25 July 2003
Education managers are urging Whitehall officials to undertake a rigorous analysis of the school funding reforms outlined by Education Secretary Charles Clarke to ensure there is no repeat of this year's cash crisis.
Chris Waterman, executive director of the Confederation of Education Service Managers, told Public Finance this week that there needed to be an extensive modelling exercise to assess the impact of the reforms on school budgets.
Many critics have argued the funding crisis this year was caused by the introduction of Formula Spending Shares and cuts in the standards fund, and say the government did not analyse their effects when drawing up the settlement.
Waterman, whose organisation represents chief education officers, wants officials at the Department for Education and Skills to begin an 'exemplification exercise' now so that it can be completed before next year's funding settlement is decided.
'We want these changes to be modelled down to school level because that was the major failing this year,' Waterman told PF. 'We are willing to put resources into working with department officials on this over the summer.'
Waterman said the reforms were, on the whole, positive. But he added that the introduction of a minimum guaranteed increase in per pupil funding must be accompanied by some flexibility so education authorities can respond to pressures faced by individual schools.
'Treating well-off schools on the same basis as those with problems will not address the differential,' Waterman said.
Clarke told MPs on July 17 his department would reverse cuts to the standards fund, putting in an extra £800m over the next two years. He also indicated some emergency funds could be given to schools which are in dire straits this year.
In the longer term, the minimum funding increase per pupil for every school, which will be announced in November instead of January from next year, is intended to iron out budget differences between similar schools.
In future, LEAs' spending increases on centrally administered services will have to rise at the same rate as grants to schools, and will not be allowed to outstrip them.
Clarke said: 'This package is designed to secure stability, and restore confidence in our funding arrangements for schools.'
But his announcement drew a scathing response from Doug McAvoy, general secretary of the National Union of Teachers. He accused the minister of trying to evade responsibility. 'It is all to do with the education secretary's incompetence and the inadequacy of the funding,' he said. 'The mechanism used makes no difference if the money is inadequate.'
PFjul2003
