Budget Resolutions and Economic Situation

Stephen Timms Excerpts

Thursday 17th March 2016 Commons Chamber

[Nicky Morgan]

Absolutely. I suggest that the hon. Gentleman read the White Paper and then he will see exactly how parents are going to be involved in this. What parents want is for their children to be in a good school.

[Stephen Timms (East Ham) (Lab)]

rose—

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

rose—

[Nicky Morgan]

Let me just answer the intervention by the hon. Member for Sefton Central (Bill Esterson). The head of Ofsted, who did the right thing in identifying weaknesses that we have said we will tackle, said in his report:

“I also want to be clear that there are some excellent”

multi-academy trusts

“that have made remarkable progress in some of the toughest areas of the country.”

[Stephen Timms]

rose—

[Mr Thomas]

rose—

[Nicky Morgan]

I am going to make some progress.

What the next generation really needs is better schools, the skills they need to succeed in life, affordable housing, and secure pensions. The Budget that the Chancellor outlined yesterday is designed to give them all those things. It is designed to achieve that while making sure that we are managing the economy properly, protecting the next generation from the burden of debt and affording them the bright future that they deserve. It is a Budget in which we have chosen to act now so that the next generation does not pay later.

I know that the shadow Chancellor will understand me when I say that in 2010 we had to embark on a “long march” to reform our schools because we inherited an education system that was more concerned with league tables than with times tables, where an “all must have prizes” culture prevented the pursuit of excellence, and where the centralised structure and bureaucratic control of schooling stifled the sort of leadership and classroom innovation necessary to drive improvement.

[Stephen Timms]

rose—

[Mr Thomas]

rose—

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[Nicky Morgan]

We owed it to our young people to tackle the soft bigotry of low expectations and to give them the education they deserve: an education that will help them to fulfil every ounce of their potential; an education with knowledge at its core, even if that does include the shadow Chancellor’s greatest influences—self-confessed—of Lenin and Trotsky. This Budget will provide the resources to translate into reality the vision for the future of our education system in the schools White Paper that I will outline later today.

[Stephen Timms]

The Secretary of State will know that the Sutton Trust, in its comment on the Government’s proposals on academies, said that it is

“the quality of teaching that has the most substantial impact on pupil outcomes, especially for the disadvantaged, regardless of school type or setting”.

Is not the Sutton Trust absolutely right about that?

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[Nicky Morgan]

My hon. Friend makes an excellent point. One of the reasons we are having a two-stage consultation is to make sure that we get the factors in the new formula right. One of those factors will be to reflect those children who are disadvantaged and in need. One of the figures we uncovered during the course of preparing the consultation was that a child with characteristics of need could receive about £2,000 in Birmingham and £36 in Darlington. That cannot be right if we want to have a proper national funding formula across the country.

The new investment in education means that £559 million is going towards a longer school day to support more schools in offering vital enrichment activities. I welcome the support of the right hon. Member for Birkenhead (Frank Field) and others. There is evidence, including from the Sutton Trust, that a longer school day is likely to be particularly beneficial for pupils from disadvantaged backgrounds. Participation in physical activity and sport in particular is associated with better cognitive functioning, better mental health and improved concentration and behaviour in the classroom.

It is an investment that will particularly raise the life chances of the most disadvantaged young people, who may otherwise struggle to access enriching activities. The new funding will allow 25% of secondary schools to extend their school day by up to five hours per week per child. There are added benefits, as we continue to lighten the burden of childcare costs to parents who can work longer, knowing that their children are engaged in worthwhile extracurricular activities such as sport, debate and music, and are receiving additional support for their academic studies. We are doing that because we are determined to spread opportunities. As a one nation Government, we want to make sure that as many young people as possible have access to those opportunities.

The £413 million promised for education in yesterday’s Budget will double the primary sports premium, because we know that getting young people engaged in sport and fitness early is vital to tackling the growing levels of obesity in children. This significant investment in school sport will have a game-changing impact on the health of young people.

[Stephen Timms]

The Education Secretary will know that there were very impressive school sports trusts in place up to 2010, with a big focus on secondary and feeder primary schools working together. Unfortunately, they were lost in earlier budget cuts. Will the funding that has now been announced be used for that purpose again?

[Nicky Morgan]

The funding that has been announced will be used even more effectively, because we are not going to tell schools how to spend it, apart from the fact that we want them to be doing more sport and more physical exercise. The belief that runs right through my party’s education policies is that the people who are best placed to make decisions in schools are the heads, the teachers and the governors—those who know the needs of their pupils best.

What is more, that will be paid for by the new levy on producers of excessively sugary drinks. I thank the Labour party for putting on record its support for that policy. I hope that in the longer term the levy will serve as an incentive for the industry to offer products that are lower in sugar and therefore healthier for young people.

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[Liz McInnes (Heywood and Middleton) (Lab)]

rose—

[Stephen Timms]

rose—

[Nicky Morgan]

I am going to make some progress, because I know that the Budget debate is oversubscribed. I have been very generous with interventions, and I will try to take a few more towards the end if I can.

We stand by our record of getting young people into study and training. We have the lowest number of people not in education, employment or training on record, but we are not going to rest on our laurels, because we believe that any young person who is NEET is wasting their potential. The Prime Minister has announced a mentoring scheme, and my right hon. Friend the Chancellor announced yesterday that a further £14 million would go towards mentoring, so that we can recruit a new generation of mentors from the world of business and beyond, who can help to engage young people who are at risk of underachieving. By 2020, we want those new high-calibre mentors, businesspeople and professionals to reach 25,000 young people who are just about to start their GCSEs.

We have talked about reviewing our maths curriculum. If we are successful in keeping all young people in education for as long as we can, we have to be sure that we are offering them the education that they need to get a job and to get on in life. Among OECD countries, we have among the lowest level of uptake of maths among young people post 16. That is of great concern, but, more importantly, it is of concern to universities and employers, who need young people with sound maths skills. The review will be led by Professor Adrian Smith, vice-chancellor of the University of London. He will review how to improve the study of maths from 16 to 18 to ensure that the next generation are confident and comfortable using maths. That will include looking at the case for, and the feasibility of, more or all students continuing to study maths until the age of 18.

It is national apprenticeships week, so let me bang the drum for apprenticeships for a moment. The Government have championed apprenticeships consistently since taking office. We have delivered more than double the number of apprenticeships delivered by Labour in their last term of office, and we have committed to 3 million more by 2020.

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[Nicky Morgan]

The hon. Lady’s question demonstrates an absolute lack of trust and belief in the professionals who run our schools. The national curriculum will be a benchmark. If the hon. Lady goes and talks to those who are running our schools, she will find that many academies are teaching above and beyond the national curriculum.

[Stephen Timms]

Will the Secretary of State give way?

[Nicky Morgan]

I have already given way to the right hon. Gentleman several times, and I really need to finish now.

The Budget has been all about setting the next generation up for the future. The shadow Chancellor, unlike the Leader of the Opposition yesterday, finally got around to recognising and congratulating the Government on the enormous progress that has been made on the employment figures. The creation of jobs is a true success. The female employment rate is at a record high, with 1 million more women in work since 2010. The OBR is forecasting 1 million more jobs across the economy throughout this Parliament.

It is essential that we have a well-rounded, well-educated and highly skilled generation of tomorrow, and they need the security that only the Conservative party can deliver. The next generation also need the ability to secure their own future, with incentives to save, both to buy their own home and to make provision for their retirement. In the past, people have had to make a choice between the two, but the measures announced yesterday leave them in no doubt that we are on their side. The ISA allowance has been increased to £20,000, and in the new lifetime ISA the Government will give people £1 for every £4 they save.

This is a Budget in which the Government have had to take the difficult decisions that will continue to deliver the economic security that has been the hallmark of this Government’s time in office. The decisions have been made because we want to balance the books fairly across all generations. Let me point out that while we have been making the right decisions, gender inequality in the labour market is down in our society. We have the smallest gender pay gap ever, but we are not complacent, which is why we are taking action to make sure that it is reduced even further.

We know from Labour’s great recession that those who suffer most when the Government run unsustainable deficits are people who are already at a disadvantage. When Government spend recklessly, the next generation are burdened with debt. At a time of public sector spending restraint, education has not been spared difficult decisions, but the Government have chosen to invest in the next generation. The choices that we have made represent a huge boost to funding for children and young people. As I have outlined, we have put in place plans to use it effectively and ensure that it is targeted where it is needed most. Later today, I will set out more about our vision for the entire school system and how we truly deliver educational excellence everywhere.

[Stephen Timms]

Will the Secretary of State give way?

[Nicky Morgan]

No, I am going to draw to a close. Labour’s plans to spend, borrow and tax more are exactly what got us into a mess before, and they led to a rise of almost 45% in youth unemployment. We cannot risk the kind of youth unemployment seen today in places such as Spain and Greece.

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[Nicky Morgan]

Let me just remind the hon. Gentleman that I am standing here and giving the House information about the White Paper. It is kind of him to allow me the opportunity to talk again about the White Paper that we are publishing today, setting out our vision of the school system. He can also read the written statement that I have laid before the House.

[Stephen Timms]

Will the Secretary of State give way?

[Nicky Morgan]

I will give way, as the right hon. Gentleman asks so nicely.

[Stephen Timms]

I am extremely grateful to the Secretary of State for giving way. She has talked about the policy of converting all schools into academies. Will she assure us that that will not be done by expanding underperforming multi-academy trusts?

[Nicky Morgan]

We have been very clear that we want good and outstanding schools to expand and we do not want to hold them back. As the right hon. Gentleman has asked that question, I hope he will offer support to new free schools that are set up in his constituency and elsewhere to challenge the expansion of places in schools that require improvement or are in special measures.

As I was saying, we cannot risk the kind of youth unemployment seen today in places such as Spain and Greece. We should not forget that the shadow Chancellor has recently asked for and taken on board the advice of Yanis Varoufakis, that successful Greek economy Minister. In Spain and Greece, there have been thousands of school closures and there have been cuts to teachers’ pay, because they have failed to balance the books. We know that the previous Labour Government left 287,000 more young people unemployed than when they came into office. That cannot be allowed to happen again.

As we promised in our manifesto last year, this is a Government with a plan for every stage of life. From the start of a young person’s life, their schooling and the decisions they make about their career to the choices they make on housing and pensions, which will determine their future happiness, this Budget will deliver the most confident and secure generation ever.

This is a Government who deliver on their promises. From fair funding to further support for families and giving every child the best start in life, we have shown the British people that this Government are on their side. It is clear that Labour Members have not learned from their mistakes. They spent and borrowed too much last time they were in power, and the shadow Chancellor’s speech last week revealed that they are happy to do so again. It should have been entitled a speech on fiscal implausibility, because the Labour party has no credibility when it comes to the economy. They would repeat the same mistakes again and expect a different result—the very definition of madness.

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[Stephen Timms]

Chinese companies looking to move into the Asian business park in my constituency want to come to the UK because it is the best place in Europe for them to be located, it is English speaking and so on. Is it not the case that they want to address the European market, and that if we have left the European market, they will not come?

[Dr Fox]

I simply do not believe that that——the idea that, if we are not in the EU, we will no longer trade—is credible. Countries do not trade with countries; companies sell to consumers. They will sell to consumers when they have products of the appropriate quality at the appropriate price. The worst case scenario is having World Trade Organisation tariffs, but sterling’s depreciation since November was a far bigger change in the financial costs to business than anything tariffs could produce.

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[Stephen Timms (East Ham) (Lab)]

I am pleased to follow the hon. Member for Taunton Deane (Rebecca Pow) and I agree with some of the points she made in the early part of her speech. Like her, I want to comment on the education measures in the Budget.

In 2001-02 I was the Schools Minister responsible for the introduction of the Teach First programme. That was a successful response to the teacher recruitment crisis at that time, and it has continued to do a great job until the present day. We now need that kind of innovation and imagination from current Ministers, to respond to the teacher recruitment problems that we have at the moment. There was nothing in the Budget about teacher recruitment or retention, but those problems are building and we need an initiative on that front.

Along with London Challenge, Teach First was a key element in the dramatic improvement in the performance of London schools since 1997, and it is important that the new national schools funding formula does not put that improvement at risk. As has been mentioned, the Chancellor said yesterday that he was providing an additional half a billion pounds to speed up the implementation of the school funding formula so that it will apply to 90% of schools by 2020. Will that extra money be used—as I hope it will be—to ensure that the formula is implemented by levelling up the finances of underfunded schools, not by taking funding away from schools that are adequately funded at the moment? I hope that that is what the half a billion pounds is for, and I would be grateful if the Minister confirmed that at the end of the debate.

[Catherine West (Hornsey and Wood Green) (Lab)]

Does my right hon. Friend agree that some boroughs, particularly in London, are affected by as much as 10% by some of these worrying proposals?

[Stephen Timms]

There is a lot of worry about the proposals, and I hope that the Government will assure us that there will be no real-term cuts in the funding of individual schools. Half a billion pounds could go a long way to achieving that, and it would be helpful if the Minister could give us that assurance.

As we have heard, the Red Book contains a chapter called the “Devolution Revolution”, but the Budget ends local authority influence over education, which always used to be devolved. The hon. Member for Taunton Deane said that it was wonderful that we will have one system for education in the future, but I thought the Government were in favour of devolution, and the Red Book claims that they are. It is a big contradiction to proclaim devolution on the one hand, at the same time as ending local influence over education.

I am particularly sceptical about the benefits of turning every primary school into an academy, because I have seen no evidence that doing that will be a good thing. The Minister and the Secretary of State will know of local educational authorities—other Members have spoken of them in the debate—that do a very good job in supporting the local network of primary schools, enabling schools that are struggling to be supported, for example by a gifted head from another school nearby. I therefore want to put this question to the Minister and ask him to respond on behalf of the Secretary of State: what is the case for simply dismantling and smashing up all the successful arrangements of that kind?

The Church of England referred in its response to

“the particular challenges that many smaller primary schools will face as they seek to develop such partnerships”.

The Sutton Trust was quoted by the Secretary of State and by me in an intervention. It rightly makes the point in its impressive research that good

“academy chains are having a transformational impact on pupils’ life chances”,

which is a very good thing, but it also says that

“others have seriously underperformed and have expanded too rapidly.”

That is why I pressed the Secretary of State specifically on whether the mass process of turning every primary school and every remaining secondary maintained school into an academy will be done by adding those schools on to existing chains, too many of which are underperforming. Only about a third are doing well, according to the Sutton Trust. The chains that are doing badly are doing badly because they have expanded too quickly. The process could make that far worse by forcing hundreds of additional schools into those same underperforming chains. I therefore press the Minister again. I did not get the assurance I was seeking from the Secretary of State that the process would not be done by adding new schools on to underperforming chains. I hope he can give us that reassurance in his response.

Local authority support for families of primary schools is successful. Do the Government envisage those simply being rebadged as multi-academy trusts? Perhaps that is one way out of the problem. Destroying those arrangements is potentially very damaging.

[Mr Steve Reed]

My right hon. Friend makes an interesting observation. What are his thoughts on the initiatives of Labour councils such as Brighton and Hove, which are setting up co-operatives for their schools to join together to try to undermine the Government’s attempts to isolate and atomise schools?

[Stephen Timms]

I very much welcome that. I thought everybody agreed that diversity in school provision was a good idea rather than having the one-size-fits-all model for which the hon. Member for Taunton Deane argued. Surely we should be encouraging exactly the kind of arrangement that my hon. Friend draws attention to, so that we can enjoy the benefits of the diversity that results.

I am glad that, in opening the debate for the Opposition, my hon. Friend the Member for Hayes and Harlington (John McDonnell) focused on the failures that the Budget highlighted yesterday. The OBR pointed out to us that the Chancellor had three fiscal rules in the run-up to yesterday’s Budget. He has broken two of those. He has broken his commitment, which was made less than a year ago, to reduce debt as a proportion of GDP in every year. We had that rather puzzling passage in the Budget speech when the Chancellor talked about numerators and denominators and a paradoxical outcome. It turns that he was saying that he had failed on that rule.

The second rule he failed was on the welfare cap. It is hard to think of any Treasury legislation of the past 20 years that has backfired so spectacularly as the welfare cap. It was legislated for last summer with great fanfare, but within weeks it was announced that it would be broken. The OBR now tells us that it will be broken in every single year of this Parliament. The whole thing has become a complete fiasco.

The third rule that the Chancellor went into the Budget with was the commitment on delivering a surplus. Of course, in the last Parliament, the centrepiece of the Chancellor’s project was to eradicate the deficit by 2015. He failed on that, and it now looks very likely that he will fail to achieve the surplus he has promised by 2019-20. To deliver it would require extraordinary fiscal tightening in what will almost certainly be the year leading up to the next general election. I cannot see that happening. By then, the Chancellor will have failed on all three of his rules.

The Budget raises important questions and I hope we get answers on the specific education points when the Minister winds up.

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[Damian Hinds]

The money announced in the Budget comes on top of what was announced in the spending review.

The right hon. Member for East Ham asked how the national funding formula would be done. We will consult on the principles through which it will work, but the intention is to ensure that it is fair and that it reflects need, unlike the rather arbitrary system we can have currently.

[Stephen Timms]

rose—

[Damian Hinds]

I am sorry but I am going to make some progress.

A number of hon. Members, including my hon. Friend the Member for Bexhill and Battle (Huw Merriman), talked about post-16 maths. There is a massive premium on the study of maths and maths qualifications, as the report by Professor Alison Wolf identified. Maths will become more important as time goes on, but it is right that we ask the question and work out the best way to have further maths study, including by taking into consideration the questions that a number of hon. Members raised.

Hon. Members, including my hon. Friends the Members for Mid Dorset and North Poole (Michael Tomlinson) and for Taunton Deane (Rebecca Pow), raised the importance of sport in school. My hon. Friend the Member for Faversham and Mid Kent (Helen Whately) rightly mentioned in an intervention that the difference in opportunity in sport and other extracurricular activities is part of the gap in opportunity between children in state schools and children in public schools. It is therefore very important for social mobility.

A number of right hon. and hon. Members talked about the levy on manufacturers and importers of sugary soft drinks. My hon. Friend the Member for Chippenham (Michelle Donelan) movingly spoke of her own family and reminded us of the health benefit that is at the centre of the policy, which was also mentioned by my hon. Friends the Members for South West Wiltshire (Dr Murrison) and for Faversham and Mid Kent, and the hon. Member for Barnsley Central (Dan Jarvis). Of course, we would rather not collect that much of that tax. The reason for the delay before it is introduced is to allow the manufacturers to change the formulation of their drinks or change their marketing so that they are pushing and promoting more the lower-sugar variants and products. We hope they will do so.

Rightly, a number of times in the debate, the important subject of the support that is given to people with disabilities has come up. I reassure the House that real-terms spending on the personal independence payment and its predecessor, the disability living allowance, has increased by more than £3 billion since 2010. The PIP budget will continue to increase from now until 2020. The reforms announced last week will bring spending closer to the level forecast in November and ensure that increased spend is targeted on those who need it most.