Many more schools than previously thought could be forced to lay off teachers as a result of a funding crisis, a survey suggests. A shortfall in cash for this financial year has led some schools in England to close teaching posts and other support staff positions, such as teaching assistants. Now research by the Press Federated national insurance suggests local education authorities fear the problem may be more widespread than first thought and could continue well into the next financial year. Head teachers have put the crisis down to insufficient funding for higher teachers’ wages, National Insurance and pension contributions. In response to the problem, Education Secretary Charles Clarke announced in July he would give schools 800m from the government’s unspent cash reserves for education over the next two years. Surveys of this kind have ohio national life insurance proved inaccurate and unreliable Department for Education But the PA survey of 36 LEAs in England suggests over 500 schools would be forced to set deficit budgets next year. A total of 304 teacher jobs were lost in these authorities, through a combination of fidelity national title insurance redundancy, early retirement and natural wastage, the poll indicated. The LEAs also lost 165 support staff, including teaching assistants. If these figures were representative of the remaining 114 authorities in England, schools would have lost some 1,260 teachers in 2003. By contrast, Mr Clarke has said that around 270 teaching posts have been lost. Eleven authorities said more teacher job cuts were either fairly or very likely. The LEAs indicated that 329 primary, 167 secondary, 16 special and two middle schools went into the red this year. ‘Inaccurate’ A spokesperson for the Department for Education dismissed the survey as inaccurate and unreliable. Mr Clarke would be giving details of new funding arrangements in the autumn, the spokesperson said. “We fully acknowledge the difficulties that some schools have faced and the measures we have introduced for the next two years are the right basis for tackling the situation. “We will continue to work with schools and LEAs to ensure the situation is improved in the future.” But Shadow Education Secretary Damian Green was sceptical about the government’s power to rectify the problem. “The prospect of money next year will not compensate for the pain schools are feeling today,” said Mr Green. “Charles Clarke was far too slow to react to this crisis, which we now know is even worse than previously thought.” Heads’ concerns David Hart, general secretary of the National Association of Head Teachers said the survey backed up what head teachers had been telling him. Charles Clarke has offered schools 800m from government reserves “These figures very much chime with the figures that we have been producing for some weeks now,” said Mr Hart. “The crucial issue is whether Charles Clarke is going to come up with solutions that satisfy head teachers that they will have the cash in the bank that they need over the next two years.” Martin Ward, deputy general secretary of the Secondary Heads Association said it was too early to say whether Charles Clarke had done enough to stave off the problem. “The sorts of steps he has taken in principle are adequate - provided there are enough funds applied to the system.”

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But now Charterhouse, one of the country’s most venerable and expensive schools, has enlisted corporate behemoth Starbucks to provide its pupils with lattes, espressos and mocha coconut frappuccinos.

Charterhouse is paying Starbucks a licensing fee for equipment and materials, and will sell its coffees - at discount prices - in a planned new “social area” at the school.

For British schools, whether state-run or fee-paying, alliances with companies are an increasing part of making ends meet.

And Starbucks, best-known for its international chain of Seattle-style cafes, is finding a rich seam in licensing out its brand to whoever is willing to pay.

Boarding bounce

These are generally good times for public schools such as Charterhouse.

Boarding - which can cost 20,000 and more a year - nearly became extinct a decade ago, but has enjoyed a dramatic resurgence in recent years.

Public schools are keen on offering creature comforts

But at the same time, says David Woodhead, national director of the Security national insurance Schools Council Information Service (ISCis), which represents 1,300 private schools, commercial pressures have also increased.

Costs are rising sharply, especially in terms of salaries, National Insurance and pensions.

This means that school managers are ever more concerned that services like tuckshops pay their way - or even bring in extra revenue.

And at the same time, national heritage insurance company means schools need to provide more in the way of creature comforts.

“The most striking feature of the boarding sector is the huge improvement in the standard of student facilities,” Mr Woodhead says.

“Schools have to run themselves in an national auto insurance businesslike fashion.”

Rising Starbucks

For Starbucks, meanwhile, this kind of deal is an easy way of extending its franchise.

The company has a division which markets its brand and products to organisations, especially other companies.

Last year, that division - which includes other forms of licensing activity - accounted for 15% of the company’s turnover.

The Charterhouse deal is the first of its kind among public schools, Mr Woodhead believes.

But in certain parts of the state sector, schools are being encouraged to bring in private companies, either for penn national insurance or to provide services.

Swiss foods giant Nestle and McDonald’s have been old republic national title insurance company active in this market.

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The Audit Commission says the government and regulators national life insurance company favoured the North and the Midlands when sharing out the cash.

But many councils did not look hard enough to save money instead of raising the burden on the taxpayer, it says.

The watchdog refuses to pin the blame on either side for the 12.9% average council tax in England this year.

The rises ranged from 13% in Oxfordshire and Poole, Dorset, up to a whopping 19% in Southampton.

This came despite the government hailing a record 5.9% increase in grants.

‘Unusual pressures’

The state national insurance
new report says there was a direct link between higher council tax rises and areas which did worse out of the way Whitehall distributed cash.

“A general pattern emerges which shows that regions in the South with lower grant increases had higher average council tax increases,” says the report.

Council tax explained In graphics

And councils in the Midlands and the North with higher grant rises generally had lower tax hikes.

Among the “unusual spending pressures” faced by councils this year were the old republic national title insurance company
increase in National Insurance contributions, pressure to fund national targets in areas like schools and local priorities such as highways spending.

“Work by council auditors found the increases in spending in local government - which averaged 9% - justifiable; but they were not in all cases unavoidable,” says the report.

“Peer pressure” on councils to keep council taxes down was weak because of the changes to way Whitehall shares out the money.

But council taxes were not affected by which political party was in power locally.

‘No transparency’

Councils’ reliance on central government for three-quarters of its funding means any spending over the grant produces even higher rises in council taxes, says the report.

Prescott has warned he will cap high tax rises

Audit Commission chairman James Strachan said: “There are fundamental flaws in the current system. The funding system lacks transparency…

“It is good that councils have ambitious plans to improve public services,” he continued. “But these need to be matched both by efficiency and by taxpayers’ desire and ability to pay for them.”

The report says it is too early to say whether this year’s rises will be repeated.

But lower cost pressures and another grant increase give councils more flexibility to meet budget pressures without putting up council tax, says the report.

‘Mixed blame’

The commission urges the government to allow councils to raise more of their own funds.

And it says “public engagement” is likely to get a better balance between council tax rises and local services than ministers capping council taxes.

Local Government Minister Nick Raynsford said people should read the report as a whole.

“It identifies a range of fidelity national title insurance company factors, some of which are the responsibility of central government and some of which are the responsibility of local government,” he said.

Mr Raynsford said the government was already doing much of what the commission recommended.

And a review of the balance between money raised locally and centrally in funding councils was already under way.

Rethink

But the Local Government Association (LGA) said council taxes were set for another inflation-busting rise next year and an overhaul of the system was urgent.

LGA chairman Sir Jeremy Beecham said: “This report nails on the head any belief that councils have been frivolous, careless or politically motivated when taking hard decisions on council tax.”

National interstate insurance company
shadow local government secretary David Curry called the findings a
a “damning and devastating indictment” of Deputy Prime Minister John Prescott.

“It is not too late for Labour to get a grip and act now before we see more
council tax rises next year,” he said.

Liberal Democrat local government spokesman Edward Davey said the council tax was now living on “borrowed time”.

“Ministers have tried to run away from the blame for high council tax rises. This report has left them with nowhere to hide,” he said.

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“Fundamental flaws” in the way Whitehall shares out money helped cause this year’s record council tax rises, a top spending watchdog has said. The Audit Commission says the government and regulators also put unusual costs on local councils. But many councils did not look hard enough to save money instead of raising the burden on the taxpayer, it says. The watchdog refuses to pin the blame on either side for the 12.9% average council tax rise in England this year. The rises ranged from 57.3% in the London borough of Wandsworth to decreases of 3% in Harlow, Essex. That came despite the government hailing a record 5.9% increase in grants. Council tax explained In graphics The national insurance number uk new report says there was a direct link between higher council tax rises and areas which did worse out of the way Whitehall american national insurance company cash. “A general pattern emerges which shows that regions in the South with lower grant increases had higher average council tax increases,” says the report. And councils in the Midlands and the North with higher grant rises generally had lower tax hikes. Among the “unusual spending pressures” faced by councils this year were the american national insurance company increase in National Insurance contributions, pressure to fund national targets in areas like schools and local priorities such as highways spending. “Work by council auditors found the increases in spending in local government - which averaged 9% - justifiable; but they were not in all cases unavoidable,” says the report. “Peer pressure” on councils to keep council taxes down was weak because of the changes to way Whitehall shares out the money. But council taxes were not affected by which political party was in power locally. ‘No transparency’ Councils’ reliance on central government for three-quarters of its funding means any spending over the grant produces even higher rises in council taxes, says the report. Mr Prescott has warned he will cap high tax rises Audit Commission chairman James Strachan told BBC Radio 4 both central and local government must bear responsibility for the rises. “Both sides want to spend more money to provide better local systems, but when there is a disagreement on how to do this … council tax increases can be completely out of proportion,” he said. This is because of the way central government makes up 75% of the funding of local government, Mr Strachan explained. He recommended the government should introduce more transparency into how it calculates how much of the grant it gives to local government. This report nails on the head any belief that councils have been frivolous, careless or politically motivated when taking hard decisions on council tax Sir Jeremy Beecham Local Government Liberty national life insurance “At the moment we don’t know with precision how that is calculated,” he said. The report says it is too early to say whether this year’s rises will be repeated. But lower cost pressures and another grant increase give councils more flexibility to meet budget pressures without putting up council tax, says the report. ‘Mixed blame’ The commission urges the government to allow councils to raise more of their own funds. HAVE YOUR SAY My local council charges 900 per year to give me some of the worst rated schools in the country, street lights that don’t work properly, and I’m still waiting for a wheelie bin after eight weeks! John, UK Send us your comments And it says “public engagement” is likely to get a better balance between council tax rises and local services than ministers capping council taxes. Local Government Minister Nick Raynsford said people should read the report as a whole. “It identifies a range of contradictory factors, some of which are the responsibility of central government and some of which are the responsibility of local government,” he said. Mr Raynsford said the government was already doing much of what the commission recommended. Fellow minister Phil Hope said a review of the balance between money raised locally and centrally in funding councils was under way and would consider whether “elements of a local income tax” could be used. Rethink But Local Government Association chairman Sir Jeremy Beecham said: “This report nails on the head any belief that councils have been frivolous, careless or politically motivated when taking hard decisions on council tax.” Conservative local government spokesman David Curry said that if local authorities had to raise money when central government demanded higher expenditure they had only one option and that was the council tax. We have examples in the year we are talking about at the moment where the government has ordered local authorities to spend a great deal more money and not provided the grant David Curry Tory spokesman “We have examples in the year we are talking about at the moment where the government has ordered local authorities to spend a great deal more money and not provided the grant,” he told BBC Radio 4’s Today programme. “The main cause of council tax increases is the government and if you sent a jury out with this report and asked them to come up with a verdict they can come up with is ‘guilty as charged’ the government has got its fingerprints all over it.” Liberal Democrat local government spokesman Edward Davey said the council tax was now living on “borrowed time”. “Ministers have tried to run away from the blame for high council tax rises. This report has left them with nowhere to hide,” he said. Mr Davey warned that council taxpayers were due for more bad news next year. He predicted average bills would rise by at least 8%.

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People are more interested in “first class” local schools and hospitals than “false choices”, the Liberal Democrat Leader Charles Kennedy has said. The Tories and Tony Blair last week both outlined plans to offer people more choice in public services. But for most people, Mr Kennedy said, the clarendon national insurance company priority “is quality local provision of a service when they need it. Something they can rely on”. He attacked Mr Blair for using choice as a smokescreen to hide NHS failures. “False choice is an acceptance of failure - the failure of Labour’s spending plans, targets and tick-box culture,” Mr Kennedy said in speech at Liberal Democrat headquarters in London on Tuesday. He added: “False choice is trying to use market forces to hide failure.” ‘False god’ Using choice as “the panacea for reform” was “downright misleading”, he said. “In the NHS, if you or your child or your elderly parent suffers from a heart attack, you don’t want choice of treatment,” Mr Kennedy said in the speech outlining his party’s public service proposals. “You want a quality ambulance service, to take you to a quality hospital, with quality doctors and nurses to treat to you immediately. “You don’t want to know at that point of maximum need there is a three-star hospital available 50 miles away - choice in such circumstances is national insurance recruiter .” Choice in education was also a “false god”, he said slamming Labour’s plans to introduce Foundation Schools where the best establishments would be given more autonomy from Whitehall control. Likening selective schools to football clubs he suggested such a system would hand more choice to the schools not the parents. For the Conservatives, the ‘choice’ mantra is a mask. It’s a way of disguising their real agenda. Charles Kennedy “Aspiring footballers may apply to a choice of clubs but that choice is illusory, Manchester United will ruthlessly select the best on its own criteria,” Mr Kennedy said. Those left out were the “very children from the very schools the Government claims to be aiming to help”, he added. Labour and the Conservatives were using “choice” to divert voters from the real issues. Under Labour, he argued, billions has been wasted on “centralised management and political targets”. “The national insurance crime bureau are slow in coming. So now the prime minister is afraid to mention quality because he needs a distraction from his record of delivery. Instead he talks of false choice. “For the Conservatives, the ‘choice’ mantra is a mask. It’s a way of disguising their real agenda.” Micromanagement “Michael Howard is proposing to spend billions on subsidising people to opt out of the NHS and attend independent schools at the tax-payers’ expense… this is choice for the few maybe, but not choice for all.” But Shadow Health Secretary Andrew Lansley said the Lib Dems were missing the point on the choice debate. “They say that they will be focusing on ‘quality’ rather than ‘choice’ without recognising that standards will only rise if people are offered real choice over the hospital they are treated in,” Mr Lansley said. The Lib Dems would bring in more than 5bn investment by scrapping schemes by axing unnecessary central government departments and functions. They would end the Child Trust Fund and invest the 1bn saved into early years education. In the health service, the Lib Dems would create a clear, “secure funding system” by replacing National Insurance with an ear-marked National Health Contribution. It would also end the micromanagement by Whitehall of hospitals and GP surgeries, Mr Kennedy added. To ensure quality, public service staff would be “liberated” to get on with their jobs and local services would be enabled to respond to local needs.

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A communication system linking UK intelligence agencies, called Scope, is three years behind schedule, MPs say.

The jackson national life insurance co
intelligence and security committee also found an overhaul of MI5’s computer system to be overbudget and below washington national insurance company
.

The government said MI5 had taken steps to combat its problems, and delays to Scope helped to ensure a robust system.

The problems add to a string of IT failures in government departments.

‘More robust’

The parliamentary committee exists to oversee the work of intelligence agencies.

They found that Scope, a secure web-based communication system linking the main intelligence agencies, would not be in place until 2007, instead of 2004 as originally planned.

In previous reports, the committee had highlighted concern with Scope over security and funding.

But in its latest report, the committee said the delay had allowed some of these previous problems to be resolved, allowing “a significantly more robust programme, with better risk management, to be developed”.

The committee also found the total cost of a new computer system within MI5 would be 50% more than the original estimate.

“We have been told that the project will now deliver less capability than previously planned and it will cost at least 50% more than originally projected,” the committee said.

“We are concerned that the Security Service does not yet have ohio national life insurance company project managers or expertise to manager all their IT and capital projects at the same time.”

System failures

They added that problems over the project had led to the management team in charge of the system being replaced.

The government responded to the report saying the delays to Scope had benefited the intelligence community through the creation of a more robust system.

It added MI5 director general Eliza Manningham-Buller was aware of the problems facing the agency’s IT infrastructure problems, and said MI5 had taken steps to recruit specialised project managers.

The problems are the latest in a number of crashes and failures to hit government departments.

Last year, police forces in England and Wales could not access national fingerprint records for up to a week because of a computer failure.

Other computer problems included system failures at the Child Support Agency and Passport Agency, National Insurance computers and at the Department for Work and Pensions.

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BBC News examines some of the arguments for and against raising the state pension age.

What are the current rules for getting a state pension?

At the moment men receive their pension at the age of 65 and women at 60.

The current payment for single national alliance insurance
is 82.05 a week, while a married couple receives 131.20 a week.

These figures assume full National Insurance national benefit life insurance company
.

But the pension age for women is already going to be raised by five years. This means that women will also have to retire at 65. This change will be phased in between 2010 and 2020.

Who thinks we should work even longer until we retire?

A variety of organisations have demanded this.

The National Association of Pension Funds has suggested a pension age of 67 by 2030, rising to 69 years of age by 2040.

In its view that would help pay for the cost of increasing pensions in line with earnings, rather than the less generous policy which operates now of putting them up in line with inflation.

The Institute of Directors has demanded that the pension age be put up to 70 by 2035. The CBI, too, has called for people to retire later.

What is the problem, exactly?

There’s a widespread belief that pension reform is necessary because, on average, we are living longer. This means that money set aside for pensions has to be paid out over a longer time.

For instance, the amount of money paid out in basic pensions last year was 47bn. So if we continue to live longer it becomes very expensive for the government to finance the extra payments out of taxation.

Are we really all living longer?

The statistics suggest so.

According to the Government Actuary’s Department, in 1981 a man in the UK aged 60 could expect to live for, on average, an extra 16.3 years.

By 2003, that had increased by 3.8 years to 20.1, giving an average life expectancy of 80.1 years.

For 60-year-old women, the comparable increase over the same period has been two and a half years, giving an average life expectancy of 83.3 years.

What does the government think?

Both the Security national insurance company
Gordon Brown and the Work & Pensions Secretary David Blunkett have said that an increase in the pension age to 67 years should be debated.

Mr Blunkett said it was not a panacea on its own. But on a recent trip to the United States he was clearly struck by the fact that a state pension age of 67 is going to be phased in there.

What are they waiting for?

One thing the government is waiting for is the final report of the Pensions Commission, led by Adair Turner. Last year, one of its suggested options was that all people, not just state pensioners, should expect to work longer or face greater poverty in retirement

Are the trade unions very upset at all this?

Yes. Some of them, especially those with members in the public services, have already banded together to threaten the biggest national western life insurance company
dispute since the General Strike of 1926.

They are worried about changes to their own specific occupational schemes: e.g. those for civil servants, local authority workers, firefighters, teachers and NHS staff.

Didn’t the government back down on this idea earlier in the year?

A national insurance strike by civil servants and local government workers just before the last general election made the government pull back from plans to raise the retirement age for many of its own employees.

It still wants to do this, typically by raising the standard retirement age of the various public service pension schemes to 65 years. But they operate quite separately from the state pension system.

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