The coalition’s free schools dilemma

Ministers can’t keep costs down, keep the profiteers out <em>and</em> get the revolutionary programm

The government's free schools programme has started with a whimper. Not so long ago, ministers were talking of new schools teaching as many as 220,000 students. Actual number of new schools now likely to open their doors this September: 16.

The Education Secretary, Michael Gove, denies that this is a disappointment. The programme was always going to start slowly, he says. Free schools are meant to snowball, with increasing numbers opening in each year between now and the election. Except . . . it's not clear that's what is going to happen at all. If something doesn't change, in fact, free schools are always going to remain a sideshow. And no one in government seems sure what to do about it.

It all comes down to buildings – or rather, the money to pay for them. The groups trying to set up free schools are for the most part composed of parents or teachers. They don't generally have a few million quid lying about with which to build a new school. This, the wonks have always said, doesn't really matter. There is no reason new schools need own a building: renting one is quite sufficient. And where there are empty classrooms in existing schools, well, why not let new schools borrow them and pay for the privilege?

The problem is, neither of these things actually seems to work. Free-school groups don't have a credit history, so no one will lease them a building. (The government has said it will guarantee such leases, but it is yet to put its money where its mouth is.) And, unsurprisingly, neither free schools nor existing comprehensives seem all that keen on shacking up together.

So, the first generation of new free schools look like it is mostly going to be set up in buildings specially purchased for the purpose, using government money. And Partnerships for Schools, a quango that until recently seemed destined for the scrapheap, has been given the job of finding them.

The impression those close to the programme give is one of blind panic, with PfS being mandated to do something, anything, to make sure the first new schools can open on schedule.

This is all fine when there are only a few projects in the pipeline. But no one thinks it'll work once there are hundreds. Apart from anything else, it's too expensive. Back in February, a BBC investigation found that one free school had been promised £15m for its new building. You don't have to be an accountant to see that the £100m set aside for the programme isn't going to go very far.

There is another option: allowing free schools to make a profit. If private companies were allowed to make money from state schools, they would have an incentive to invest their own capital. It's this that allowed the free school programme to balloon in Sweden. The British government, though, isn't going to let that happen. Even before last year's election, the Tories weren't keen on the message it sends. With the Liberal Democrats to keep happy, too, profit-making schools are now seen as a complete non-starter.

The Department for Education is trying to fudge this a little by making it harder for free school projects to qualify for government assistance. This will likely mean a shift in type of groups promoting schools, from parent and teacher groups, which can't afford buildings, to big academy chains, which can. That will make it easier for those schools that do qualify to open their doors. But it also represents a quiet acceptance that Gove's original vision, of a parent-led revolution, is never going to fly.

The government wants three things: to create enough new schools to shake up state education; to keep the profiteers out; and to keep the cost to the taxpayer down. But it can't win on all three fronts. One of them is going to have to give. And right now, it looks like the revolution will be the one to get tossed aside.

Jonn Elledge is a journalist covering politics and the public sector. He is currently editor of EducationInvestor magazine.

Jonn Elledge is the editor of the New Statesman's sister site CityMetric. He is on Twitter, far too much, as @JonnElledge.

Chuka Umunna speaks at the launch of Labour's education manifesto during the general election. Photograph: Getty Images.
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After so badly misjudging the leadership contest, how will the Blairites handle Corbyn?

The left-winger's opponents are divided between conciliation and aggression. 

When Labour lost the general election in May, the party’s modernisers sensed an opportunity. Ed Miliband, one of the most left-wing members of the shadow cabinet, had been unambiguously rejected and the Tories had achieved their first majority in 23 years. More than any other section of the party, the Blairites could claim to have foreseen such an outcome. Surely the pendulum would swing their way?

Yet now, as Labour’s leadership contest reaches its denouement, those on the right are asking themselves how they misjudged the landscape so badly. Their chosen candidate, Liz Kendall, is expected to finish a poor fourth and the party is poised to elect Jeremy Corbyn, the most left-wing leader in its 115-year history. For a faction that never ceases to underline the importance of winning elections, it will be a humbling result.

Though the crash has been sudden, the Blairites have long been in decline. Gordon Brown won the leadership unchallenged and senior figures such as John Reid, James Purnell and Alan Milburn chose to depart from the stage rather than fight on. In 2010, David Miliband, the front-runner in the leadership election, lost to his brother after stubbornly refusing to distance himself from the Iraq war and alienating undecided MPs with his imperiousness.

When the younger Miliband lost, the modernisers moved fast – too fast. “They’re behaving like family members taking jewellery off a corpse,” a rival campaign source told me on 9 May. Many Labour supporters agreed. The rush of op-eds and media interviews antagonised a membership that wanted to grieve in peace. The modernising contenders – Chuka Umunna, Liz Kendall, Mary Creagh, Tristram Hunt – gave the impression that the Blairites wanted to drown out all other voices. “It was a huge mistake for so many players from that wing of the party to be put into the field,” a shadow cabinet minister told me. “In 1994, forces from the soft left to the modernising right united around Tony Blair. The lesson is never again can we have multiple candidates.”

While conducting their post-mortem, the Blairites are grappling with the question of how to handle Corbyn. For some, the answer is simple. “There shouldn’t be an accommodation with Corbyn,” John McTernan, Blair’s former director of political operations, told me. “Corbyn is a disaster and he should be allowed to be his own disaster.” But most now adopt a more conciliatory tone. John Woodcock, the chair of Progress, told me: “If he wins, he will be the democratically elected leader and I don’t think there will be any serious attempt to actually depose him or to make it impossible for him to lead.”

Umunna, who earlier rebuked his party for “behaving like a petulant child”, has emphasised that MPs “must accept the result of our contest when it comes and support our new leader in developing an agenda that can return Labour to office”. The shadow business secretary even suggests that he would be prepared to discuss serving in Corbyn’s shadow cabinet if he changed his stances on issues such as nuclear disarmament, Nato, the EU and taxation. Were Umunna, a former leadership contender, to adopt a policy of aggression, he would risk being blamed should Corbyn fail.

Suggestions that the new parliamentary group Labour for the Common Good represents “the resistance” are therefore derided by those close to it. The organisation, which was launched by Umunna and Hunt before Corbyn’s surge, is aimed instead at ensuring the intellectual renewal that modernisers acknowledge has been absent since 2007. It will also try to unite the party’s disparate mainstream factions: the Blairites, the Brownites, the soft left, the old right and Blue Labour. The ascent of Corbyn, who has the declared support of just 15 MPs (6.5 per cent of the party), has persuaded many that they cannot afford the narcissism of small differences. “We need to start working together and not knocking lumps out of each other,” Woodcock says. There will be no defections, no SDP Mk II. “Jeremy’s supporters really underestimate how Labour to the core the modernisers are,” Pat McFadden, the shadow Europe minister, told me.

Although they will not change their party, the Blairites are also not prepared to change their views. “Those of us on this side of Labour are always accused of being willing to sell out for power,” a senior moderniser told me. “Well, we do have political principles and they’re not up for bartering.” He continued: “Jeremy Corbyn is not a moderate . . .
He’s an unreconstructed Bennite who regards the British army as morally equivalent to the IRA. I’m not working with that.”

Most MPs believe that Corbyn will fail but they are divided on when. McFadden has predicted that the left-winger “may even get a poll bounce in the short term, because he’s new and thinking differently”. A member of the shadow cabinet suggested that Labour could eventually fall to as low as 15 per cent in the polls and lose hundreds of councillors.

The challenge for the Blairites is to reboot themselves in time to appear to be an attractive alternative if and when Corbyn falters. Some draw hope from the performance of Tessa Jowell, who they still believe will win the London mayoral selection. “I’ve spoken to people who are voting enthusiastically both for Jeremy and for Tessa,” Wes Streeting, the newly elected MP for Ilford North, said. “They have both run very optimistic, hopeful, positive campaigns.”

But if Corbyn falls, it does not follow that the modernisers will rise. “The question is: how do we stop it happening again if he does go?” a senior frontbencher said. “He’s got no interest or incentive to change the voting method. We could lose nurse and end up with something worse.” If the road back to power is long for Labour, it is longest of all for the Blairites. 

George Eaton is political editor of the New Statesman.

This article first appeared in the 03 September 2015 issue of the New Statesman, Pope of the masses