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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Ansbach puts Europe's bravest politician under pressure

Angela Merkel must respond to a series of tragedies and criticisms of her refugee policy. 

Angela Merkel, the Chancellor of Germany, is supposed to be on holiday. Two separate attacks have put an end to that. The first, a mass shooting in Munich, was at first widely believed to be a terrorist attack, but later turned out to be the actions of a loner obsessed with US high school shootings. The second, where a man blew himself up in the town of Ansbach, caused less physical damage - three were seriously injured, but none killed. Nevertheless, this event may prove to affect even more people's lives. Because that man had come to Germany claiming to be a Syrian refugee. 

The attack came hours after a Syrian refugee murdered a pregnant Polish woman, a co-woker in a snack bar, in Reutlingen. All eyes will now be on Merkel who, more than any other European politician, is held responsible for Syrian refugees in Europe.

In 2015, when other European states were erecting barriers to keep out the million migrants and refugees marching north, Merkel kept Germany's borders open. The country has resettled 41,899 Syrians since 2013, according to the UNHCR, of which 20,067 came on humanitarian grounds and 21,832 through private sponsorship. That is twice as much as the UK has pledged to resettle by 2020. The actual number of Syrians in Germany is far higher - 90 per cent of the 102,400 Syrians applying for EU asylum in the first quarter of 2016 were registered there. 

Merkel is the bravest of Europe's politicians. Contrary to some assertions on the right, she did not invent the refugee crisis. Five years of brutal war in Syria did that. Merkel was simply the first of the continent's most prominent leaders to stop ignoring it. If Germany had not absorbed so many refugees, they would still be in central Europe and the Balkans, and we would be seeing even more pictures of starved children in informal camps than we do today. 

Equally, the problems facing Merkel now are not hers alone. These are the problems facing all of Europe's major states, whether or not they recognise them. 

Take the failed Syrian asylum seeker of Ansbach (his application was rejected but he could not be deported back to a warzone). In Germany, his application could at least be considered, and rejected. Europe as a whole has not invested in the processing centres required to determine who is a Syrian civilian, who might be a Syrian combatant and who is simply taking advantage of the black market in Syrian passports to masquerade as a refugee. 

Secondly, there is the subject of trauma. The Munich shooter appears to have had no links to Islamic State or Syria, but his act underlines the fact you do not need a grand political narrative to inflict hurt on others. Syrians who have experienced unspeakable violence either in their homeland or en route to Europe are left psychologically damaged. That is not to suggest they will turn to violence. But it is still safer to offer such people therapy than leave them to drift around Europe, unmonitored and unsupported, as other countries seem willing to do. 

Third, there is the question of lawlessness. Syrians have been blamed for everything from the Cologne attacks in January to creeping Islamist radicalisation. But apart from the fact that these reports can turn out to be overblown (two of the 58 men arrested over Cologne were Syrians), it is unclear what the alternative would be. Policies that force Syrians underground have already greatly empowered Europe's network of human traffickers and thugs.

So far, Merkel seems to be standing her ground. Her home affairs spokesman, Stephan Mayer, told the BBC that Germany had room to improve on its asylum policy, but stressed each attack was different. 

He said: "Horrible things take place in Syria. And it is the biggest humanitarian catastrophe, so it is completely wrong to blame Angela Merkel, or her refugee policies, for these incidents." Many will do, all the same.