School Funding

Debate between Sam Gyimah and Ben Bradshaw

Thursday 5th November 2015 Westminster Hall

[Mr Gyimah]

I thank my hon. Friend for his confidence in me. It feels rather strange to be urged to be “brave”, as Sir Humphrey would say.

To address the point made by the shadow Minister, the hon. Member for North West Durham (Pat Glass), if one represents a local authority such as hers in Durham, which is the 57th best-funded local authority in the country, one has the luxury of saying, “It’s difficult, but we have to do all these things.” She does not have to take the difficult decisions. She has the luxury of having a local authority that is very adequately funded, but those Members representing local authorities that have been underfunded for more than a decade, where schools are doing quite well with limited resources, are saying that it is time to rectify the situation. It is right that we listen to them and act.

Before getting into the detail of that issue, I want to respond to the point made by the hon. Member for Glasgow North West (Carol Monaghan). The Government recognise the importance of long-term investment in education to prepare children for success in adult life. In the previous Parliament, we invested more than £190 billion in our schools—a real-terms increase every year. In this Parliament, we will continue to protect the schools budget, as we promised in our manifesto. We will also ensure that the money reaches the places where it is needed, so all children in all age groups and all locations can access excellent education. We committed in our manifesto to making schools funding fairer, so that every school can support every child in achieving their potential.

The right hon. Member for Exeter made that point extremely well when he highlighted the fact that the root cause of this issue is historical funding. At some point in history—2005, I think—we froze schools funding in aspic, and whatever an authority spent the previous year became the baseline for its funding allocation. Demographics, local authorities and schools’ needs changed, but the funding formula was not updated to reflect current need.

[Mr Bradshaw]

A question has occurred to me during this debate. Broadly speaking—I know this is a simplification—Conservative shire counties had lower education funding and lower council tax, while Labour urban authorities tended to have higher education funding and higher council tax. Given the Government’s policy of capping increases in council tax, has any work been done in the Minister’s Department on the potential impact of redistribution on council tax? It would be unfair for people living in Labour authorities, which have historically had high council tax and high education spending, suddenly to lose that money through central Government, and for people in low-spend, low-council tax Tory areas to have no increase in their council tax but suddenly to have a big increase in their schools funding.

[Mr Gyimah]

As the right hon. Gentleman knows, there has to be a referendum for a council tax increase of more than 1.99%. We are talking about how central Government deal with revenue funding for schools. We have got to the point where schools’ capital needs are based on need. If the schools in a constituency have serious problems, we have a thorough process for identifying their needs and allocating funding appropriately, but we do not have a similar process on the revenue-funding side.

It is patently unfair that Knowsley receives nearly £750 less per pupil than Wandsworth, given that more pupils in Knowsley are entitled to free school meals. It is unfair that a secondary pupil with low prior attainment would attract more than £2,000 in Birmingham but only £35 in Darlington. In four local authorities they would not attract any funding at all. That is not right. The hon. Member for Stockport (Ann Coffey) spoke very clearly about that injustice.

In the previous Parliament, we took a big step. To those who say that the Government should be brave, I say that we have been brave. In an era of austerity, we invested £400 million to help level the playing field.