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School building programme scrapped in latest round of cuts

• £1bn cut from education budget and Sure Start hit
• Labour spending pledges not funded, says coalition

Read the full list of cancelled projects

Michael Gove announcing education projects worth £1bn are to be axed.
Michael Gove announcing education projects worth £1bn are to be axed. Photograph: PA

Michael Gove today cancelled Labour's school building programme, suspending projects for 715 new schools as part of the coalition's latest tranche of spending cuts, which also saw funding culled for new housing projects, school swimming pools and eco-towns.

The coalition has acknowledged for the first time that it is to target Sure Start in its austerity measures, primarily by finding underspends and reducing inefficiencies. But the Department for Education warned it would cut core funding for future Sure Start building projects as a "last resort".

The coalition government took its axe to a further £1.5bn in spending commitments, cutting £1bn from the schools budget and millions from the business department, communities and local government and the Home Office.

The announcement coincided with the education secretary's confirmation that the £55bn, 20-year Building Schools for the Future programme would be cancelled altogether. Some 706 new school buildings and services that already have contracts signed will go ahead, but 715 more will be scrapped.

Gove told the Commons that the scheme had been hit by "massive overspends, tragic delays, botched construction projects and needless bureaucracy".

He said: "There are some councils which entered the process six years ago which have only just started building new schools. Another project starting this year is three years behind schedule.

"By contrast, Hong Kong international airport, which was built on a barren rock in the South China Sea and can process 50 million passenger movements every year, took just six years to build — from start to finish."

Ed Balls, the shadow schools secretary, said: "Today is a black day for our country's schools, it is a damning indictment of this new Tory/Liberal coalition's priorities and a shameful statement from this new secretary of state."

The chief secretary to the Treasury, Danny Alexander, said he had identified £1.54bn in spending commitments made in the dying days of the Labour government that were not properly funded. They either relied on underspending in other areas across government or drawing on the reserve; money which was not ultimately available and would require further borrowing to fund. The departments involved have been told to reduce their spending accordingly this year.

The Department for Business, Innovations and Skills has been ordered to find an additional £265m in savings. A spokesman said that these had already been identified and included the loans to the Sheffield Forgemasters steel works and the automotive industry that had already been announced. The Communities and Local Government Department said that £220m previously announced for new housing will now not go ahead, but did not give details of where those cuts would fall. The Home Office will also have to find £55m.

The Department for Education said it was axing £169m worth of identified capital projects, adding that the remaining £831m would be saved by better financial controls on existing school building projects, including clawing back underspends and not allocating a £110m contingency fund. Specific projects that will be scrapped include: £24m worth of funding for co-locating services including health and social services on schools sites; £15m set aside for new swimming pools; a £2.5m schools contribution to the eco-towns initiative; £50m from a "Harnessing Technology Grant" to improve school IT; £50m from an improved IT system for social work; and £13m for the Youth Capital Fund to pay for activities for teenagers.

The Department for Education gave no figure on cuts to the Sure Start budget, but a briefing document said: "In the context of tackling the unprecedented deficit, we will need to manage down the capital expenditure from the Sure Start, Early Years and Childcare Grant (SSEYCG). We will do that by identifying savings and projected underspends in discussion with local authorities. Making cuts over and above those identified as savings and underspends will be a last resort."

Gove assured MPs in the Commons as recently as 7 June that no funding for Sure Start would be cut and that the programme would continue to expand.

A Whitehall source said the whole process of deciding how much of the Building Schools for the Future programme would be scrapped had been "bloody chaos", and that the weeks of uncertainty had cost schools, local authorities and the construction industry time and money in preparing for schemes which have now been scrapped.

"If they had decided earlier it would have saved a fortune," the source said.

Alexander said: "The reality is that these unfunded spending promises should never have been made, because the money was never there to pay for them. We did not make this mess, but we are cleaning it up."


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  • Bluejil Bluejil

    5 Jul 2010, 6:34PM

    I wish I knew misanthropy. I'm inclined to think we have become more of a police state and really don't have much say in anything, let alone a democratic process of voting and choosing who we would like as PM.

  • Mombasa1969 Mombasa1969

    5 Jul 2010, 6:35PM

    This comment has been removed by a moderator. Replies may also be deleted.
  • Turnbull2000 Turnbull2000

    5 Jul 2010, 6:36PM

    These BSF cutbacks could possibility put my own job under threat, but I'm inclined to agree that many of these new schools are poor value. But not only that, designs are often substandard and the lifespan of materials relatively short.

  • grauniadnomore grauniadnomore

    5 Jul 2010, 6:39PM

    still agree with Nick?

    rigging the electoral system
    new anti union laws
    tax breaks for the rich
    attacks on the benefit system
    Free (ha ha ha ha ha) schools run by any chancer who fancies a go

    And the Guardian and Observer support them
    how long until the only readers you have are the bizarre tories who infest cif?

  • khamsin khamsin

    5 Jul 2010, 6:41PM

    firstly we don't live in a democracy, and never have. We get to elect our dictator every 4-5 years and that is about it. The parties we choose from are not actually interested in the interests of the population just their own.

    But if you look at how pfi ppp have worked they are hugely over priced and are indebting the country for years to come. We would have been far better off if it had been done on the balance sheet rather than using accountancy tricks to reduce the deficit.

    Going forward, how can we spend money we don't have? and don't say tax the bankers, we all no no party was going to do that. Is cut spending a good idea or a bad one, not sure as i know alot of construction companies are relying on this work to keep above water, but i also know some at least knew this was going to happen 12-18 months ago. But knowing about it and being able to do anything about it in this market are very different things.

  • thecantonlighthouse thecantonlighthouse

    5 Jul 2010, 6:41PM

    So in a world where we don't make cheap t shirts and so rely on a knowledge based economy, we're cutting education, brilliant. But according to Grauniad columnist Julian Grove we've all got to shut up and put up with it. Fuck that, the country's future is being wrecked by these maniacs. There is no need fior cuts this year, repeat no need. The debt is long term and manageable. It's jobs is the only way to get out of a recession and repay debt when times are better. It is simply pointless during a recession as it'll drive down tax receipts, increase social security spending and lose jobs in the pvte sector and unemployed people don't shop much. Some body please wake us up from this nightmare and tell us it's not for real

  • outer outer

    5 Jul 2010, 6:41PM

    I'm against cutting spending on education but this programme seems to have been a very centralised and bureaucratic approach, much to politicised which Labour no doubt used to pour money into its favourite areas whilst the rest of the country, the non-marginal seats, were ignored. Best to get rid of it but it needs to be replaced with something better.

  • nattybumpo nattybumpo

    5 Jul 2010, 6:43PM

    My Mum taught me to read and write when I was three years old. A year before I started School........
    Education isn't just about shools it's about parents.
    Having said that, I do hope that no decent inspiring teachers gets sacked.
    An influencial Teacher helps to change your life....

  • Mombasa1969 Mombasa1969

    5 Jul 2010, 6:45PM

    @ Turnbull2000

    So you'll maybe have to go and get a real job then?

    The only jobs of worth in the Public Sector, are the Armed Forces, Police, NHS, Education etc...

    And even front line services there's LOADS OF WASTE, there isn't any money to pay for all of this extra crap we don't need.

  • Tree76 Tree76

    5 Jul 2010, 6:45PM

    Can't wait to see all those rabid Cif-ers cheering the loss of all those gold plated non-job......um, brickies, carpenters, electricians, plumbers, contractors and suppliers.

    I'd love to think it might start to sink in that we're all in this together, and not in a good way, but somehow, sadly, I doubt it.

  • WinningestWinner WinningestWinner

    5 Jul 2010, 6:47PM

    Hong Kong uses slave labour, from Indonesia, for it's building projects.

    They ship in thousand of immigrants, pay them £1 a day, make them work 100 hours a week, and give them no benefits, holidays or insurance.

    If you fall off some scaffolding, we'll ship you back and bring in another.

    The tories are masters at just shocking mis-use of fact, when making their examples.

    Building takes longer in Europe than Asia as they have basically, slave labour, and can treat people however they want

  • shring shring

    5 Jul 2010, 6:48PM

    I watched Michael Gove's speech in the House today.

    I couldn't quite get my head around the multiplicity of quangos and levels of bureaucracy in the BSF programme.

    Simply unbelievable.

  • nodemocracyhere nodemocracyhere

    5 Jul 2010, 6:49PM

    we can't afford a billion for new schools (of course the majority of mps wouldn't be sending their kids to these schools anyway) but we can still afford pointless wars that cost a billion every few months, or nuclear subs that cost a few billion to upgrade and keep running etc etc............

  • MrEnnui MrEnnui

    5 Jul 2010, 6:49PM

    Oh dear. Don't think I'll be designing any schools any time soon then. The engineering sector really does get it in the neck. I've already been made redundant once in the last 12 months, hopefully not again.

  • ordinaryboy ordinaryboy

    5 Jul 2010, 6:49PM

    Do we really need new school buildings to improve the standard of education in this country?
    Of course its got to be a good thing to have new school buildings but at the same time there are many incredibly poor countries around the world with very basic facilities and yet provided a very high standard of Education.
    I would say that we should focus on the standard of the curriculum and teaching methods rather than crying about how the suspension of Labour's school building programme will affect education in this country.
    A programme which has highly many issues including bureaucracy, corruption, and poor designs.

  • myfellowprisoners myfellowprisoners

    5 Jul 2010, 6:50PM

    nattybumpo
    5 Jul 2010, 6:43PM

    My Mum taught me to read and write when I was three years old. A year before I started School........
    Education isn't just about shools it's about parents.
    Having said that, I do hope that no decent inspiring teachers gets sacked.
    An influencial Teacher helps to change your life....

    An influencial teacher certainly can change your life. Shools are so important.

  • tiredgiraffe tiredgiraffe

    5 Jul 2010, 6:50PM

    My children have really benefited from the schools building programme. A very tatty old building (once an aircraft spares factory, a prefab) which was falling apart has been replaced by a brick-built, light, airy and really uplifting school

    The effect on the pupils has been remarkable. They are so proud of their school. The school has a really good head but is in a relatively deprived area; now he and the other (remarkable) teachers have a school to suit them. People are clamouring to bring their kids in.

    Not finishing the rebuilding programme is going to result in worse schools. The desperation many parents feel to get their kids into good will intensify. At least during the (awful) 80s we were all in the same boat, all suffering from underfunded schools and miserable old buildings. Now some will get the very best; others will suffer.

    Good buildings don't make for good teaching, but well-equipped schools retain the best teachers. By leaving this project half-finished, the government is creating a lower tier of education. There's going to be a big gap indeed, I fully expect, between the lucky and unlucky, in real terms, in the years ahead.

    Incidentally, our local secondary has missed out. It was already in special measures (as is the alternative school) and 23 teachers have already left. I can't quite face how bad it's going to be for my kids in the years to come.

  • Whiz76 Whiz76

    5 Jul 2010, 6:51PM

    £13million was to be spent on a new build in thurrock for a 'creative' academy. i support creative studies and education 100% but this idiot notion is not for musicians, visual or performing artists etc. it is basically a glorified NVQ assessment centre for back of house workers in tv and film ...

    £13million on THAT!!!? another brainchild of the wretched sector skills councils ...

  • TheGreatRonRafferty TheGreatRonRafferty

    5 Jul 2010, 6:51PM

    Well, at least we'll have the chance to compare current schools with those in derelict shops, offices, back-street garages, and folks houses.

    Welcome to the compassionate Tories and the compassionate ... erm ... other Tories.

  • nodemocracyhere nodemocracyhere

    5 Jul 2010, 6:51PM

    This comment has been removed by a moderator. Replies may also be deleted.
  • WinningestWinner WinningestWinner

    5 Jul 2010, 6:52PM

    The previous government committed to spending money it simply did not have, but this coalition government has taken action to address this serious situation. The decisions have not been easy, but the understanding and cooperation of my cabinet colleagues has enabled us to act swiftly to ensure that the nation can live within its means.

    "The reality is that these unfunded spending promises should never have been made, because the money was never there to pay for them. We did not make this mess, but we are cleaning it up."

    =========================================================

    The Lib Dems are getting just as bad as the tories, in regards to trying to mislead people on cuts.

    Probably why they are currently polling 14% and will probably end up with 10 MPs at the next election...................hehe

    The tories can not afford to do this as they have budgeted to make £40 billion more in cuts than Labour had in their manifesto.

    The IMF recommened 80 billion in cuts over 5 years. They have promised £120 billion.

    What makes me laugh is that sell out Alexander spent most of last year backing Labour's cuts policy.

    For a ministerial car, he's just sold out all of his prinicples.

    Can I make this clear Mr Alexander, you sell out.

    There are HUGE amounts of things Labour could afford to do, that you can't. Why:

    1: They were only going to halve the deficit by 2015
    2: They weren't going to give away £10 billion in tax cuts to businesses either. They were going to raise taxes

  • stevetyphoon stevetyphoon

    5 Jul 2010, 6:52PM

    How much did the bankers get in bonuses this year??? When you hear how much £1 billion would do, ie build 706 new school buildings, it puts into some kind of perspective just how much those parasitic leeches amass as personal fortunes. Plus, its partially their fault that these cuts are having to be made in the first place. This country has gone very seriously off the rails.

  • LibertarianLou LibertarianLou

    5 Jul 2010, 6:54PM

    Nattybumpo

    Unfortunately not everyone's parents have the skills/brains/time/resources/energy/health/inclination to educate their kids - it's those ones who are most in need of good education and they are the ones who will suffer most by cuts in state education. There is nothing wrong with "pushy parents" (my dad was one and I am extremely grateful to him for it, and if I ever have kids of my own I expect I will be similar) but the system needs to work for everybody else too.

  • TheGreatRonRafferty TheGreatRonRafferty

    5 Jul 2010, 6:54PM

    ordinaryboy
    5 Jul 2010, 6:49PM
    Do we really need new school buildings to improve the standard of education in this country?
    Of course its got to be a good thing to have new school buildings but at the same time there are many incredibly poor countries around the world with very basic facilities and yet provided a very high standard of Education.
    I would say that we should focus on the standard of the curriculum and teaching methods rather than crying about how the suspension of Labour's school building programme will affect education in this country.
    A programme which has highly many issues including bureaucracy, corruption, and poor designs.

    Don't know about all the countries of the world, but our area of France has rebuilt all its secondary schools in the past few years, along with new motorways, a superfast broadband system, and have just announced a brand new route for a new TGV.

    Looks like you Brits are being left behind in every aspect of infrastructure.....

  • teaandchocolate teaandchocolate

    5 Jul 2010, 6:55PM

    Also Ron Rafferty I am amazed at this shops and garages schools idea.

    How can they teach all the things on this rather meaty curriculum in a garage?

    PE?

    Science?

    It rather demeans the efforts of hardworking teachers and the money spent on education departments to get them into the modern world......

    I've heard teachers are highly prized in Canada. Are you joining me?

  • Optymystic Optymystic

    5 Jul 2010, 6:55PM

    BSF was PFI and therefore off book. It should not make any difference to the deficit because it does not count.
    Watch out for pfi being used to develop the free schools.

  • CuthbertB CuthbertB

    5 Jul 2010, 6:56PM

    Strange how some Labour supporters on CIF come across like rabid Marxists now that they're in opposition. It's as if the present government introduced right-wing economics after 13 years of socialist utopianism. I think everyone knew what was going to happen. Labour warned against it but got less than 30% of the vote. I don't support what's happening but if Labour hadn't based its economic policies of unfettered economic liberalism and put everything on the never never, we wouldn't be facing this trashing of the public sector. If Labour ever gets back into government - and I don't foresee it in the next 10 years - then it should understand that things should be paid for asap or they go back to the seller. Put taxes up if needs be but pay the bills. The Con-Dems are sending in the bailiffs for Labour's debts.

  • sjholland87 sjholland87

    5 Jul 2010, 7:00PM

    Sorry kids. That state of the art school is scrapped. Don't worry, the 1 piece of chalk and the hole in the blackboard will be fine.

    Apparently, Gove complained that money for building schools goes to 'architects and construction companies.' How else are schools built?

    So this "big society" is stripping kids of education?

  • TheGreatRonRafferty TheGreatRonRafferty

    5 Jul 2010, 7:04PM

    tea and chocolate

    I spent my first four terms at a grammar school in .... the remains of an ancient school; a fire station; a chapel; an old Labour Club; a public meeting room; a workshop; outside toilets; and a games field almost 2 miles away which we had to walk to for our one hour lesson (so if you didn't run you didn't have time for the games lesson!) After four terms my family moved elsewhere in the country, but that school was at least replaced by a modern purpose built building. The education possible in the various sheds etc etc was abysmal.

    I see the Tories think it's quite adequate for the 21st century though.

  • joshthedog joshthedog

    5 Jul 2010, 7:04PM

    I knew that when I read in the Guardian this morning that cabinet ministers were being asked to brace for 40% cuts to their departments, but education would be ring-fenced, that actually education was therefore going to be very far from ring-fenced.

    The double-speak endemic in politics these days doesn't even try to be clever anymore. They just seem to say the opposite of what they are going to do and don't even bother to finesse it.

  • decisivemoment decisivemoment

    5 Jul 2010, 7:05PM

    I have difficulty taking the ConservaLib cuts seriously until they

    a) cancel the Trident replacement, the single most expensive unfunded item on the government's agenda, and surely the least useful
    b) shine a light on operational expenses as opposed to taking the bureaucratically easy path of canceling infrastructure
    c) stop this ring-fencing and wagon-circling that's being done purely to avoid their own democratic accountability, as opposed to inflicting mandatory five-year terms and coalition deals that can't be broken.
    d) learn that the real problem isn't spending, it's the country's broken economy, import addiction, credit addiction, and ever shrinking tax base. Government spending isn't out of line -- government revenue is, and the reason the country can't afford to patch the hole with new taxes is because of what NuLab® did with regulatory policy, with trade, with the banks, with everything else, not because of what they did with spending or public services or the financial rescue. Yet the ConservaLibs think you can solve the problem solely with cuts in public spending, without the slightest thought to how you expand the economy. And on that myth, they're sealing the fate of Britain plc.

  • Mezzum Mezzum

    5 Jul 2010, 7:06PM

    Nuance is a lost art.

    i) Neoliberalism demands de-regulation, over the previous thirty years this has led to to a concentration of wealth in the upper echelons of our society, (and the US). It is Neoliberalism and it's ideas concerning a hyper unregulated free market which have ultimately led to the banking crises.

    ii) Blair, Brown & Mandelson, New Labour, intended to use the tax receipts from a laissez-faire economy to pay for their public spending programmes, (The Third Way). It is important to recognise that the Labour government did indeed create a structural deficit, and borrow monies to fund public sector employment and projects.

    Once banking crises hit, funding streams evaporated and we began to sink further and further into debt. Debt which otherwise would have been manageable had the banks not collapsed, decimating our economy and requiring huge public sector bail outs.

    The truth is it is both the philosophy of Neoliberalism, and the behaviour of consecutive British governments which is to blame for our predicament. However I guess the truth is too subtle for most to discern, and resorting to tribal politics and blame is more satisfying.

    If we want to change improve our way of life, it seems we do indeed have to make severe cuts; however once we have handled our austerity we should look to the root causes of this crises and resolve to change our society to ensure it can never ever happen again.

    We must diversify our economy, invest in our future and save Capitalism from the Capitalists.

    Of course hey to our renewal is the education and welfare of our youth, so if we had to preserve one thing, I would suggest it is our education system and its ability to provide world class learning & skills.

    We're certainly going to need them.

  • emilj emilj

    5 Jul 2010, 7:08PM

    GOVE SAID:-

    He said: "There are some councils which entered the process six years ago which have only just started building new schools. Another project starting this year is three years behind schedule

    HE IS PROBABLY RIGHT Because millions and millions of public money is wasted by councillors who are as dumb as ducks.

    Councils including his own constituency partners SCC and SHBC (Surrey Heath Borough) have wasted t said millions on office moves and disasterous shopping developments. Council management processes are so archaic and this contributes to the huge waste of public funds at the hands of these incompetents.

  • maggawags maggawags

    5 Jul 2010, 7:09PM

    Did I miss the discussion on investment in the new generation of nuclear power stations?

    Did I miss anything re investment to alleviate travel congestion here on our Dorset roads.

    Did I miss a promise to sell of the government wine cellar?

    Did I miss the promise from the Tories that they will insist on Bursaries from top public schools for high flying children whose parents do not voteTorylibdem? (There will be thousands)

    What else did I miss, I'll be back later!

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