Pre-Budget report: Education
In his 10th and almost certainly last pre-Budget report to MPs, the chancellor has put education at the top of his agenda.
Gordon Brown unveiled an autumn statement on the public finances that will see more money to be spent on capital infrastructure for schools.
Stakeholder Response: National Union of TeachersSteve Sinnott, general secretary of the National Union of Teachers said: "This is the best bit of news we have had since Labour came to power.
"The chancellor is to be congratulated. He has taken a significant step to achieving his target of raising levels of spending in state schools to those of private schools.
"The one third increase in capital spending for next year on schools recognises that the current improvements in buildings and equipment must be sustained.
"We must keep our levels of spending in touch with those in other industrialised countries and the challenge from India and China.
"The provision of free books to every primary age child and the additional funding direct to schools to be spent as they feel appropriate will benefit every child in the country.
"The chancellor has recognised the importance of small groups and one to one tuition in ensuring the highest achievement of our young people, including those from the most deprived backgrounds.
"This move will help ensure he achieves his target of 90 per cent of adults achieving five GCSEs by 2020 and a major improvement in adult skills.
"This investment will help schools meet the nation’s need for a highly educated population capable of responding to the demands of the 21st century.
"The Union is a member of the campaign to end child poverty and this investment in a wider context will help achieve the target of halving child poverty by 2010."
Stakeholder Response: Age Concern
A spokesman said: "To be ready for the knowledge-based economy, older workers need to be at the centre of planning for skills and education.
"While the chancellor has set education and skills as a priority, we need to see them delivered for older workers in classrooms, lecture halls and workplaces across the country.
"The chancellor is not going to achieve his own goal of 90 per cent of adults with five GCSEs or equivalent by 2020, unless he delivers help for older workers.
"Twenty-two per cent of adults who will be aged below state pension age in 2020 are already over 40 - but a third of this group are without this skill level and with current trends there is little hope that this will be changed.
"Employers and learning providers must overcome decades of entrenched ageism and offer quality training to older workers.
"Without age-based targets and incentives to drive change, we fear that the millions of low skilled adults over 40 may miss out.
"It is also important that there is enough money left over for education unrelated to workforce skills.
"Learning in retirement is linked to prolonged health and independence, with knock on benefits for health and social care budgets."
Stakeholder Response: 4 Children
Anne Longfield, chief executive at 4Children, said: "The chancellor has sent a very clear message today with his pledged investment in education and promise to improve the life chances of children in the UK.
"The extra money promised for schools is a very welcome step towards this goal.
"However, as all parents know, a child’s day does not begin and end at the school gates and more needs to be done if Gordon Brown wants to claim the title of the 'children’s chancellor'.
"With raging debate and concerns about teenagers in our society, the issue of how to provide for children within a changing society remains high and this money should be used to help turn schools into community centres for children of all ages.
"One million young people are left hanging around on the street with nothing to do every day – this is simply unacceptable in the current climate of concern about the dangers that face young people today.
"4Children also welcomes the pledge of £2,000 bursaries towards enabling looked after children to attend university.
"But this is a small drop in the ocean for these most vulnerable children. Statistics show that looked after children suffer from worse education and life chances earlier in life.
"Last year only 11 per cent of children in care attained five good GCSEs compared with 56 per cent of all children.
"This means many never achieve university places. Government needs to invest much earlier in their lives to tackle these inequalities.
"Finally the needs of the poorest families is the government’s ultimate test as persistent and powerful inequalities persist.
"We welcome the announcement of increased child benefit from April 2007 as this provides a quicker and easier support for the poorest families than child tax credits."
Stakeholder Response: CMU Universities Group
Professor Michael Driscoll, vice-chancellor of Middlesex University and chairman of CMU, said: "Vice-chancellors were informed of the response shortly after the end of the chancellor’s pre-Budget report.
"The chancellor announced that £60m would be made available for research with commercial value with effect from Spring 2007.
"However, the DfES announcement delays any reform of the RAE (the mechanism by which the bulk of research funding to universities is distributed) until 2011 and extends the transitional period until 2014.
"There has been widespread criticism of the RAE by universities because of its restricted and retrospective nature and because it has concentrated research funding in a small group of universities."
Chris Keates, general secretary of NASUWT, said: "The chancellor has a welcome track record of giving education and schools priority in his budget statements.
"We all want high quality schools and the best system of education. Funding levels are critical in securing this.
"Early reports suggest he will be focusing on upgrading the building stock.
"This is an important priority as many school buildings and resources, despite recent programmes of government expenditure, are still below standard.
"The injection of additional funds must however have no strings attached.
"Reports that in some circumstances existing monies are being released only on the basis of local authorities committing to establishing academies are disturbing and counterproductive.
"The chancellor should also focus his attention on ensuring that any funding allocated results in fit-for-purpose facilities needed to meet the 14-19 education and skills challenge for the 21st century as set out in the Leitch review.
"The chancellor should also be mindful that when he allocates funding directly to schools for specific projects, the current funding mechanisms provide no guarantee that schools will spend it on the intended purpose.
"Financial windfalls benefit no one if they sit in schools' balances for a rainy day which never materialises.
"Whilst refurbishment and rebuild are crucial, the chancellor must ensure that future funding addresses the need for teachers and headteachers to receive salary levels in the forthcoming pay round which recruit, retain and motivate.
"The significant improvements in pay levels achieved in recent years must be enhanced not eroded."
Stakeholder Response:
Commenting on the pre-Budget report
"However, the real issue for pupils, parents and teachers is how the money is spent, and who makes those decisions.
"Experience shows funding is most effective when it is spent by local communities which have the best knowledge of what is needed in their area.
"And it would be foolish to lavish more capital funds on building programmes for academies, when there is no proof that investment in these designer buildings is cost effective.
"The government’s agenda for vocational education is highly ambitious – embracing schools and colleges of further education.
"We hope the government has not neglected to set aside sufficient funding to fully accomplish this vision since there will need to be equal pay and conditions between schools and FE, plus training for both sets of staff, to successfully achieve this."
Stakeholder Response: Association of School and College Leaders
ASCL general secretary Dr John Dunford said: "We welcome the chancellor’s commitment to education spending, but will be waiting for it to be reinforced with actions.
"Investment in buildings is hugely important to allow students to get the best possible education and we are pleased that the chancellor is continuing to commit resources to this.
"However, it’s not yet clear how much of the funding is new investment or if it is money that has already been promised, but repackaged with a new ribbon.
"The Building Schools for the Future programme is making a difference to schools in some parts of the country.
"We need a commitment to continuing the process until all schools and colleges are up to scratch.
"The schools that are scheduled for BSF funding in 2012 must have reassurance that they will not lose out because there is nothing left in the pot in five years’ time.
"The chancellor has promised an increase in funding directly to front line services and we welcome this announcement.
"This is money that can be spent by those who know best how to do so - leaders of our schools and colleges.
"We will be watching carefully to make sure that school and college budgets really do rise year by year.
"The aim of raising state funding to the level of independent schools is laudable, but without a target date and proposal for getting there, it will remain nothing more than an aspiration.
"If the chancellor is committed to this, as he has said he is, he will need to introduce concrete measures and milestones.
"Equally important is fair funding in colleges, so that sixth form college funding is brought up to the level of school sixth form funding.
"To reach the targets set out in the Leitch report yesterday, much of the work, including much of the HE work, will have to be delivered by colleges and they must be fairly funded.
"The objective of having many more 16 to 19 year-olds and adults involved in education and training is right, but this will require real money to achieve."
Stakeholder Response: Institution of Engineering and Technology
The Institution of Engineering and Technology has today called on the chancellor to ensure that he backs up the commitment to skills and training in today’s Pre-Budget Report with action to support apprenticeships and the new Diplomas for 14-19 year-olds.
The IET,
Michelle Richmond, director of qualifications at the IET said: "It is vital that we do not lose sight of the fact that engineering and technology remain key skills sets for
"These objectives are core to our activities as a not-for-profit organisation focussing on training and knowledge sharing.
Michelle added: "Although the Chancellor seems to be putting skills and training at the heart of this report we were surprised that there was little detail of further support for the Diplomas or commitment to delivering Leitch’s call for 250,000 more apprenticeships.
"The IET works closely with many major employers and has recently launched a fast-track route for their apprentices and technicians to obtain the internationally recognised professional qualification, Engineering Technician.
"The IET has been closely involved in developing the Engineering Diploma which will be taught in schools from 2008 and should offer an applied learning route that will be an alternative to either the current academic and vocational routes on offer."
Stakeholder Response: The Federation of Small Business
On the Leitch review Colin Willman, FSB education chairman, commented: "Lord Leitch’s review on skills is a constructive first step towards providing businesses with the capable workforce that it needs.
"He is right to say that skills provision must be led by demand from businesses.
"The requirements of small business must be a priority because they employ 58 per cent of the private sector workforce.
"Our average member employs four people. They need bite-sized courses, based in the workplace, to avoid losing a large proportion of their workforce when only one member of staff is being trained.
"This will enable small business to train their staff and will also avoid the need for heavy-handed Government compulsion.
"The FSB’s 2006 member survey found that many employers are keen to train their staff and that:
"45 per cent of businesses responding stated they had encountered literacy or numeracy shortages amongst new staff.
"52 per cent of small businesses say that with financial incentives they would be able to pursue more training for employees.
"Wage compensation to small businesses for lost staff that are on training courses would encourage 37 per cent of small business to engage in such training.
"18 per cent of small businesses are seeking to grow through investment in staff training.
"76 per cent of small businesses undertake staff training.
"However this only takes into account formal training, all business have carried out training of a more or less formal nature in the past two years.
"The Institute argues that increasing investment in training the workforce, whether by government or employers, will not be enough to solve the UK’s skills shortages."












