5 key takeaways from the Autumn Statement

Schools will receive an extra £2.3 billion in each of the next two years, Chancellor Jeremy Hunt announced in the Autumn Statement, in what he called a “thank you” for the sector’s “brilliant work”.

However, there was no additional support for post-16 education and it is unclear whether schools will continue to get energy support after March.

Here is Surveyors to Education’s analysis of what the Autumn Statement means:

Additional funding for schools announced:
Schools were relative winners, receiving an additional £2.3 billion per year from next year and the year after. The Treasury said the increase brings the core school budget to £58.8 billion in 2024-25, a yearly rise of 4% and an “average cash increase for every pupil of more than £1,000 by 2024-25, compared to 2021-22”.

The Institute for Fiscal Studies think tank confirmed this means the Government will meet its manifesto promise to restore real-terms pupil funding to 2010 levels.

It is uncertain how the money will be spent. Sam Freedman, a former policy advisor to the DfE, suggests: “It will likely cover higher pay, energy and food bills, not offer exciting opportunities for school improvement” but prevent “some very bad outcomes, including substantial redundancies.”

It is currently unknown if public sector organisation will receive any support from April next year through the government’s Energy Bill Relief Scheme.

A renewed focus on education:
There has been a shift in focus onto schools by Rishi Sunak’s government and this was demonstrated in the Autumn Statement. It says: “While delivering overall spending restraint, the Government is prioritising further investment in the NHS and social care, and in schools. Supporting these two public services is the Government’s priority for public spending.”

Rhetoric around skills and post 16 but lack of investment:
The appointment of Gillian Keegan, the new Education Secretary, was supposed to be a signal of the Government’s increased focus on skills and technical education. This was referenced in the Autumn Statement by Mr Hunt: ‘Our current Education Secretary left school at 16 to become an apprentice, and knows first hand why good skills matter.’

However additional funding to support post-16 education was missing with all the extra money going to pre 16. According to Sam Freedman, spreading the £2.3 billion across pre and post 16 would not have allowed the Government to meet its manifesto pledge because they are separate streams. As a result, post-16 institutions are 15% poorer than in 2010.

Capital spending remains the same:
The Chancellor confirmed existing capital plans will be protected across the public sector. This includes capital spending in the education sector of £6.3 billion planned for 2022-23, increasing to £7 billion in 2023-24 then falling back to £6.1 billion in 2024-25.

Investing in energy efficiency:
The Chancellor referred to the £6.6 billion the Government already plans to invest in energy efficiency (part of which funds the Public Sector Decarbonisation Scheme by the Department for Business, Energy and Industrial Strategy). He announced a doubling of that investment in 2025 (the current date PSDS funding goes up to).

The key here is that this suggests decarbonisation is likely to be around for the foreseeable future. Read our decarbonisation funding blog.

Experienced chartered building surveyors for education such as S2e can advise on all aspects of schools funding. Talk to us today.

Adam Richards30 November 2022Surveyors to EducationFunding