HC Deb 02 December 1999 vol 340 cc421-3
7. Mr. David Kidney (Stafford)

What assessment he has made of the effect on quality of education provided of variations in the level of Government funding to local education authorities. [99346]

The Minister for School Standards (Ms Estelle Morris)

The Government accept that there are valid objections to the variations in the level of Government funding to local education authorities. That is why we are engaged on a fundamental review of this issue and hope to make proposals for changes in due course.

Mr. Kidney

My understanding of the provisional education standard spending assessment settlement for next year is that per pupil the best funded schools will be getting richer at a faster rate than the worst funded schools. Is there an educational justification for widening the gap between the best and worst funded schools?

Ms Morris

No, there is not, which is exactly why we are setting about changing the SSAs. During the period while the SSAs are as they are, the difference in funding to local authorities will reflect changes in demography, the number of children in local authorities and whether they are in the primary or secondary sectors.

I know how strongly my hon. Friend's constituents feel about this matter and I am aware of how much he has done to represent their interests in presenting the case to myself and to my right hon. Friends the Secretary of State and the Deputy Prime Minister. I assure my hon. Friend that we shall move as quickly as we can. Meanwhile, we shall ensure that the other way in which funds are routed into Staffordshire means that his constituents' children will get their fair share of the increased resources. I know that my hon. Friend and many other hon Members will not be satisfied until we change the formula. For all the reasons that I have outlined, it will take one or two more years.

Mr. Patrick McLoughlin (West Derbyshire)

The Minister said a few moments ago that she is proud that the Government took instant action on something that they thought was unfair. Can she understand the frustration when local authorities hear her say that she is seeking consensus? If she is looking for consensus on this matter, she will be looking for a long time. The statement that she has just made—I do not know whether it was a slip or whether it was deliberate—is quite worrying. I believe that the Minister said that she would ensure through other ways that pupils in Staffordshire would get a fair deal. Can that apply also to pupils in Leicestershire and Derbyshire? If she is using a secret formula, can we all know about it, please?

Ms Morris

The hon. Gentleman fails to understand that SSAs are only one way of routing money to schools. We are increasingly putting more money through the standards fund, and £1.6 billion went through it this year. The assurance that I gave to my hon. Friend the Member for Stafford (Mr. Kidney) is one that I am happy to give to the hon. Gentleman. The extra money that will be distributed will not be under the SSA formula. Schools will not lose out because that is their formula for adjustment. It is not a secret formula but an open one to ensure that the extra money that we are putting into schools through the standards fund means that everyone can benefit.

The hon. Gentleman must realise that under this Government we have seen an increase in funding over the past two years of £200 per pupil, compared with a drop in funding for primary pupils of £30 and one of £80 for secondary age students under the Conservative Government. We shall change the formula in due course. Meanwhile, every school in the hon. Gentleman's constituency is getting more money through both the SSA and the standards fund than they did at any time during the years of the previous Government.

Mr. Harry Barnes (North-East Derbyshire)

Is it not at least welcome to hear Conservatives now claiming that class sizes have some significance in the quality of education, when for many years they denied that that was the case? Is my hon. Friend aware that shortly after I and my right hon. Friend the Secretary of State entered Parliament, I asked the then Prime Minister, Lady Thatcher, if she would compliment Derbyshire county council on having the smallest class sizes in the country? It was the Local Government Act 1988 and the introduction of standard spending assessments that destroyed those class sizes and made them among the largest in the country.

In Derbyshire, we are very pleased with the moves on funding that have been made by the Department for Education and Employment. However, our problem is with the Department of the Environment, Transport and the Regions and with the standard spending assessment. It has not been adjusted, and we shall have to wait a long time before alterations are made in new legislation that will finally get rid of existing measures. Does a brick wall exist between the DFEE and DETR?

Ms Morris

No brick wall exists between those Departments or any other Departments in Whitehall. I am sure that my hon. Friend will lobby DETR as much as he lobbies the DFEE, and I wish him well if he does. I am delighted that Derbyshire has made such good progress on class sizes. We were very pleased that in the first year that we delivered the pledge on class sizes—if my memory serves me well—Derbyshire received more money to deliver smaller classes than any other local authority. I think that it received £1 million in the first year and it received at least as much, if not more, in the second year. I am so pleased that infant children in my hon. Friend's constituency will now start their schooling in classes of 30 or fewer, giving them a real chance to get a firm foundation. I wish them well, and I wish the local authority well in delivering the rest of the class size pledge.