Spending Review and Autumn Statement

Louise Ellman Excerpts

Wednesday 25th November 2015 Commons Chamber

[Mr Osborne]

My hon. Friend is right; this has long been a perverse and arbitrary formula in our education system, which many MPs, from all parties, have campaigned to have changed. A national funding formula is a big step forward in education, and my right hon. Friend the Education Secretary will set out the details. It cannot be right that children in one part of the country can in some cases receive £3,000 less per child than children in exactly the same circumstances—the same level of disadvantage—in some other part of the country. It is not always about shire counties, as some Labour Members have said. A child in Knowsley, for example, is receiving less money today through the funding formula than a child in exactly the same circumstances in Wandsworth, and that cannot be right.

[Mrs Louise Ellman (Liverpool, Riverside) (Lab/Co-op)]

The investment in transport infrastructure is very welcome, but the Chancellor also said that the Transport Department would have an operational cut of 37%. Will he tell us where the axe will fall?

[Mr Osborne]

Yes, absolutely. First, the Transport Department had set aside a number of contingency funds, which we do not have to use. We are also phasing out the resource grant for Transport for London, but Transport for London is getting a big capital settlement, which is a large part of the Transport Department’s resource budget, and that is where some of the savings come from.