Schools Bill [HL]

Lord Davies of Brixton Excerpts

Committee stage & Lords Hansard - Part 1
Wednesday 15th June 2022 Lords Chamber

This is a huge Bill, and there are many things wrong with it. One of the things that your Lordships have expressed concern about is the overcentralisation in Whitehall with the powers of the Secretary of State. Funding will go exactly the same way through the national funding formula proposals unless some leeway is allocated so that, at a local level, changes can be made where they are needed.

[Lord Davies of Brixton (Lab)]

My Lords, I very strongly support the remarks made by the noble Lord, Lord Shipley, but I will return to that issue in the next group. I was not going to participate in this debate, but I have been forced to because of the references made to rural and metropolitan areas. I say to my noble friend on the Front Bench as gently as I possibly can that comparisons between allocations to different regions are always difficult and complicated.

The noble Lord, Lord Deben, said that we metropolitan elites do not have much knowledge of what happens in the countryside. Equally, people from the rest of the country have surprisingly little knowledge of what happens in metropolitan areas. The levels of deprivation in London—a vast area in terms of population—are enormous. In terms of picking out individual figures, I have the brief from London Councils, which provides figures demonstrating to its satisfaction that London has been hard done by over the last few years, with bigger reductions in the allocation to schools than the rest of the country. I do not believe bandying figures in that way is that helpful. What we want is sufficient funding across the country as a whole, and I think that setting one part of the country against another should be done with great discretion.

[Baroness Barran (Con)]

My Lords, I genuinely welcome the chance to talk to your Lordships about reforms to the national funding formula. We will come on to this in more detail on Clause 33 in the next group. I want to start my response by noting that this part of the Bill delivers a long-standing commitment to achieve fair funding for schools and, I should say, a commitment where there have been multiple consultations over the years with the sector.

I will start by responding to Amendment 79 in the name of the noble Lord, Lord Hunt, and Amendments 79ZA and 79C in the names of the noble Baronesses, Lady Chapman and Lady Wilcox, on the financial arrangements of multi-academy trusts. One of the ways that the best multi-academy trusts transform outcomes for pupils is by focusing their expenditure and investment towards the right areas, whether this is investing in new IT across the trust or securing additional staff to work across all the trust’s schools.

Trusts can target funding to turn around underperforming schools they have brought into their trust or, indeed, as we discussed with the noble Lord, Lord Shipley, on a previous day, target funding to very small, rural schools which would otherwise not be viable. The academy model relies on trusts’ ability to harness and share expertise and resources. However, Amendments 79 and 79ZA would stifle trusts’ ability to do this, undermining one of the fundamental benefits of the model.

Moreover, academy trusts are already required to publish a full set of financial accounts annually, which are publicly available. The department publishes a full report and consolidated accounts for the academy sector each year. We believe this meets the intention of Amendment 79C. The report includes data on financial health across the academy sector, and the educational performance of the academy sector at a regional level, to which the noble Baroness alluded.

My noble friend Lord Deben suggested that we needed to do more with data. Again, I challenge my noble friend just to look at how much data on schools we share publicly. The website Get Information about Schools gives very detailed information on school and trust performance. You can look by constituency area, local authority area or trust area. It gives information on finance—including the voluntary income that was referenced in the debate—workforce, and educational outcomes. That allows one to compare academies and maintained schools. We also publish school-level funding formula allocations for every school every year and the Department for Education runs a website specifically to enable anyone to see school-level national funding formula allocations and understand what funding they would receive if the national funding formula was followed locally. That may be something to look at for the Devon schools; I have not looked but I will do. The webtool is called view NFF allocations—I will write to noble Lords with the link—and it is published on GOV.UK.

We continue, of course, to look at how we can improve transparency, and in the schools White Paper we committed to consult on future financial reporting arrangements. The noble Baroness, Lady Chapman, asked —again, I hope she will forgive me if I paraphrase inaccurately—why we were not including local authorities in the process. She will know that we worked hard with local authorities ahead of publishing the schools White Paper to get a much clearer role for them. We are clear that the Government’s responsibility is to make sure that local authorities are empowered to be the champion of the child. They will be at the heart of the system, championing all children in their area but particularly the most vulnerable children, so they will play a leading role, of course, in safeguarding, pupil place planning and admissions. They will continue to be responsible for the high-needs budget and will lead local delivery of provision for children with special educational needs and disabilities, and they will be supported by the new partnerships.

The noble Lord, Lord Hunt, alluded—again, I think I am right in saying—to related party transactions in trusts. The Government are extremely vigilant to make sure that related party transactions, whether they are in maintained schools or in trusts, are handled with the highest levels of governance. But I point out to the noble Lord that the £120 million is on a budget in 2019-20 of over £31 billion so, if my maths is right, it is 0.3%.

I turn to Amendments 85 and 86 in the name of the noble Lord, Lord Storey. As I have already said, transparency is critical and is at the heart of our reforms. In relation to Amendment 85, we will continue to publish information annually on the national funding formula, including how it is calculated, what factors it uses, school-level allocations, and an equality impact assessment. Based on this information, it is already possible to see the impact on rural schools, or indeed any other group of schools.

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[Baroness Barran (Con)]

Just to be clear, there has been significant growth in funding in the system. In 2022-23, schools in the north-east, to which the noble Baroness opposite referred, will see a funding increase of 6.1%, with 5.9% in Yorkshire and the Humber. Small rural schools are attracting per pupil increases of 5.6%.

[Lord Davies of Brixton (Lab)]

If my noble friend will allow me to butt in with some figures, London Councils points out that, between 2017-18 and 2020-21, 84% of schools in inner London saw a real-terms decrease in per pupil funding, compared with 55% in the rest of the country.

[Lord Hunt of Kings Heath (Lab)]

I am grateful to my noble friend. The point is that, if we look at school funding going back to 2010, my goodness me, what a squeeze there has been between then and 2022.