Education Funding: Devon

Peter Heaton-Jones Excerpts

Wednesday 18th January 2017 Westminster Hall

[Peter Heaton-Jones (North Devon) (Con)]

It is a pleasure to serve under your chairmanship, Mr Hanson. I, too, congratulate my right hon. Friend the Member for East Devon (Sir Hugo Swire) on securing this important debate. While I am doing thank yous, I want to say a personal thank you to the Minister, who just a few weeks ago accepted my invitation to come to North Devon to meet in a roundtable setting with a delegation of headteachers representing pretty much every education sector in Devon. The Minister came, I know that he listened and I am grateful that he did so.

Let us continue this positive start. I welcome the Government’s commitment to the new national funding formula and the principle that we must eradicate the unfairness of the current system. Good; that is a tick. The Government’s additional funding of £390 million to the least funded authorities in 2015-16 made a real difference, with an increase in funding per pupil in Devon of just over 4.5%. Good; that is another gold star for the Government. As I am sure the Minister will be pointing out, under the indicative figures for the new funding formula, more schools will gain funding than lose it in my constituency of North Devon—so it seems like we are getting gold marks all round for homework at the moment. However, I am afraid I have to move gently to a position where we are potentially putting the Minister in detention.

The Government are moving in the right direction—that is true—but under the indicative figures very little will be done to correct the fundamental, historical unfairness of funding in Devon, especially in my constituency of North Devon. That inherent and historical underfunding has existed for many decades, under Governments of all colours, and it needs to be put right. I thought that the national funding formula would put it right. From what I have seen of the indicative figures, I am disappointed.

As right hon. and hon. Members have said, Devon is a very poorly funded local education authority. Under the current system, funding is £290 less per pupil than the average across England, which means that North Devon schools receive just under £4 million less per year than the national average. If the proposed national funding formula changes were brought in, the cumulative change to North Devon schools funding—these figures are provided by the House of Commons Library, which is a neutral and always accepted source of facts, as everyone here knows but I note for those outside of this place—would be between 0%, no change at all, and a 1% increase across the board. Crunching the figures, that means that, at best, across all its schools, North Devon would receive an extra £40,000. Clearly, that does not rectify the imbalance and historical unfairness in the current system. North Devon would continue to receive an unfair level of funding. The principle of a national funding formula is sound only if it rectifies the imbalance that sees my constituents and those of other hon. Members here lose out. What is currently on the table does not do that for Devon, and certainly not for North Devon.

Not only does the proposed formula fail to correct the unfairness between Devon and the rest of the country, but it throws up some perverse variations between schools within North Devon. There are 52 schools across all sectors and all age ranges in my constituency. I have visited a great many of them in my 18 months as Member of Parliament for North Devon, and it is a pleasure to do so. They are fantastic schools doing tremendous work, with teaching staff and managers working really hard to get some excellent results. Six of those schools are secondary schools.

If we put those 52 schools in a league table ranked in order of the percentage change to their funding next year compared with this year, something rather worrying happens. The three schools at the bottom of that league table, which lose the most under the proposals, are the three secondary schools with the most rural catchment areas in my constituency: Chulmleigh, South Molton and Braunton. I feel sure that that was not the intention when the formula started to be cooked. It needs to be recooked, because that is the result under the indicative figures, and that cannot be right. These are schools where the teaching staff, managers, pupils and parents are already struggling because of the historical unfairness. I had hoped that the national funding formula would do something to correct that, but on the indicative figures at present, it does not.

I have been written to by the headteachers of many schools across Devon and they are all saying the same thing: “We don’t get it. We don’t understand why this historical unfairness is being allowed to continue.” Most make the extremely reasonable point that the national funding formula is a fine idea in principle and congratulate this Minister and this Government on the principle of wanting to correct the historical unfairness, but the devil is in the detail and I am afraid that the detail my headteachers see does nothing to address the historical problems.

I want to draw out two specific points that headteachers have raised with me. The first is high needs educational funding in Devon. High needs expenditure has grown rapidly, from £53 million in 2014 to an estimated £61 million in 2017-18. To meet the forecast overspend, Devon County Council has been forced to approve transferring more than £2 million from individual schools budgets to the high needs budget in 2017-18, just to bring the expected deficit down to zero. Someone else used the phrase, “We are robbing Peter to pay Paul.” That cannot be right.

The second issue, which has been raised by a number of my colleagues, is the personalised transport budget in Devon. In a largely rural, sparsely populated area such as the one I represent, that is a real challenge. The personalised transport budget for children with special needs accounts for 34%—more than a third—of the total schools transport budget in Devon. That is £21 million, and an overspend of more than £1.2 million on that budget is forecast for this year. The cost of transport cannot be taken from the high needs budget. It must be funded from county council budgets, and we all know that local authority budgets also face challenges. Those are two areas that I believe we need to look at.

Let us look again at the overall position. Devon is one of the lowest-funded local authority areas in England for education. In 2016-17, Department for Education funding per pupil in Devon is £4,346. That is £290 per pupil less than the English average, which means that DFE spending on education in Devon is more than £25 million a year less than the English average. I am afraid that the proposed indicative figures do nothing to correct that fundamental unfairness. As I am sure the Minister will tell us, this is a consultation and those are only indicative figures. I say, good, because we need to change what is being proposed. Like my right hon. Friend the Member for East Devon, I am sure that it is a real, genuine consultation and that the Minister and the Government are listening. It seems to me, to the people who run, teach in and manage the schools in my constituency, and to the parents whose children go to those schools that the current proposals are unfair.

I wish I could be more elegant in my language. I wish I had a more sophisticated argument and could indulge in some fine Churchillian parliamentary oratory, but I cannot. It comes down to three words: this is just not fair. Devon was hoping for a fairer slice of the funding cake. Instead, it seems to the schools community that we have received only a few crumbs. I say gently and helpfully to the Minister—-please get on the hotline to Mary Berry and rebake this cake.