PARLIAMENTARY DEBATE
School Funding - 23 October 2023 (Commons/Commons Chamber)

The Government introduced fairness into school funding. Under Labour, we got disproportionately inflated school budgets in places such as London, while constituencies such as mine were underfunded for over a decade. It was the Conservatives who introduced the national funding formula, which funds schools fairly, objectively and, most importantly, based on the needs of pupils, not political ideology. Not only that: this year, school budgets are up by over £3.9 billion, and next year schools will be funded at their highest level in history, at £59.6 billion.

I am conscious of the pressures that many local authorities have faced on their high needs budgets. Nationally, high needs funding is set to increase by 60% between 2019-20 and 2024-25. Next year, Worcestershire will receive more than £89 million for its high needs budget. The Department is also supporting individual local authorities to tackle financial sustainability through two programmes: the Safety Valve programme for those with the highest deficits, and Delivering Better Value in SEND, which will help local authorities, including Worcestershire, to develop plans to reform their systems to reach a sustainable footing.

The recent accounting error by the Secretary of State’s Department will mean a cut of more than £2.5 million for schools in Bristol. That money could have been spent on breakfast clubs, SEND provision, mental health support, or even such basics as paying the energy bills. The Prime Minister said in this conference speech that his main funding priority in every spending review from now on will be education, but he is cutting school budgets now. Does the Secretary of State not realise the impact that will have on schools, whose budgets have already been cut to the bone?

I take the error in the July notional national funding formula figures very seriously, but it is important to note that schools do not receive notification of their actual budget until February-March. The Department acted quickly to correct the error—well before schools set their final budgets. There is no cut: £59.6 billion, which I have talked about many times from this Dispatch Box, is the number that schools will be funded at next year. At my direction, Peter Wyman, the chair of the Institute of Chartered Accountants, will lead a rigorous independent external review of the Department’s quality assurance processes.

I call the Chair of the Education Committee.

I am grateful to the permanent secretary for writing to the Committee as soon as that recent funding error was identified, and for her apology for the concern that it caused. Although no actual money was lost to schools as a result, it reflects the complexity of the current system. We have promised a fair formula for funding, which will flow directly to schools. When do Ministers expect to be able to legislate to put that in place?

It is our intention to legislate, but I cannot give a date for that at the Dispatch Box. I will keep my hon. Friend informed.

Despite North West Leicestershire delivering consistently the highest economic growth in the country, with the resulting tax revenue benefits to the Treasury, my constituents have been blighted by very low per-pupil funding for a long time, as Leicestershire has bumped along the bottom of the funding table for decades. Does the Secretary of State have any words of comfort for my constituents?

The introduction of the NFF will direct resources according to need. That has meant that funding has been redistributed to catch up with these changes. Those with the highest number of pupils with additional needs will also be targeted via the NFF.