09 May 2003
The Commons' education select committee has launched an inquiry into the row over schools funding, calling on standards minister David Miliband to explain an alleged £530m shortfall.
Chair Barry Sheerman announced that the committee would take evidence from Miliband at some point 'in the near future' as education experts attempt to track down the cash. Other witnesses invited will include representatives of local authority organisations, MPs on the committee confirmed.
Schools, local education authorities and the government are still at loggerheads. Councils claim the government's new grant funding formula for local authorities, introduced this year, left them with big education losses; Miliband and Education Secretary Charles Clarke have accused authorities of hoarding cash increases.
Head teachers this week threatened further cuts in services, or teacher redundancies, unless they receive more funding during the current financial year.
Clarke published a government study into the fiasco on May 2. Drawing on councils' budget submissions to the Department for Education and Skills for 2003/04, he stood by his assertion that local education authorities, and not Whitehall, were to blame. But he tempered his criticism by claiming 'there may be good reasons' why some cash had not been passed on to schools. For example, the government claims that two-thirds of LEAs are holding 'contingency' reserves of up to £100,000 that schools may not be aware of.
'The emerging pattern of spending decisions raises big questions about the money that has not yet reached schools,' Clarke said.
Speaking on May 7, Miliband added: 'We have never said that LEAs are holding cash back – we have always said that there is around £530m that has not yet been allocated to schools.'
But David Hart, leader of the National Association of Head Teachers, said at the association's national conference that all parties now needed to address the 'disastrous' impact on schools.
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