School Funding

Toby Perkins Excerpts

Wednesday 25th April 2018 Commons Chamber

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

I beg to move,

That this House notes the Conservative Party manifesto pledge to make sure that no school has its budget cut as a result of the new national funding formula, the statement by the Secretary of State for Education that each school will see at least a small cash terms increase and the Chancellor of the Exchequer’s guarantee that every school would receive a cash terms increase; endorses the aim of ensuring that there is a cash increase in every school’s budget; agrees with the UK Statistics Authority that such an increase is not guaranteed by the national funding formula, which allows for reductions of up to 1.5 per cent in per pupil funding for schools; and calls on the Government to meet its guarantee, ensuring that every single school receives a cash increase in per pupil funding in every financial year of the 2017 Parliament.

The last time I moved an Opposition day motion, I know I upset the Government. With the support of every party except theirs, our motion rejecting the regulations that increased tuition fees was passed by the House. After that, the Government announced that they would no longer vote on Opposition days. Today, they should find our motion more helpful.

As I suspect Members on both sides of the House know all too well, the Conservative party lost hundreds of thousands of votes at the general election due to its school cuts. With another polling day coming up, I have decided to extend an olive branch. Today’s motion is extremely modest. It does not even call on the Government to commit to Labour’s spending plans. It simply asks Government Members to implement the commitment in their own manifesto and support the positions of the Chancellor and the Secretary of State for Education.

In January, the Secretary of State told us at the Dispatch Box that every school

“will see at least a small cash increase.”—[Official Report, 29 January 2018; Vol. 635, c. 536.]

Then, during the spring statement, the Chancellor told the House that the Government had given a

“guarantee that every school would receive a cash-terms increase.”—[Official Report, 13 March 2018; Vol. 637, c. 742.]

He reiterated: “That guarantee stands today.” There was one problem: that guarantee did not exist.

[Toby Perkins (Chesterfield) (Lab)]

My hon. Friend is absolutely right. Brampton Primary School in Chesterfield got in touch with me on Friday to say it has had a £130,000 budget reduction this year. That school has one of the few autism units in the area. Spending on special needs has been halved. The most vulnerable pupils in the schools that most desperately need funding are the victims of that broken Tory promise.

--- Later in debate ---

[Damian Hinds]

What I was outlining, on the issue of trying to give more support to schools on managing resources, is that it is all about ensuring that money can be devoted to the frontline to maximise the amount of great teaching from great teachers. I know that teachers in the hon. Gentleman’s constituency will be as focused on that as teachers in constituencies throughout the country.

[Toby Perkins]

I want to help the Secretary of State make good on his promise. He made a commitment that no school will see a cut in funding. What is the strength of that guarantee? If it turns out that a school has had a reduction in funding, will he consider it a resignation matter?

[Damian Hinds]

I think the hon. Gentleman has been here from the beginning of the debate, so, unless he was reading something, he will have heard me set out how the national funding formula works. It allocates money—

[Toby Perkins]

If what he said—

[Madam Deputy Speaker (Mrs Eleanor Laing)]

Order. The hon. Gentleman knows that he cannot conduct the debate from a sedentary position. Perhaps the Secretary of State will give way again later, but he must let him finish answering the question he has just asked.

[Damian Hinds]

The formula allocates money to each school, subject to set minimum cash increases, but there is flexibility for local authorities—which have the most-up-to-date information on the profiles of children in their schools, in terms of special needs, free school meals and so on—to reallocate money up to certain limits. I think that is right. Does the hon. Gentleman think it is wrong that they have that flexibility?

[Toby Perkins]

I am grateful to the Secretary of State for asking the question. Is he guaranteeing that no school will lose money? Is that his commitment? If there is no such commitment, he should say so, and if there is, he should not hide behind councils.

[Damian Hinds]

The hon. Gentleman is repeating what he just said. The national funding formula allocates money in respect of every school. It then goes to the local authority, which has a certain amount of discretion to reallocate that money between different schools up to a certain limit to ensure that the funding goes to the places where it is most needed.

--- Later in debate ---

[Justin Madders (Ellesmere Port and Neston) (Lab)]

I must first declare an interest. My wife is the cabinet member for children and young people in Cheshire West and Chester, my local authority—and what a good job she does!—and two of my children attend a local school that is affected by the funding issues that we are discussing today.

A central promise in the 2017 manifesto on which every Conservative Member stood was

“we will make sure that no school has its budget cut as a result of the new formula.”

As we heard today from my hon. Friend the Member for Ashton-under-Lyne (Angela Rayner), the Conservatives’ promise has been augmented in recent months by subsequent statements from Cabinet Ministers about cash increases for every school, but that is not what we are told is happening on the ground. All but one of the schools in my constituency face a funding cut; local schools will lose about £3 million between 2015 and 2019.

[Toby Perkins]

It is true that we are being told by schools that there is a real-terms cut. Was my hon. Friend as alarmed as I was by the fact that, even in the Chamber, the Secretary of State was unwilling to offer the guarantee that no school would lose money?

[Justin Madders]

Yes, I was alarmed, because I think it is clear from all the information that Members have received—and they are hearing from schools, heads and parents every day—that a real crisis is here now, and will get worse over the next few years. There is a very clear difference of opinion, but I know who I think has the real information: the people who are actually doing the day-to-day job.

The figures that I have seen suggest that pupils in my constituency will receive £300 per head less over the next three or four years. The situation is at breaking point. I know from talking to parents, teachers and heads that schools are already facing very tough choices. One headteacher told me:

“I believe that as a school we will also have to reduce the number of extra activities we offer pupils…fewer clubs, fewer arts days, fewer visits and visitors to school. ‘Balancing the books’ has become one of the worst aspects of my job. Begging letters to parents for equipment, repairs and resources are common in some schools. I feel that class sizes will increase and the curriculum will be pared back to the basics. To put it bluntly—children will be the losers.”