My Lords, my amendment is based on discussions with the Local Government Association—although, unlike almost every other noble Lord in your Lordships’ Chamber, I am not a vice-president of the LGA, despite years of endless work as a local government councillor.
My amendment, to which the noble Lord, Lord Shipley, has kindly added his name, would enable the Secretary of State to lay regulations to delegate responsibility for calculating and administering aspects of school funding to local authorities, should future government consultations on the direct national funding formula conclude that local authorities would be best placed to do so. Concerns were raised in Committee about the Government’s plan to set more than 24,000 schools’ budgets centrally from Whitehall and remove input from local authorities. School funding is complex, and local education authorities that work closely with maintained schools are very well placed to understand the unique circumstances of each school.
The Government’s own fact sheet on the implementation of the direct national funding formula recognises that there may be some instances where the Government are not able to set school budget allocations at the national level—
“for example, where this is related to specific roles and duties of local authorities, or where local authorities have better access to information that would allow them to determine the funding more accurately.”
The document goes on to say that councils may be better placed to determine certain aspects of school funding, such as additional funding for PFI schools and funding for schools with growing or falling school rolls. The approach to those aspects of funding will be consulted on in the second-stage consultation on the direct national funding formula, which is set to close in September.
As schools’ local point of contact, naturally councils have access to local education data and can work more agilely to respond to changing local circumstances than can be done from the centre. None us should underestimate the huge work involved in having a national system of funding when you are dealing with thousands upon thousands of schools. I wonder at the Government’s nous in taking on that responsibility, but of course this change means that Ministers are accountable to this House and the other place for anything to do with school funding.
I hope the Government will reconsider this measure and that, when they come to consider the results of the second-stage consultation, they will see local authorities as being a partner in the whole funding of local schools. At the very least, if the Government’s ongoing consultation concludes that councils are indeed best placed to deliver certain aspects of school funding, surely the appropriate power should be delegated to councils in order to avoid causing schools unnecessary financial difficulties as the direct national funding formula is implemented. I beg to move.