2004 Spending Review

PN A1

12 July 2004

Education: Investing in excellence and opportunity

Spending on education and skills in England, which was £29 billion in 1997, is set to rise from £52 billion in 2004-05 to £64 billion in 2007-08.

UK education spending, which was 4.7 per cent of GDP in 1997 will rise to 5.6 per cent in 2007-8 – from one of the lowest in the industrialised world to amongst the best, with more money for schools, colleges and universities. Average per pupil spending will rise to at least £5,500, more than twice 1997 levels; and capital allocations within this will ensure every secondary school is refurbished or rebuilt to 21st century standards in the next 10 to 15 years.

Tackling early education and childcare will also be a priority for investment. Funds for Sure Start will rise from 2004-05 to 2007-08 by £769 million, an average annual real terms rise of 17 per cent. There will be a total of 2500 Children’s Centres by 2008.

The Secretary of State for Education and Skills, Charles Clarke said:

“Through this settlement the government is making a long-term commitment to developing education from the cradle to the grave.
“This settlement will support the reforms I announced in my five year strategy.
“It will continue the drive to achieve excellence and to narrow the gaps in attainment between schools and between pupils within individual schools. It will deliver higher participation in education beyond age 16, support wider participation in Higher Education, and will reduce the number of adults with low or no skills.
“Through this investment we will expand the number of childcare places and the extended schools programme, bringing together education, health, children's social services and childcare.”

Details

100,000 new childcare places by 2008 and a pilot to extend a free part-time early education place to 12,000 two year olds in disadvantaged areas;
1,000 more specialist schools to be designated, alongside up to 200 more academies by 2010;
Allow the expansion of the extended and full service schools programme drawing together the delivery of education, health and other services and placing the school firmly at the heart of the community;
The new deal for skills to provide a guarantee of opportunity for every adult to gain the skills for employability and to address basic literacy, numeracy and ICT skills needs;
Building on the successful first phase of Employer Training Pilots, 6 new pilot areas will launch in September 2004 in the North East, Lancashire, the Black Country, Devon and Cornwall, Cambridgeshire and West Yorkshire, now extending ETPs to a third of the country.
Per student spending levels in higher education will be maintained in real terms over the 2004 Spending Review period; and
DfES has committed to 2.5 per cent efficiency savings, reallocating resources for frontline priorities by cutting central costs and improving productivity of the education system.

Department for Education and Skills	£ million
	2004-05	2005-06	2006-07	2007-08
Resource Budget	23,860	26,708	28,108	29,708
Of which Administration Budget	267	276	269	262
Capital Budget	3,801	4,445	4,845	5,545
Total Departmental Expenditure Limit 1	27,613	31,105	32,905	35,205
Local Authority Formula Spending Share:
Education	26,402	27,963	29,863	31,663
Children’s Social Services 2	3,737	4,016	4,316	4,516
Total education (England) 3	52,023	56,529	60,122	64,000

1 Full resource budgeting basis, net of depreciation.

2 2005-06 still indicative at this stage.

3 England education measured consistent with international definitions from the UN classifications of functions of government (COFOG). Actual outturns are subject to spending decisions by local authorities. UK education and UK education and training measured consistent with international definitions from the UN classifications of functions of government (COFOG). Actual outturns are subject to spending decisions by local authorities and devolved administrations. These figures reflect HM Treasury’s latest indicative assumptions on the expenditure of local authorities and devolved administrations.

Notes to editors

Media enquiries to HM Treasury press office on 0207 270 5238

	£ million
	1996-97	2003-04	2004-05	2005-06	2006-07	2007-08
Total education spending plans in England	29,366	48,735	52,023	56,529	60,122	64,000
Total education spending plans in UK	36,421	59,510	63,195	68,134	72,292	76,796
Total UK Education spending as a % of GDP	4.7	5.3	5.4	5.5	5.5	5.6