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| Version 3 | Version 4 |
|---|---|
| Labour 'could save schools £2bn' | Labour 'could save schools £2bn' |
| (about 2 hours later) | |
| Education spending could be cut by £2bn by axing thousands of senior staff and restraining pay, the schools secretary for England has indicated. | Education spending could be cut by £2bn by axing thousands of senior staff and restraining pay, the schools secretary for England has indicated. |
| Ed Balls, the first minister to suggest possible cost-cutting moves, told the Sunday Times one option was to merge comprehensives to form "federations". | Ed Balls, the first minister to suggest possible cost-cutting moves, told the Sunday Times one option was to merge comprehensives to form "federations". |
| He stressed he had no plans to increase class sizes or lose front-line staff. | He stressed he had no plans to increase class sizes or lose front-line staff. |
| Meanwhile, ministers have denied Tory claims Gordon Brown has plans for a secret income tax rise if re-elected. | Meanwhile, ministers have denied Tory claims Gordon Brown has plans for a secret income tax rise if re-elected. |
| 'Pay discipline' | 'Pay discipline' |
| In the Times interview, Mr Balls warned of post-general election pay curbs, saying: "It is going to be tougher on spending over the next few years. | In the Times interview, Mr Balls warned of post-general election pay curbs, saying: "It is going to be tougher on spending over the next few years. |
| "If we are going to keep teachers and teaching assistants on the front line that means we are going to have to be disciplined on public sector pay, including in education." | "If we are going to keep teachers and teaching assistants on the front line that means we are going to have to be disciplined on public sector pay, including in education." |
| Income tax receipts are set to rise by a third - are they asking us to believe that this is due only to recovery from recession and the 50p rate? George Osborne, shadow chancellor | Income tax receipts are set to rise by a third - are they asking us to believe that this is due only to recovery from recession and the 50p rate? George Osborne, shadow chancellor |
| He said he planned to make sure wage rises were kept low in the next three-year deal, starting in 2011. | He said he planned to make sure wage rises were kept low in the next three-year deal, starting in 2011. |
| He went on to stress there were no plans to cut the number of teachers and teaching assistants, but said reductions could be made to the number of bureaucrats and senior staff without the quality of teaching suffering. | He went on to stress there were no plans to cut the number of teachers and teaching assistants, but said reductions could be made to the number of bureaucrats and senior staff without the quality of teaching suffering. |
| Mr Balls spoke of comprehensives merging to form federations, so a head teacher and a team of deputies would work across the different schools. | Mr Balls spoke of comprehensives merging to form federations, so a head teacher and a team of deputies would work across the different schools. |
| He estimated this option could save the department about £500m a year. | He estimated this option could save the department about £500m a year. |
| Another £250m could be saved by losing about 3,000 senior school jobs, mainly through "natural wastage", he said. | Another £250m could be saved by losing about 3,000 senior school jobs, mainly through "natural wastage", he said. |
| It was also likely that more than 300 jobs in Whitehall which involve advising schools about the curriculum could go, he said. | |
| The BBC's Ross Hawkins said that for months the government had refused to say spending cuts were needed, and now the schools secretary had revealed in detail where Labour planned to make some of them. | |
| He added that it "opened the floodgates" and other ministers would be pushed during interviews to set out the exact nature of any cutbacks. | |
| 'Voters misled' | 'Voters misled' |
| Liberal Democrat education spokesman David Laws told the BBC Mr Balls' comments represented a major U-turn. | |
| "He was saying that there was a dividing line between his party and the other parties, and that they wouldn't make cuts, and he said that he was confident that they could ring fence his particular budget - even though the chancellor didn't support him at the time. | "He was saying that there was a dividing line between his party and the other parties, and that they wouldn't make cuts, and he said that he was confident that they could ring fence his particular budget - even though the chancellor didn't support him at the time. |
| "And now, extraordinarily, the first department for which the government is offering up cuts following the Brown U-turn last week is schools, which was supposed to be one of the government's top priorities." | "And now, extraordinarily, the first department for which the government is offering up cuts following the Brown U-turn last week is schools, which was supposed to be one of the government's top priorities." |
| The school secretary's comments are expected to put pressure on other ministers to announce their own cost-cutting plans, just as the government is forced to defend itself against accusations it has been planning a secret income tax rise of up to 3p. | The school secretary's comments are expected to put pressure on other ministers to announce their own cost-cutting plans, just as the government is forced to defend itself against accusations it has been planning a secret income tax rise of up to 3p. |
| The Conservatives say leaked Treasury documents show that a tax increase is being planned, accounting for an unexplained £14.8bn hike in expected income tax receipts in 2011/12. | The Conservatives say leaked Treasury documents show that a tax increase is being planned, accounting for an unexplained £14.8bn hike in expected income tax receipts in 2011/12. |
| However, the statistics were published at the time of the Budget and the Treasury minister Liam Byrne dismissed the Tory suggestion. | However, the statistics were published at the time of the Budget and the Treasury minister Liam Byrne dismissed the Tory suggestion. |
| He said the government's tax projections were public and that the jump in receipts is explained by a growing economy and the new 50p top rate of tax. | He said the government's tax projections were public and that the jump in receipts is explained by a growing economy and the new 50p top rate of tax. |
| Mr Byrne accused the shadow chancellor George Osborne of misleading voters. | Mr Byrne accused the shadow chancellor George Osborne of misleading voters. |
| Mr Osborne said: "Income tax receipts are set to rise by a third. Are they asking us to believe that this is due only to recovery from recession and the 50p rate?" | Mr Osborne said: "Income tax receipts are set to rise by a third. Are they asking us to believe that this is due only to recovery from recession and the 50p rate?" |
| Liberal Democrat economics spokesman Vince Cable said government figures were optimistic but the Tories have "put two and two together to make five". | Liberal Democrat economics spokesman Vince Cable said government figures were optimistic but the Tories have "put two and two together to make five". |