Nantwich) (Lab)
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Will the right hon. Lady give way?

Esther McVey Portrait Ms McVey
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If the hon. Lady does not mind, I will continue a little bit further, because I do not have much time. This is only a 30-minute debate, and I know the Minister has to respond, so I want to raise a couple of key points about Cheshire West and Chester. However, I know that the hon. Lady has done a lot in this area, and has a lot of knowledge about it.

The key challenge in Cheshire West and Chester is that it is funded below the average of all local authorities, due to the emphasis in the national funding formula on funding areas of deprivation and areas with higher living costs. Under that formula, Cheshire West and Chester is funded at the minimal level of funding for all local authorities for early years provision, meaning provision for three and four-year-olds. In 2018-19 and 2019-20, Cheshire West and Chester has received the minimum 0.5% increase in school core funding, but in the same period, local government officers’ payment bills have increased by 5.6% and teachers’ pay costs have increased above the anticipated public sector pay cap. Spending is outstripping the funding that is going into that area, and as a result, Cheshire’s primary schools are now 44% less funded than London’s primary schools and its secondary schools are 49% less funded than in London.

My key questions to the Minister are as follows. Will he commit to look again at rural funding and address the discrepancy? Does he accept that the increase in costs is outstripping the increase in funding? Will he provide support when local authorities have to use independent schools to meet specific needs? Will he support Cheshire in creating additional special educational needs places, and provide capital investment to enable that to happen? Will he also look at the apprenticeship levy and whether it needs to be applied to schools, and if that is the case, make sure that the levy can be used in a wider context—maybe training, rather than just apprenticeships? Will he ensure that in the forthcoming spending review, he applies for more funds for the Cheshire area, now that he understands the discrepancies in funding in that area?

As I said, although we appreciate the money that has come in, when we look at how that money is filtering through, we see that there are still needs. Additionally, given the increase in housing and development in the Cheshire area that we all know about, considerably more pupils will be wanting to go to school. There are more children with needs in that area, including complex needs, and more demands are being placed on the local authorities of Cheshire East and Cheshire West and Chester. I appreciate that the Minister might not be able to give a full response to those questions today, but will he agree to a subsequent meeting, so that we can all work together to make sure that our area gets the right funding for its children?