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Labour’s £30 billion annual spending on schools fails to boost standards

Billions of pounds channelled into schools under Labour have failed to produce a corresponding improvement in standards, the Government’s statistics agency said yesterday.

Although spending has increased by more than £30 billion a year, value for money from schools has fallen steadily and is no better than in the final years under the Conservatives, it said.

The findings by the Office for National Statistics will embarrass ministers and infuriate teachers. The Conservatives said that higher budgets had not been matched with lasting reforms and had been wasted on Whitehall bureaucracy.

Statisticians said that the cost of hiring large numbers of support staff to ease teachers’ workloads, combined with falling pupil numbers, in effect cancelled out the benefits of improved exam results. As a result, productivity growth in the education sector had been on a downward trend for eight years and last year fell to zero.

Implicit in the report is that increased spending should have led to a sustained rise in productivity and that standards in schools ought to have increased by a significantly bigger margin than they have. The authors measured productivity by comparing the cost of the education system over 12 years with the quality of its output, based on exam results plus attendance rates.

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Spending on education rose, at current prices, from £29 billion in 1996 to £63.9 billion last year — an annual rate of increase of 6.8 per cent. Although the number of teachers rose from 399,200 to 432,800, the biggest change was in support staff: numbers of teaching assistants increased from 60,600 to 181,600, and other administrative staff from 72,900 to 157,300.

The figures also reflected increased spending on goods and services, such as teaching materials, electricity and capital services, based on the rental value of buildings. Overall total “input”, in terms of more staff, goods, services and capital spending, rose by 33.3 per cent over the period, an average of 2.4 per cent a year.

The Office for National Statistics admitted that no single measure could accurately rate schools’ productivity, and its focus on GCSE results did not reflect extra support for children with special needs, broader improvements in children’s wellbeing or early years education.

Nick Gibb, the Conservative schools spokesman, said: “Huge sums of money have been spent on fortnightly initiatives and bureaucracy, which are burying teachers under a mountain of paperwork and which rarely lead to improvements in education.”