School Funding

Nick Gibb Excerpts

Wednesday 25th April 2018 Commons Chamber

[The Minister for School Standards (Nick Gibb)]

This has been a good-natured but energetic debate—I wrote that before the hon. Member for Wythenshawe and Sale East (Mike Kane) finished his peroration. I was surprised that he did not acknowledge the 2.3% increase in funding for schools in his constituency once the national funding formula is fully implemented. Nor did the hon. Member for Ashton-under-Lyne (Angela Rayner) acknowledge the 3.5% increase in funding for schools in her constituency. No local authority is facing cuts in funding under this Government.

Since 2010, this Government have been committed to raising academic standards in our schools, improving behaviour in our schools, taking action to ensure that every local school is a good school and challenging the soft bigotry of low expectations, so that every child, regardless of their background or where they live, has the best education possible, to help them fulfil their potential.

Since 2010, despite the overarching imperative of tackling the crisis in our public finances that overshadowed our economy when we came into office, we have been able to increase school spending to record levels. This year we will be spending £42.4 billion on school and special needs funding, up from just under £41 billion last year. The new fairer national funding formula will ensure that funding is distributed more fairly and more transparently than previous Governments have dared. Every local education authority’s funding is now calculated on the basis of the actual levels of pupil need in each of the schools and academies in their area—on pupil numbers, on pupils’ age, on their level of disadvantage, on their prior educational attainment and on whether they speak English as an additional language. It is fair and transparent, and the principles it is based on have widespread support, as my right hon. Friend the Member for Bexleyheath and Crayford (David Evennett) pointed out.

I should say to the hon. Member for Ellesmere Port and Neston (Justin Madders) that Warrington is seeing a 3.4% increase in funding under the national funding formula. He raised the issue of class sizes, but I point out that they have remained broadly constant, at 21 on average for secondary schools and at 27 for primary schools, despite the huge increase in the number of primary school places that we have created. I should have thought that he would congratulate us on that achievement. Pupil-teacher ratios have remained below 18.1 since 2011.

My right hon. Friend the Member for Harlow (Robert Halfon), in a typically thoughtful and well-informed speech, pointed out that teacher retention is as important as recruitment. He is right, of course, which is why we are tackling the workload issues facing the teaching profession. He is also right to defend a strong academic curriculum for children from all backgrounds, as well as emphasising the importance of creative and practical subjects. After PE and sport, music is where most Department for Education subject-specific funding is allocated.

My right hon. Friend the Member for Bexleyheath and Crayford, in an excellent speech, pointed out that there are now 25 more “good” or “outstanding” schools in his constituency than there were in 2010. We should congratulate all the teachers in his constituency on that achievement. He was also right to highlight the total absence of any specific education policies from the Labour party in this debate.

I listened carefully to the passionate speech by the hon. Member for Kingston upon Hull West and Hessle (Emma Hardy). I gently point out that schools in her constituency will receive a 4.2% funding increase under the national funding formula, and that the attainment gap between those from disadvantaged backgrounds and their more advantaged peers has closed by 10% since 2011. That is what this Government have been driving.

[Emma Hardy]

Will the Minister acknowledge that there is now greater demand for SEN funding, because of the increasing number of children requiring it? As I mentioned in my speech, 526 children under the age of four with SEN will be starting school in Hull. He says that he has given more money, but the demand has increased to such an extent that the money per child has actually decreased.

[Nick Gibb]

We take the education of children with special educational needs very seriously. My hon. Friend the former Schools Minister, Ed Timpson, reformed the system and introduced education, health and care plans, which is a much more streamlined and effective way of ensuring that those children get the right care and education. The hon. Lady is right to acknowledge that that has led to increased pressure on the high needs budget, which is why we have increased it, from £5 billion in 2013 to £6 billion this year. Those are very significant sums of money.

I am grateful to my hon. Friend the Member for Erewash (Maggie Throup) for bringing a dose of reality to the debate and correcting some of the points made by Opposition Members. She was right to welcome the 5% increase in schools funding for schools in her constituency under the national funding formula.

I am also grateful to the hon. Member for Mitcham and Morden (Siobhain McDonagh) for pointing out that every school in her constituency is now rated “good” or “outstanding” by Ofsted, including the recently inspected Harris Primary School—it was rated “outstanding”. I congratulate all the teachers in her constituency on that achievement. The Government’s overriding objective has been to ensure that every local school is a good school, so that parents can be confident when they send their children there.

[Siobhain McDonagh]

The Minister is aware that I am a supporter of Labour’s academisation scheme, whereby failing schools that cannot be fixed by the council became academies. The problem for my constituency and many others is that the number of good or adequate sponsors is now running out and schools are being forced to become academies, which is not always in the best interests of pupils.

[Nick Gibb]

I share the hon. Lady’s support for Labour’s academisation programme, which is why we expanded it from 200 academies to over 6,000. She is fortunate to have in her constituency the Harris Federation, which is one of the most successful multi-academy trusts and school sponsors in the country. She should also want to acknowledge that funding for schools in Mitcham and Morden will rise by 7.3% under the national funding formula, and that Merton will receive an extra £6.3 million by 2019-20—a 5.4% increase in funding.[Official Report, 22 May 2018, Vol. 641, c. 5MC.]

My hon. Friend the Member for Mid Dorset and North Poole (Michael Tomlinson), in yet another highly effective speech on education, rightly pointed out that Dorset will receive a 4.2% increase and Poole a 3.8% increase under the full national funding formula. He also highlighted that England is rising up the PIRLS league table for the reading ability of our nine-year-olds. Reading is the basic fundamental building block, as the hon. Member for Luton North (Kelvin Hopkins), who is sitting on the Opposition Back Bench, would acknowledge. This country’s adoption of phonics and the hard work of primary school teachers up and down the country mean that we have risen from joint 10th to joint eighth in the PIRLS world league table.

In her strong contribution, my hon. Friend the Member for Lewes (Maria Caulfield), like my hon. Friend the Member for Mid Dorset and North Poole, effectively revealed Labour’s and the unions’ political motives for raising school funding. Lewes’s schools will see a 4.3% increase in funding under the national funding formula, but I will certainly come back to her on the three requests from the primary schools in her constituency.

Although I think there is some consensus in the House about the principles underlying the national funding formula, we disagree with the Opposition on the overall amount. Is the £42.4 billion we are spending this year enough, and can our public finances afford more? Last July, we announced an additional £1.3 billion increase in overall school and high needs funding, over and above the increases agreed in the 2015 spending review—£416 million more for 2018-19 and £884 million more for 2019-20. The Institute for Fiscal Studies says that school funding will be 50% higher in real terms per pupil by 2019-20 than in 2000.

However, we know that in the past two years schools have incurred increased costs, such as higher employer’s national insurance contributions and higher pensions contributions. Of course, both have applied to other public services, and higher national insurance has also applied to private sector employers. Those costs are all part of tax and revenue-raising measures that were introduced to help reduce the public sector budget deficit, which stood at £150 billion per year—10% of our GDP—when we came into office in 2010. That was unsustainable and would have been bankrupting if we had not addressed it. Thanks to the hard work of the British people and a series of difficult decisions, that deficit has reduced to £42.6 billion—2.1% of GDP—and is set to fall further.

Without that balanced approach to public spending and the public finances, we would not now have a strong economy providing young people with the job opportunities that a record number of jobs in the economy brings. Without that careful and balanced approach, we would not have been able to spend £42.4 billion on schools this year and allocate more than £23 billion to capital spending from 2016 to 2021, and we would not have created more than 800,000 new school places, with more in the pipeline; seen a rise in reading standards in our schools; helped schools raise the standard of maths teaching; allocated significant funds to music and the arts; ensured that 91% of 16-year-olds studied at least two science GCSEs, up from 62% in 2011; or seen 1.9 million more pupils in schools rated “good” or “outstanding” by Ofsted than in 2010.

None of that would have been achieved if we had taken the hard left-wing approach to the public finances set out by Labour during and since the general election. Labour’s spend, spend, spend plans would mean £106 billion more public spending, wiping out in one blow eight years of hard work on deficit reduction. Its plans to nationalise a raft of industries would add £176 billion to the national debt. Its other plans would bring the increase in debt to £350 billion, costing us another £8 billion a year in higher interest charges—an amount equal to nearly a fifth of the schools budget blown on increased debt interest charges to fund Labour’s spending plans.

What do we know about Labour’s statements and promises on spending? We know that they cannot be delivered without bankrupting the country. It would lead to a run on the pound, a flight of investment and a rise in unemployment—the hallmark of every period of Labour in office. That is why, no doubt, the hon. Member for Ashton-under-Lyne, in a moment of candour, described Labour’s economic policy as “a bit of a” something “or bust” policy.

By contrast, because of our balanced approach to public spending, funding for schools under the national formula will ensure that every school attracts at least 0.5% more per pupil funding this year and 1% next year than in 2017, with thousands of schools receiving significantly more. It means that for schools that have historically had the very lowest funding, we can introduce a minimum of £3,500 per pupil for primary schools and £4,800 per pupil for secondary schools. It means that we can increase funding for special educational needs from £5 billion in 2013 to £6 billion this year.

Delivery, not promises, is what matters and this Government are delivering—delivering on the economy, delivering on jobs, delivering on school funding and delivering on academic standards.

Question put and agreed to.

Resolved,

That this House notes the Conservative Party manifesto pledge to make sure that no school has its budget cut as a result of the new national funding formula, the statement by the Secretary of State for Education that each school will see at least a small cash terms increase and the Chancellor of the Exchequer’s guarantee that every school would receive a cash terms increase; endorses the aim of ensuring that there is a cash increase in every school’s budget; agrees with the UK Statistics Authority that such an increase is not guaranteed by the national funding formula, which allows for reductions of up to 1.5 per cent in per pupil funding for schools; and calls on the Government to meet its guarantee, ensuring that every single school receives a cash increase in per pupil funding in every financial year of the 2017 Parliament.

[Angela Rayner]

On a point of order, Madam Deputy Speaker. I wonder if you can help me with something. Earlier today, the Prime Minister said that the Leader of the Opposition had said that he would ameliorate student debt and suggested that he was no longer looking at that. That is not something that the Leader of the Opposition is not doing. Is there anything you can do, Madam Deputy Speaker, to help me correct the record to ensure that the Leader of the Opposition is represented fairly?