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Mr. Laws: Why would the Government not consider allowing other schools to opt into the YPLA and out of local authority oversight?
Jim Knight: My view on such a transfer is that the academies intervention is a particular sort of intervention. It is intended to deal with circumstances in which we need to achieve a more rigorous form of government, as well as a particular form of accountability through the funding agreement, which we know has worked for academies. Other schools—from trust schools to voluntary assisted schools through to community schools—remain part of the local authority family, and it is right that they should do so. I have no proposals to alter that arrangement. Schools that are independent of local authorities will be academies, except for the few CTCs that are left.
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Amendment 339 would affect the proposals in the clause. Under the clause, the YPLA will not have the power to impose new duties on academies. It will have only the Secretary of State’s existing powers that he asks it to exercise on his behalf. As I said, it is an agency arrangement. If an academy takes the view that the YPLA is acting unreasonably in carrying out those functions, it can complain to the Secretary of State. The Secretary of State will investigate any such complaint to ensure that the YPLA is carrying out those functions on his behalf in a reasonable manner.
The agency arrangement does not change the current situation. If an academy complains that officials are behaving unreasonably, the Secretary of State will investigate the matter whether the officials are in the Department or an agency. The new arrangement will not reduce the legal remedies available to academies. If an academy is unhappy with the way it is being treated by the agency on the Secretary of State’s behalf, it will have all the potential legal remedies it needs. For example, it might think that the agency is breaching the terms of the funding agreement by failing to pay grant or that it is failing to comply with the general principles of public law.
Amendments 391 and 392 would work together to ensure that the YPLA could not enter into a funding agreement with an academy on behalf of the Secretary of State. The clause gives the YPLA the power to do that if required to do so by the Secretary of State. However, I confirm that we have no intention of requiring the YPLA to enter into funding agreements with academies. As I have said, under the new arrangements the Secretary of State will continue to carry out those functions. These proposals will mean that the way in which the Secretary of State and the YPLA work together can be flexible. We will be able to move to a lighter-touch approach if in the light of experience that seems appropriate to the Secretary of State and, crucially, to academies.
Even if we did want funding agreements to be negotiated by the YPLA in the future, by law the contracting party would still be the Secretary of State. Therefore, the Secretary of State and the Department will take an active interest in any funding agreements for the setting up of academies. The idea that the YPLA could enter into funding agreements unravels as a serious proposition because it simply acts as an agent in respect of academies’ functions.
Mr. Laws: That may be the Minister’s intention, but surely there is nothing in the Bill to stop the YPLA entering into such agreements without the Secretary of State’s agreement.
Jim Knight: My understanding is that the only academy funding agreement that can be undertaken is the one between the Secretary of State and the academy sponsor. It is therefore not possible for the YPLA to enter into such an agreement. I assure the Committee that we do not intend for there to be any reduction in the autonomy of academies through these provisions. These are simply more practical arrangements that will allow the planned expansion of the academies programme. For those reasons, I urge hon. Members not to press their amendments.
Mr. Laws: I am grateful to the Minister for his comments on amendments 391 and 392. I am a little confused about the Government’s position on this matter. I need to reflect on the Minister’s words on paper.
The Minister seemed to indicate that although the Government’s intention is to not confer on the YPLA the power to enter into academy funding agreements, that power is in the Bill. He is relying on the assumption that the YPLA will not be willing to do something that the Secretary of State disagrees with, but his other comments indicated that at some point the Government’s attitude might change on the degree to which these powers should be devolved to the YPLA. That set off alarm bells in my mind about how much openness there is here.
I will go away and reflect on these matters and perhaps speak to the Minister and his officials to ensure that I understand their intention and the reality. Perhaps if I am not satisfied, I can bring back amendments at a later stage.
However, I will, with your permission, Mr. Chope, want to press clause 74 as a whole to a Division later, because I remain unconvinced by the reasons that the Minister has given for placing the academy programme under the YPLA. I am left with the suspicion that the hon. Member for Barnsley, East and Mexborough hit on the reasons for the Government’s decision when he questioned the Minister on the matter during our evidence session on 10 March and the Minister replied:
“We would have given in to the charge of watering down the independence of academies if we had handed over their performance management and funding to local authorities.”—[Official Report, Apprenticeships, Skills, Children and Learning Public Bill Committee, 10 March 2009; c. 173, Q411.]
My impression from that statement is that the Government were nervous about being seen to be compromising the independence of the academies programme.
When we have questioned the Minister further, he has given, under some pressure and encouragement from me, some more serious reasons why the Government might want to put the academies programme under the YPLA. The two points that under some pressure he acknowledged he has concerns about are, first, the performance management of academies and, secondly, the possibility that local authorities might seek to suck back some of the autonomy that has been granted to academies because of their concern somehow to be controlling those schools. We have made it clear that we see local authorities as having a commissioning and strategic role, not a role in running the individual schools.
The second reason that the Minister gave is entirely unconvincing, because there is no reason why the Government could not place in legislation a protection for academies in respect of the freedoms that they currently enjoy, which the Government granted them. Some of them, as the hon. Member for Bognor Regis and Littlehampton said, have been rather rolled back on over the past couple of years. There is no reason why the Government could not also give a power of appeal, for example, to the schools commissioner to ensure that if academies were concerned about the activities of their local authority, they could appeal to the schools commissioner to ensure that their independence and autonomy was not compromised.
The other reason that the Minister gave, under some pressure and encouragement, was that he did not think that all local authorities could be trusted to performance manage academies. He said that that was one of the two concerns. Under further questioning, he said later—or perhaps it was as part of his speech—that a more rigorous form of government or governance was needed for academies. That is very surprising, because even today, with the expansion of the academies programme, the majority of the 23,500 schools in the country are under the performance management and strategic control of local authorities.
If the Government are really so concerned that a serious number of local authorities are not doing their job properly, one wonders why they should be given the strategic oversight of performance for all those other schools, including a very large number of schools whose performance is just as poor as that of some of the academies that the Government are now placing under the YPLA. If the Government are really so concerned about the inadequate performance management by local authorities, I do not see why the Government or perhaps even the Conservatives are not proposing the logical outcome of that concern and that process, which is to allow schools that are not impressed with their local authority to opt out of the local authority control and move under YPLA control. If the YPLA will provide such a rigorous form of governance and will be so much better at performance management, why on earth will it not be controlling the performance management of the majority of schools?
Why do the Government not draw the obvious conclusion from the concerns that they appear to have about the performance management of some local authorities, which is that they should be addressing that more vigorously and should be ensuring that the systems of inspection hold more transparently and vigorously to account those local authorities that are not performing well? A local authority that is failing its local school that has become an academy is likely to be failing other schools.
I asked the Minister where the oversight of academies would be in the south-west and he has kindly undertaken to let me know later where that will be from. However, I think that the impression was that there will be one headquarters to cover the entire south-west region. I do not know how many academies there are in the south-west at the moment, but there are probably not all that many. For example, I think that one academy, to which the Minister referred earlier, is just about to be established in Somerset.
It seems extraordinary that we are going to put in place an extra level of bureaucracy that will operate out of one centre in a huge region covering hundreds and thousands of square miles, and that such a system is expected to do a better and more efficient job at performance managing those schools than the local authorities that are on the spot and are aware of the local circumstances. For example, local authorities might pick up information from other schools to which parents might be taking their children if they are not happy with the school that is failing. It is possible and, indeed, necessary to have stronger performance management and oversight through the existing local authority system. If we are really not convinced that that is working at all, we would be far better getting rid of that tier altogether and allowing schools to opt in to some kind of YPLA—an idea that the Conservatives occasionally toy with.
In respect of academies, the Government seem to have constructed the YPLA to meet the true concerns that they have, which was indicated by the Minister’s comments to the hon. Member for Barnsley, East and Mexborough. Those comments gave the impression that the Minister’s concern is about much more than transferring academy oversight to local authorities; it is that the Government would be perceived to be undermining the autonomy of academies and that programme. As a consequence, it is a great pity that an opportunity has been missed to place the academy programme under the strategic oversight of local authorities and, as part of that process, to ensure that the job that local authorities are doing in terms of performance management for all schools is much improved. For that reason, I will be seeking a Division on clause 74 as a whole later.
Mr. Nick Gibb (Bognor Regis and Littlehampton) (Con): I listened carefully to the Minister’s response, and I am afraid that I ended up even more confused than before. He mentioned quotes that I have heard before, he has heard before, he has read before, and I have read before—for example, the quote from Dr. Moynihan, who said:
“It makes sense for the Department to have an agency to take care of academies. Clearly the Department was never meant to be a local authority”.——[Official Report, Apprenticeships, Skills, Children and Learning Public Bill Committee, 3 March 2009; c. 43, Q107.]
We can both agree with that quote, but my honest assessment of the opinion of the academy movement is that it does not believe that the YPLA is the correct body to look after academies.
It was confusing that the Minister said that the YPLA has a useful regional structure, which makes me think that the 49 buildings plus the one in Coventry, which the LSC currently occupies at a cost of £26.1 million a year, are going to be maintained and not streamlined. That will spread the people who are managing the academies between those 49 buildings, which is not a terribly efficient way of managing them.
Jim Knight: From memory, I think that currently 22 officials will move over from the Department to the YPLA. Does the hon. Gentleman have any idea about how we might spread them across 46 offices?
Mr. Gibb: I am reassured to hear that. [Interruption.] As the hon. Member for Yeovil says from a sedentary position, that is how it will start. The Minister said that the regional structure of the YPLA is a useful mechanism through which to conduct oversight of the academies, but, of course, it is the role of the federation of academies to look after academies in a regional or national way by selecting five, six, seven or ten academies within their federation to be monitored and nurtured. That is not the role of an expanding YPLA. If possible, I would like a Division on amendment 26, rather than on lead amendment 24. Amendment 26 enshrines in legislation that the objective of the YPLA is to maintain the autonomy of academies, which is an important principle.
I was also intrigued by what the Minister had to say about the powers of the Secretary of State who would maintain his power and duty to terminate funding agreements and appoint additional governors. It seems that the Department will maintain an oversight role to ensure that academies are performing well. That prompts me to ask what the YPLA will do if it does not inspect schools or oversee them, because the power to tackle underperforming academies still rests with the Secretary of State.
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Jim Knight: A good hint as to the sort of things that it would do was given by Daniel Moynihan in his evidence to the Committee. In response to my questions about the sort of issues on which he has a regular relationship with officials, he said that there is a “fair amount of traffic”, and went on to say:
“Admissions, funding and clarification on funding models, legal issues relating to academies, local discussions with local authorities and the DCSF’s role in arbitrating those discussions, so a very wide range of different issues.”——[Official Report, Apprenticeship, Skills, Children and Learning Public Bill Committee, 3 March 2009; c. 45, Q112 and 113.]
Those are the sorts of things that our officials our working with academies on, on a day-to-day basis, that I would see the YPLA doing on our behalf.
Mr. Gibb: I see that role being performed by federations of academies rather than by a Government agency.
Mr. Laws: On the hon. Gentleman’s point about federations and their role in performance management, what should happen with academies that are not part of a wider federation, or with federations that consist of only two academies? Would he be happy for a single academy to performance manage itself, or for federations of only two or three academies to do that job?
Mr. Gibb: Again, the hon. Gentleman raises an important point, but these are early stages in the academy movement, and I do not believe that we will have single academies surviving out there, in the long run, and that they will end up forming federations. An important part of the academy movement is allowing parents to have real power and choice. That is concomitant with the effectiveness of the whole policy. The pressure to raise standards will come from parents having a genuine choice of schools or academies for their children. There is not genuine choice at the moment, because there are so few good schools, and it is difficult for new academies to enter the market because of restrictions, planning laws and so on, so there is not that pressure to perform. Once parents have that genuine choice, because surplus places are being maintained, and it is easy for new entrants to come into the system, the reputation of academy federations will be absolutely key, and they will be determined to maintain and enhance their reputation. Therein lies the source for raising standards in our schools.
 
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