spending on schools alissa goodman. what was in the budget? additional funding direct to schools...

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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03

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04

–0

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05

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06

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07

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1

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”


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





State spends £5,000 in 2005-06





Current spending was already planned to rise by 2007-08 by around £340





Capital spending was already planned to rise by 2007-08 by around £90





The Budget added approx. £60 per head current in 2007-08





The Budget added approx. £150 per head capital in 2010-11





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

spending on schools alissa goodman. what was in the budget? additional funding direct to schools...

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