School Funding Reform

Julie Hilling Excerpts

Tuesday 19th July 2011 Commons Chamber

[Michael Gove]

I entirely agree, and I pay tribute to my hon. Friend for the effective way in which he has lobbied for a more imaginative and sensitive response to school building in future. He has specifically argued that we should ensure that we safeguard the interests of the schools in the west midlands that are in the greatest need, whether in Sandwell or in adjacent boroughs. I commend him on his statesmanlike and constructive approach.

[Julie Hilling (Bolton West) (Lab)]

At a time of devastating cuts to local authority budgets, will local authorities face yet another in-year cut for which they will not be able to budget? As there is an economy of scale in providing services to schools, will children in non-academy schools suffer because of that deduction from local authority funding?

[Michael Gove]

Again, that is a thoughtful question. First, our consultation on reform of LACSEG—the local authority central spend equivalent grant—is designed to balance stability with a reflection of the fact that some local authorities no longer discharge such responsibilities, but still receive funding. On the second point made by the hon. Lady, it is only fair to say that in our consultation we point out that some economies of scale that are claimed do not materialise on the ground— but she will have an opportunity to contribute to the consultation, and I look forward to hearing her thoughts.