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Value of Total UK Education Expenditure 2004-2011
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Education is one of the Government’s priority areas
for spending and there has been a considerable increase over the
last 5 years. Total UK education spending for all sectors
currently stands at around £81.8 billion in 2008-09 and is
forecast to rise to around £92 billion in 2010-11 (of which around
£75 billion will be in England).
The chart illustrates the value of total UK
education expenditure between 2003-4 and 2010-11:
Expenditure plans for the period 2008-11 were first
announced in the 2007 Pre-Budget Report and Comprehensive Spending
Review. The revised spending levels for these years now include
training under ‘total education spending’.
Initial projections based upon the figures
announced in the 2007 CSR indicate that education spending will
continue to rise at a rate of around 5% beyond 2008, although
these figures may be subject to change over the next couple of
years. This would bring the value of total UK education
expenditure to over £92 billion by 2010. Spending on education and
training is expected to continue its recent upward growth to 2011
and see a relatively sharp increase in spending as a proportion of
GDP to around 6% in 2009-10.
School buildings and infrastructure continues to be the major
focus of the DCSF investment strategy, with total support for
investment in school buildings, facilities and ICT rising from
£5.9 billion in 2006-07 to £6.7 billion in 2007-08, and planned to
rise to £7.3 billion by 2011 (including £1.32 billion PFI
credits).
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The Government is investing £21.9 billion of capital into
the school estate between 2008 and 2011 including buildings and ICT
allocated to the DCSF as part of the comprehensive Spending Review (CSR)
2007.Over
the last 12 years, capital expenditure on school buildings alone has risen
from under £700 million in 1996-97 to £6.7 billion in 2008-09 and will
rise to over £7.3 billion in 2010-11.
Many schools, however, are
preparing for cuts to public spending beyond 2011 amid warnings that the
government's bail-out of the banks will severely compromise the financing
of health and education services for years to come. The Treasury said it
was still committed to the 1.2% increase in spending from 2011 promised in
the Pre-budget Report, but the Conservatives say they would reduce public
spending from 2010 to avoid tax rises if they win a general election and
capital spending in the education sector would be a likely target for
cuts.
In a
report on the finances of the DCSF, the CSF select committee has warned
that the economic downturn might disrupt the government’s spending plans
for schools and colleges and has predicted that growth in the next
Spending Review beyond 2011 would be minimal ‘at best’, while the slowing
economy could prevent private sector investors from entering into Private
Finance Initiative partnerships to fund new capital projects.
Building Schools for the Future (BSF) Programme is
the largest single capital investment programme in schools in
England in 50 years. It is aimed at rebuilding and renewing all of
England’s 3,500 state secondary schools – a programme worth an
estimated £45bn. BSF is also intended to have a wider effect
on teaching and learning as a whole and engage both students and
their local communities in new or refurbished school buildings with
new technologies.
AMA Research’s report “Building
Schools for the Future” is available in hard copy or electronic format
for £625 and can be ordered online at
www.amaresearch.co.uk
or by calling 0871 3103450. |
