The profit motive won’t improve our schools

There is no evidence that commercial companies would improve results.

In a report published yesterday, former Cameron advisor James O’Shaughnessy identified an important problem. The conversion of thousands of schools into academies – which are free from local authority control – has left a vacuum with nobody to oversee school improvement at a local level. Michael Gove is finding that he cannot reliably monitor thousands of individual schools from his office in Whitehall. In the words of the report, this centralised system is "simply not viable" as a strategy for improving schools.

O’Shaughnessy’s first answer is for underperforming schools to be forced into academy chains. These are groups of schools that operate under an umbrella organisation which can monitor their performance and help them improve. There is some merit in this idea as many academy chains have proven to be successful at improving schools. Indeed it already happens to a large extent with failing schools – the report is just recommending an expansion of this approach to include schools that are mediocre, rather than plain bad.

O’Shaughnessy’s second answer is much more problematic. He argues that for-profit providers are best placed to take over the running of these schools and chains. According to him, only private companies – driven by the desire to make a profit – will have an incentive to turn around these schools. Without them the system will not be able to do the job.

There are good reasons why new providers can help our schools to improve – but they don’t have to be commercial companies. England already has a vibrant charitable independent sector and there is no shortage of organisations – like Harris and Ark – who are prepared to run our schools on a not-for-profit basis. Indeed academy chains in England are expanding at a far faster rate than the US.

Neither is there international evidence that commercial companies will improve results. As a recent IPPR report showed, profit-making companies have been brought in to run schools in Chile, Sweden and the US with little impact on standards.

Rather than turning to tired and unproven ideas around the power of the private sector, the government should adopt a different strategy for improving schools based on world class systems such as Canada and Finland. These countries can teach England three lessons on how to improve schools.

First, they rely on building the capacity of their teaching profession. In Finland, teachers are drawn from the top third of graduates, and those who work with the toughest children have masters degrees. In England, the government has taken the opposite approach – deregulating the sector and giving schools the freedom to recruit people who haven’t even qualified or trained as a teacher.

Second, these countries place schools in clusters where they collaborate with each other - sharing the best teachers, observing each other’s performance, spreading good practice and challenging each other to do improve. This sort of collaboration is hard to foster in the sort of market advocated by O’Shaughnessy - where companies have an incentive to compete for profit and market share rather than work together.  

Third, these countries all have structures in place to monitor the performance of schools and drive improvement at the local level. In Canada, school superintendents help to spot problems early and help tackle them before they escalate – they don’t leave it for distant bodies such as Ofsted or government ministers to do. O’Shaughnessy acknowledges the importance of this function in his report – and calls for a local schools commissioner to fill the role. But under his model this job would be put out to tender so that any organisation – public or private – would be responsible for assessing whether schools should be forced to change management. A far better model would be for school commissioners to be separate but accountable to local authorities, as IPPR had argued.

O’Shaughnessy's report has exposed a gap at the heart of the government’s school improvement agenda. The academies programme has created thousands of individual schools with little oversight or support to improve. Rather than putting his faith in commercial companies to provide the answer, Michael Gove should adopt a strategy that builds the capacity of the teaching profession, fosters collaboration between schools, and holds them to account for their performance through more democratic means.

Jonathan Clifton is a senior research fellow at IPPR. Follow him on Twitter: @jp_clifton

Michael Gove has said that for-profit schools "could" be introduced under a future Conservative government. Photograph: Getty Images.

Jonathan Clifton is a senior research fellow at IPPR.

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Owen Smith promises to be a "cold-eyed revolutionary" - but tiptoes round Brexit

The Labour leader challenger takes Jeremy Corbyn on at his own anti-austerity game. 

Owen Smith may be challenging Jeremy Corbyn for the Labour leadership but it seems he has learnt a thing or two from his former boss. 

One year on from abstaining from the Tory Welfare Bill - a decision he now says he regrets - Smith attacked the former Chancellor George Osborne’s austerity policies from Orgreave, a former steel plant which was pivotal during the miners’ strike.  

Listing frustrations from library cuts to delayed trains, Smith declared: “Behind all of these frustrations is one cause – austerity.”

Borrowing the rhetoric that served Corbyn so well, he banged the drum about pay, labour rights and fair taxes. 

Indeed, a spokesman from Jeremy for Labour popped up to say as much: “We welcome Owen’s focus on equality of outcome, reindustrialisation and workers' rights - and his support for policies announced in recent months by Jeremy Corbyn and John McDonnell.”

On policy, though, Smith showed a touch of his own. 

His description of the Department for Work and Pensions as “a byword for cruelty and insecurity” resonates with the deep fear many benefit claimants feel for this faceless but all powerful authority. His promise to scrap it will not go unnoticed.

Another promise, to end the public sector pay freeze, is timely given widespread expectations that withdrawing from the EU’s single market will push up prices. 

He also appealed to the unions with a pledge to scrap the “vicious and vindictive” Trade Union Act. 

The policies may be Corbynite, but where Smith stands out is his determination to be specific and practical. He is selling himself as the Corbyn who actually gets things done. Asked about what he would replace zero-hours contracts with, he responded: "Well it could be one [hour]. But it can't be zero."

As he concluded his speech, he promised “revolution” but continued:

“Not some misty eyed romanticism about a revolution to overthrow capitalism.

“But a cold-eyed, practical, socialist revolution, through a radical Labour Government that puts in place the laws and the levers that can genuinely even things up.”

Smith’s speech, though, steered clear of grappling with the big issues of Brexit. He stands in favour of a second referendum on the Brexit deal, which may appease Labour's inner city voters but could frustrate others who voted Leave.

On the free movement of people – widely viewed as a dividing line between Labour’s Corbynite members and the wider voting population - he has been vague. He has previously expressed support for the "progressive case against freedom of movement" and criticised Corbyn for failing to understand patriotism. But this is not the same as drawing up policy. Whether he can come up with strong views on immigration and still appeal to both voter bases will be his biggest challenge of all. 

Owen Smith's 20 policies

1.      A pledge to focus on equality of outcome, not equality of opportunity 
2.      Scrapping the DWP and replacing it with a Ministry for Labour and a Department for Social Security
3.      Introducing modern wages councils for hotel, shop and care workers to strengthen terms and conditions
4.      Banning zero hour contracts
5.      Ending the public sector pay freeze
6.      Extending the right to information and consultation to cover all workplaces with more than 50 employees
7.      Ensuring workers’ representation on remuneration committees
8.      Repealing the Trade Union Act
9.      Increase spending on the NHS by 4 per cent in real-terms in every year of the next parliament
10.  Commit to bringing NHS funding up to the European average within the first term of a Labour Government
11.  Greater spending on schools and libraries
12.  Re-instate the 50p top rate of income tax
13.  Reverse the reductions in Corporation Tax due to take place over the next four years
14.  Reverse cuts to Inheritance Tax announced in the Summer Budget
15.  Reverse cuts to Capital Gains Tax announced in the Summer Budget
16.  Introduce a new wealth Tax on the top 1 per cent earners
17.  A British New Deal unveiling £200bn of investment over five years
18.  A commitment to invest tens of billions in the North of England, and to bring forward High Speed 3
19.  A pledge to build 300,000 homes in every year of the next parliament – 1.5 million over five years
20.  Ending the scandal of fuel poverty by investing in efficient energy