Budget 2024 – What is in store for the further education sector?

The autumn budget was delivered on Wednesday 30 October, following months of speculation. As the Labour government outlined its priorities, it’s clear that repairing the country’s finances is a central focus. Within this, the Further Education (FE) sector has emerged with, what some might consider, a financial boost. While the budget doesn’t quite meet the expectations of some sector advocates, there are nonetheless reasons to feel optimistic about the future of FE.

Labour’s commitment to education, skills, and economic growth brings some encouraging developments. An additional £300 million allocated to strengthening skills and training is a substantial step, accompanied by a further £40 million for foundation apprenticeships as part of the growth and skills levy. These contributions mark a shift, giving the sector even greater recognition than it has received in recent years.

However, the budget does still raise questions.

Many people working in FE will be questioning how and where funding can be found to recruit school teachers, when they are already paid more than their FE peers. Likewise, colleges continue to face discrepancies in pension and VAT treatment compared to schools.

Simplification is key

Despite these challenges, the sector should see this budget as one of opportunity to work alongside the government to shape and influence policies. However, the sheer amount of rules faced by the sector must be addressed in the near future to prevent FE institutions being overwhelmed by regulation.

With the Education and Skills Funding Agency moving into the Department for Education, and Skills England being given remit, there’s a rare opportunity to streamline the regulatory landscape that many colleges find overly complex.

One way to ease this burden would be to simplify the funding process, reducing the need for institutions to bid for numerous small pots of money and then meet stringent evaluation criteria.

An additional £300 million boost to capital funding for colleges is naturally welcome, but it is hoped that this promise of more cash doesn’t mean endless further rounds of applications, contracts and audits.

If talk of five-year capital budgets is true, then this could provide colleges the financial stability they need, allowing them to focus on growth rather than bureaucracy.

Making the most of limited resources

The FE sector has received welcome positive attention over recent years in recognition of its efforts and achievements with limited resources, so it would be understandable if some people looked at this budget and came away feeling disheartened that more hasn’t been done to address some of the inequalities in the way colleges are financed and taxed.

However, it is important to remember that the national conversation is still ongoing and to focus on what the government and the sector can do to be successful with the funding given, whilst continuing to push for change where it is most urgently needed.

In reality, making the most of what is provided is something that the sector has gained a glowing reputation for, particularly in terms of delivering quality education with significantly smaller budgets than many other areas.

Labour’s recent budget does reflect some recognition of FE’s contributions to the economy, though there’s room for much more. Addressing funding inequities and reducing regulatory hurdles will be essential for unlocking the sector’s full potential.

While this budget may not resolve all the sector’s long-standing concerns, it represents progress. And with continued collaboration and advocacy, there is real hope that FE can play an even more vital role in shaping a skilled, prosperous UK economy.