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| Version 2 | Version 3 |
|---|---|
| U-turn on school surplus clawback | U-turn on school surplus clawback |
| (10 minutes later) | |
| The government has dropped plans to have councils claw back budget surpluses from schools in England. | The government has dropped plans to have councils claw back budget surpluses from schools in England. |
| Ministers had proposed a 5% levy on excess cash held by schools - said to total £1.7bn - backdated to March. | Ministers had proposed a 5% levy on excess cash held by schools - said to total £1.7bn - backdated to March. |
| The move, put out for consultation in March and confirmed in June, angered many head teachers, whose cause was taken up by Tory leader David Cameron. | The move, put out for consultation in March and confirmed in June, angered many head teachers, whose cause was taken up by Tory leader David Cameron. |
| Now ministers have dropped the plan - but warn they may act in future if excessive surpluses are not reduced. | Now ministers have dropped the plan - but warn they may act in future if excessive surpluses are not reduced. |
| The Department for Children, Schools and Families defines an "excessive" balance as more than 5% of the budget for a secondary school and more than 8% for a primary or special school, after taking into account money committed to specific projects. | The Department for Children, Schools and Families defines an "excessive" balance as more than 5% of the budget for a secondary school and more than 8% for a primary or special school, after taking into account money committed to specific projects. |
| The proposals however would have applied to all schools with a surplus at the end of the financial year, however small. | The proposals however would have applied to all schools with a surplus at the end of the financial year, however small. |
| The local authority would have taken 5% of all these surpluses then shared out the resulting pot. | The local authority would have taken 5% of all these surpluses then shared out the resulting pot. |
| Challenging Gordon Brown on the issue at Prime Minister's Questions last week, Mr Cameron said: "Why do you think you know best how to spend this money, rather than the head teachers?" | Challenging Gordon Brown on the issue at Prime Minister's Questions last week, Mr Cameron said: "Why do you think you know best how to spend this money, rather than the head teachers?" |
| Education minister Jim Knight had suggested the retrospective element of the move alone might be dropped. | Education minister Jim Knight had suggested the retrospective element of the move alone might be dropped. |
| This aspect had caused particular annoyance, because it could have meant schools being penalised for having had a surplus months ago even if they had since spent it. | This aspect had caused particular annoyance, because it could have meant schools being penalised for having had a surplus months ago even if they had since spent it. |
| Concerns | Concerns |
| In a statement to the Commons, Mr Knight has now said his department was "absolutely right" to take action when the net revenue surplus in school balances had more than doubled since 2000. | In a statement to the Commons, Mr Knight has now said his department was "absolutely right" to take action when the net revenue surplus in school balances had more than doubled since 2000. |
| But he recognised schools' reasonable concerns. | But he recognised schools' reasonable concerns. |
| This daft idea should never have seen the light of day Lib Dem spokesman David Laws Among these were the fact that the proposal would apply to all revenue surpluses - and could include the proceeds of fundraising by parents, as well as small amounts prudently carried forward from one year to the next. | |
| "I have listened carefully, based on the responses from a range of stakeholders, and rather than proceed now we will continue to discuss these detailed concerns with schools and work with local authorities to lower excessive surplus revenue balances," he said. | "I have listened carefully, based on the responses from a range of stakeholders, and rather than proceed now we will continue to discuss these detailed concerns with schools and work with local authorities to lower excessive surplus revenue balances," he said. |
| He warned that the department would continue to monitor the overall level of surplus balances during the three years of the next spending review. | He warned that the department would continue to monitor the overall level of surplus balances during the three years of the next spending review. |
| "If the levels reported do not show a significant reduction we will come forward with further action, having resolved the technical issues, for implementation during the following spending review period," he said. | "If the levels reported do not show a significant reduction we will come forward with further action, having resolved the technical issues, for implementation during the following spending review period," he said. |
| The Liberal Democrat education spokesman David Laws said: "This daft idea should never have seen the light of day. | The Liberal Democrat education spokesman David Laws said: "This daft idea should never have seen the light of day. |
| "Head teachers and governors across the country were outraged about how the clawback was set to have a devastating impact on their school budgets and could even have led to staffing cuts. | "Head teachers and governors across the country were outraged about how the clawback was set to have a devastating impact on their school budgets and could even have led to staffing cuts. |
| ¿Ministers must now come clean and accept that these proposals were wrong, and assure schools that they will not seek to resurrect them in a year's time when the row has died down." | |
| 'Disappointing' | 'Disappointing' |
| One teachers' union, the NASUWT - which has been complaining about surpluses for years - had urged the government to hold its nerve. | One teachers' union, the NASUWT - which has been complaining about surpluses for years - had urged the government to hold its nerve. |
| General secretary Chris Keates said it was "extremely disappointing" that it was putting off tackling the issue. | General secretary Chris Keates said it was "extremely disappointing" that it was putting off tackling the issue. |
| "This was never going to be a universally popular move and vociferous discontent from those with vested interests could have been anticipated," she said. | "This was never going to be a universally popular move and vociferous discontent from those with vested interests could have been anticipated," she said. |
| "Parents should now be asking why a situation has been allowed to develop where their children could actually leave their primary or secondary school without ever having received their full funding entitlement." | "Parents should now be asking why a situation has been allowed to develop where their children could actually leave their primary or secondary school without ever having received their full funding entitlement." |