Education Funding in London

Lyn Brown Excerpts

Wednesday 4th May 2016 Commons Chamber

[Robert Neill]

I am just going to make this point before I start giving way again—otherwise I will not make a coherent argument at all. There is a reason for that funding, which is that London has, on many levels, greater challenges. There are far more children with English as a second language. There are higher levels of deprivation on almost any indices. There is great wealth, but there is also great deprivation, and those are closely—geographically and physically—juxtaposed. On any view, there are also extra costs involved in being a teacher or in running a school in London. The capital cost of sites is more because the land values are much higher. The cost of housing also means that teachers’ wages have to be higher. It is not illegitimate for those things to be reflected in the formula. London as a city is also the UK’s principal economic driver and puts in more to the UK economy than it takes out, so in that respect we are already subsidising the rest of the UK.

[Lyn Brown (West Ham) (Lab)]

I congratulate the hon. Gentleman on securing the debate and on the manner in which he has approached it. I agree with almost everything he has said. I come from an outer-London borough officially, but we have inner-London needs, and that is not reflected in the funding we receive from central Government. Does my hon. Friend—sorry, the hon. Gentleman—agree that we must make sure that funding is commensurate to the needs of the children in an area?

[Robert Neill]

The hon. Lady is almost an hon. Friend when West Ham are playing on Saturdays, and we hope for a good end to the season. She is right, and that brings me to the second point about funding. First, some outer-London boroughs are no better funded than shire counties anyway, yet in London there are much greater costs than in the rest of the country; and secondly, there is an artificial distinction in how funding in London is split up between inner and outer London. If justice is to be done in a formula, we need to move away from that distinction, which is purely historical. It goes back to the creation of the Greater London Council in 1963, when the then Inner London Education Authority was in fact part of the old London County Council, which had been a county education authority, while the outer-London boroughs had been educational authorities in their own right, either as parts of counties or as county boroughs. The historical anomaly that the hon. Lady mentions is the fact that her local authority is an amalgamation of two county boroughs that are part of the east end but were not in a county of London, so are treated as being in outer London, whereas Wandsworth, for example, which, in many respects, is much more prosperous, is an inner-London borough. That is a wholly illogical and unsustainable distinction that we need to break down because it distorts the arrangements.