09 January 2009
By Alex Klaushofer
The recession might trigger a crisis in education funding, MPs have predicted.
In a report on the finances of the Department for Children, Schools and Families, the CSF select committee suggested that the economic downturn might stymie the government's spending plans for schools and colleges.
'Serious economic problems could undermine investment in education and related services and could prevent the government from achieving its objectives,' the report said.
It predicted that growth in the next Spending Review would be minimal 'at best', while the slowing economy could prevent private sector investors from entering into Private Finance Initiative partnerships to fund new capital projects.
The report criticised the department – set up in June 2007 – for a lack of clarity in presenting its expenditure figures, including confusion about which funding streams would pay for services and projects.
'We were greatly concerned by a lack of clarity in the presentation of some of the department's expenditure figures,' said committee chair Barry Sheerman. 'It is vital that our scrutiny is not hindered by confusion over which spending streams relate to which objectives.'
The department's efficiency savings of £4.46bn were also presented in 'broad and frankly vague terms', the report said.
David Laws, the Liberal Democrat spokesman for children, schools and families, said that the predicted squeeze 'made a mockery of Labour's promise to prioritise education and create world-class schools'.
'The government should look at axeing many of its centrally driven schemes and give more money straight to schools so that they can focus on addressing their own priorities and raising standards,' he added.
The National Union of Teachers welcomed the report. 'The select committee is right to point to the potential storm on the horizon for education spending, created by the financial crisis,' said acting general secretary Christine Blower. 'It is vital, therefore, that education funding maintains its upward trajectory so that Gordon Brown's commitment to matching spending for schools in the state sector with that of the private sector is realised.'
The government should stop giving the go-ahead to PFI projects now that their viability was in question, she added.
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