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IFS Report Shows Schools Face 'Cliff Edge'

Wednesday, March 22, 2017

 

 

New schools funding formula will see some schools face fresh attacks as Prime Minister finds £1 billion for her pet grammar schools scheme.

The government’s ‘flawed’ new funding formula will see the hardest hit schools facing a “financial cliff edge” in 2020, according to a new study.

A report by the Institute for Fiscal Studies (IFS) [1] suggests 1,000 schools will be forced to take a massive hit of seven per cent per pupil when ‘transitional protections’ run out.

Every school in the country faces brutal cuts under the current plan – with £74,000 set to be slashed off primary school budgets on average while secondaries stand to lose £291,000.

Protections are in place to ensure no school should see a cash terms cut of more than 3%, or 6% in real-terms, before 2019-20.

However when even these protections end, 5% of schools - an estimated 1,000 - will then have to make huge savings of more than 7% to stay in line with the new formula.

GMB, the union for schools support staff, says these savage cuts are particularly divisive at a time when Theresa May has earmarked £1 billion for her Grammar schools vanity project - as exposed by GMB. [2]

Sharon Wilde, GMB National Officer for Schools, said:

“As if every single school facing cuts from this flawed funding formula wasn’t bad enough, we now find out those hardest hit will be speeding towards a financial cliff edge.

“These so-called 'transitional protections' are so flimsy that they are barely worth the name.

"Pupils, parents - and the staff who support them - are being exposed to a brutal attack on their resources.

“GMB members – the hidden professionals in our schools' forgotten army of support staff - will be in the firing line as these cuts begin to bite.

“Justine Greening is creating a ticking time bomb – a lost generation of children whose future will be snatched away by ill-conceived ideas of austerity.

“Yet despite this funding crisis, the Prime Minister can still find £1 billion for her pet grammar schools project.”

ENDS

Contact: GMB press office on 07958 156846 or press.office@gmb.org.uk

Notes to editors

[1] ‘The short and long-run impact of the national funding formula for schools in England’ will be published on the IFS website www.ifs.org.uk

[2] Source - HMT Table 2.1: Spring Budget 2017 policy decisions, https://www.gov.uk/government/publications/spring-budget-2017-documents/spring-budget-2017

Read more: http://www.gmb.org.uk/budget-hidden-free-school-slush-fund

Budget 2017 Spending Decisions, Education (£ms)

 

 

 

 

 

 

 

(-) New spending

 

 

 

 

 

 

 

(+) New revenue take

 

 

 

 

 

 

 

 

2017-18

2018-19

2019-20

2020-21

2021-22

 

Total

16-19 Technical Education: implement Sainsbury reforms

0

-60

-115

-250

-445

 

-870

Education capital: extend free schools programme

-20

-30

-50

-280

-655

 

-1,035

Education capital: school investment

0

-130

-130

0

0

 

-260

Free school transport: expand eligibility to selective schools

0

-5

-5

-5

-5

 

-2

 

 

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