§ Mr. PawseyTo ask the Secretary of State for Education if she will update the table of underspending and overspending on grants to voluntary-aided schools published on 28 January 1994,Official Report, columns 413–14, to include the relevant figures for 1993–94; what changes have been made to her Department's approval, monitoring and in-year reallocation procedures; to what extent such changes have contributed to any reduction in 1993–94 underspending; and whether there are reasons to expect either underspending or overspending to be reported for 1994–95.
§ Mr. Robin SquireDetails of aided school capital and repair grant budget provision, final outturn and percentage of underspend or overspend for the years 1990–91 to 1993–94 are as follows:
Year Budget £ million Outturn £ million Per cent. under/overspend Repairs: 1990–91 35 41.8 19 overspend 1991–92 47.5 49.1 3 overspend 1992–93 55 36.8 33 underspend 1993–94 48 37 23 underspend Capital: 1990–91 71 64 10 underspend 1991–92 84.2 63.9 24 underspend 1992–93 96.6 81.3 16 underspend 1993–94 841 79.5 13 underspend 1 £2 million was transferred in year to GM schools capital budget to meet commitments for projects at voluntary aided schools which became grant-maintained during the year. The percentage rate of underspend shown is therefore based on a budget figure of £82 million. A number of detailed changes have been introduced to the Department's internal procedures and these are being reviewed further in preparation for the introduction of a new computer system in the course of the next financial 519W year. Administrative work relating to the approval of building projects has been moved from London to Darlington and integrated with the work of grant allocation and monitoring. A series of seminars has been held to improve LEA and voluntary bodies' understanding of the grants system and procedures that they must follow. The comments of seminar delegates on the existing system are being taken into account. Detailed written guidance setting out procedures will shortly be issued to schools, LEAs and voluntary bodies.
In the current year the latest estimate is for a small overspend on the capital budget, balanced by a similar underspend on the repair budget, but my hon. Friend will be aware that a high proportion of grant falls to be paid near the end of the financial year.
Allowing for the fact that the expenditure is responsive to demand, I believe that the procedural changes introduced over the last two years have made an important contribution to the reduced underspend in 1993–94 and to the improvement which is in prospect for the current year.