Michael Gove proposes direct management of state schools funding

All state schools in England are to have their funding set directly by central government, according to a draft proposal that would reduce the role local authorities play in managing education spending. Michael Gove, the education secretary, will outline a national funding formula in a white paper later this month, according to today's Financial Times. The proposal, which officials said last night would be "fairer and more transparent", is said to mean that government money would follow pupils while headteachers will be given greater financial responsibility. Ministers believe local authority formulas used to allocate cash are out of date. A consultation will be held when the white paper is published. The coalition has outlined plans to accelerate the expansion of academies, or state schools directly funded by Whitehall. But the proposal would effectively fund every school in the same manner. In a speech this month, Gove praised the role of local authorities in the "effective policing of [school] admissions rules", and providing support to children with special needs: "Local authorities have a central role to play. The services you provide are critical to our shared mission of giving every child, and young person, the best possible start in life." But he also warned the government would intervene to transfer a failing school if a council sought to block it becoming an academy. A Department for Education spokeswoman said last night: "Any changes to funding would involve further consultations. "We believe the way education is funded at the moment leads to huge variations in the money similar schools receive so we want to introduce a fairer and more transparent system. Details will be set out in our white paper."