Schools: National Funding Formula

Kit Malthouse Excerpts

Thursday 14th September 2017 Commons Chamber

[Justine Greening]

The right hon. Gentleman may be aware that we accepted the recommendation of the School Teachers Review Body, an independent review board that considers all the evidence provided not only by the Government but by the unions, labour economists and all sorts of interested stakeholders. The review body made its proposal to me earlier in the summer, and I accepted it. I have no doubt that, when the review body next assesses teachers’ pay, it will continue to consider recruitment and retention alongside affordability, which is quite right.

[Kit Malthouse (North West Hampshire) (Con)]

I welcome the Secretary of State’s announcement of the retention of local authority discretion for the next two years, which will assist my village schools, many of which are sparse but not quite sparse enough. Can she reassure me that, at the end of that two years, the level of funding that those village schools receive will effectively become baked in as the baseline for future funding and that they will not face some kind of cliff edge in the funding formula?

[Justine Greening]

Today I have set out the new funding formula for schools. We will have a transition period, during which local authorities continue to have the ability to allocate at local level, but we have made it clear that we are setting out the amounts that we think schools should get. That is the whole point of this process, which does reflect sparsity. We have more work to do to ensure that we reflect sparsity more accurately over the coming years, as I have set out in the funding formula document, but this is a step in the right direction. I fully expect that, over time, we will continue to get better and that we will move to an even more accurate approach to sparsity.