Education Funding

Ed Balls Excerpts

Monday 5th July 2010 Commons Chamber

[Mr Speaker]

Order. I am sorry to say that the Secretary of State significantly exceeded his time, which he will not be allowed to do again. In fairness, I shall also have to allow some modest leeway for the shadow Secretary of State.

[Ed Balls (Morley and Outwood) (Lab/Co-op)]

The Labour Government built or refurbished 4,000 schools—the biggest school building programme since the Victorian era—and today is a black day for our country’s schools. It is a damning indictment of this new Tory-Liberal coalition’s priorities and it is a shameful statement from this new Secretary of State, who will for ever go down in history as the man who snatched free school meals from 500,000 poorer pupils and has now, today, in one stroke axed hundreds of brand-new schools from communities across the length and breadth of our country.

Building Schools for the Future was a once-in-a-generation chance to transform the whole local fabric of education—of secondary education, special schools and vocational learning, too. The freezing of the programme that has just been announced is a hammer blow for many hundreds of thousands of children, parents, teachers and governors who will now not get the transformed new school they were promised.

I predicted this day during the general election, and, after weeks of indecision, uncertainty and media speculation that has led to widespread confusion and concern in schools and in the construction industry, too, I am grateful that the right hon. Gentleman has finally made a statement to this House. However, is it not a disgrace that, even now, the Secretary of State has not provided a list of all the schools that will be affected? How can hon. Members on both sides of the House ask questions of the Secretary of State when they do not know which of the schools in their constituencies will be affected? The Secretary of State knows the names of the schools. I believe that he has a duty to tell the House and the country and that he should agree to publish the list now—straight away—so we can give it proper scrutiny.

Let me turn to the some of the detailed issues that the right hon. Gentleman mentioned. On standards, will he confirm that in the recent trends in international mathematics and science study—or TIMSS—England has risen from 25th in the world to seventh in the world and that among 10 to 14-year-olds we now have the highest achievement in mathematics of all European countries in that study? Why cannot he stop running down the achievements of our children and teachers in our schools?

On teaching, does the Secretary of State agree that we have the best generation of teachers that we have ever had? Will he confirm that the previous Government had already invested in expanding Teach First, including pilots for primary schools? Is he aware that it was the leadership of Teach First who warned me that to accelerate the expansion of the programme any faster would put at risk the quality and success of Teach First—a risk that he has just taken in this statement?

On the Building Schools for the Future programme, the National Audit Office looked into the programme last February and said that originally the forecasts were “overly optimistic”, and that local authorities were asked

“to spend more time to improve their proposals, because…it was more important to improve the quality than to accelerate the programme.”

The NAO concluded that the processes for procurement had “significantly” improved and also found that the total capital cost of each BSF school was similar to that of other schools and 17% cheaper than that of previous academies.

In the next year, as the Secretary of State travels around the country opening the 200 new schools set to open under the BSF programme, will he tell pupils, parents, governors and contractors that their school is part of a programme he believes to be “dysfunctional” and a “waste” of money? Or will he withdraw these unrepresentative and vindictive remarks? It is not the bureaucracy that he is abolishing, but hundreds of new schools for children in our country.

As for my record as Secretary of State, some very serious allegations have been made. I have this afternoon written to the permanent secretary at the Department for Education, who was also the accounting officer for the whole time I was Secretary of State. I have asked him to confirm that all capital funding announcements, including those on BSF, were made with prior agreement between the Department and the Treasury in a normal and fully legitimate way and with his full agreement as chief accounting officer and to confirm that if that had not been done properly, the accounting officer would have insisted on a ministerial direction but that no such directions were issued by me and none were requested. If the right hon. Gentleman has evidence that the proper processes were not undertaken, it is incumbent on him to provide that evidence to the House, rather than make these allegations. I hope that he will agree that his permanent secretary must be encouraged to clarify these issues as soon as possible today.

The right hon. Gentleman has chosen today to freeze BSF and to ask one of the Prime Minister’s old university chums to review the whole programme. He has offered no assurance that this review is anything more than a fig leaf, however. Is it not the truth that 750 schools that have not yet signed their contracts will now be told that they will not get their new school building? We need to know how many schools will be affected, where they are, and how much money has already been spent on those programmes. Is it correct, as the Financial Times reports, that more than £1 billion-worth of new undertakings have been signed since the general election? Does the right hon. Gentleman have an estimate of how much his Department will now have to pay in legal and contractual costs associated with those frozen or cancelled contracts? How many private sector jobs does he think will be lost as a result of these decisions?

The Secretary of State says that this decision is inevitable. That is what Ramsay MacDonald said in 1931, and Margaret Thatcher said to the House in 1980 about investment spending cuts. Only a few weeks ago, the Chancellor of the Exchequer told the House in the Budget statement that

“an error was made in the early 1990s when the then Government cut capital spending”

and said that he had decided that there

“will be no further reductions in capital spending totals”.—[Official Report, 22 June 2010; Vol. 512, c. 170.]

Is it not the truth that, while I won my battles with the Treasury for rising education spending, the Secretary of State has lost his battle and is now planning cuts of between 10% to 20% to the schools budget? Will he also confirm that his top priority for the spending review will be his free-market schools policy, which will see new schools being built in an unfair two-tier system paid for by cuts to the Building Schools for the Future programme and to the new schools that were promised over the past year or two in the constituencies of hon. Members on both sides of the House?

What we have seen from the coalition today is another attack on jobs, another assault on opportunities and a huge blow to the life chances of children in communities across our country. This was not an unavoidable decision; it is a choice that the right hon. Gentleman has made, and in my view, he has made the wrong choice. I say to every family, every school, every Member of Parliament and every community blighted by this decision that we on this side of the House will fight to save our new schools. We not stand idly by and see this happen.

[Michael Gove]

I am grateful to the shadow Secretary of State for his questions. As I pointed out in my statement, the number of schools rebuilt under Building Schools for the Future under the previous Government was just 96 out of 3,500 secondary schools. Under this Government, 706 projects will go ahead. It is also the case, as he said, that we know where those school projects are. As hon. Members will know, projects will go ahead in those local authorities that have reached financial close, and I presume that they will know whether their local authority has reached that stage. Every single one of the school projects that is to go ahead will be listed, and every Member of the House and every local authority is being written to today to be told which projects are going ahead—[Interruption.] The Opposition will appreciate that, with more than 1,500 projects involved, many of them needed to be looked at in detail. That is why I will be writing to every Member of the House.

The right hon. Gentleman said that we were going to cancel free school meals. I must remind him that not a single child in receipt of free school meals will lose their free school meals under this Government. That is an unsubstantiated allegation. He also said that he predicted today’s announcement during the general election. However, during the general election, my hon. Friend the Member for Bognor Regis and Littlehampton (Mr Gibb) said that we would be looking at Building Schools for the Future, and that we could not guarantee any project beyond financial close. So there was no prediction on the part of the right hon. Gentleman, but there was a grim warning on the part of my hon. Friend that the devastating assault on the public finances over which the right hon. Gentleman helped to preside meant that tough decisions would have to be taken by anyone, whatever the result of the election.

The right hon. Gentleman argues that under the proposals, the private sector will lose out. I have to point out to him that we are sticking precisely to the limits on capital laid out by the right hon. Member for Edinburgh South West (Mr Darling). If the right hon. Member for Morley and Outwood (Ed Balls) thinks that the proposed level of capital spending is devastating for the private sector, he should have been campaigning against the last Chancellor of the Exchequer before the last election. [Interruption.] Let me rephrase that. He should have been campaigning more vigorously against the last Chancellor of the Exchequer before the last election.

The right hon. Member for Morley and Outwood says that the leadership of Teach First did not back our proposals for expansion. I have to say that our proposals for expansion were negotiated with the leadership of Teach First, who were delighted to see the Government carry forward what the previous Government were not able to do. He says that that is money wasted, and he refuses to back that expansion of Teach First. I believe that investing money in quality teaching in our poorest schools is the right choice for the future. It is interesting that he thinks it is the wrong choice. It is also interesting that the right hon. Gentleman thinks that having gone to a public school and Oxford university automatically rules someone out of making any decision about the future of school capital, in which case he is hoist by his own rhetorical petard.

Let me make it clear that if we compare the improvement in attainment between Building Schools for the Future and Teach First, a report by PricewaterhouseCoopers showed that Building Schools for the Future had little statistically significant impact on people’s attitude and behaviour and there was no firm evidence of improved attainment, whereas Teach First, in a study by the university of Manchester, has been shown to have led to a statistically significant improvement in GCSE results.

The truth is that the right hon. Gentleman made unsustainable and irresponsible promises that he knew no Government could keep. He went around the country saying that new schools would be built, when the Chancellor had pledged to cut capital spending in half. He asks about the reality of his irresponsible spending. In the three years in which he was in charge of his Department, the amount of spending that he was relying on coming from other Departments—the amount of underspend that he was relying on—rose from £80 million to £800 million and now to more than £2.5 billion. That £2.5 billion of unfunded commitments is evidence of scandalous irresponsibility.

If anyone in the House wants an example of a truly damaging decision on school building, I remind Opposition Members what the last Labour Government did with the Learning and Skills Council. Ministers invited scores of schools and colleges to submit building plans, which cost those schools and colleges millions of pounds. Ministers then arbitrarily and without warning cancelled 90% of those projects scheduled to go ahead. When those projects were cancelled, schools’ budgets were devastated and there were holes in the ground—