Will increased funding for schools fill the budgeting black hole?

The Budget saw a flurry of funding announcements for schools from Chancellor Rachel Reeves, with £2.3 billion put on the table. However, with multi-faceted challenges to consider including the recruitment and retention of teachers, upgrades to school estates, the provision of SEND care and many pupils and students still feeling the effects of the cost-of-living crisis, the increased funds may quickly be eaten up: particularly considering the simultaneous hike in employers’ national insurance.

Without any kind of guarantee of help to support with the national insurance hike confirmed, the extra funding allocation, which also included a £300 million uplift in spending for further education on the previous year, may simply not be enough to effect real change. With investment into skills high on the national agenda, the boost to funding is welcomed, however, without clear direction or support from the government, it could quickly be cancelled out by tax rises in other areas.

Increase in SEND funding

Similarly, an extra £1 billion in funding, from the £2.3 billion total, has been allocated to improve school conditions for students with special educational needs (SEND). This funding equates to increase in real terms of 6.7 per cent compared to this year, however, in such a complex area, it may not go far enough to bring the sustainable reform required for greater success. Schools and local authority budgets are more stretched than ever when it comes to funding SEND provision, and with over 1.6 million students across England requiring specialist support, this funding could soon disappear.

Introduction of VAT on private schools

The introduction of VAT on private school fees also had its moment in the Budget. Long threatened in the run up, it has been officially put into place and is set to come into effect in January 2025. This quick turnaround is undoubtedly disappointing for many private schools, with each forced into a fast decision as to whether to pass this expense on to parents or find ways to absorb it into their budgets. Coupled with the removal of business rate relief for private schools from April 2025, this means that many schools will be stuck between a rock and a hard place, facing pressure to make a decision quickly in order to stay on the right side of the new legislation.

More importantly, whilst the Chancellor rightly focused her attention on ensuring state schools can provide top quality education, there was little acknowledgement of the unintended consequences that an influx of former private school students could bring. With many schools already facing huge capacity constraints and already full classrooms, a rapid rise in new students could serve to pile pressure onto an already difficult situation.

School safety and maintenance

Capacity constraints are further compounded by the building and maintenance challenges faced by many school estates. From crumbling, inefficient buildings to the RAAC crisis, hundreds of schools across the UK are struggling to upgrade their facilities fast enough to meet government and parent expectations. £1.4 billion of funding has been confirmed for the School Rebuilding Programme, and a further £2.1 billion announced to help with school maintenance, to pave the way for modernised estates, however, it remains to be seen whether this will be enough. With significant amounts of building work to be completed, tight deadlines and looming net zero targets to hit, schools may feel overwhelmed, and the extra funding may not stretch to encompass all these aims.

Has the Budget delivered enough?

This Budget was billed as one that would make some difficult decisions, but when it comes to the detail, there are still gaps to be filled. The tripling of breakfast club funding to £30 million, for example, is a welcome social policy, but seems like tinkering around the edges in the face of the increased tax burden.

With the immense challenge to upgrade, make safe and modernise school estates whilst simultaneously investing in staff, students and skills, school leaders must ensure that they keep abreast of any updated guidance as it comes in and seek independent advice where appropriate to maximise the opportunities this new Budget has brought in.