Education Capital Programmes (Coventry)

Nick Gibb Excerpts

Wednesday 22nd June 2011 Westminster Hall

[The Minister of State, Department for Education (Mr Nick Gibb)]

I congratulate the hon. Member for Coventry South (Mr Cunningham) on securing this debate. Like the hon. Member for Coventry North West (Mr Robinson) and the right hon. Member for Coventry North East (Mr Ainsworth), he is no stranger to education provision in the Coventry area. He has assiduously raised the difficulties faced by schools in his area through questions and a number of debates in the House, and he and his colleagues met the Secretary of State last July.

I fully understand the difficulties in Coventry both in providing sufficient primary pupil places and in ensuring that repairs and desperately needed capital improvements are carried out in schools such as Richard Lee primary, which is again in the news because of maintenance problems. That school is in not the hon. Gentleman’s constituency but that of the right hon. Member for Coventry North East, who secured a debate on the subject on 15 March this year.

The Government are fully aware of the pressures that many local authorities face in the light of the very tight spending review capital settlement for the Department, but we must not forget why we find ourselves in this difficult position and why we have had to make difficult decisions. Because of the size of the budget deficit and the increasing caution of the capital markets to fund sovereign debt, our top priority in the medium term has to be to reduce the country’s budget deficit, which means that we need to prioritise a diminished level of capital funding for school projects, on the basis of need, primary places and deprivation.

In the context of what we are currently spending on debt interest payments alone, the action that we are taking is essential. Those interest payments could have been used to rebuild or refurbish 10 schools every single day of the year, but despite the difficulties we have been able to secure capital spending of £15.9 billion over the four years of the spending review period. We know only too well that there are schools in desperate need of refurbishment that have missed out on previous Governments’ capital programmes, and we fully appreciate that some people will feel that they have been treated unfairly, particularly if they fall just on the wrong side of the dividing line that had to be drawn. Despite the austerity of the capital programme, we will continue to spend significant capital on the school estate, at an average of almost £4 billion a year.

I know that schools and local authorities will experience difficulty in adjusting to these lower levels of funding. Nevertheless, they are historically high levels and, taking a wider perspective, they are still higher on average that those experienced in the 1997-98 and 2004-05 periods. Even when funding is tight, it is essential that buildings and equipment are properly maintained, to ensure that health and safety standards are met and to prevent an ever-increasing backlog of decaying buildings that will be difficult and more expensive to address in the long term.

By stopping the wasteful and bureaucratic Building Schools for the Future project, which the hon. Member for Coventry North West referred to as cumbersome and taking too long, we have been able to allocate £1.3 billion for capital maintenance for schools, with more than £1 billion being allocated to local authorities to prioritise their local maintenance needs. We have also been able to allocate £195 million directly to schools for their own capital repairs. It is clear that rising birth rates mean increased demand and pressure on primary places, with more parents unhappy with the lack of choice open to them. The education system has rationed places in good schools for too long, which is why our reforms are designed to allow more children to go to the best schools and to drive up standards in the weakest performers.

We are encouraging scores of new free schools to be set up, run by groups of teachers or educational charities, in places where parents want them, particularly in areas that have been failed educationally for generations.

[Mr Robinson]

I tried to intervene on the Minister when he mentioned BSF, but unfortunately I did not manage to catch his eye. I directly criticised BSF myself to the then Secretary of State for Education, my right hon. Friend the Member for Morley and Outwood. One thing that happens whenever a big programme of that kind gets into the hands of civil servants and others who want to control it to the nth degree is criticism, which is fair enough. However, nobody recommended bringing BSF to a screeching halt, which has been to the great detriment of Coventry. We have two schools at the moment where there are problems. We have Woodlands school, where the scaffolding itself is falling down and there is a danger that it will bring the whole building down with it. We also have Richard Lee school. The Minister must have seen reports on that school. There are gaping holes in that school that people might fall through. These are urgent matters. What will he do about them?

[Mr Gibb]

The hon. Gentleman has raised a good point, which I am about to come on to. We have allocated £800 million of basic need funding for 2011-12, which is actually twice the previous annual level of funding, to support the provision of increased places, particularly in primary schools, as a result of the increasing birth rate. In addition, we expect similar levels of funding to be allocated from 2012-13 until 2014-15, which will address some of the concerns that he has raised.

[Mr Cunningham]

How much of that £800 million will actually be allocated to Coventry? That is what my right hon. Friend the Member for Coventry North East and my hon. Friend the Member for Coventry North West were getting at when they talked about the two schools.

[Mr Gibb]

The capital allocation for 2011-12 for Coventry city council and its schools was announced on 13 December last year, and it was in excess of £13 million. It is now for the council to prioritise how it will spend the available funding, taking into account the building needs of its schools and its own responsibilities to fulfil its statutory duties.

[Mr Ainsworth]

The Minister has said that it is important for schools to maintain their buildings, even if they are in need of a rebuild. How on earth can Richard Lee school do that with a devolved capital programme of £9,000? How does a school maintain an ageing building with that size of devolved capital programme?

[Mr Gibb]

We took a decision about how we allocate scarce resources to schools and local authorities. It was our judgment that, because of the cut in the capital budget, it is better to allocate the bulk of the capital to local authorities for them to decide where the greatest need exists in their area, rather than to allocate more of that money down to the school level, because there are many schools that do not have the same need as Richard Lee school. It is better to divert that money to the local authority, which can allocate it to those schools, such as Richard Lee school, that are in greatest need.

I will now turn directly to the difficulties encountered by the Richard Lee primary school.

[Mr Robinson]

This issue is not about the devolution of the budget, which is entirely up to the Government. The point is that £9,000 will not go anywhere, as my right hon. Friend the Member for Coventry North East has said.

[Mr Gibb]

I understand that, but £13 million, which is the amount of capital allocated to Coventry, is a very significant sum. It is not as high as we would like it to be, or indeed as high as it has been in recent years, but it is high historically compared with spending in other Parliaments in recent times. We face a difficult budget deficit, and we want to ensure that any capital available is spent where the greatest need exists. That applies to schools such as Richard Lee primary school in Coventry. That case is a classic example of how we are trying to target the funding at the schools that need it most.

[Mr Cunningham]

What the Minister is actually doing is asking the local authority to use the wisdom of Solomon, when it needs just more than £40 million to properly resource its schools. He is putting the local authority in a terrible position, so it is no good blaming the local authority.

[Mr Gibb]

I am not blaming the local authority. What I am saying is that we took a decision that it was better to give the bulk of the funds available for capital spending to local authorities to decide how to allocate them rather than to maintain the levels of the devolved grant formula to schools in this spending review period in which we are encountering these very difficult decisions on the budget deficit. That is because local authorities, rather than the man or woman in Whitehall, are best placed to decide which schools in their area have the greatest need for capital to be spent on them, and that applies to Coventry. That is the decision that we took.

Officials at the Department have been working—