Academies Bill [Lords]

The amendment would require the Secretary of State to consult local parents and children, local authorities and others before making payments in respect of capital funding for any additional free school. We have been clear that we want to improve choice in education. A free school proposal will be required to demonstrate parental demand and support, and where there is such demand for a free school in an area, we will not turn down a proposal simply to protect other local schools. However, I reassure hon. Members who are concerned that money from BSF will be used to fund free schools that that is not the case. We have reallocated £50 million from the harnessing technology fund to restart the standards and diversity fund established by the previous Government in 2008 to promote new schools. That fund will provide capital funding for free schools until the end of next March. Any free school projects that require up-front capital outlay will have to demonstrate a compelling and strong value-for-money case to support the investment and provide evidence of genuine parental demand. Let me deal briefly with some of the issues that the hon. Member for Gedling (Vernon Coaker) raised. He asked how many expressions of interest had been shown in new free schools. We have not announced figures for free school applications or expressions of interest, although the New Schools Network has done so, but we have made it clear that all proposals for free schools will be published on our website. The hon. Gentleman asked about the terms of reference for the capital review, which are there for all to see on the departmental website. I shall read briefly the review's opening purpose. It is:"““To review… the department's existing capital expenditure and make recommendations on the future delivery models for capital investment for 2011-12 onwards.""The overall aim of the review is to ensure that future capital investment represents good value for money and strongly supports the Government's ambitions to reduce the deficit, raise standards and tackle disadvantage.””" The hon. Gentleman cited two of the five bullet points. The other three are:"““To evaluate the extent to which value for money has been achieved in capital expenditure to date… To review current methods of allocating capital (for example, by formula to local authorities)… To consider options for reflecting Government policies on carbon reduction””." As the hon. Gentleman said, the other two are to bring in new providers and to establish new schools. The hon. Gentleman asked about new capacity. When local authorities need to expand primary schools to accommodate demographic changes, the capital will, of course, be funded in the normal way for such basic need. He asked about the criticism of the shadow Secretary of State's stewardship of the Department's finances. We have had to deal with unrealistic and unfunded spending commitments for 2010-11, for which funding relied on under-spends through the end-year flexibility system. The hon. Gentleman asked about playing fields. We are committed to competitive sports and our new free schools will have to show that they can provide a broad and balanced curriculum and that pupils will have access to playing fields and appropriate facilities. He asked about academies' capital funding. Funding that has been itemised is currently being discussed with sponsors, and the results will be announced before the recess. My hon. Friend the Member for Portsmouth South (Mr Hancock) asked what would happen if a free school failed. We would look to support a school to try to prevent its failure. The model funding agreement has intervention powers, which would allow the Secretary of State to appoint a majority of governors to the governing body of the academy. They would look to turn around the school or terminate the funding agreement and enter into a new one. My hon. Friend the Member for Bradford East (Mr Ward) asked about the priorities for capital spending. That is exactly what the capital review is designed to investigate. My hon. Friend the Member for North Cornwall (Dan Rogerson) asked about school funding. We have been clear about the principle that academies are funded at a level that is broadly comparable to that of maintained schools in the local authority area, taking account of their additional responsibilities. We will review the future funding of academies later this year, in consultation with partners, to ensure that local authorities and academies are properly funded for their respective responsibilities. Of course, capital will be the subject of the review, the terms of reference of which I have just read out. I remind the hon. Member for Gedling that clauses 9 and 10 deal with consultation and the impact of the proposals on neighbouring schools. With those few words, I ask the hon. Gentleman to withdraw the amendment.