Crisis looms due to funding shortage

A Freedom of Information request revealed that from May 2007, government projections showed a rapidly increasing primary school population in each year from 2009 to 2015.

Despite this, in 2007, Ed Balls then Education Secretary  told councils to remove surplus primary places or risk losing capital funding. Mr Balls issued guidance telling them: ‘The Department has made clear its view that maintaining surplus places represents a poor use of resources – resources that can be used more effectively to support schools in raising standards’. The guidance went on: ‘The Department expects local authorities to make the removal of surplus places a priority’. Local authorities were told they would not receive capital funding if they failed to cut surplus primary school places. ‘Strategies that fail to commit to addressing surplus capacity at local authority or individual school level will not be approved’. The big problem is the baby boom. In 2010, there were four million children in English primary schools; by 2018, there’ll be 4.5 million.  So if Ed Balls blundered, has the Coalition got this covered? No, not really. Although some elements of the education budget were protected, which produced encouraging headlines, there have been swingeing cuts to the capital available for new schools-new schools will be needed to cope with the demand as expanding existing schools is often not possible. And indeed some of the new Free schools are proving to be relatively expensive which also means that this initiative will not have the funding to expand in the way the government would wish (ie there is not enough capital available to fund the demand for Free schools-so bids are being rejected not because they fail to satisfy the criteria-the official stance-  but because there is no money available).  As Jonn Elledge has pointed out in the Guardian the biggest story in education won’t be about academies, or grade inflation, or international league tables: it’ll be about parents petrified they can’t find a school place for their child. The Department for Education’s core resources budget had, of course,  been protected, although there have been allegations that perceived funding shortfalls mean that Heads and governors are dipping in to the Pupil Premium to make up shortfalls . (funding that is supposed to go to disadvantaged pupils).  But its capital budget – the bit that pays for buildings and so forth –  is to fall by 60% over four years. Gove squeezed another £1.2bn out of the Treasury last autumn but nobody thinks that this will be enough to cover the additional Primary places that will be required over the medium term.  The Government may be forced to turn to the private sector for capital , but that is the more expensive option.


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