It's time to hold ministers to account for their waste of public money, starting with Gove

The mass expansion of academies and free schools, regardless of need, shows the incompetence and extravagance of the Education Secretary.

All eyes are fixed on decisions about the level of public spending in the Spending Review later this month. But how well - not just how much – public money is spent is an equally essential part of sound government finances.   

The Chancellor’s obsession with the politics of austerity and spending cuts means he is overlooking waste, inefficiency and ineffectiveness across government. Labour should make value-for-money central to its Spending Review response and to its alternative for government. We must expose every department to the full force of a value-for-money strip search starting with the inefficiency, incompetence and extravagance of the Education Secretary.

After three years, the evidence on cost simply doesn’t support the government’s flagship policy of mass academies. The independent Academies Commission, in the most in-depth study of the academies and free schools programme so far, found substantial progress among many Labour-era 'sponsor academies', but no marked evidence of improvement in more recent waves. My questions in Parliament have revealed that none of the free schools inspected by Ofsted have been classed as 'outstanding', and a third have been judged as 'requires improvement'. So not only is an academy no quick fix, it is often no fix at all. And it certainly can’t be used as the only answer for under-performing schools.

But the financial performance of policy also demands close scrutiny. Publicly-funded education must come with a guarantee that the public pound is being well spent and that government, parents and pupils are getting good value for money. This is not currently the case.

After axeing investment in the re-build of 735 schools under Labour’s Building Schools for the Future programme in 2010, it took Michael Gove another two years to identify 261 schools he judged in need of the most urgent repairs. Even by the end of this year, 18 months later, building work will still not have started on over 90 per cent of these school projects.

Meanwhile, money has been made immediately and plentifully available for free schools. We face a crisis in school places, with a quarter of a million more needed by the start of the 2014 school year. Yet evidence suggests new free schools are not all being targeted at the areas that most need school places. More than half of the first wave were opened in the country's least deprived areas and recent research by the National Union of Teachers has suggested that millions of pounds are being wasted on new free schools in areas that already have excess places. Such decisions fail the test of good public policy and good public spending.

The government’s ten-fold expansion of academies and free schools brings other value-for-money risks. Academies and free schools receive more direct public money but they have less financial accountability. It is harder to follow the public pound through the system and this can lead to misuse of public money. Examples of malpractice are growing.

The head of the second largest academy provider E-ACT recently stood down after serious concerns were raised about financial irregularities and extravagance. Before that, the CEO of the Priory Federation of Academies Trust was forced to resign after siphoning off school funds. Lax controls and light-touch reporting requirements add to the risk that public money may be misspent in free schools and academies.

There is also no sound control over salary escalation in the academies system, with top pay starting to spiral up. The CEOs of E-ACT and the Priory were earning £300,000 and £200,000 a year respectively when they stood down, while data from the School Workforce Census reveals that the average pay for academy and free school principals is now almost £7,000 a year higher than other school heads. No one becomes a better head or does a tougher job just because the structure of their school changes.

The National Audit Office also reports academy costs being driven up by the lack of local authority bulk purchasing power which has resulted in many schools spending more money on buying their own services such as insurance and ICT (NAO, Managing the expansion of the academies programme, p. 36) Some academy chains are outsourcing school management functions to private companies, including services from the profit-making arms of their own sponsors or academy trusts. The risks of inefficiency, profit-taking and conflicts of interest are all obvious but obscured by a lack of public reporting and almost no school-level financial data for local authority maintained schools on the one hand, and academies and free schools on the other.

This lack of transparency makes it all but impossible to know whether or not individual academies and free schools are providing value for money, especially compared to established schools that choose to remain a part of the local education authority.

If people see or suspect that public money is being misspent or failing to bring the benefits that politicians claim, they lose faith in the policy. And if the Chancellor won’t hold his cabinet colleagues to account for their waste of the public’s money, then Labour must.

Education Secretary Michael Gove leaves 10 Downing Street in central London on November 21, 2012. Photograph: Getty Images.

John Healey is the Labour MP for Wentworth and Dearne and was formerly housing minister, local government minister and financial secretary to the Treasury

John Moore
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The man who created the fake Tube sign explains why he did it

"We need to consider the fact that fake news isn't always fake news at the source," says John Moore.

"I wrote that at 8 o'clock on the evening and before midday the next day it had been read out in the Houses of Parliament."

John Moore, a 44-year-old doctor from Windsor, is describing the whirlwind process by which his social media response to Wednesday's Westminster attack became national news.

Moore used a Tube-sign generator on the evening after the attack to create a sign on a TfL Service Announcement board that read: "All terrorists are politely reminded that THIS IS LONDON and whatever you do to us we will drink tea and jolly well carry on thank you." Within three hours, it had just fifty shares. By the morning, it had accumulated 200. Yet by the afternoon, over 30,000 people had shared Moore's post, which was then read aloud on BBC Radio 4 and called a "wonderful tribute" by prime minister Theresa May, who at the time believed it was a genuine Underground sign. 

"I think you have to be very mindful of how powerful the internet is," says Moore, whose viral post was quickly debunked by social media users and then national newspapers such as the Guardian and the Sun. On Thursday, the online world split into two camps: those spreading the word that the sign was "fake news" and urging people not to share it, and those who said that it didn't matter that it was fake - the sentiment was what was important. 

Moore agrees with the latter camp. "I never claimed it was a real tube sign, I never claimed that at all," he says. "In my opinion the only fake news about that sign is that it has been reported as fake news. It was literally just how I was feeling at the time."

Moore was motivated to create and post the sign when he was struck by the "very British response" to the Westminster attack. "There was no sort of knee-jerk Islamaphobia, there was no dramatisation, it was all pretty much, I thought, very calm reporting," he says. "So my initial thought at the time was just a bit of pride in how London had reacted really." Though he saw other, real Tube signs online, he wanted to create his own in order to create a tribute that specifically epitomised the "very London" response. 

Yet though Moore insists he never claimed the sign was real, his caption on the image - which now has 100,800 shares - is arguably misleading. "Quintessentially British..." Moore wrote on his Facebook post, and agrees now that this was ambiguous. "It was meant to relate to the reaction that I saw in London in that day which I just thought was very calm and measured. What the sign was trying to do was capture the spirit I'd seen, so that's what I was actually talking about."

Not only did Moore not mean to mislead, he is actually shocked that anyone thought the sign was real. 

"I'm reasonably digitally savvy and I was extremely shocked that anyone thought it was real," he says, explaining that he thought everyone would be able to spot a fake after a "You ain't no muslim bruv" sign went viral after the Leytonstone Tube attack in 2015. "I thought this is an internet meme that people know isn't true and it's fine to do because this is a digital thing in a digital world."

Yet despite his intentions, Moore's sign has become the centre of debate about whether "nice" fake news is as problematic as that which was notoriously spread during the 2016 United States Presidential elections. Though Moore can understand this perspective, he ultimately feels as though the sentiment behind the sign makes it acceptable. 

"I use the word fake in inverted commas because I think fake implies the intention to deceive and there wasn't [any]... I think if the sentiment is ok then I think it is ok. I think if you were trying to be divisive and you were trying to stir up controversy or influence people's behaviour then perhaps I wouldn't have chosen that forum but I think when you're only expressing your own emotion, I think it's ok.

"The fact that it became so-called fake news was down to other people's interpretation and not down to the actual intention... So in many interesting ways you can see that fake news doesn't even have to originate from the source of the news."

Though Moore was initially "extremely shocked" at the reponse to his post, he says that on reflection he is "pretty proud". 

"I'm glad that other people, even the powers that be, found it an appropriate phrase to use," he says. "I also think social media is often denigrated as a source of evil and bad things in the world, but on occasion I think it can be used for very positive things. I think the vast majority of people who shared my post and liked my post have actually found the phrase and the sentiment useful to them, so I think we have to give social media a fair judgement at times and respect the fact it can be a source for good."

Amelia Tait is a technology and digital culture writer at the New Statesman.