Local Education Partnerships

Tim Loughton Excerpts

Wednesday 21st July 2010 Westminster Hall

[The Parliamentary Under-Secretary of State for Education (Tim Loughton)]

May I say what a double pleasure it is, Mr Gray, to serve under your chairmanship again this afternoon?

I congratulate my hon. Friend the Member for Bristol North West (Charlotte Leslie) on securing the debate, especially as it is her first in Westminster Hall. I also offer my congratulations on her recent election. I am sure that she will serve the people of Bristol North West for many years to come with the greatest distinction and dedication. Even if her endeavours this afternoon were not witnessed by a packed Chamber, the quality of her exposition of the problem, which showed great technical know-how, did her great credit. Her points about local education partnerships, waste, value for money, democratic accountability and transparency, are important.

I also congratulate my hon. Friend on her election to the Education Committee, and I hope that she will have a rather larger audience during that Committee’s deliberations. As a leading expert in the field, she brings us a wealth of experience and knowledge of a range of educational matters—we heard about one this afternoon—and I look forward to working closely with her and the rest of the Committee.

My hon. Friend wishes specifically to discuss the role of local education partnerships and academies in her part of Bristol. I am delighted to do that, but I shall first put matters into a wider context. In her excellent maiden speech, my hon. Friend eloquently described the huge disparity between the opportunities extended to the richest and the poorest children in her constituency—the achievement gap. That poverty of attainment marks too much of the educational system, particularly for those in the most deprived areas. She described it as

“a tale of two cities, whereby extreme poverty and deprivation exist side by side with some of the richest wards in the country.”—[Official Report, 2 June 2010; Vol. 510, c. 499.]

She is right, but that problem is by no means unique to Bristol North West or even the rest of Bristol. It is a sad reflection on our education system that, out of a cohort of 600,000 pupils, 80,000 are eligible for free school meals, of whom just 45 made it to Oxbridge last year.

Making opportunity more equal is the aim of the coalition Government in all of their policies, and it also guides our approach to education. That comes against the backdrop of the appalling state of public finances. Our first priority must be to reduce the deficit, but we must also ensure that we improve public services in order to improve the chances of every child. Because we prioritised education, my right hon. Friend the Chancellor was able to announce that we will protect front-line spending this year on schools, on 16-to-19 funding and on Sure Start. Because tackling educational inequality is at the heart of our reforms, we will introduce a pupil premium to ensure that money is better targeted at the poorest pupils. I know that my hon. Friend has contributed both energy and enthusiasm to that policy in the past and we are extremely grateful to her for that.

Because we are determined to ensure that every child—especially the poorest—has access to excellent teaching, we will double the number of highly accomplished graduates teaching in our schools, recruit hundreds more graduate teachers into areas of poverty where they can help to raise attainment in the most challenging places and, for the first time, fund the expansion of graduate teachers into primary schools. As my hon. Friend pointed out, we must ensure that we spend taxpayers’ money in the most efficient and responsible way possible at all times and on all elements of our programme, especially capital spending on refurbishing existing schools and building new ones—including, of course, academies.

It is deeply regrettable that, throughout its life, the Building Schools for the Future programme, which included academies, has been characterised by massive overspends, tragic delays and needless bureaucracy. Its startling inefficiency means that stopping the programme was the right thing to do. Having extended its scope, its budget bulged from £45 billion to £55 billion, and its time scale went from 10 years to a projected 18. Of the £250 million spent before building began, £60 million was spent on consultants or advisory costs to support layer upon layer of process. In some areas, it took more than two years to negotiate the bureaucracy, and that was before a single builder had been engaged or a single brick laid. Only 5% of the 3,500 secondary schools in this country were rebuilt, refurbished or received BSF funding for ICT—only 185 schools, which is astonishingly few given how much money was spent. Perhaps worst of all, considering the state of public finances, is that BSF schools cost three times what it costs to procure buildings in the commercial world, and twice what it costs to build a school in Ireland.

The programme could not be allowed to continue, so my right hon. Friend the Secretary of State for Education announced on 5 July that we would end the previous Government’s school rebuilding programme. However, the end of the BSF programme does not mean the end of investing in our schools. We are still absolutely committed to rebuilding and refurbishing, but we do not believe that the BSF programme was spending taxpayers’ money anywhere near efficiently enough, and money wasted on that programme was money that could not be used elsewhere, either in schools or other parts of the education establishment. We want to review all ways in which schools are built to ensure that money is allocated more efficiently, less expensively and, most important, more fairly. The cancellation of BSF does not represent the end of capital investment in schools. The review announced on 5 July will consider how the Department invests capital money, and its recommendations will help to shape the design of future capital investment in schools to ensure that we have enough school places in enough good buildings where pupils can learn effectively.

I turn to local education partnerships. As the previous Government’s preferred mechanism for local areas procuring BSF building services, local education partnerships have been a major component of the old process. Although the reason for establishing LEPs was specifically to support BSF projects, some local authorities chose to use their LEPs for projects outside BSF, as happened in the case of Elmlea school, cited by my hon. Friend. However, whether or not LEPs are part of the BSF programme, they should take responsibility for offering value for money to the taxpayer in all their capital spending—indeed, we would expect nothing less. That is why we will be reviewing procurement and delivery models as part of the terms of reference in our capital review.

The aim of the review is to ensure that future capital investment represents good value for money and that it responds to schools’ real needs. The review is already under way, and I shall not pre-empt its findings today. It will report to Ministers in mid-September, and a forward plan for capital investment over the next spending review period will be produced by the end of the calendar year. However, it is as clear to me as it is to my hon. Friend that LEPs are part of a truly cumbersome process, which needs to be closely examined and fundamentally re-engineered to ensure that a higher proportion of our capital investment gets rapidly to the schools that need it most. I therefore congratulate my hon. Friend on the immense detail that she has given us on the LEP that covers her constituency.

Whatever the detailed outcome of the review, we must ensure that the views of head teachers, teachers, parents and local communities are more effectively and swiftly acted upon and that there is a much greater focus on achieving value for money. When it comes to procuring services to build schools, we should have proper accountability and real efficiency. That will be good for local areas, schools, pupils and the taxpayer.

I turn to the Bristol local education partnership. My hon. Friend said that the partnership was split 90% to Skanska and 10% to Bristol city council. I gather that the figures are 80% to Skanska, 10% Bristol city council and 10% to a local BSF partnership, which is a slightly different equation. I have deep sympathy with the plight of those in my hon. Friend’s constituency who have suffered from the excessive bureaucracy of the current process. I hope the situation at Elmlea school can be resolved for the long-term benefit of the pupils, and that a solution is found that is efficient and effective and that represents good value for money.

The Bristol LEP has delivered four PFI-funded schemes on time and on budget, with six further secondary school projects in various stages of completion and a further three academy projects either handed over or under construction. Aside from one slightly delayed handover of a new building, its track record has been generally solid in terms of budget, quality and programme. However, the LEP model in Bristol has not proved so adept in delivering smaller-scale primary school projects where the needs of the local communities required a greater level of consultation and understanding. We are aware of the demand of parents in north-west Bristol for more primary school places and for more choice in secondary schools. We will have to wait for greater certainty about the various ideas that have emerged from there and the outcome of the review before decisions can be made, but whatever comes out of the review, we can be sure that future investment will be characterised by speediness and value for money.

I reiterate our commitment to investing in schools in Bristol and around the country. We have set out a comprehensive programme of reforms, founded on the need to make opportunity more equal. Part of that will be to ensure that schools across the country that need rebuilding and renovation will, in future, receive that money in a more timely and efficient manner. That is the only way to give every pupil in Bristol and beyond a better chance of success.

I congratulate my hon. Friend on having considered the problem, and I would be more than happy were she to highlight further anomalies in the local education partnership. If she refers them to the Secretary of State or the Minister for Schools, I shall ensure that they receive proper attention. I congratulate her on bringing the matter to a not entirely crowded Chamber, and I note that in her short time in the House as Member for Bristol North West she has made great endeavours to ensure a fairer and better education system for all her constituents.

Question put and agreed to.