Education Funding in London

Debate between Matthew Pennycook and Rupa Huq

Wednesday 4th May 2016 Commons Chamber

[Dr Rupa Huq (Ealing Central and Acton) (Lab)]

I congratulate the hon. Member for Bromley and Chislehurst (Robert Neill) on not only his stewardship of the all-party group on London but his sterling work with the Justice Committee, which I serve on.

Redistribution is usually seen as a principle of the left. The last Labour Government sought to widen educational opportunity, from guaranteeing nursery places at one end of the age scale to pursuing the massification of higher education further up the age scale. They sought to stop education from being the preserve of the select few.

Achieving a fair funding formula to end the postcode lottery might look attractive at first glance, but plans designed to counter regional disparities and funding gaps have resulted in warnings—we have heard all the projections—that London schools could lose hundreds of millions of pounds to other regions.

I welcome the fact that we are having this debate at this juncture, because we are all somewhat in the dark. It would be good to have clarity today, because what is going around on the grapevine will worry headteachers in the capital. As right hon. and hon. Members have said, London contains some of the poorest communities in the country, and it has fared well under the status quo.

Since the dark days before 1997 and new Labour, when I was going through school—the days of leaking classrooms—London schools have become a success story nationally. With competing levels of disadvantage countrywide and a shake-up due, there are bound to be winners and losers in any new funding formula. When funding is reallocated, it is important that London is not left underfunded and that educational success is part of the equation, along with strong leadership, raising aspiration and outcomes, and investment.

London boroughs have received additional funding for years because the previous Labour Government were keen to help struggling pupils in the capital to catch up with pupils elsewhere in the country. We have heard that London councils estimate that school budgets in London could be slashed by 10%, but some press releases say the figure could be as high as 14%. It is rumoured that the consultation is likely to recommend phasing in whatever comes next so that angry London headteachers do not immediately suffer large cuts.

Whatever the motivation behind all this, I urge the Government to quash the rumours, think again, and heed advice—advice that often comes from their own side, as in the very eloquent opening speech in this debate. There have been some other unlikely bedfellows. The Mayor of London has made representations to the Government. He is not here; he also has a part-time job as a Member of this House, I believe. The Mayor of Hackney and the Mayor of Manchester have made representations. The Conservative councillor Roy Perry, chairman of the Local Government Association’s children and young people board, has said:

“Councils know their areas best, and currently work in partnership with head teachers and governors to set a local funding formula which allows local needs and priorities to be addressed. We’d want to see this local conversation continue, rather than having all school budgets set in Whitehall.”

[Matthew Pennycook (Greenwich and Woolwich) (Lab)]

A point that has not been mentioned so far in any great detail is the lack of local flexibility in the proposals set out in the consultation and the implications that flow from that. One implication is that the DFE or the Education Funding Agency will have to know, for example, every school that has a private finance initiative agreement, what the costs are, and how they are going to be met at a time of also maintaining the per pupil funding formula.

[Dr Huq]

My hon. Friend makes the excellent point that local accountability seems to be lost in all this. We have a Government who said that they were in favour of devolution, and instead we have centralised diktats coming from on high.

The National Union of Teachers has claimed:

“Without significant additional resources, plans for reallocation of school funding between areas under the heading of ‘fair funding’ will not address schools’ funding problems and will impose even bigger cuts in many areas.”

In addition, there is the already-raised suspicion that forcing every state sector school in England to become an academy, thereby going into the hands of unaccountable private sector pseudo-charities, is privatisation by the back door. Compulsorily taking schools out of local authority control, which my hon. Friend the Member for Greenwich and Woolwich (Matthew Pennycook) mentioned, even when the local community opposes it, and handing them over, with their property deeds, infrastructure and taxpayer-funded education budgets, is massively opposed by many parents.

In my surgery, a complaint that often comes up is insufficient school places. I visit schools regularly; I did the assembly at St Augustine’s Priory School this week and I am doing Derwentwater Primary School’s next week. Teachers there raise a range of concerns, including recruitment and retention in London, particularly fuelled by the pricey property market. They talk to me about curriculum and assessment chaos. I have had 200 pieces of correspondence about forced academisation, with people pointing out that there is no evidence that academies improve outcomes. There is a cost to all this. Barbara Raymond from Acton says:

“We have lost social housing, are losing our health service and now our education system is being decimated.”

Dr Gill Reed of west Ealing is concerned that forced academisation will mean that schools are unable to remove asbestos from their buildings, because apparently Government funding for this was taken away, so if schools are using all their resources to convert into academies, that will put health and safety in our schools at risk as well. Sarah Mitchell, a parent who is also a teacher, is concerned about what will happen to the support services previously provided by local education authorities when they go over to private providers. John Davey of Ealing, in his 46th year of teaching, 21 of those in Ealing, says:

“This doctrinaire stance of the current government, supported by no research and choosing to ignore the available evidence, will do harm to generations of children.”

On the subject of unequal funding, it might just be coincidence, but the boroughs of Wokingham, Surrey, Windsor and Maidenhead have all seen the lowest cuts to their budgets. Between them, they represent the constituencies of half the Cabinet. The constituencies of the Home Secretary, Health Secretary, Leader of the House, Foreign Secretary and Justice Secretary are all covered by those areas, which also received £33.5 million in the transitional grant announced this year. To an alien looking at these things from outside, that seems politically motivated.

It is worth restating the London Councils figure of £245 million. In terms of people, that equates to 5,873 full-time teachers or 11,598 full-time teaching assistants. As has been pointed out, inner London will be hardest hit.

My constituency is in Ealing, which is the most inner of the outer London boroughs. Everyone who has spoken today, from the hon. Member for Bromley and Chislehurst onwards, has said that there are dichotomous divides within boroughs. Some areas of Ealing have inner-city characteristics, such as Southall, which is outer London on the map, and Acton, which is inner London on the map and zone 2 for travelcard users.

Historically, we were never part of the Inner London Education Authority, but we have an excellent track record in delivering accessible education for our pupils. In 2015, Her Majesty’s chief inspector of schools rated the Ealing borough as having the most improved schools of all local authorities across England, but we do have deprived areas and areas with specific educational challenges, so I would say that our needs are higher than those of other suburban boroughs. None the less, all 14 high schools were rated good or outstanding by Ofsted, as were 59 of our 69 primary schools.

The predistributionary—if I can use that word—aspects remain sketchy, but Ealing Council’s ruling Labour group opposes academisation and wants to launch its own trusts to get around it. Should local authorities be trying to get around Government legislation, or should the two be working together? I would suggest that the latter is the better option. We should not be thinking of reasons to avoid horrid policies from the centre.

The average spend per pupil in Ealing is higher than the national average, as is the case in all but four of the other London boroughs. We have more pupils with English as a foreign language than elsewhere, and other hon. Members have mentioned the issue of churn. London Councils points out that all London schools are at significant risk of losing funding under any redistributive model. The bureaucratic reorganisation of academisation will cost the taxpayer £1.3 billion. Surely that is poor value for the taxpayer when we should be justifying every pound of public expenditure at a time of fiscal belt-tightening.

Improving the life chances of local young people in Ealing should be a key objective in education. Ealing has a good record of success and of driving up standards for young people, with the council and schools working in partnership, but there is now a sense of a double whammy from the reallocated funding formula and the academies plan. Ealing Council officers have built up considerable expertise and flexibility, and the proposals are to the detriment of our young people. This is a top-down reorganisation from a Government who said, “No more top-down reorganisations”. One would have thought that they would have learned from their costly and unnecessary experiment with the health service.

Paul Goldsmith of Acton is a politics teacher in the independent sector. He wrote to me:

“I am a Governor of an outstanding primary school that under Conservative policy will be forced to be an academy. This means the Head and Governors over the next few years will have to work to the task of academisation, not maintaining an outstanding school.”

He also points out—remember that he is a politics teacher—that Conservatism can be defined as, “If it ain’t broke, don’t fix it”, and asks what is the actual problem forced academisation is trying to fix if the school is outstanding. There are also questions about the financial stability and viability of academy chains as things stand. Plenty of academy chains have got into financial difficulties in order to meet Government targets. It is worth reiterating a phrase that has cropped up time and again: we should be levelling up, not levelling down.

On educational inequality, a degree of special pleading is necessary on behalf of London, because London is different. Its population is heading towards 10 million and its year-on-year population increase of 3% over the last Parliament was higher than the 1% for the rest of the country. The number of live births in Ealing increased by 31% between 2002-03 and 2010-11, which means that an additional 1,400 children a year have been born since 2002, although I think things have levelled off a bit. As an Ealing mum, I am probably one of the few people here to have experienced a bulge class. I remember being in a bulge class in 1983 as an Ealing pupil, as well.

There are concerns aplenty about the new proposals and the degree to which they tip over towards equalisation. Usually equalisation sounds like a good thing, but the proposals seem to be intended to benefit rural communities and buy off Conservative Members. We know that the Government have a small majority, and the proposals will ward off the rebellions that might be coming their way. There is a sense that the tinkering is a result of pressure from the heartlands.

I will end with one more quotation, from Rachael Stone, a primary school teacher from Acton who has been in the job for 20 years. She said that when she heard about the plans in the Budget to make her school an academy,

“my immediate response was that it is time for me to find a new career.”

We need to be careful about how we approach the issue and mindful of the need to avoid exacerbating the already plummeting morale among the teaching profession through academisation. We do not want to make a bad situation worse.