Education Funding

Paul Farrelly Excerpts

Tuesday 13th November 2018 Commons Chamber

[Angela Rayner (Ashton-under-Lyne) (Lab)]

I beg to move,

That this House notes the Institute for Fiscal Studies’ finding that education spending as a share of national income has fallen from 5.8 per cent to 4.3 per cent since 2010, including funding cuts of over two thirds to Sure Start, of nearly a tenth to schools, of over a fifth to sixth forms, and of £3 billion to further and adult education; further notes the Prime Minister’s statement that austerity is over; endorses the Secretary of State for Education’s recent demand for billions more funding and welcomes his comments that there is a strong case for investment in the spending review but notes that the recent Budget provided only small capital projects; offers its full support to the Secretary of State for Education in persuading the Chancellor of the Exchequer that education urgently needs new investment; and calls on the Government to end austerity, not with little extras but by reversing all cuts to education funding.

I apologise in advance if my throat gets a little hoarse; I seem to have caught the Commons cold that we all have at the moment.

I have shadowed three Education Secretaries, but in the last year it has sometimes felt like two in one. There is the Education Secretary who pledged to do more to support teachers and to end the meddling, acknowledged that funding was tight and said that he was trying to squeeze more funding from No. 11. Then there is the Education Secretary who defends austerity, denies the cuts and spends his time and energy making absurd allegations about our policies, rather than fixing his own.

And then we got to Budget day and the Chancellor’s “little extras”. In the Secretary of State’s recent interview, he visibly winced when asked about those words. Perhaps he can tell us his reaction to the Chancellor’s comments at the Treasury Select Committee, where he said:

“I am sure that for anybody who feels it is not worth having, there will be plenty of other schools that will be willing to receive the cheque on their behalf.”

He has said that schools could buy

“a couple of whiteboards, or some laptop computers or something”.

That is incredible—he has taken billions of pounds from our schools, and now he offers them a whiteboard. As my hon. Friend the Member for Dewsbury (Paula Sherriff) put it,

“what use is a whiteboard if there is no teacher to use it?”—[Official Report, 31 October 2018; Vol. 648, c. 912.]

No doubt, if we did face Brexit food shortages, his solution would be, “Let them eat cake!”

It is all very well the Education Secretary cringing at the Chancellor—believe me, we all do, and not just at his jokes—but he has to live up to the promises that he has made since. Just a week after the Budget, he demanded billions more in the spending review, saying there was a “special case” for investment in education. If that is the Education Secretary who turns up today, then our motion offers him the full support of the House, and I hope that Conservative Members will join us in the Lobby and demand that Downing Street makes good on the promise that austerity is over.

However, it was the other Education Secretary who turned up at questions yesterday. He thought he was there to ask questions of the Opposition. It is remarkable. Let us look at what is happening in education in this country. Sure Start centres are closing, children’s services are overspending, nurseries are on the brink, schools are begging for donations, teachers are leaving in droves and universities are facing bankruptcy—and what is the Education Secretary’s top priority? The Labour party. I am of course flattered, and if he wants to swap places I can assure him that we are ready.

It is beyond belief that Ministers spend their time and energy desperately smearing and scaremongering about our policy, when the Government’s policy is in tatters—shredded by their own cuts. Let me point out that last week’s annual academy accounts show the sector running with an operating deficit of over £2 billion, the net financial position in decline and a record number of trusts going bust. The real threat to those schools, their pupils and their staff is not accountability, but austerity. Unfortunately, the Education Secretary was in denial yesterday. He has said that school funding is at a record high, yet school spending is £1.7 billion lower in real terms than it was five years ago.

[Paul Farrelly (Newcastle-under-Lyme) (Lab)]

I hope my hon. Friend will not forget the crisis we have across the country in special educational needs funding. In Staffordshire, the county council passes on the bare minimum provided by the Government, which is not enough. It has just announced a consultation that represents a real threat to the future of special schools, and to the excellent education and great staff in our county.

[Angela Rayner]

My hon. Friend is of course absolutely right to talk about pupils with special educational needs, because the funding for them has been frozen and local authorities are facing significant funding demands. It is not fair that the children who need such support the most are being failed by this Government.

--- Later in debate ---

[Damian Hinds]

Through the funding formula, additional moneys in cash terms are allocated to each local authority for each child. I believe it is right that the local authority is then able to make adjustments—for example, to cope with the pressures on the high-needs budget for children with special educational needs and disabilities. The local authority has the ability to do that, and I think that that is right.

[Paul Farrelly]

The Secretary of State has just mentioned help for colleges, as well as schools, with pension pressures. Will he extend that help to provide assistance with pay rises, so that there is no discrimination between colleges and schools? Will he also confirm that all colleges, not just sixth-form colleges and schools, will be eligible for the pot provided for the “little extras”, including Newcastle and Stafford College?

[Damian Hinds]

The hon. Gentleman will be aware that there are differences in how colleges are constituted. In particular, independent colleges are not subject to the pay and conditions arrangements of schoolteachers, but they are typically in the teachers’ pension scheme—hence that difference.

--- Later in debate ---

[Gareth Thomas (Harrow West) (Lab/Co-op)]

I am grateful to you, Madam Deputy Speaker.

The Secretary of State’s first major test was to lead the education sector’s negotiations with the Treasury in the run-up to the Budget. On any basic evidence, he seems to have failed that test spectacularly. Not only did he fail to secure any meaningful increase in funding for our schools and sixth-form colleges, but the Chancellor of the Exchequer’s complacent language of “little extras” suggests that the Secretary of State was not even able to convince the Treasury of the scale of the funding needs of the school system in England, which is profoundly worrying when the comprehensive spending review negotiations are beginning.

I give credit to the Minister for School Standards and the Minister for Apprenticeships and Skills, who has responsibility for sixth-form colleges, for being willing to receive deputations of Harrow headteachers, including the principal of St Dominic’s Sixth Form College. I am grateful to both Ministers for the way in which they listened to the concerns of professionals in my constituency.

I have been given information that underlines the concerns of those headteachers, but first I will set out the broader London perspective, which reflects some of the concerns raised in interventions by London colleagues about the financial crisis facing many of our capital’s schools. London Councils’ analysis of the provisional school funding allocations for 2019-20, which were announced in July and appear to follow a similar structure to the 2018-19 formula announcements, shows that London schools will receive a lower proportion of funding across 2018-19 and 2019-20 than those in any other region of the country. Some 70% of schools in London will receive the minimum—a 1% increase per pupil—between 2017-18 and 2019-20, compared with just 39% of schools across the rest of England. Fifteen boroughs in the capital will see more than 90% of their schools receive the floor of a 1% rise per pupil across these two years. In comparison to the 2018-19 allocations, 21 out of London’s 32 boroughs are in the lower half of schools’ block increases, and two of the four local authorities in the country that are expected to see a funding decrease are London boroughs, including, crucially, my own London Borough of Harrow.

Headteachers in the borough report to me that they face significant financial pressures: non-teaching pay awards; rises in non-teaching pension costs; the impact of the apprenticeship levy; and concerns about whether the funding for teaching pay awards and incremental pay rises for teachers will be provided from central Government. These all point to an average annual cost increase in Harrow of more than £70,000 for primary schools and more than £200,000 for secondary schools. At the same time, funding, notably for the pupil premium grant, is reducing for the average school in Harrow, so schools in Harrow are estimated to be losing some £80,000 a year in income and are profoundly worried as a result. Given that, on average, a teacher costs approximately £50,000 per annum, Harrow Council’s analysis suggests that the funding pressures facing each primary school in Harrow amount, on average, to the equivalent cost of one to two primary school teachers. For secondary schools, it is the equivalent of four secondary teachers per annum.

That assumes that, on average, school budgets are cash-flat. In Harrow, some 25% of schools—14 out of the 54—are currently protected by the minimum funding guarantee, which means in practice that they will lose 1.5% of their per-pupil budget per annum. That could equate to a cash reduction of a further £20,000 to £30,000 per annum. The Secretary of State and other Government Members might like to hide behind the idea that there have been record funding increases, but on the ground in Harrow, headteachers and governing bodies report substantial financial pressures. Similarly, local authorities report profound concerns about the rising demand for high-end special needs funding, and it would be good to hear—

[Paul Farrelly]

My hon. Friend may have seen a piece in The Observer at the weekend about the crisis across the country in special needs education. My county council has just announced a review, and we fear the worst—it is already removing special needs allowances for mainstream schools. Does he agree that it is time that the Government launched a review of how special needs are met across the country in order to inform a coherent policy and provision?

[Gareth Thomas]

My hon. Friend makes a good point. The key thing is that extra money needs to be found immediately for special needs provision, particularly high-end provision. Like Harrow Council, many local authorities—particularly in London, but clearly around the rest of the country—are profoundly worried about that. I suspect that the Secretary of State knows full well the scale of the pressures facing headteachers in this country. It would be good to hear from the Minister for School Standards in his winding-up speech what his Department will do about that in negotiations with the Treasury.