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School Funding Reform

I thank the right hon. Gentleman for the broadly constructive tone of his response. He asked a series of detailed questions, which I shall to my best to reply to in the time available. On the timing of the consultation, plans to move towards a national funding formula were outlined in the education White Paper, ““The Importance of Teaching””, which was published last autumn. There has been extensive engagement on the ground with local authorities and school leaders, not least through the task and finish group of the ministerial advisory group on local government finance. This consultation is a step towards ensuring that we can move in the right direction, but judging by the response that we have today, I know that there are many people who are impatient for us to proceed. We will make sure that in the consultation there is, as the right hon. Gentleman requests, appropriate room for local authorities to stress the importance of flexibility. In the consultation documents, which are available in the Vote Office now for all Members, we emphasise that there are a range of options, and it is clear that we want to ensure that there is appropriate local flexibility—not just room for local authorities to allocate resources to those schools most in need, but greater transparency, for example, over the operation of schools forums. I hope the right hon. Gentleman and his colleagues will engage constructively in making sure that those decisions on the ground can properly balance school autonomy with local accountability. The right hon. Gentleman asked about the interim review on academies and LACSEG—the local authority central spend equivalent grant. We are specifically consulting today in a way which can ensure that local authorities are funded fairly, and that we do not have the double funding that has arisen under the complex funding system that we inherited. As a result of that consultation, I hope we can provide a reassurance to all students in all schools. The right hon. Gentleman asked about special educational needs. In the consultation overall on schools funding, we make it clear that high needs pupils are a specific priority. There will be a block of funding in the overall dedicated schools grant which is for them and which will be disbursed at local authority level. The central role of the local authority in protecting vulnerable pupils will be protected, and I am sure he will want to work with us in ensuring that that is successfully implemented. On 16-to-19 funding, it is critical that we ensure that we align any reforms with the Wolf review, which the right hon. Gentleman so warmly welcomed just a few months ago. Wolf argued that we need to ensure that when we reform the funding of 16-to-19 education, we do not recreate the perverse incentives in the old system of 16-to-19 funding, so we aim to align that reform with the broader reforms to improve vocational education. The right hon. Gentleman asked about progress on academies. Like him, I am delighted that so many schools have now become academies. He asked about the sustainable level of growth of chains. I believe that chains such as the Harris group, Ark or the United Learning Trust are doing an amazing job on the ground, working with local authorities and turning round schools in the worst condition. As far as I am concerned, they should grow at the fastest sustainable rate. That is why we are making the reforms that we can. Our aim always is to help those children most in need, and those academy chains have helped those children most in need. On negotiations at the spending review, I am proud of the fact that at the spending review we were able to secure the best revenue settlement for any domestic Department, apart from the Department of Health. I am proud of the fact that as well as guaranteeing fat cash payments for all schools for the rest of the spending review period, we secured additional money for the early years and for the pupil premium. I am particularly proud that we have since then ensured that on our capital budget, we have driven forward efficiency. The James review and the associated steps that we have taken have meant that we have liberated an extra £500 million for basic need. The right hon. Gentleman asked if I would listen carefully to representatives from Sandwell and other local authorities. I shall. I appreciate the particular concerns in every local authority, but the vital thing is that we need to be fair to all local authorities. There are local authorities represented across the House that were not in the BSF scheme and have not had their case heard, and we need to ensure that they receive the funding that they deserve. Finally, the right hon. Gentleman asked me about basic need and the importance of prioritising it. We are spending 62.5% more on basic need than the previous Government. They were specifically warned in February 2010 that local authorities were saying that basic need funding was far from adequate, and they were invited to undertake an urgent nationwide review. No action was taken. The lead member for children's services in the London borough of Newham, the Labour councillor Quintin Peppiatt, said:"““We gave warning for the last five years through various deputations that this was a real problem, and I have to say it was not taken with the seriousness that it should have been. At last, serious action is being taken and not a moment too soon.””"