Education: This is what Labour would do differently

After criticism from our political editor Rafael Behr that Labour's education policy was vague and indistinguishable from that of the Conservatives, the shadow education secretary Stephen Twigg responds.

1. Do you support the dramatic increase in academies seen under the coalition?
 
Labour set up the academies programme and, in government, we would continue to support academy status. However, the mistake Michael Gove makes is thinking that school standards are a simple numbers game. The sign on the school gate matters less than the quality of leadership and teaching. Labour’s academies programme was about turning round some of the toughest schools in the country. The most important thing to drive up standards is to improve the quality of teaching but Gove is allowing unqualified teachers in academies and free schools. We would end that scandal.
 
2. How would Labour’s promised “parentled academies” differ from free schools?
 
We won’t continue Gove’s free schools policy; it’s a flawed programme in which he decides where schools open, even if the local community doesn’t want them. He sets up schools in areas where there is a surplus of places, while children elsewhere struggle to find a school place. Under Labour there will be new schools led by parents, teachers and other innovative groups but they will open where they are needed and where there is real parent demand – and they will be held to the same high standards as other schools. We’ve asked David Blunkett to look into the best way to set up these parent academies.
 
3. Would Labour keep the Pupil Premium?
 
We want to keep the Pupil Premium because I support the principle of providing additional funding to pupils from lower-income backgrounds. However, one of the worries is that, as it stands, the government’s Pupil Premium is not really additional money. As many heads say, it doesn’t make up for other cuts in school budgets.
 
4. Would Labour consider removing tax breaks for private schools?
 
Private schools need to do far more to meet their charitable obligations. It can’t be enough just to help a couple of pupils; they need to consider how they play their part in raising standards in their local community. Some schools do play their part – supporting local primaries, setting up academies or providing access to specialist teaching, equipment or sports fields. If private schools don’t meet their charitable obligations, Labour will take what action is necessary.
 
5. Is Labour still committed to lowering tuition fees to a maximum of £6,000?
 
If Labour was in government now, we would lower the cap to £6,000. David Cameron’s decision to raise fees to £9,000 in 2011 was unnecessarily punitive for students. We are now looking at every possible option that would enable us to provide a fair offer for students in the next parliament and keep universities on a sound financial footing.
 
Twigg adds:
 
Education has always had a moral purpose as well as an economic one. In the 1920s, R H Tawney argued that education was one of the areas with the biggest “indefensible inequalities”. Nearly a century later, you are still far too likely to fail at school if you come from a poorer background and, in particular, if you are a white working-class boy or girl.
 
My mum grew up in the East End and, despite being bright, she left school at 15 as many girls of her generation did. She always told my sister and me that we mustn’t make the same mistake – we should go to university. I’m grateful for my teachers. Thanks to them I became the first pupil from Southgate Comprehensive to get into Oxford.
 
That is an opportunity afforded to too few pupils. For example, if you grow up in Buckinghamshire, you are ten times more likely to be offered a place at a Russell Group university than if you grow up in Barking and Dagenham. Not a single young person from Barking and Dagenham (or, indeed, from Barnsley, Swindon or Sandwell) got into Oxbridge last year.
 
Amazingly, boys who are bright but poor lag two and a half years behind their classmates from richer homes when it comes to reading ability. As well as failing pupils, we are wasting a huge pool of talent and hampering our ability to compete globally.
 
I’m angry that Gove’s changes to A-levels will hamper the chances of many state-school pupils. Cambridge University has warned that getting rid of AS-levels as a progressive qualification will “jeopardise over a decade’s progress towards fairer access”. A Labour government would drive up the quality of teaching, by expanding schemes such as Teach First, providing incentives to bright graduates to teach at challenging schools and supporting training and development through a new college of teaching.
 
We will tackle underperformance wherever we see it, providing “notices to improve” if a free school or academy is failing. We will reshape the curriculum. That includes action for the forgotten 50 per cent of young people who don’t go on to university.
 
We will create a new, gold-standard technical baccalaureate, which will include rigorous vocational courses accredited by businesses and a high-quality work placement. And we will ensure that all pupils do English and maths to the age of 18, as we know how important these are in work and in life.
 
Tawney argued that “what a wise parent would wish for their children, so the state must wish for all its children”. My mum was ambitious for my sister and me. We must have that same aspiration for all.
Schools in - children line up to return to the classroom. Photograph: Getty Images.

Stephen Twigg is shadow minister for constitutional reform and MP for Liverpool West Derby

This article first appeared in the 02 September 2013 issue of the New Statesman, Syria: The west humiliated

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Let's turn RBS into a bank for the public interest

A tarnished symbol of global finance could be remade as a network of local banks. 

The Royal Bank of Scotland has now been losing money for nine consecutive years. Today’s announcement of a further £7bn yearly loss at the publicly-owned bank is just the latest evidence that RBS is essentially unsellable. The difference this time is that the Government seems finally to have accepted that fact.

Up until now, the government had been reluctant to intervene in the running of the business, instead insisting that it will be sold back to the private sector when the time is right. But these losses come just a week after the government announced that it is abandoning plans to sell Williams & Glynn – an RBS subsidiary which has over 300 branches and £22bn of customer deposits.

After a series of expensive delays and a lack of buyer interest, the government now plans to retain Williams & Glynn within the RBS group and instead attempt to boost competition in the business lending market by granting smaller "challenger banks" access to RBS’s branch infrastructure. It also plans to provide funding to encourage small businesses to switch their accounts away from RBS.

As a major public asset, RBS should be used to help achieve wider objectives. Improving how the banking sector serves small businesses should be the top priority, and it is good to see the government start to move in this direction. But to make the most of RBS, they should be going much further.

The public stake in RBS gives us a unique opportunity to create new banking institutions that will genuinely put the interests of the UK’s small businesses first. The New Economics Foundation has proposed turning RBS into a network of local banks with a public interest mandate to serve their local area, lend to small businesses and provide universal access to banking services. If the government is serious about rebalancing the economy and meeting the needs of those who feel left behind, this is the path they should take with RBS.

Small and medium sized enterprises are the lifeblood of the UK economy, and they depend on banking services to fund investment and provide a safe place to store money. For centuries a healthy relationship between businesses and banks has been a cornerstone of UK prosperity.

However, in recent decades this relationship has broken down. Small businesses have repeatedly fallen victim to exploitative practice by the big banks, including the the mis-selling of loans and instances of deliberate asset stripping. Affected business owners have not only lost their livelihoods due to the stress of their treatment at the hands of these banks, but have also experienced family break-ups and deteriorating physical and mental health. Others have been made homeless or bankrupt.

Meanwhile, many businesses struggle to get access to the finance they need to grow and expand. Small firms have always had trouble accessing finance, but in recent decades this problem has intensified as the UK banking sector has come to be dominated by a handful of large, universal, shareholder-owned banks.

Without a focus on specific geographical areas or social objectives, these banks choose to lend to the most profitable activities, and lending to local businesses tends to be less profitable than other activities such as mortgage lending and lending to other financial institutions.

The result is that since the mid-1980s the share of lending going to non-financial businesses has been falling rapidly. Today, lending to small and medium sized businesses accounts for just 4 per cent of bank lending.

Of the relatively small amount of business lending that does occur in the UK, most is heavily concentrated in London and surrounding areas. The UK’s homogenous and highly concentrated banking sector is therefore hampering economic development, starving communities of investment and making regional imbalances worse.

The government’s plans to encourage business customers to switch away from RBS to another bank will not do much to solve this problem. With the market dominated by a small number of large shareholder-owned banks who all behave in similar ways (and who have been hit by repeated scandals), businesses do not have any real choice.

If the government were to go further and turn RBS into a network of local banks, it would be a vital first step in regenerating disenfranchised communities, rebalancing the UK’s economy and staving off any economic downturn that may be on the horizon. Evidence shows that geographically limited stakeholder banks direct a much greater proportion of their capital towards lending in the real economy. By only investing in their local area, these banks help create and retain wealth regionally rather than making existing geographic imbalances worce.

Big, deep challenges require big, deep solutions. It’s time for the government to make banking work for small businesses once again.

Laurie Macfarlane is an economist at the New Economics Foundation