| Previous Section | Index | Home Page |
The Parliamentary Under-Secretary of State for Education and Skills (Derek Twigg): I congratulate the hon. Member for North Dorset (Mr. Walter) on securing this debate on such an important issue. It gives me an opportunity to remind all hon. Members of the record levels of investment that the Government are making in all our schools. The voluntary-aided schools—the category that most people think of as "Church" schools—are receiving their fair and proportionate share of the investment. I appreciate that we have had to make some short-term adjustments to the balance in the various elements of that programme, and I will explain why in a moment.
The capital programme for all voluntary-aided schools has increased from just above £100 million in 1996–97 to well over half a billion pounds this year—in fact, some £540 million. Voluntary-aided schools in Dorset are receiving their share of that money. Indeed, since 1997, the Department has approved major capital projects at voluntary-aided schools in Dorset with a total value in excess of £19 million.
We are aware that there are plans in parts of Dorset that may need major investment. We are announcing this week the details of the next round of bidding for the
22 Feb 2005 : Column 287
associated funding. Officials are prepared to work with the local authority and the relevant dioceses to ensure a consistent approach and consistent outcomes. I am particularly concerned that the voluntary-aided sector should not be at a disadvantage in relation to other categories of school. That is why I am keen that we reach agreement on funding for the planned reorganisation in the Blandford area. I shall say more about that shortly.
I should also set the particular issues in a wider context. The capital programme for all maintained schools has gone from a totally inadequate base of less than £700 million in 1996–97 to £5.5 billion in the coming year. That will rise to £6.3 billion in 2007–08. That is enabling us to begin a radical programme, "Building Schools for the Future", to bring every secondary school in the country up to 21st-century standards. This programme will include all schools, including those that are voluntary-aided.
I appreciate that it will be some time before Dorset schools benefit from the programme, but departmental officials are meeting local authority representatives early next month to discuss what we can do to help target the most pressing needs. More than a quarter of all local authorities are making a start with the programme now.
This increased funding also has wider benefits. Support is being provided for a more diverse range of faith schools to become voluntary-aided. They include Muslim, Greek Orthodox, and Seventh Day Adventist schools. In addition, more than £3.5 million has been provided to support the first Montessori school proposed to join the state sector.
On top of the £19 million, we have increased the amounts that we pay to individual voluntary-aided schools by way of devolved former capital grant. The amount going to schools in Dorset has increased from £419,000 in 2000–01, when the grant was introduced, to £1.6 million in the coming year.
The money enables schools to decide their specific priorities for smaller-scale investment. A typical primary school will receive £34,000 in 2007–08, compared with £12,000 when the grant was introduced five years ago. A typical secondary school will get £113,000, compared with £35,000 in 2000–01. I shall say something in a minute about the improvements that we plan to make to the way in which we pay the grant to voluntary-aided schools.
The hon. Member for North Dorset asked about another part of the capital programme for voluntary-aided schools—the local education authority co-ordinated voluntary aid programme, or LCVAP. The aim of LCVAP is to allow local decisions to be taken to prioritise need and ensure that locally agreed capital work is carried out. The sums are calculated by formula, and are normally used for medium-scale capital works, although bigger projects can be funded by spreading the costs over more than one year. The money is allocated to individual projects by partnerships between local authorities and voluntary-aided sector representatives. At present, the Department retains the money, which is then paid direct to schools.
We are aware that the voluntary-aided sector prefers to manage and prioritise work through this programme. For a number of years, the level of LCVAP has increased significantly. In Dorset, the amount has risen from some £200,000 in 1996–97 to £1.8 million in
22 Feb 2005 : Column 288
2003–04. However, pressures elsewhere in the voluntary-aided capital programme meant that although the total programme had been increasing, we had to reduce the LCVAP element from this year, to ensure that the total programme for the voluntary-aided sector was not overspent. We also had to stop approving new projects towards the end of last year.
One of the pressures on the voluntary-aided schools capital programme has been the devolved formula capital. Schools are allowed to roll their entitlement for up to three years, but the annual nature of public sector funding meant that there were difficulties in carrying forward the corresponding amounts of money.
The sector has already benefited from the money in other ways, of which extra funding through LCVAP is one, but the difficulties also coincided with the large backlog of commitments built up on the bigger projects approved in earlier years. That mainly resulted from progress on building works being slower than expected—because of unexpected increases in costs, the vagaries of the weather, or delays arising from local issues, such as securing appropriate planning permissions. A combination of those factors meant that, to ensure that we did not overspend, it became necessary to reduce LCVAP. That was the only option available to us.
The sector has generally understood that we had to do something. To resolve the problem, we have allocated additional money to the voluntary-aided capital programme for 2006–07 onwards. For the coming year of 2005–06, we have had to retain the reduced level of LCVAP, but we have announced that there will be a minimum level of LCVAP for 2006–07 and 2007–08.
We have established a voluntary-aided capital working group, with representatives from the stakeholders in the voluntary-aided sector. It now includes a representative from the Dorset local authority. At its meeting last week, the group confirmed its wish to see as much as possible being paid through LCVAP. In light of that discussion, officials are working out the details of how the voluntary-aided capital programme could be divided into various elements. We will announce the final programme to 2007–08 by the end of next month.
I fully expect that we will be able to increase LCVAP very substantially. Not only does that demonstrate our investment, it shows that we value the views of our partners in helping us to get the right balance between formulaic and targeted capital programmes that will ensure that the sector's needs are met. We are also arranging a conference in March for the major stakeholders in voluntary-aided schools, to explain to them in detail how the voluntary-aided capital programme is formed, so that they understand the parameters within which we need to work. I am sure that it will be helpful to all those involved in the process.
I understand that plans had been in place to use Dorset's share of the LCVAP programme to fund a planned reorganisation in Blandford, to which the hon. Gentleman referred. Inevitably, considerable disappointment was felt when that could not proceed as planned. Although we had suggested alternative solutions to the problem, one of the options may no longer be available. It was to use funds from an existing project in Dorset that has not been able to progress for
22 Feb 2005 : Column 289
one of the reasons that I mentioned earlier. That money is not now available because there has been a fire at the school and some immediate funding is needed.
It is therefore important that we work together to ensure that the best possible case is put forward, if it is still appropriate, for funding through our targeted capital funding route. Alternatively, those involved might think that the matter is better left until LCVAP funding is available again. That is why I have asked officials to work together with local stakeholders, as I mentioned earlier. I should also say that, as a general principle, we have also strengthened our internal processes to ensure that different outcomes do not arise for voluntary-aided schools if there is a clear link with decisions to be taken on other funding.
I will ensure that the hon. Gentleman is made aware of the outcomes of the discussions that take place between officials and those representing the local authority and the diocese. I wish to make it clear again that I understand the concerns that he has expressed about the apparent reduction in capital funding for voluntary-aided schools in his constituency. He also mentioned that my hon. Friend the Member for South Dorset (Jim Knight) had made representations to colleagues in the Department about the funding in Dorset and the implications in his constituency. However, in the bigger picture, there is no reduction, but the money has, of necessity, had to be reallocated in different ways to meet the sector's needs. As I have just mentioned, however, we are putting in even more
22 Feb 2005 : Column 290
money—another £80 million over the two years 2006–07 and 2007–08—to help to ensure that the problem does not arise again.
The debate gives me the opportunity to remind the House that in 2002, the Government introduced a major reform of the basis for funding voluntary-aided schools through one of the first orders under the Regulatory Reform Act 2001. We are building on that, together with the relevant stakeholders, and looking at the scope for simplification of the processes used to allocate and pay grant to those schools. Our aim will be to place as much responsibility for decision making and funding as possible where it should be—at local level.
For example, I mentioned earlier the devolved formula capital grant that all maintained schools receive. For the voluntary-aided sector we propose to pay that money directly to the individual schools, without the need for a claim. We are also looking at the possibility of paying all capital grant to the voluntary-aided sector in a way that is much more in line with that used for other types of schools, although that will not entail any changes to the underlying principles relating to the voluntary-aided sector. The very simple aims are to cut out any unnecessary bureaucracy in the processes and to ensure greater consistency of treatment—I am sure that we would all agree with that.
I acknowledge the problems that have occurred. I hope that I have been able to assure the hon. Gentleman that we are aware of them and are trying to arrive at solutions that will benefit Blandford in particular and Dorset in general.
| Next Section | Index | Home Page |