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

Photo: Getty Images
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Stella Creasy targeted for deselection

Organisers on the left believe the Walthamstow MP is the ideal target for political, personal and geographical reasons.

Stella Creasy, the high-profile MP for Walthamstow and defeated deputy Labour leadership candidate, is the first serious target of an attempt to deselect a sitting Labour MP, the New Statesman has learnt.

Creasy, who is on the right of the party, is believed to be particularly vulnerable to an attempt to replace her with an MP closer to the Labour party’s left. Her constituency, and the surrounding borough of Waltham Forest, as well as the neighbouring borough of Leyton and Wanstead, has a large number both of new members, inspired either to join or return to Labour by Jeremy Corbyn, plus a strong existing network of leftwing groupings and minor parties.

An anti-bombing demonstration outside of Creasy’s constituency offices in Walthamstow – the MP is one of around 80 members of Parliament who have yet to decide how to vote on today’s motion on airstrikes in Syria – is the latest in a series of clashes between supporters of Creasy and a series of organized leftwing campaigns.

Allies of Creasy were perturbed when Momentum, the grassroots body that represents the continuation of Corbyn’s leadership campaign, held a rally in her constituency the night of the Autumn Statement, without inviting the MP. They point out that Momentum is supposedly an outward-facing campaign supporting Jeremy Corbyn and the Labour party towards the 2020 general election and the forthcoming local and European elections. Labour holds 27 out of 27 council seats in Creasy’s constituency, while Creasy herself has a majority of 23,195 votes.

“If you look at the seat, there is nothing to win here,” said one Labour member, who believes that Momentum and other groups are planning to depose Creasy. Momentum has denied any plot to remove Creasy as the MP.

However, Creasy has come under pressure from within her local party in recent weeks over the coming vote on bombing Syria. Asim Mahmood, a Labour councilor in Creasy’s constituency, has called for any MP who votes for bombing to face a trigger ballot and reselection. Creasy hit back at Mahmood on Facebook, saying that while she remained uncertain of how to vote: “the one thing I will not do is be bullied by a sitting Walthamstow Labour councilor with the threat of deselection if I don’t do what he wants”.

Local members believe that Mahmood may be acting as the stalking horse for his sister, the current mayor of Waltham Forest, Saima Mahmud, who may be a candidate in the event of a trigger ballot against Creasy. Another possible candidate in a selection battle is Steven Saxby, a local vicar. Unite, the recognized trade union of the Anglican Communion, is a power player in internal Labour politics.

Although Creasy has kept her own counsel about the direction of the party under Corbyn, she is believed to be more vulnerable to deselection than some of the leader’s vocal critics, as her personal style has led to her being isolated in her constituency party. Creasy is believed to be no longer on speaking terms with Chris Robbins, the leader of the council, also from the right of the party.

Others fear that the moves are an attempt by Creasy’s local opponents to prepare the ground for a challenge to Creasy should the seat be redrawn following boundary changes. The mood in the local party is increasingly febrile.  The chair of the parliamentary Labour party, John Cryer, whose Leyton and Wanstead seat is next to Creasy’s constituency, is said to fear that a fundraiser featuring the shadow foreign secretary, Hilary Benn, will take an acrimonious turn. Cryer was one of just four shadow cabinet ministers to speak against airstrikes in Syria.

Stephen Bush is editor of the Staggers, the New Statesman’s political blog.