Laura Sharman 25 November 2015

Spending Review: Osborne to phase out council-run schools

Spending Review: Osborne to phase out council-run schools image

Local authority-run schools will be a ‘thing of the past’, the chancellor announced in his spending review today.

George Osborne said moving control of schools away from local councils would save £600m on the Education Services Grant. He also announced the Government would phase out the ‘unfair’ school funding system, replacing it with a new national Funding Formula from 2017.

He said: ‘We will phase out the arbitrary and unfair school funding system that has systematically underfunded schools in whole swathes of the country.

‘Under the current arrangements, a child from a disadvantaged background in one school can receive half as much funding as a child in identical circumstances in another school.

‘In its place, we will introduce a new national funding formula. I commend the many MPs from all parties who have campaigned for many years to see this day come.’

Mr Osborne also pledged to deliver another 500 new free school and university technical colleges. Sixth form colleges will also be allowed to convert into academies so they no longer have to pay VAT.

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