Education Funding: Distribution

Geoffrey Clifton-Brown Excerpts

Wednesday 28th January 2026 Commons Chamber

[Pippa Heylings]

Thank you, Madam Deputy Speaker.

Everyone now needs to know what will happen to the debt in 2028 when the Government centralise the funding, as they have announced that they will. If it is not absorbed or absolved by the Government, Cambridgeshire, like many other councils, could be approaching section 114 bankruptcy territory. That is what is keeping its councillors awake at night.

[Sir Geoffrey Clifton-Brown (North Cotswolds) (Con)]

Is the hon. Lady aware of a device called the statutory override which allows local authorities not to declare a deficit in their accounts although they are still incurring a debt? As for schools funding, Gloucestershire is almost at the bottom of the league. This week we received the terrible news that one of our private schools is closing. It has been in existence for 100 years. When it closes at the end of the summer, 170 staff will lose their jobs and 324 pupils will have to find other schools. Undoubtedly, when these private schools close—and we have heard that Exeter Cathedral School will close part of its function at the end of the summer as well—some of the pupils will have to go into the state system, which will put even further pressure on it. The reason cited by the school was the 20% VAT charge, which is having an unfair effect on children in private schools.

[Pippa Heylings]

I am sorry to hear what has happened with that school, but I think we need to look, in the round, at what is happening to all schools and all school funding. I appreciate the hon. Gentleman’s mention of the statutory override, and I will come to it later in my speech.

--- Later in debate ---

[Georgia Gould]

We had to move quickly to bring extra funding into the system. Hon. Members will know that we have put an extra £1 billion into the high needs block, and we used the funding formula that was available. However, we will review that, to see whether it is in line with our reforms. We want to ensure that people get good-quality, consistent support, wherever they are in the country.

Despite the dire situation that we inherited, the Government have prioritised education spending. We have invested £1.7 billion in additional education funding in 2026-27. That is critical to support schools to give young people a positive mainstream education, but we recognise that we need to continue to work to make sure that we meet the needs of the future. We will be setting out more in the schools White Paper.

The issue of statutory override and the pressure on councils was mentioned. I am very aware of that, as I previously led a council. We need to recognise both the financial pressure on councils and the need for strong accountability for council performance. The size of the deficits that some councils are accruing may not be manageable with local resources alone, and we are going to bring forward arrangements to assist them as part of the broader SEND reforms. The Government will say more about that as part of the upcoming local government finance settlement in early February. The Government have been clear that SEND pressures will be absorbed within the overall Government departmental expenditure limit budget for 2028-29, such that the Government will not expect local authorities to need to fund SEND costs from general funds. We will set that out further in the future. I really appreciate the strength of feeling across the House and the cross-party working from everyone here.

[Sir Geoffrey Clifton-Brown]

We have already heard this evening about the difficulty of parents getting EHCPs. Even when they have got them—90% of parents who apply do eventually get them, despite the struggle—their provision is not guaranteed. The Government are spending record amounts on SEND, yet we are still not really solving the problems, so there is clearly something wrong with the system. We are eagerly awaiting the White Paper, but can we be assured that the system itself will be thoroughly examined to see how it can be overhauled?

[Georgia Gould]

I can absolutely assure the hon. Member that we are doing that work. We need to look at this issue at every level. We heard about the importance of early intervention. It is also critically important that we have strong partnerships across local authorities, schools and health, and that we look at the provision in every school and every community. The teacher training announcement was so important; our expectation is that every teacher in every school should be a teacher of young people with special educational needs and disabilities. We are also looking at the fabric of our buildings, the accountability systems and the support that is put in place.