EDUCATION
Robust and data-driven estate plans needed in response to funding challenges
The autumn budget’s announcement of additional capital funding did little for the education sector. On first read, the figures looked promising but the increases were dwarfed by critical needs. In addition, much was eaten up by in-year deficits or, in the case of student fees, negated by National Insurance increases.
Much of the sector is currently focused on the challenge of upgrading an ageing estate to deal with a backlog of maintenance issues and decarbonisation targets. The scale of this financial challenge, within the constrained funding environment outlined above, is really starting to bite. Consequently, much of the sector is rationalising programmes of work with capital funding concentrated on a limited number of projects with many others delayed or cancelled.
To make the difficult decisions on which projects to progress and which to delay, a robust strategic estate plan, based on reliable data is essential. This enables assumptions about space needs to be challenged, efficiencies to be maximised, and limited capital funding to be allocated to the areas where it will deliver long-term value. The maturity of these plans varies significantly across the sector with many organisations still grappling with where to start in developing a strategy that reconciles competing demands. There are indications that this has been recognised by the DfE with more help possibly becoming available, which in the medium term may begin to crystalise a more defined pipeline of work.
Attention is now turning to the conclusion of the spending review, delayed until June 2025. However, with the government facing a wide range of difficult funding choices, the prospects for the sector look uncertain. A return to a version of PFI could be the only option to inject the investment needed to deal with the sector’s current issues.
INSIGHT
How schools can plan for estates despite the autumn budget disappointment
The promised additional funding for estates won’t get near fixing long-term neglect. RLB Senior Associate Diane McKinley recently shared her views in Schools Week about how schools can overcome the autumn budget disappointment and make the most of what is available
