Education: Funding

Lord Storey Excerpts

Tuesday 4th July 2017 Lords Chamber

[Lord Nash]

I am grateful to the noble Lord for his questions. To be clear, first of all, on grammar schools, as the noble Lord will know there is no education Bill in the Queen’s Speech and the ban will remain in place, although we will keep working with the Grammar School Heads’ Association and good grammar schools to see how their excellent practice can be spread more widely.

As far as breakfast is concerned, we do not plan to introduce free breakfasts, although we will continue to work on a number of schemes for breakfast clubs, such as Magic Breakfast.

There has been a lot of talk about the expansion of class sizes. Despite the fact that, by this September, schools will already have experienced an increase of more than 3% in their cost base, the actual increase in class sizes in the last six years has been very marginal indeed. This is at a time when we have 1.8 million more pupils in good and outstanding schools and have created nearly 750,000 new places. I have already said that there will be no cuts in per-pupil funding as a result of the national funding formula. We will be responding in full to the consultation shortly and I am afraid that the noble Lord will have to wait until then for the answers to the rest of his questions.

[Lord Storey (LD)]

My Lords, I am grateful to the Minister for his Statement. He is right to say that funding is anachronistic in England. I was pleased to hear that there will be no cuts to any school budgets. Presumably with the fair funding system there would be winners and losers, so he is clearly saying that the losers—in other words, those whose budgets will not go up—will not be cut at all. However, there is a problem now. When I asked an Oral Question back in March, I pointed out that audit figures showed that, on average, over the next four years, every primary school will be £74,000 worse off and every secondary school will be £291,000 worse off. In his reply, the Minister said it was about organising things differently and that better deployment of staff, efficiency savings and redeployment of non-teaching staff in schools could save £1 billion. He has never said how and where that is going to happen.

My main question is in regard to sixth-form colleges. The Minister believes in fair funding for all secondary and primary schools, but he clearly does not believe in it for sixth-form colleges—because only those which have become academies are VAT exempt. Those that choose to remain maintained have to pay VAT. That is surely grossly unfair. Why is the Minister not prepared to allow the same advantage to all sixth-form colleges? If he did, it would mean an immediate amount of money for the maintained ones. At the same time, why has the full amount of funding for sixth-form colleges—£200 million—been held back? That could be released to them as well.

[Lord Nash]

I am grateful to the noble Lord for recognising that we have been the first Government for some time to grasp the issue of the anachronistic state of school funding. It was never going to be easy —that is quite obvious from the debates we have had. However, we are determined to press on and make school funding fair. As I have said, there will be no cuts per pupil as a result of the national funding formula.

I would invite the noble Lord to come into the department and see the extensive work we are doing on school efficiency and organisation to make sure that schools fully understand how to make the resources available in a more efficient way so that there are many more resources for the front line. I recognise the pressures that schools are facing, but it is a fact that under the Labour Government schools received a 5.1% per annum increase in their funding in real terms and that during that time we slumped down the international league tables in the performance of our schools. So it is not just about money; it is about the efficient deployment of resources.