School Transport: Northumberland

Neil O'Brien Excerpts

Tuesday 12th November 2024 Westminster Hall

[Neil O'Brien (Harborough, Oadby and Wigston) (Con)]

It is a pleasure to serve with you chairing, Mrs Harris. I congratulate the hon. Member for Hexham (Joe Morris) on securing this hugely important debate. This is an important subject to talk about, and there have been really good contributions from multiple Members. I declare an interest in Northumberland, as it is where I got married, in Wooler near Rothbury, which has already been mentioned. I have a great appreciation for Northumberland as a county. If I am not in the constituencies of the hon. Members for Hexham or for North Northumberland (David Smith) in the summer, I am normally in the constituency of the hon. Member for Westmorland and Lonsdale (Tim Farron), so they are all places for which I have a lot of love.

I will recap the story a little. Last year, we announced an extra £500 million of funding for local government for adult and children’s social care, particularly to reduce the pressure on other areas of children’s services, such as home-to-school transport. It was part of our wider strategy for children’s social care reform and allocated to things such as expanding family help, targeted early intervention and all those things. It was part of a wider settlement for local government last year, which was another above-inflation settlement. Local government absolutely was squeezed in the coalition years, when we were clearing up the large deficit after the financial crisis, as the Institute for Fiscal Studies has pointed out, but funding per person in 2024-25 is set to be 10% higher in real terms per person than in 2019-20, with bigger increases for the most deprived councils. It is worth recognising that what happened over the last Parliament is not the same as what happened in the period 2010-2015, when there were real-terms increases per person for local government.

I mention that because the local government financial settlement for next year is now looming; I guess that we should expect it some time in the next month. Perhaps the Minister will tell us when it is coming. I have a couple of specific questions that I hope she will be able to answer, as they are relevant to this debate. What will the total cost to local government be of the national insurance increase announced in the Budget? What will the cost of the national insurance increase be specifically to home school transport? Will local authorities be compensated for those costs?

We know that one of the recurring issues with the national insurance increase is who will be compensated. Public services that are not part of the public sector are not included in the protection. For example, GPs are up in arms about the enormous bills that they all face, and there are similar issues for nurseries, which are extremely concerned. The university sector has already learned that the entirety of the increase paid for by the breaking of the tuition fees promise will pay for the breaking of the promise on national insurance, so one broken promise will pay for another. All the gains that it thought it was going to get from the tuition fees increase are being entirely wiped out and eaten up by the cost of the national insurance increase, so real-terms funding for universities will go down. Those issues very much apply to home-to-school transport, a public service provided by people outside the public sector. Will the Minister tell us whether they will be fully compensated for that? I hope she will be able to give us that assurance.

We have touched on some of the wider issues in which this issue is situated. The hon. Member for Westmorland and Lonsdale has mentioned this, but I was really sad to see the end of the “get around for £2” scheme, which we introduced and extended to the end of 2024. I know from my own community that it has particularly benefited people in rural areas, so I am sad to see that it has gone and there is effectively a 50% increase in the cost of a lot of journeys on buses. That is a real shame, because I felt we were making progress on buses. I was involved in the Bus Services Act 2017, which gave mayoral combined authorities the power to introduce into other areas of the country the kind of franchising that London has enjoyed for a long time.

It was sad to see the scrapping of the dualling of the A1 through Northumberland. Land and houses had been bought up to allow for the work, which makes it even worse. I was astonished to see that in the Budget, although there was lots of capital for other things, including the different things that the right hon. Member for Doncaster North (Ed Miliband) wants to do on net zero, there was an overall reduction in capital transport spending. I was really surprised by that. I do not really understand what the logic was.

[David Smith]

I have a simple question: would the hon. Gentleman agree that the last Government had 14 years to dual the A1 and did not manage to do so?

[Neil O'Brien]

We had finally got there. We had bought the land and the houses, and the thing was about to happen. Somehow, the new Government snatched defeat from the jaws of victory, which is desperately sad. We will have to agree to disagree on that.

We have talked a bit about SEND funding in the round. The high needs block spending grew 70% between 2018-19 and 2024-25, so we put a lot more money into it. Hon. Members might say that is still not enough, and I would totally understand where they are coming from, but the demand is exploding upwards. I know that the Minister will be thinking equally about the causes of that and what she can do about it—not just meeting the need, but trying to understand the root causes and reduce the need for these services. There was a very large increase in that high needs block SEND spending.

A couple of hon. Members mentioned that one of the ways to solve the issue is not to look at the transport but to look at the schools. This is a long-term obsession of mine. I had a Westminster Hall debate not so long ago about this very issue. Since 1980, the number of small schools with fewer than 200 pupils had roughly halved, from 11,464 to 5,406, by 2018. That is a long-term trend. Since 2000, rural schools—those in villages and hamlets—have been twice as likely to shut. When they have shut, the typical walk time to the nearest school has been about 52 minutes. That long-term trend, which has occurred under Governments of all three of the main parties, has posed all sorts of challenges for rural areas.

To try to arrest that trend, we brought in the lump sum within the national funding formula, which is about 60% of the total funding. It is a hugely important part of the funding and I look forward to hon. Members championing it. We must think about how we keep village and rural schools, which are such an important part of rural communities, going. That is not just because they make life simpler and the whole transport issue simpler, but because they are at the heart of rural communities. The hon. Member for Westmorland and Lonsdale talked about a 36% increase in taxis. We need to think about how we can attack the underlying causes of the need. I am sure that the Minister will be thinking about this.

I will end where I started by congratulating, in an honest way, the hon. Member for Hexham on securing this debate. It is hugely important. He made a super-important point about siblings being treated differently, which seems like absolute craziness. I am sure that we all agree that we ought to tackle that, but there are opportunities to address these issues, particularly through the local government funding formula. Government Ministers will stand up in a few weeks’ time and give us the numbers for how much local government is getting, but those in local government will want to know what is happening to their costs and for which of the services they provide, such as home-to-school transport, they will get compensation on the national insurance increase, because otherwise they will not know whether they are really ahead or behind.

--- Later in debate ---

[Neil O’Brien]

I am grateful for the Minister’s answer. I am keen to understand whether local authorities will be compensated, not just for the direct costs to their own staff of the increased national insurance payments, but for the costs of services that they buy in, such as home-to-school transport. Will that also be fully compensated?

[Catherine McKinnell]

All those details are being worked through and will be announced in due course. I appreciate the hon. Member’s keenness to have advance sight of the statement—it is coming, and it will set out all of the detail.

In addition, local government in England is expected to receive about £1.1 billion of new funding in 2025-26 through the implementation of the extended producer responsibility for packaging scheme. Hon. Members might wonder what that has to do with transport, but it will shift the burden for managing household packaging waste from local authorities to the producers who supply and import the packaging. That will create additional revenue for local authorities to channel towards vital services such as public transport.

The Government are committed to reforming public services and the local government funding system, while providing as much certainty as possible. It is important that we deliver that reform in partnership with local government, and my ministerial colleagues will be setting out more detail shortly.

The Department routinely collects data on local authorities’ expenditure on home-to-school travel, and we understand the increasing financial pressures that they face. However, as things stand, the Government have not collected data on the actual travel being arranged, even fundamental information such as the number of pupils receiving free home-to-school travel, the transporting of siblings—as my hon. Friend the Member for Hexham highlighted—and information on catchment areas. I am determined, given the concerns that he and other hon. Members have raised, that we improve our data on the subject so that local authorities can benchmark themselves against similar authorities and learn from one another, and so that central and local government have the robust evidence to inform decision making on those issues. We will be writing to local authorities in the coming days, setting out our plans to ask them to provide data on travel that they arrange for children and young people to get to school and post-16 providers. It will be voluntary at first, but I hope local authorities will see the benefit of the data collection and share the requested data that they hold.

Another big issue that we know we must tackle is school absence. If children are not in school, they cannot benefit from their education. Thanks to the efforts of the sector, more children are in school in 2023-24 compared with the previous year, but 1.6 million children are still persistently absent, and that is a major challenge. We know that some children, particularly those with additional needs, face additional barriers to attendance, so we have to work to tackle those issues. We know that schools need to take a support-first approach and ensure that they have an attendance champion and policy and that they work with local authorities. Clearly, transport to school is a big part of that jigsaw.

Public transport clearly has an important role to play. Good local bus services are an essential part of thriving communities, providing access to education and other services. Outside of London, buses were deregulated in 1985. They now largely run on a commercial basis, and my hon. Friend the Member for North Northumberland pointed out some of the challenges that that can present. The Government have pledged to fix that, and the Bus Services Bill announced in the King’s Speech will put the power of local buses into the hands of local leaders. I know the North East Mayor Kim McGuinness is working to improve bus routes and has committed to repairing our broken bus system in the north-east.

I thank my hon. Friend the Member for Hexham again for bringing the matter forward and all those who have made contributions to the debate. It is an issue that many people rightly feel passionately about. I acknowledge the challenges that far too many families face when seeking to get the right support for their children. By fixing our broken SEND system, by transforming our education system so that more children can access an inclusive, high-quality education locally and by fixing our broken transport system, we can truly make this change.