School Funding — House of Commons, 2018-04-25
Topic: Education
Nicolas John Gibb (Conservative, Centre-right): I share the hon. Lady’s support for Labour’s academisation programme, which is why we expanded it from 200 academies to over 6,000. She is fortunate to have in her constituency the Harris Federation, which is one of the most successful multi-academy trusts and school sponsors in the country. She should also want to acknowledge that funding for schools in Mitcham and Morden will rise by 7.3% under the national funding formula, and that Merton will receive an extra £6.3 million by 2019-20—a 5.4% increase in funding.[Official Report, 22 May 2018, Vol. 641, c. 5MC.] My hon. Friend the Member for Mid Dorset and North Poole (Michael Tomlinson), in yet another highly effective speech on education, rightly pointed out that Dorset will receive a 4.2% increase and Poole a 3.8% increase under the full national funding formula. He also highlighted that England is rising up the PIRLS league table for the reading ability of our nine-year-olds. Reading is the basic fundamental building block, as the hon. Member for Luton North (Kelvin Hopkins), who is sitting on the Opposition Back Bench, would acknowledge. This country’s adoption of phonics and the hard work of primary school teachers up and down the country mean that we have risen from joint 10th to joint eighth in the PIRLS world league table In her strong contribution, my hon. Friend the Member for Lewes (Maria Caulfield), like my hon. Friend the Member for Mid Dorset and North Poole, effectively revealed Labour’s and the unions’ political motives for raising school funding. Lewes’s schools will see a 4.3% increase in funding under the national funding formula, but I will certainly come back to her on the three requests from the primary schools in her constituency Although I think there is some consensus in the House about the principles underlying the national funding formula, we disagree with the Opposition on the overall amount. Is the £42.4 billion we are spending this year enough, and can our public finances afford more? Last July, we announced an additional £1.3 billion increase in overall school and high needs funding, over and above the increases agreed in the 2015 spending review—£416 million more for 2018-19 and £884 million more for 2019-20. The Institute for Fiscal Studies says that school funding will be 50% higher in real terms per pupil by 2019-20 than in 2000 However, we know that in the past two years schools have incurred increased costs, such as higher employer’s national insurance contributions and higher pensions contributions. Of course, both have applied to other public services, and higher national insurance has also applied to private sector employers. Those costs are all part of tax and revenue-raising measures that were introduced to help reduce the public sector budget deficit, which stood at £150 billion per year—10% of our GDP—when we came into office in 2010. That was unsustainable and would have been bankrupting if we had not addressed it. Thanks to the hard work of the British people and a series of difficult decisions, that deficit has reduced to £42.6 billion—2.1% of GDP—and is set to fall further Without that balanced approach to public spending and the public finances, we would not now have a strong economy providing young people with the job opportunities that a record number of jobs in the economy brings. Without that careful and balanced approach, we would not have been able to spend £42.4 billion on schools this year and allocate more than £23 billion to capital spending from 2016 to 2021, and we would not have created more than 800,000 new school places, with more in the pipeline; seen a rise in reading standards in our schools; helped schools raise the standard of maths teaching; allocated significant funds to music and the arts; ensured that 91% of 16-year-olds studied at least two science GCSEs, up from 62% in 2011; or seen 1.9 million more pupils in schools rated "good" or "outstanding" by Ofsted than in 2010 None of that would have been achieved if we had taken the hard left-wing approach to the public finances set out by Labour during and since the general election. Labour’s spend, spend, spend plans would mean £106 billion more public spending, wiping out in one blow eight years of hard work on deficit reduction. Its plans to nationalise a raft of industries would add £176 billion to the national debt. Its other plans would bring the increase in debt to £350 billion, costing us another £8 billion a year in higher interest charges—an amount equal to nearly a fifth of the schools budget blown on increased debt interest charges to fund Labour’s spending plans What do we know about Labour’s statements and promises on spending? We know that they cannot be delivered without bankrupting the country. It would lead to a run on the pound, a flight of investment and a rise in unemployment—the hallmark of every period of Labour in office. That is why, no doubt, the hon. Member for Ashton-under-Lyne, in a moment of candour, described Labour’s economic policy as "a bit of a" something "or bust" policy By contrast, because of our balanced approach to public spending, funding for schools under the national formula will ensure that every school attracts at least 0.5% more per pupil funding this year and 1% next year than in 2017, with thousands of schools receiving significantly more. It means that for schools that have historically had the very lowest funding, we can introduce a minimum of £3,500 per pupil for primary schools and £4,800 per pupil for secondary schools. It means that we can increase funding for special educational needs from £5 billion in 2013 to £6 billion this year Delivery, not promises, is what matters and this Government are delivering—delivering on the economy, delivering on jobs, delivering on school funding and delivering on academic standards Question put and agreed to. Resolved, 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.