HC Deb 25 January 1990 vol 165 cc849-50W
Mr. Morgan

To ask the Secretary of State for Wales if he will consult the Welsh counties committee before setting(a) the time-limit for transitional arrangements and (b) the permanent formula for calculating school staff salary budgets under local financial management.

Mr. Wyn Roberts

Advice on the transition arrangements and formula funding is contained in circular 36/88. The Welsh counties committee was included in the list of organisations which were invited to comment on the draft circular.

Mr. Morgan

To ask the Secretary of State for Wales if he will extend the proposed transitional period to the year 2000 for variations according to actual, and not average, staff salary bills, in the staff salary component of local financial management schemes in maintained schools.

Mr. Wyn Roberts

There are no plans for a general extension of the transition period beyond April 1994. We shall, however, look sympathetically at proposals to extend the transition period selectively for schools which would otherwise be faced with annual reductions of 1 per cent. or more in their total budgets because their staff costs are above the LEA average.

Mr. Morgan

To ask the Secretary of State for Wales if he will make it his policy to allow county councils to set a school staff salary formula under local financial management, which reflects actual salary costs in individual schools.

Mr. Wyn Roberts

Our position on calculating teacher salary costs in primary schools was outlined in my reply on 20 April last to my hon. Friend the Member for Norfolk, South-West (Mrs. Shephard). Secondary schools' budgets will be based on average teachers' salary costs. This is because to fund the actual salary costs of individual schools would mean funding schools according to numbers of teachers rather than numbers of pupils. This would be counter to the policy aim of putting pupil numbers at the heart of funding.

Mr. Morgan

To ask the Secretary of State for Wales if he will make it his policy to allow each county council local discretion in setting the formula for the staff salary component under local financial management in maintained schools.

Mr. Wyn Roberts

Each LEA was required to devise its own formula having regard to local needs and circumstances and after consultation with the governing body and head teacher of all the schools that will be covered by its LMS scheme. The formula must be based on an assessment of schools' objective needs and conform to the requirements of the Education Reform Act and the guidance in circular 36/88.