York Schools (Hansard, 7 January 2004)

§ Mr. Miliband

On 29 October my right hon. Friend announced proposals to restore stability to school funding. Amongst the package of measures, we are ensuring that for 2004–05 all schools will see a guaranteed minimum increase in their per pupil budget amounting to 4 per cent. per pupil where pupil numbers remain the same. In addition, we have ensured that schools will receive an increase in the amounts of Standards Fund, School Standards Grant and funding from the LSC for sixth forms in line with the minimum guarantee.

We are increasing the School Formula Spending Share by a minimum of 5 per cent. per pupil— the City of York's increase is 6.8 per cent. This will give the Authority the headroom and flexibility to deliver the guarantee and provide support to help schools facing additional pressures.

On 10 December, the Chancellor of the Exchequer announced that a further £317 million will be going to local authorities in their Revenue Support Grant for 2004–05 for authorities with education and social services functions. This is on top of the increases already announced in the provisional settlement. For almost all authorities the additional grant will reduce the pressure on services and council tax, and will make it easier for authorities to meet education passporting targets. In the case of the City of York the additional grant amounts to £1.2 million.

However, if the City of York or any other LEA is able to put forward a compelling case that additional, transitional funds are needed in the short term—above and beyond those already available to the LEA—my right hon. Friend will be prepared to consider bringing forward grant payments from my Department, so that the LEA will have funds available in 2004–05 for this purpose, with the expectation of a consequential reduction to what they will receive in future years. The maximum amount that the City of York might be able to bring forward in this way would be £300,000.