West Sussex Schools Funding

Mike Kane Excerpts

Wednesday 2nd November 2016 Westminster Hall

[Mike Kane (Wythenshawe and Sale East) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Gray. I will just point out the political geography of the room. I did a similar debate the other week with Merseyside MPs, and the Minister for School Standards was on his own on the Government side. Being a Greater Manchester MP, I thought I was probably more isolated from my colleagues in that debate than I am today, but I will not go into those traditional rivalries when we are talking about West Sussex.

I congratulate the right hon. Member for Mid Sussex (Sir Nicholas Soames) on securing this debate and on standing up, so eloquently and effectively, for the schools in his constituency and county. From my brief time in this place over the past two years, I know that politics can be like herding cats. To have so many—five—Members from the county pressing the Department and the Under-Secretary today is good to see. I would like to have seen the Minister for School Standards but if, as Woody Allen said, 80% of success is showing up, I am glad he is representing the other 20% today.

I want to make some remarks about the campaign and congratulate the hon. Member for Horsham (Jeremy Quin), who has clearly put in a shift, on organising it. Headteachers from 250 schools in the county have said that they need the transitional funding—the campaign has brought all of them together. The campaign has delivered a letter and petition with the names of 100,000 parents on to the Prime Minister—that is an incredible feat, so very well done. Headteachers are saying that they need the additional funding and cannot replace staff, which was alluded to by the hon. Member for East Worthing and Shoreham (Tim Loughton), who talked about retention and selection. They have campaigned very effectively and today we have heard the statistics about the differential levels of funding. Members have spoken with passion about individual schools in their constituencies.

The right hon. Member for Mid Sussex made two incredible points. One was that it is a fundamental basic in policy to fix schools funding—we have huge differentials across the nation. He also spoke with passion about special educational needs, which we do not do often enough. I hope, unfortunately, to find an ally with the education for all Bill, because clearly this issue is not mentioned at all. Any education Bill coming through Parliament should have special educational needs at its heart. I hope we can turn that around collectively.

Last week the Government U-turned in abandoning some of the education for all Bill, which would have included the fair funding formula. We now know, as has been alluded to by Ministers, that it is going to be kicked into the long grass for quite some time, which has created uncertainty. Back in July, the Secretary of State said that she would bring forward the next stage of the consultation

“once Parliament returns in the autumn.”—[Official Report, 21 July 2016; Vol. 613, c. 969.]

That was on 21 July and, to the best of my knowledge, we still have not had that statement. It would be good if the Minister could say today when we will be hearing that because Members on both sides of the House want to know.

At the moment, a confused and chaotic narrative is coming out of the Education team on a number of issues. Labour Members support the fair funding formula, but as the right hon. Member for Arundel and South Downs (Nick Herbert) said, the Government have been really good in the past few years with subsidiarity in decision-making—the funding formulae for skills and apprenticeships are a completely devolved function to Greater Manchester. The hon. Member for Horsham alluded to the fact that education and skills are vital to our national productivity. Traditionally, the precept has been set where local authorities could always top up the education resource that they were given from Government, which some counties and metropolitan authorities have done well. However, in the past few years, particularly with the London Challenge, they have had an enormous amount of resource, although I do not deny that that has come with an enormous amount of success.

The hon. Member for East Worthing and Shoreham rightly talked about the Thomas A Becket junior school and the comparative differential. We probably know that the Thomas A Becket junior school has come from a lot further down in terms of its results and attainment, but the differential is still too large to be fair. We believe that, as with the London Challenge, we should invest in all our schools rather than take money from some to give to others—that is taking from Peter to pay Paul—which is what we do not want when the fair funding formula is introduced.

I disagree slightly with the right hon. Member for Arundel and South Downs about protected budgets. The Institute for Fiscal Studies has shown that school budgets will have fallen by 8% over the course of this Parliament—the budget was protected only in cash terms rather than in real terms, meaning that the schools budget is at the mercy of rising pressures, pupil numbers and the impact of inflation on the true value. The hon. Member for East Worthing and Shoreham alluded to those pressures in his excellent speech. There are pressures on recruitment, selection and retention of teachers, particularly in areas such as his, which has rising house values and a heated economy, with people having to travel to London to work.

With inflation rising to a two-year high and many predicting it will rise again in the light of Brexit—if we have a chaotic Brexit, the situation could be worse—it looks as though schools funding will face even higher real-terms cuts. The IFS has said that, over the course of this Parliament, funding will fall for the first time since the mid-1990s, making it harder for us to secure funding for schools. It estimated in April 2016 that there would be a 7% real-terms reduction in per pupil spending between 2015-16 and 2019-20. In that context, how will the Minister secure fairer funding for schools? Will it come at the expense of schools in the most disadvantaged areas?

In conclusion, I pay tribute not only to all the Members who have stood up so effectively for schools, but to the schools in West Sussex and to West Sussex County Council, which is doing its best in difficult circumstances. We have a chaotic school funding system and the Government are dragging their feet on getting to grips with it. I hope the Minister enlightens us today about the way forward.

--- Later in debate ---

[Caroline Dinenage]

My right hon. Friend makes an excellent point. I will talk shortly about the transitional funding, which I know he and his colleagues from West Sussex are all very keen on.

We are clear that without reform the funding system will not deliver the outcomes we want for our children. As many Members have said today, it is outdated, inefficient and unfair. There are two reasons for that: first, the amount of money that local authorities receive is based on data that have not been updated for more than a decade, so although local populations have changed the distribution of funding has not, and the impact of that is hugely unfair. We have heard many of the relevant figures today. West Sussex is receiving just under £4,200 for every pupil, whereas in Birmingham, for example, that figure is £5,200. Although there will always be variations in the amount different areas receive, because their needs and local costs vary, a system that creates such significant differences cannot be fair.

[Mike Kane]

Will the Minister enlighten the House about whether any areas will lose out because of the introduction of a new national fair funding formula?

[Caroline Dinenage]

We are still in the consultation period, the next stage of which will be announced shortly, so I am not able to comment on that today.

Different local authorities take very different decisions about how to distribute their funding. There are 152 different local formulae, so a primary pupil in West Sussex with low prior attainment currently attracts £863 in extra funding, whereas in Trafford, for example, they attract more than £3,000 extra, and in four local authorities they get nothing. My county, Hampshire, provides no extra funding for pupils in receipt of free school meals, whereas Warrington chooses to allocate more than £3,000 to each secondary pupil in the same situation. That is why we are committed to fixing the system.

Earlier this year we launched a consultation on the new fairer funding formula for schools. The second stage, including the details of the national funding formula, will be announced in the next few weeks. Our aims are clear, and I hope Members from all parts of the House will agree that they are worthy ones. We want to create a formula that is fair, objective, transparent and simple. It should be clear how much funding is available for each pupil and that should be consistent wherever they are in the country. From 2018-2019, we intend to begin moving towards a system where individual school budgets are set by a national formula and not by 152 locally devised ones.

The reforms will mean that the funding is allocated fairly and directly to the frontline where it is most needed. They will also mean that funding reflects the needs of pupils, so the higher the need, the greater the funding. The reforms will be the biggest step forward in making funding fair in well over a decade. It is therefore vital that we take time to get them right. We need to debate the important principles that will underpin this and listen to the submissions that are coming back as part of the consultation. We have a responsibility to ensure that the system we set up now enables schools to maximise the potential of every single child.

I am aware of the concerns raised by hon. Members today that fairer funding for schools in West Sussex and other parts of the country is very much overdue. We agree that the reforms are vital, but they are also an historic change, which is why we have to take the time to consider the options and implications very carefully. We cannot afford to get this wrong. Crucially, we must consult widely with the education sector before we make changes. We will carry out the second stage of that consultation later this year and make final decisions in the new year. The new system will be in place from April 2018.

In the meantime, we have confirmed arrangements for funding in 2017-18 so that local authorities and schools have the information and certainty they need to plan their budgets for the coming year. That is so important, because a key message coming out of the first round of the consultation is about the ability to plan ahead and certainty about the future. Schools need to know where they stand.

Areas such as West Sussex, which benefited from the £390 million that we added to the schools budget in the previous Parliament, will have that extra funding protected in their baseline 2017-18, as they did in 2016-17, but I take on board the comments of my hon. Friend the Member for Worthing West, who said that West Sussex received a disproportionately low amount. We will look into that.

The next stage of our consultation, which is coming out shortly, will set out the detailed proposals for the national funding formula and show how the formula will make a difference to every school and local authority budget in the country. We will explain how quickly we expect budgets to change. We have been clear that we want schools to see the benefits of fairer funding as quickly as possible, but the pace of change must be manageable for them. The strong message is certainty and the need to be able to plan ahead. We fully take on board the real-term impact on budgets of the recent changes to pensions and national insurance contributions that my right hon. Friend the Member for Arundel and South Downs mentioned.

All local Members have spoken about the transitional arrangements. I hear them and I know that they will make a powerful case to the Secretary of State this afternoon when they see her. The Minister for School Standards has been working hard on the arrangements. As usual, we will finalise school funding allocations for the coming financial year in December, taking into account the latest pupil numbers from the October census.

Reforming the funding system to ensure that areas such as West Sussex are fairly funded is only half the story. As hon. Members have pointed out, as with all public services, it is vital that schools spend the money that they receive as efficiently as possible. The most effective schools collaborate through academy trusts and federations, or as part of teaching school networks or clusters. They share knowledge, skills, experiences and resources to drive the important changes that support their school’s education or vision. Schools are best placed to decide how to spend their budgets and achieve the best possible outcomes for their students. Lots of schools in West Sussex are already doing that, despite having very low funding compared with other parts of the country. We recognise that the Government have a role to play in ensuring that schools are supported to make every single penny of their funding count. That is why we launched a package of support for schools in January that includes new guidance and tools to help them make the most of the funding they receive, and we will continue to update and improve that offer to schools.

I am enormously grateful for the support that my right hon. Friend the Member for Mid Sussex and the other West Sussex Members have given to the agenda. They have all raised important issues. I hope that they are reassured, more than anything, about the Government’s long-term commitment to reform school funding so that there is a fairer system for children in West Sussex and across the country—a system where funding reflects the real level of need, so that pupils are able to access the same educational opportunities wherever they happen to live.

A fair national funding formula underpins our ambition for social mobility and social justice, and will mean that every pupil is supported to achieve the very best of their potential, wherever they happen to live. Although we should recognise that there are challenges currently, and that challenges will lie ahead, I hope all hon. Members give support to and work with the Government to achieve that vital aim.

Question put and agreed to.

Resolved,

That this House has considered the funding of West Sussex schools.