Education Funding in London

Karen Buck Excerpts

Wednesday 4th May 2016 Commons Chamber

[Rushanara Ali (Bethnal Green and Bow) (Lab)]

I thank the hon. Member for Bromley and Chislehurst (Robert Neill) for securing this debate on such an important issue, and I pay tribute to him for his work with the all-party group on London.

As the hon. Gentleman said, there are concerns that changes to the national funding formula will have a massive negative impact on London schools and their pupils. Despite the Government’s hollow promises of ring-fenced education funding, the Institute for Fiscal Studies reports that London schools already face an 8% real-terms reduction in funding over the next five years. Now it looks likely that they will face a further cut of £260 million a year due to the changes to the national funding formula. The Minister has said in the past that that is not the case, and I hope he will take the opportunity to clarify today whether he accepts that figure. Perhaps he can confirm to Members that London schools will not face that cut.

[Ms Karen Buck (Westminster North) (Lab)]

Does not the funding formula also drives perverse outcomes as between schools within the same local authority? Westminster Council has advised me that 20 schools will lose up to 14% of their grant because of how the funding formula works. Perversely, some of the schools with the highest levels of deprivation will lose the most and some of the schools with the least deprivation will be gainers. The problem with how the funding formula works is not just between local authorities but between schools.

[Rushanara Ali]

I thank my hon. Friend, and I hope the Minister listened carefully to her powerful insights about what will happen both within and across local authorities. It will be schoolchildren who suffer, and the improvements in performance in London schools will be put at risk. That improvement is the envy of the world, with many studies showing how London has progressed. It has taken a generation to achieve that, and I hope the Minister will recognise the concerns being expressed today and the dangers of the changes, which risk having a negative effect on the performance of London schools.

I want to highlight some of the challenges that exist and the backdrop against which London has transformed its schools. As I said, that has taken a generation, and the danger is that the change will set us back in a very short time. London faces some of the highest child poverty levels in the country, and, as the hon. Member for Bromley and Chislehurst pointed out, the highest inequality. The extremely high cost of living, and especially of housing, has a detrimental effect on teachers’ ability to find accommodation.

Despite those challenges, local education authorities across parties—Labour councils as well as Conservative councils—have worked tirelessly to improve education in London. As a result, nine out of 10 schools are good or outstanding. I hope the Minister will think carefully about the impact of the reforms on that progress. If we are not careful, we will set schools in London back.

Other regions see London as an exemplar. People point to the London Challenge, which the last Labour Government introduced, and which was supported by people across parties and recognised for its achievements. Other regions have tried to emulate it. It is really important that we build on the successes of our regions rather than pit them against one other, which I fear will happen as a result of the changes. It is wrong to put educationists in competition with each other for the wrong reasons. We should be looking at how to improve the achievement of all our children, across the country.