Funding: the good years and the bad

The well-respected Institute for Fiscal Studies has today published a longitudinal study into the changing levels of education finance. https://www.ifs.org.uk/publications/8937

However, although factually accurate, as local authorities do still ratify the funding formula, the following statement early on in the report might be regarded as potentially mis-leading:

At the moment, it is local authorities that are responsible for determining the level of funding for state-funded schools. Each local authority receives a grant from central government, which it then distributes to schools in its area using its own funding formula.

After all, it is the Schools Forum, assisted by officers that decides on the local formula. Politicians, those that comprise the local authority, realistically now have no say in the matter, unless they are governors and elected through that route to the Schools Forum.

However, what the IFS have reminded us, at least in respect of schools, is that the 1990s were a period of funding constraint that lasted until the Blair/Brown leadership team took the brakes off education funding after their first few years of government when they were endorsing the Tory spending plans they had inherited in 1997: subsequently there was a period of increased funding as the new century unfolded. This allowed the creation of PPA time in primary schools and the growth in support staff numbers as well as generous spending on IT and improvements in pupil teacher ratios.

As this period coincided with the demographic downturn in pupil numbers, schools were relatively well funded, although the long period of decline in 16-19 funding commenced. The coalition supported school funding after 2010, but everyone now agrees that the next few years are likely to see reductions in real terms in school funding that will only be partially masked by increases in pupil numbers and any new national formula.

Even with tight floors and ceiling, there will be winners and losers with the new formula. This is partly because the gaps between the decisions on funding go way back into education history and are frequently associated with the municipal attitude to education and the size of the local tax base. When business rates were collected and spent locally, areas with good levels of industry and commerce often had well-funded education systems. As manufacturing and other industries declined, so did local funding and eventually business rates were nationalised. Successive governments missed opportunities to reform the basis of school funding preferring just to transfer the budgets to schools and away from local authorities and their politicians.

So, what happens now? If there is to be a period of austerity associated with cuts to funding to schools it is imperative that the cash is used wisely. But one person’s saving can easily translate into another’s burden. Close rural primary schools and someone has to pay for the transport of the pupils to another school. The same is true if small sixth forms are axed as no longer affordable. In the commercial world it is clear who takes decisions over cutting branches of banks or supermarkets that don’t pay. Who now decides on where schools are located: parents through the admissions system; the EFA as the national funding agency; MAT; Regional School Commissioners, but not presumably local authorities?

Many of the issues fudged when funding was adequate cannot be ignored when cash is being squeezed out of the system.

 

 

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