HC Deb 26 March 2003 vol 402 cc14-6WS
The Minister for School Standards (Mr. David Miliband)

I am today announcing an increase to schools' budgets for 36 authorities that have received a low increase in their Education Formula Spending Share and a reduction in grant through the standards fund.

We have made radical changes to the formula for distributing general education funding for 2003–04, particularly for schools. The funding intended for schools and LEA central functions is separately identified through the schools and LEA block; there is a new formula for distribution; and, to smooth the introduction of the new education formula, all authorities will receive at least a 3.2 per cent. increase in Education Formula Spending Share (Education FSS) per pupil. At the same time, we have made changes to grants paid through the Standards Fund. The overall cash increase in general funding for LEAs and schools is £2.6 billion for 2003–04.

Authorities have been working hard to ensure that this extra funding reaches school budgets. However, the Government have received representations from local authorities, schools and head teacher representatives about the effects of the new financial system for a number of LEAs in the short term, and we recognise that in some authorities the combination of a low increase in Education FSS, coupled with reductions in grant through the Standards Fund may result in low budget increases for schools. In the light of this, we propose to pay an additional grant of £28 million to ensure that the effective increase in education funding for LEAs and schools between 2002–03 and 2003–04 is no less than 3.2 per cent. per pupil for all authorities. Education funding includes both Education FSS, School Standards Grant and certain Standards Fund grants: a detailed specification of the grant will be made available to all local education authorities; and a copy will be placed in the House Library.

The schedule below sets out the receiving authorities and their allocations: it is based on an estimate of the increase in School Standards Grant (SSG) for 2003–04, and will not be amended downwards when we have actual amounts of SSG paid to each authority. It will be a condition of the grant that authorities will have to pass it on in full to schools: we will expect authorities to allocate the grant to those schools that currently have the lowest increases in overall funding per pupil. We expect that this extra funding for school budgets will be of particular relevance in taking forward the workforce remodelling agenda.

Grant
LEA (£m)
Barking and Dagenham 1.128
Bedfordshire 0.135
Bexley 1.492
Bournemouth 0.140
Brighton and Hove 0.960
Bromley 0.815
Camden 1.168
Croydon 1.302
Dorset 0.318
East Sussex 0.110
Enfield 1.147

Grant
Essex 1.162
Hammersmith and Fulham 0.886
Hampshire 0.278
Haringey 1.330
Havering 1.089
Hertfordshire 1.000
Isle of Wight Council 0.110
Kensington and Chelsea 0.288
Knowsley 0.736
Lambeth 1.282
Leicestershire 0.835
Medway 1.295
Norfolk 1.595
North East Lincolnshire 0.033
Plymouth 0.831
Portsmouth 0.891
Redbridge 0.903
Richmond upon Thames 0.152
Slough 0.376
Southampton 1.016
Southend 0.358
Suffolk 0.108
Sutton 0.503
Thurrock 0.308
Waltham Forest 2.140
Total 28.220

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