A committee of MPs said that the government was attempting to remedy the problems with school funding in 2003-04 without a full knowledge of where those problems had occurred and the reasons for them.
Source: Public Expenditure: Schools' Funding, First Report (Session 2003-04), HC 112, House of Commons Education and Skills Select Committee, TSO (0870 600 5522)
Links: Report | LGA press release | Guardian report
Date: 2003-Dec
Headteachers described the school funding system as 'complex, opaque and unfair', and made recommendations for reforming it.
Source: Fairer Funding: From exasperation to entitlement, Secondary Heads Association (0116 299 1122)
Links: Report (pdf) | SHA press release
Date: 2003-Dec
A think-tank report said that children from the most disadvantaged backgrounds would gain nothing from moves in 2004-05 to guarantee schools a minimum funding rise per pupil. It argued that the 4 per cent minimum extra funding per child announced for 2004-05 would leave local education authorities no scope to direct cash at schools with the most deprived pupils.
Source: Martin Johnson, Fairer Funding for Schools?, Institute for Public Policy Research (020 7470 6100)
Links: Report (pdf) | Annex (pdf) | IPPR press release | Guardian report
Date: 2003-Nov
The government set out plans designed to 'restore stability and certainty' to school budgets over the two years 2004-05 and 2005-06. It confirmed that it would guarantee a minimum increase in funding for every school, with most schools getting more than the guarantee: a school whose pupil numbers stayed the same between 2003-04 and 2004-05 would be guaranteed a 4 per cent increase in its overall budget in 2004-05. It said it would use its statutory powers if necessary to require local education authorities to set a minimum schools budget. It confirmed the restoration of the Standards Fund, with an additional 435 million in 2004-05 and 520 million in 2005-06. In 2004-05 'targeted help' of 120 million would be available for local authorities which would otherwise have the smallest increases in support for education. Local authorities warned that a 'one-size-fits-all' funding increase for schools, regardless of local needs, carried hidden dangers.
Source: House of Commons Hansard, Debate 29 October 2003, columns 305-323, TSO (0870 600 5522) | Press release 29 October 2003, Department for Education and Skills (0870 000 2288) | Press release 29 October 2003, Local Government Association (020 7664 3000)
Links: Hansard | DfES press release | LGA press release | ATL press release | NASUWT press release | NUT press release
Date: 2003-Oct
A report for the largest teaching union warned of a 1 billion shortfall in school budgets over the three years to 2005-06. It said that mistakes made by the government in funding arrangements for 2003-04 would be exacerbated by costs arising from implementing the new teacher workload agreement and other changes. (The study examined the situation faced by schools in six authorities, chosen to give a fair balance of types of authority facing different funding conditions.)
Source: PricewaterhouseCoopers, School Budgets Study, National Union of Teachers (020 7388 6191)
Links: Report (pdf) | NUT press release | Guardian report
Date: 2003-Sep
An official bulletin provided detailed information on education and training spending in England for the financial years 1993-94 to 2001-02, together with estimated figures for 2002-03. Between 1993-94 and 2002-03, expenditure rose from 35,267 million to an estimated 44,636 million, which represented a real increase of 27 per cent.
Source: Education and Training Expenditure Since 1993-94, Statistical Bulletin 04-03, Department for Education and Skills, TSO (0870 600 5522)
Links: Bulletin (pdf)
Date: 2003-Aug
The government announced a two-year framework for school spending, which it said would start to restore 'stability and confidence' in the system, following allegations of under-funding in 2003-04. In 2004-05, every school (not just every local education authority) would be guaranteed to receive a minimum increase in funding per pupil; headteachers and governing bodies would be given more time to plan their budgets (for example, by bringing forward the dates of the local government settlement and teachers' pay award); planned cuts to the 'standards fund' for 2004-05 would be reversed, and the fund then inflation-proofed for both 2004-05 and 2005-06; and steps would be taken to ensure that spending on central items by local authorities rose no faster than spending on the individual schools budget.
Source: House of Commons Hansard, Debate 17.7.03, columns 454-472, TSO (0870 600 5522)
Links: Hansard | DfES press release
Date: 2003-Jul
The government said that responses to a consultation exercise indicated support for its plans for a new approach to capital spending on schools. A new national body would offer technical support to local partnerships of local education authorities, schools, governors and the wider community.
Source: House of Commons Hansard, Written Ministerial Statement 26.6.03, columns 47-48WS, TSO (0870 600 5522)
Links: Hansard | Consultation responses (Word file) | Consultation Document (pdf)
Date: 2003-Jun
In a row over shortfalls in 2003-04 school budgets and threatened teacher redundancies, the government blamed local education authorities in England for failing to pass on 590 million of 2003-04 funding to their schools (a claim rejected by local authorities). But it subsequently described 2003-04 as 'a unique year' because of rises in teachers' pay, national insurance and pension costs, combined with the introduction of a new funding formula: and it announced that, for one year only, schools would be allowed to use their devolved capital funding to support day-to-day running costs. Teaching unions said the measures were only a stop-gap answer to the funding crisis.
Source: Press releases 2.5.03 and 15.5.03, Department for Education and Skills (0870 000 2288) | House of Commons Hansard, Written Ministerial Statement 6.5.03, columns 24-25WS, TSO (0870 600 5522) | House of Commons Hansard, Written Ministerial Statement 15.5.03, columns 13-16WS, TSO | Press release 1.5.03, Local Government Association (020 7664 3000)
Links: DfES press release 2.5.03 | Hansard 6.5.03 | Hansard 13.5.03 | DfES press release 15.5.03 | LGA press release | ATL press release | Guardian report 3.5.03 | Guardian report 16.5.03 | Guardian report 24.5.03 | Observer special report
Date: 2003-May
The government announced an increase of 28 million in school budgets for 36 local education authorities which (for 2003-04) received the lowest increase in their 'education formula spending share' and a reduction in grant through the standards fund.
Source: Press release 26.3.03, Department for Education and Skills (0870 000 2288)
Links: Press release
Date: 2003-Mar
The government began consultation on its plans for higher capital spending on schools in England. It said that spending would be driven by plans generated locally by partnerships of local education authorities, schools, governors and the wider community. Bids would be prioritised on the basis of agreed criteria, which could include educational standards, deprivation, condition of buildings, and readiness to deliver 'step changes' in provision.
Source: Building Schools for the Future: Consultation on a new approach to capital investment, Department for Education and Skills (0845 602 2260)
Links: Consultation Document (pdf) | LGA press release
Date: 2003-Feb
An Audit Commission report said that there are systematic problems with the capital funding arrangements for schools, resulting in capital resources not being allocated to areas of greatest need. Too much funding is distributed according to the numbers of pupils, rather than more critical factors such as the age and condition of school buildings.
Source: Improving School Buildings: Asset management planning in LEAs and schools, Audit Commission (0800 502030)
Links: Report (pdf) | Report | Summary (pdf) | Briefing (pdf) | Press release
Date: 2003-Feb
