Small and Village School Funding

Neil O'Brien Excerpts

Wednesday 17th July 2019 Westminster Hall

[Sir David Amess (in the Chair)]

Just before we start the next debate, there are a lot of colleagues here, and it would be very helpful if, through a note, those who have not already written expressing a wish to speak could let me or the Clerk know, so that I can make sure that no colleagues are disappointed.

[Neil O'Brien (Harborough) (Con)]

I beg to move,

That this House has considered funding for small schools and village schools.

It is a pleasure to serve under your chairmanship, Sir David. This debate is about two things that overlap but are not the same: small schools and village schools. My focus will be firmly on primary schools. About a fifth of schools are in villages, and on average they have just over 100 pupils, compared with an average of about 400 for schools in large cities. These village schools are good schools; only about 8% are not “good” or “outstanding”, compared with 11% nationally and about 15% in towns and small cities. They are also much-loved institutions, at the heart of their community, and they are where the community gathers for special occasions. Just the other day I was at the Church Langton Primary School fête watching the children do some intense Japanese drumming. I could equally have been at the Foxton family fun day or any number of other wonderful occasions in my constituency.

Village schools are also where people meet each other and the community organises. For example, the campaign for a road crossing in Lubenham in my constituency is being spearheaded by the children of Lubenham Primary School, and I am being bombarded by their very neatly handwritten letters. It is no wonder that people feel that a village loses its heart if it loses its school.

[Sarah Newton (Truro and Falmouth) (Con)]

I congratulate my hon. Friend on securing the debate. Like his constituency, Cornwall has many village schools. They make sure that our villages survive, because by having the school there, a younger generation of people come into the village, renewing its life. Without those schools, there is a real risk that those villages could become dormitory towns for second homes or for people who have retired.

[Neil O'Brien]

My hon. Friend is completely correct. However, rural schools, partly because they are small schools, have been much more likely to close in recent years. I thank the Department for Education for the historical data it provided to me on this, and Pippa Allen-Kinross at Schools Week for helping me to analyse it. Since 2010, 61% of schools that have closed and not reopened in another form have been rural schools, meaning that rural schools have been twice as likely to shut as urban ones. Since 2000, 150 rural primaries have closed.

[Jim Shannon (Strangford) (DUP)]

I thank the hon. Gentleman for bringing the debate. What he outlines in his constituency and other parts of the United Kingdom mainland is replicated in Northern Ireland. I know that the Minister does not have responsibility for this, but for the record, is the hon. Gentleman aware that since September 2010, 98 of the 230 schools that closed in Northern Ireland—42%—were rural, according to Schools Week analysis? Does he recognise the difficulties that creates for rural dwellers and socially isolated children?

[Neil O'Brien]

The hon. Gentleman is completely correct. This challenge affects all of the United Kingdom. For rural schools that closed, the average walk to the next nearest school is 52 minutes, which in practice means driving or getting a bus. There is a cost to the taxpayer for this transport, and a cost to parents and children for driving a long way, so there are all kinds of reasons why we should want to preserve our village schools.

I will turn to small schools more generally, including those in urban areas. I am grateful to the House of Commons Library for digitising older data for me that revealed a dramatic transformation in the scale of our schools over recent decades, and a decline in the number of small schools. The number of pupils at state primary schools in England is roughly the same as in 1980, but the schools that they attend are completely different. In 1980 there were 11,464 small primary schools with fewer than 200 pupils, but in 2018 there were just 5,406. The number of such schools has halved over the decades.

In contrast, in 1980 there were 949 large primary schools with more than 400 pupils, but in 2018 there were more than 4,000, so the number of large schools has quadrupled. The number of really big primaries with more than 600 pupils increased from 49 to 780, while there are now more than 100 what I call “super jumbo” primary schools with more than 800 pupils, which often have playtimes in shifts and hundreds of staff. This is a huge change in the nature of our primary schools, and it is visible in Scotland, Wales and Northern Ireland too. In fact, since 2002 Wales has seen the most dramatic decline in the number of small schools, followed by the north-west and Yorkshire.

This huge change in our primary schools has come about without any real discussion or political choice. It seems to me a move away from the natural small scale for small children, and there is no obvious policy rationale for it. Small schools are not bad schools. Schools with 200 pupils or fewer are just as likely to be “good” or “outstanding” as other schools. In fact, schools with fewer than 100 pupils, which account for about one in eight schools, are more likely than average to be “good” or “outstanding”, so this is not about academic standards.

I think two different things are driving it. The first is planning, which is outside the DFE’s remit. We do not build new small schools, and we do not make developers pay enough for the infrastructure needed for new housing. Instead, our bitty, piecemeal development allows developers to get out of paying for new schools, and we cram more pupils into existing schools, building classrooms on playing fields. Secondly, wider catchment areas mean more car journeys to those schools, and because builders often put schools in residential areas, there are a lot of cars driving into streets that were never intended for them, leading to a lot of congestion. People tell me that makes their village no longer feel so much like a village.

However, the DFE could do some things about the declining number of small schools. We should increase the lump sum element of the national funding formula. Do not get me wrong: the national funding formula is extremely good and has meant that the funding rate per pupil in my constituency has gone up twice as fast as the national average. It helps underfunded areas such as mine to catch up with the national average, although there is still a long way to go. It would be very helpful to increase the lump sum—the part of the national funding formula intended to help small schools.

[George Eustice (Camborne and Redruth) (Con)]

Is another problem with the national funding formula that the system of gains, caps and floors—in place for transitional reasons, which we all understand—compounds historical unfairness? While 3% of a very small budget is still quite limited, 1% of a very large budget is still quite a lot for those schools to enjoy.

[Neil O'Brien]

I think my hon. Friend is correct, and I think we both want to see a faster transition to a fairer overall settlement. However, I want to focus on the point about the lump sum.

Leicestershire County Council was historically a strong supporter of small schools and had a lump sum of £150,000 per primary school. In the national funding formula, that is only £110,000. When consulting on the national funding formula, the DFE acknowledged that that number was lower than the average for most local authorities. As local authorities converge on the national funding formula, as they should, the pressure on small schools may intensify. The proportion of the core schools budget going through the lump sum declined in the last year, and the gap between income and expenditure is much smaller for small schools, indicating a financial pressure. In fact, larger schools have about twice as much headroom per pupil. Small schools are definitely feeling the pinch.

I hope and expect that, under the next Prime Minister, we will see a big increase in school funding. A good way of delivering that would be to increase the lump sum within the national funding formula. About a fifth of primary schools get more than 20% of their income from the lump sum, and for them an increase could make the difference between staying afloat and closing. There has been some discussion about increasing sparsity funding as an alternative, but I am a bit sceptical. Fewer than 6% of primaries get sparsity funding, and only 1% get the full amount; a number of small schools in my constituency that are under pressure would not be eligible. That is one reason why only a third of local authorities have included a sparsity element in their local formulas. Increasing the lump sum, if I could beg the Minister to do that, would be simpler and better. For a little more than £800 million, we could take the lump sum back up to £150,000 and get my village schools back to where they were.

[Andrew Percy (Brigg and Goole) (Con)]

I congratulate my hon. Friend on securing the debate. I support his last point. One of my local authorities, North Lincolnshire Council, made a policy decision not to close any small schools, so the schools in my constituency with 45 or 50 children will remain open. However, the key issue that my local authority has asked me to raise with the Minister is the core funding costs. Admin costs, in particular, for a small school of 46 or 50 children are not dissimilar to those for a school of 100 to 150 children, because the same admin function is still needed. I therefore think that the point my hon. Friend the Member for Harborough (Neil O’Brien) is making is really important, and I want to offer him my full support and say that it is exactly the same point that my local authority is concerned about.

[Neil O’Brien]

I thank my hon. Friend. He is right and has brilliantly teed up something that I intended to say: the future for small schools and rural schools can be very bright. There are two reasons for that. One is that more and more people want to live in villages, and technology allows people to do that and work from home, rather than having to live in a major city. The other reason is the growth of multi-academy trusts—rather an ugly phrase for families of schools. The growth of those families of schools is enabling small schools in effect to combine the advantages of being a small school—the human scale and the connection to the community—with the advantages of being part of something bigger, which are being able to share resources, people and back-office functions and to learn from one another. Therefore, if we get behind them, village schools can have a really bright future.

I was in one such school just the other day in South Kilworth in my constituency. In many ways, it was a very traditional scene. I was watching the new school hall being built, thanks to school condition improvement funding, and the children were practising their maypole dancing. The fields were ripening around us and the sun was shining. It was a beautiful scene. We could have been time travelling, but that school is a modern school. It is part of a family of schools, which are helping one another to improve. It is a really good school and exactly the sort of thing that we want to keep in our communities. There are these very exciting opportunities opening up for small schools, but we need the Minister’s help to relieve the financial pressure on them if we are to fully achieve the potential of small and village schools.

[Several hon. Members rose—]

--- Later in debate ---

[Neil O'Brien]

I thank all Members who have taken part in today’s debate. I know that many Members are not in the building this afternoon, so I am particularly grateful for the eloquent and thoughtful speeches we have heard. I join my hon. Friend the Member for Bexhill and Battle (Huw Merriman) in strongly praising our brilliant Schools Minister, who is a relentless and hard-working champion for higher educational standards. If the next Prime Minister has any sense, he will be promoted; if he has very good sense, the Minister will be kept in place, because he is doing a good job.

I thank the hon. Member for Wythenshawe and Sale East (Mike Kane) for his praise for my previous speech in the Chamber. I thought his own speech would have been stronger if he had acknowledged that there has been a real-terms increase in spending per pupil since 2010—an amazing achievement given that we inherited the biggest budget deficit since the second world war. Perhaps if he finds himself in a position of power in future, he can avoid dropping one of those again.

I thank all the Members who have taken part. We heard important points about capital and buildings from my hon. Friend the Member for St Ives (Derek Thomas), and important ideas about smoothing out budgets from my hon. Friend the Member for Witney (Robert Courts). My hon. Friend the Member for Bexhill and Battle spoke about the importance of not relying on a bus, because children miss out on after-school activities. We heard from my hon. Friend the Member for Chichester (Gillian Keegan) about some of the things small schools are doing to cope in an authority where there has been an even bigger drop in the lump sum.

Small schools and village schools are an important part of the fabric that makes up this country. I do not want to wax too lyrical, but I genuinely think that if we continue to lose those schools at the rate we have seen in recent decades, in my lifetime, we will be losing an important part of this country.

Question put and agreed to.

Resolved,

That this House has considered funding for small schools and village schools.