spending on schools alissa goodman. what was in the budget? additional funding direct to schools...
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Spending on schools
Alissa Goodman
What was in the Budget?
• Additional funding direct to schools • £270 million in 2006-07• £440 million in 2007-08• Additional cost to the Exchequer
• New capital spending • Nominal £1.6 billion increase between 2007-08 and
2010-11• Could be through public spending or PFI• Public spending element to be found w/in overall
spending envelope
• Aspiration to match today’s private per pupil funding
Capital expenditure on schools
0.0%2.5%5.0%7.5%
10.0%12.5%15.0%17.5%20.0%22.5%25.0%
97
–9
8
98
–9
9
99
–0
0
00
–0
1
01
–0
2
02
–0
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–1
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Financial year
Pe
rce
nta
ge
re
al i
ncr
ea
se
Schools (public) Schools (Public + PFI) CURRENT PLANSSchools (Public + PFI) BUDGET Average 97-98-2004-05
Matching private school spending
“Our long-term aim should be to ensure for 100 per cent of our children the
educational support now available to just 10 per cent”
Matching private school spending
2005-06 spend Extra current planned
Extra capital planned Extra current BUDGET
Extra capital BUDGET Still to be found
Private sector spends £8,000 per head in 2005-06
Matching private school spending
2005-06 spend Extra current planned
Extra capital planned Extra current BUDGET
Extra capital BUDGET Still to be found
State spends £5,000 in 2005-06
Matching private school spending
2005-06 spend Extra current planned
Extra capital planned Extra current BUDGET
Extra capital BUDGET Still to be found
Current spending was already planned to rise by 2007-08 by around £340
Matching private school spending
2005-06 spend Extra current planned
Extra capital planned Extra current BUDGET
Extra capital BUDGET Still to be found
Capital spending was already planned to rise by 2007-08 by around £90
Matching private school spending
2005-06 spend Extra current planned
Extra capital planned Extra current BUDGET
Extra capital BUDGET Still to be found
The Budget added approx. £60 per head current in 2007-08
Matching private school spending
2005-06 spend Extra current planned
Extra capital planned Extra current BUDGET
Extra capital BUDGET Still to be found
The Budget added approx. £150 per head capital in 2010-11
Matching private school spending
2005-06 spend Extra current planned
Extra capital planned Extra current BUDGET
Extra capital BUDGET Still to be found
This leaves approx. £2400 per head still to be found
How much will it cost, and how long will it take?
• How much will it cost?• Approx. £2,400 per pupil • Approx. 7.2 million pupils (in 2010-11)• £17bn additional on planned spend
• How long will it take? • 16 years: if spending remains constant %GDP (+2.25% p.a)• 7 years: if spending grows at 1996-97-2007-08 rate of 5.3% p.a.
• Based on constant pupil numbers after 2010-11• Cost less if pupil numbers continue to decline through demographic
trends• Could cost more if pupils leave private sector as differential is narrowed
• Would not “close gap” if private sector maintains differential
Conclusions
• Capital expenditure in schools to increase, but step change down in rate of increase, not up compared to first 8 years
• Brown’s aspiration to close gap between state and private sector is ambitious if it is to be achieved for current school children
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