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

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Theresa May missed an easy opportunity on EU citizens' rights

If the UK had made a big, open and generous offer, the diplomatic picture would be very different.

It's been seven hours and 365 days...and nothing compares to EU, at least as far as negotiations go.

First David Davis abandoned "the row of the summer" by agreeing to the EU's preferred negotiating timetable. Has Theresa May done the same in guaranteeing the rights of EU citizens living here indefinitely?

Well, sort of. Although the PM has said that there have to be reciprocal arrangements for British citizens abroad, the difficulty is that because we don't have ID cards and most of our public services are paid for not out of an insurance system but out of general taxation, the issues around guaranteeing access to health, education, social security and residence are easier.

Our ability to enforce a "cut-off date" for new migrants from the European Union is also illusory, unless the government thinks it has the support in parliament and the logistical ability to roll out an ID card system by March 2019. (It doesn't.)

If you want to understand how badly the PM has managed Britain's Brexit negotiations, then the rights of the three million EU nationals living in Britain is the best place to start. The overwhelming support in the country at large for guaranteeing the rights of EU citizens, coupled with the deep unease among Conservative MPs about not doing so, meant that it was never a plausible bargaining chip. (That's before you remember that the bulk of the British diaspora in Europe lives in countries with small numbers of EU citizens living in the UK. You can't secure a good deal from Spain by upsetting the Polish government.) It just made three million people, their friends and their families nervous for a year and irritated our European partners, that's all.

If the United Kingdom had made a big, open and generous offer on citizens' rights a year ago, as Vote Leave recommended in the referendum, the diplomatic picture would be very different. (It would be better still if, again, as Vote Leave argued, we hadn't triggered Article 50, an exit mechanism designed to punish an emergent dictatorship that puts all the leverage on the EU27's side.)

As it happens, May's unforced errors in negotiations, the worsening economic picture and the tricky balancing act in the House of Commons means that Remainers can hope both for a softer exit and that they might yet convince voters that nothing compares to EU after all. (That a YouGov poll shows the number of people willing to accept EU rules in order to keep the economy going stretching to 58 per cent will only further embolden the soft Brexiteers.)

For Brexiteers, that means that if Brexit doesn't go well, they have a readymade scapegoat in the government. It means Remainers can credibly hope for a soft Brexit – or no Brexit at all. 

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to domestic and global politics.

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