School Funding Formula

Nicholas Dakin Excerpts

Tuesday 10th March 2015 Commons Chamber

[Nic Dakin (Scunthorpe) (Lab)]

I congratulate the hon. Member for Worcester (Mr Walker) on his leadership of this debate and on his leadership on this issue during this Parliament. He sets an example to us all.

It is clear what the motion is asking the next Parliament for:

“the speedy implementation of a fair and transparent…funding formula”

on an acceptable time scale. Of course, what is fair and transparent to one person is not necessarily so to another—and therein lies the challenge for the Front-Bench team when it is time to deliver. The hon. Member for Beverley and Holderness (Mr Stuart), the Chairman of the Education Committee, is right when he says that this needs to be fair and just. We can all sign up to that, but, as the hon. Member for Worcester says, it should not be an accident of geography that determines how much funding a school, a pupil or a student gets. It should be done fairly and transparently.

[Heather Wheeler (South Derbyshire) (Con)]

Does the hon. Gentleman agree that, as we now have an extra chunk of money from the last Budget, it should be put on the baseline, as was suggested by my hon. Friend the Member for Worcester (Mr Walker)? At least that would give future Governments a fairer point from which to start.

[Nic Dakin]

Any progress should certainly be built on by a future Government. North Lincolnshire, the area that I represent, is historically underfunded. We stand to benefit and to be a potential winner, but the change must be smoothed for those who are less advantaged, and I think that the F40 principles will help in that regard. Core entitlement at pupil level is the main building block that will give schools access to similar resources for basic classroom costs, wherever those schools may be, but pupil needs beyond the core entitlement will also be recognised. Factors such as deprivation, special educational needs and the existence of small schools in small communities should be taken into account. That is the second building block. As for the third, the existing dedicated schools grant structure should continue to be part of the framework. I think that those three principles will be helpful to any future Government.

When we talk about school budgets, we should recognise that funding for those over 16 has been particularly badly affected in recent years.

[Richard Graham]

The hon. Gentleman is absolutely right. It is hardest for schools with sixth forms, and those that do not have a very large percentage of disadvantaged pupils who receive the pupil premium. Does the hon. Gentleman agree that it is essential to get the core funding right for the F40 group, so that those schools can balance their books in the next few years?

--- Later in debate ---

[Nic Dakin]

It is indeed. We should focus on giving young people equal opportunities wherever they are.

[Mr Jim Cunningham (Coventry South) (Lab)]

As my hon. Friend knows, debates about the school funding formula have been continuing for many years. I remember them taking place about 25 years ago. What is more important is that a quarter of the further education budget is to be cut at Coventry City college.

[Nic Dakin]

My hon. Friend has made a good point, which illustrates the complexity of the issue and the challenges that it poses. For example, sixth-form colleges currently receive no VAT relief, whereas other institutions do. One political party is going into the next election promising to create 500 new institutions. We have to ask ourselves whether that is good value for money when there is pressure on the basic budgets for young people who are in our existing institutions. It is a simple observation, and with that simple observation I shall end my speech.

[Several hon. Members]

rose—