School Funding Formula

Debate between Robin Walker and Anne Marie Morris

Tuesday 10th March 2015 Commons Chamber

[Mr Walker]

I thank my hon. Friend the Member for Tiverton and Honiton (Neil Parish), who has always been a great champion for rural areas.

F40, the cross-party campaign formed more than 20 years ago to represent the lowest-funded areas, used to rail against a gap of hundreds of pounds in funding between rural areas and their urban areas, and in Worcestershire, local MPs spoke out against a gap that doubled during the 13 years of the previous Labour Government. Until the current year, it had never once narrowed. When the gap started, there was no justice in the fact that similar schools serving similar catchments with similar levels of deprivation on different sides of a random border could receive wildly different funding. As the gap has widened, so the challenge for schools to raise the attainment of all their pupils has become greater and the challenge to hold on to their best teachers bigger. Although the pupil premium has helped some schools in F40 areas, it has also added to the disparities by piling targeted funding for deprivation on top of the untargeted funding that went before.

[Anne Marie Morris (Newton Abbot) (Con)]

Does my hon. Friend agree that there is particular difficultly in fast-growth areas, such as Devon, where there are large distances to take children back and forth to school?

[Mr Walker]

My hon. Friend is undoubtedly right that there is a problem in fast-growth areas. As I shall explain shortly, per-pupil funding is crucial to this debate.

Small Businesses

Debate between Robin Walker and Anne Marie Morris

Thursday 28th November 2013 Commons Chamber

[Anne Marie Morris]

I would indeed. That is a very sensible suggestion and I am sure the current review will look at it.

When people start up a small business, they are concerned about mortgaging their house and having to give personal guarantees. Can we not separate the liability of the business from the home and secure it instead on the business asset? We could do that if we introduced limited liability for sole traders and reintroduced the potential for banks to take a fixed charge over book debts.

The Government have welcomed the plethora of new so-called challenger banks and new alternative lenders, but let us be clear that they need more support. We need to look at the right sort of light-touch regulation in order to make them safe funding institutions in the fabric of our society. More importantly, the Government need to ensure better communication, because businesses do not know what is out there or how to assess it.

We also need to address the issues of European Union regulation, because the micro moratorium addressed only domestic regulation. The EU red tape taskforce has identified 30 areas to be addressed, which is welcome, but more needs to be done. I would ask the UK better regulation taskforce to look not just at what we can do to encourage EU initiatives, but at how we make regulations in this country. My understanding is that most of the review looks at whether a piece of legislation will be burdensome for the SME community as a whole, without really addressing the issue of very small start-up businesses.

The Treasury has been good. It has introduced small business rate relief and extended it, and I hope it will be extended further in the Budget. It has reduced corporation tax: we are ever closer to 20% all around. Perhaps most valuable is the national insurance employers’ allowance, meaning £2,000 off the employer’s contribution. That is good news.

Again, however, more needs to be done. Business rates are one of the biggest challenges. They need to be seen as fair and transparent. A firm with a business on the high street that is not the main footfall area of the town still pays high rates, and yet the rates for an out-of-town retailer covering the same amount of square feet seems disproportionately low.

[Mr Robin Walker (Worcester) (Con)]

My hon. Friend is making an excellent and powerful speech. On business rate reform, I am sure she has heard, as I have, from local businesses that feel they would struggle without the extension of the small business rate relief that the Government have already given them. My hon. Friend has already said that she wants it to be extended, but does she agree that there needs to be more fundamental reform of the business rate system to support our small businesses?

[Anne Marie Morris]

I entirely agree with my hon. Friend that there needs to be root-and-branch reform. The whole way in which rateable value is calculated is a mystery. The rulebook has got a bit like the tax code. Why are some pubs assessed on turnover, while others are assessed on freehold or rental value? That is arcane and requires a thorough overhaul.