A welcome budget, but what comes next matters more

Extra funding is welcome, but the last thing colleges need is more red tape, writes Mark Taylor

Extra funding is welcome, but the last thing colleges need is more red tape, writes Mark Taylor

31 Oct 2024, 17:04

The autumn budget has been delivered following months of speculation.

The FE sector may feel as if it has been waiting a long time for the new announcements, however, when it comes to details, it is clear that there are still large gaps to be filled.

What is positive is that within the new Labour government’s focus on repairing the country’s finances, the FE sector has emerged with its coffers a little fuller, or less empty, than many might have expected. 

Given Labour’s focus on education, skills and growth, it was perhaps little surprise that there were some welcome wins for the education sector at large, although they were nowhere near as generous as some may have hoped for.

Regardless, an extra £300 million to strengthen the skills and training is not to be sniffed at. Backed up by a welcome £40 million towards foundation apprenticeships as part of the growth and skills levy, it certainly feels like the sector is getting more recognition compared to previous years. 

However, the budget does still raise questions.

Many people working in FE will be questioning how and where funding can be found to recruit school teachers, when they are already paid more than their FE peers.

Likewise, there was no end to the harsher treatment of colleges compared to schools in terms of pensions and VAT.

Time to simplify

Despite questions like these, the sector should see this budget as one of opportunity.

It is vital that we look forward to what comes next and take every opportunity to confidently work with the government to influence policy, and then implement it. 

However, the sheer amount of rules faced by the sector must be addressed in the near future to prevent FE institutions being overwhelmed by regulation.

With the Education and Skills Funding Agency moving into the Department for Education, and Skills England being given a wider remit, there is a rare opportunity to simplify the regulatory framework for colleges and create an environment that allows them to flourish. 

One way to ease this burden would be to simplify the funding process and have fewer pots of money for which colleges must bid and then be judged against.

An additional £300 million boost to capital funding for colleges is naturally welcome, but it is hoped that this promise of more cash doesn’t require the creation of another mini-industry of bid writing and auditing.

The last thing the sector needs is more red tape and an even higher administrative burden.

If talk of five-year capital budgets is true, then this would give the DfE the perfect opportunity to fund college estates over the medium term.

Doing more with more

The FE sector has received welcome positive attention over recent years in recognition of its efforts and achievements – even more so under the latest government – so it would be understandable if some people looked at this budget and came away feeling disheartened that more hasn’t been done to address some of the inequalities in the way colleges are financed and taxed.

However, it is important to remember that the national conversation is still ongoing and to focus on what the government and the sector can do to be successful with the funding given, whilst continuing to push for change where it is most urgently needed. 

In reality, making the most of what is provided is something that the sector has gained a glowing reputation for, particularly in terms of delivering quality education with significantly smaller budgets than many other areas.

What government wouldn’t want to hear that the sector could do more with (comparatively) less? FE is a sector of doers, and if colleges were more sustainably and strategically funded, they could do even more to help deliver the government’s skills and growth agenda. 

This was not a bad budget for FE. The chancellor gave some welcome nods to the benefits that colleges bring to the UK economy and recognised this through some funding allocations which were by no means a certainty in the run-up to this budget.

Access to funding and the simplification of regulation still need to be addressed, however, if our sector is to reach its full potential.

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