School Finance (Hansard, 8 December 2003)

§ Mr. Hoban
To ask the Secretary of State for Education and Skills if he will make a statement on the extent to which schools have used devolved capital allocations to meet shortfalls on their revenue budgets. [141927]

§ Mr. Miliband
[holding answer 4 December 2003]Local education authorities (LEAs) were requested to provide details of the amount of capital flexibility agreed with their schools by 30 November. The total amount agreed across all LEAs was £40,911,409 (Including Voluntary Aided schools). The total devolved formula allocation for 2003–04 to all LEAs was £681,277,138. This means that the total take up of the flexibility available was 6 per cent.
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§ Miss McIntosh
To ask the Secretary of State for Education and Skills what representations he has received on funding for schools in(a) North Yorkshire and (b) the City of York; and if he will make a statement. [142046]

§ Mr. Miliband
We have received few recent representations about school funding issues in North Yorkshire and the City of York. Since the beginning of September we have, according to our records, received one letter about each. On 29 October my right hon. Friend announced proposals to restore stability to school funding. Further information about funding for next year was announced on 19 November as part of the provisional Local Government Finance Settlement. In 2004–05 all authorities will see an increase in their School Formula Spending Share of at least 5 per cent. per pupil: North Yorkshire's increase is 6 per cent. and the City of York's is 6.8 per cent.

§ Miss McIntosh
To ask the Secretary of State for Education and Skills what his policy is on how to bridge the funding shortfall for schools in North Yorkshire. [142047]

§ Mr. Miliband
On 29 October my right hon. Friend announced proposals to restore stability to school funding. Among 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 —North Yorkshire's increase is 6 per cent. This will give the Authority the headroom and flexibility to deliver the guarantee and provide support to help schools facing additional pressures.
However, if North Yorkshire 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 North Yorkshire might be able to bring forward in this way is would be £604,000.