1. Spring budget

2. Headlines Announcements on economy, fiscal plans, tax and spending
Economy expected to grow in 2017 more than expected but forecast full of uncertainties because of Brexit
Inflation (CPI) expected to rise to 2.4% later in 2017
Unemployment still below 5%
UK budget deficit below 3% of GDP in
Current target to eliminate deficit by
Budget includes £5 billion of extra spending over 5 years and £5 billion of extra tax income* in same period. Fiscally neutral if the forecasts are correct.
* £2 mil of which is from extra NICs on self-employed

3. Education announcements
Full speed ahead on schools
Schools white paper out soon
More places in good schools (grammars, faith schools etc)
£1 billion more added to free school capital budget for period after New school buildings take time to come on stream.
DFE now able to invite more bids for new schools
No action in some areas
No change on national school funding formula
Adrian Smith Maths review not yet published

4. Technical education 16-19 year olds
Towards a new system
Technical education routes now T-levels
£100 mil for academic year when first routes start
£500 mil a year extra in the early 2020s
Funding assumption 900 hours vs 600 now
Covers, perhaps, 20% of the age group
Work needed from EFA to include this funding and new assumptions into the funding formula
Design of new T-Levels and implementation after 2019 have major implications for choices offered to all 16 year olds. Not clear where they will be available or who will offer them

5. .. and for adults Institutes of Technology
£170 million over 3 years for new IoTs
No new Treasury funding. Comes from within DFE budget
Developed from existing institutions, preferably FE colleges
Maintenance loans for Level 4&5 courses in future
Applications will be invited later in spring 2017
Lifelong learning
£40 million to pilot innovative approaches

6. What’s next on public spending
Next steps for the government
Treasury will now work on autumn budget including efficiency review (“6% savings by ”)
Much in government depends on Brexit negotiations
EFA allocations just published
SFA allocations out in late March (no change)
Uncertainty on skills devolution
Apprenticeship D-Day 1 May 2017

7. The funding reality for colleges
Difficult financial environment
Flat cash (no increase in rates) since 2012 or earlier
16-18 FE numbers have fallen continuously for several years though sixth form college numbers have held up
SFA adult education budget fixed in cash terms
Opportunities and risk in apprenticeships and HE
Banks retreating from colleges
Very limited capital grants
Colleges aiming to increase surpluses and conserve cash

8. Autumn budget

9. What we asked for from spring budget
Govt needs a reset on education and skills
Fair funding for 16 to 18 year old college students
Technical education package (workforce, equipment etc)
Maintain apprenticeship spending whatever the levy
A citizen’s skills entitlement (including digital skills)
An English Social Fund
Capital funding
Measures to improve efficiency & effectiveness of the system

10. What government wants from colleges
Several priorities
Savings in public spending by
Success with the apprenticeship reforms
Technical education on equal footing with academic
Higher productivity
Higher achievement in schools, colleges and universities but with greater progress for those from just about managing families

11. Our approach to the autumn budget
Some considerations
Officials appreciate a detailed document (probably September)
College leaders want their immediate issues addressed
Helpful to come up with easy-to-remember asks
Good to work on common lines with others
Evidence and research do help secure change
AoC policy groups will be asked for their views
What should be our approach and priorities?