Fears of £10bn funding gap for extra school places

Aaron Morby 10 years ago
Share

A massive funding crisis is looming to meet the 880,000 extra pupils expected in England by 2023.

Already the Local Government Association has raised the alarm warning that it expects the cost of building extra teaching facilities will soar to £12bn, way ahead of the government’s commitment of £7.35bn for extra school places.

But cost consultant EC Harris is now warning the final bill will by 50% higher than that being reported by the LGA.

Marcus Fagent, Head of Education at EC Harris, said: “We have analysed our benchmarking data, drawn from our work on school projects with local authorities and the Department for Education, and we believe that a more accurate figure would be in excess of £18bn.

He warned that several factors were working together to drive up costs.

Fagent said a large proportion of the places, perhaps 40% will be achieved by expanding existing schools. This is more expensive to do, per child place created than building new schools,

He added that most of the ‘easy’ school expansions have already been done, and local authorities are now faced with addressing the projects that are more difficult and expensive because of the nature of the site.

Increasingly, the Government is having to buy the land to build new schools, paying market prices in urban areas where values are rising.

He said: “Cheap and easy temporary fixes are no longer available, and construction costs are rising.”

EC Harris argues part of the solution will be for local councils to drive forward design standardisation and seek to batch up work.

Councils will also need to drive value from scarce land resources.

“If public bodies are paying high prices for land they are going to have to consider creating mixed developments where housing and other commercial uses are built above and around schools to create value.

“This could extend to buying school space from investors in the same way as commercial property space. This might be a more flexible way of creating space and ultimately better value for the public purse.”

Latest news

Balfour Beatty terminates Danny Sullivan labour deals

Around 500 workers on HS2 will be moved to alternative agencies or be taken on direct
22 hours ago

Trio face prosecution after Hinkley site death

Main contractors and client to face charges over death of site supervisor
23 hours ago

Buyers see recovery in house building sector

But civil and commercial work still in the doldrums
1 day ago

Apprentice saws-off thumb on hotel refurb site

Court hears how digit was reattached and teenager continued training with another firm
1 day ago

Laing O’Rourke tops June contracts league

£919m animal super lab dominates new orders
2 days ago

TSL turnover smashes £500m as profit almost trebles

Data centre and logistics contractor rises high on surging demand
2 days ago

Gleeson Homes chief exec leaves business after restructure

Management revamp after "challenging" year
2 days ago

Green light for 1,600-home Oldham town centre overhaul

Plans for over 1,600 homes across six regeneration sites approved
2 days ago

DSM wins Norwich city centre clearance job

Anglia Square shopping centre clearance for £300m scheme
2 days ago

13-year-old becomes UK’s youngest qualified digger driver

Grandson of Gallagher Group chairman sets industry record
2 days ago

Cubby reborn in £12m Svella-backed takeover

£50m revenue target set as 14 firms combine under new Cubby Group banner
3 days ago

North East NHS trusts plot £3bn health estate overhaul

Market engagement begins for major construction push across four trusts
3 days ago

HG goes green on cranes in £1.2m switch to battery power

Diesel-free crane drive cuts fuel bills by 94%
3 days ago

Developer fined £165,000 for fire safety failings

Firm ignored fire safety orders on apartment job in Preston
3 days ago

Bidding to start for £1.8bn North West framework

Contractors invited to bid for latest Procure Partnerships deal
3 days ago

Hill hits record £90m profit as homes pipeline swells

Build-to-rent push and £4.8bn contracting book to fuel next growth phase
3 days ago

Rayner unveils £39bn plan to build 300,000 social homes

Council building revival and rent reform feature in social and affordable homes plan
4 days ago

Keltbray bounces back with £3.2m profit

Tighter controls and smarter project selection fuel strong turnaround
4 days ago

VINCI JV wins 500-home twin town centre revamps

Chester Northgate phase 2 and Northwich Weaver Square schemes move to delivery stage
4 days ago

80 energy projects unlocked as Ofgem backs grid expansion

£24bn energy networks deal gets green light from regulator
5 days ago

How to see your stories on the Enquirer

Join our Suppliers and Buyers directory to get your news published
4 days ago

Henley lands Midland Mill revamp on Leeds tower scheme

Restoration of 18th-century mill kicks off on South Bank regeneration project
4 days ago

New boss at Eric Wright Civil Engineering

Gavin Hulme takes top job as Diane Bourne moves to group role
4 days ago

Pinewood submits £1bn data centre plan

Studio giant adds green and learning spaces to tech hub blueprint
5 days ago

Record results after TClarke goes private

Britain's biggest M&E contractor flourishes after de-listing
5 days ago

Dalkia lands £200m nuclear maintenance deal

1,000 nuclear FM staff to join M&E contractor
5 days ago

Construction comeback to outpace wider economy

Arcadis forecast fueled by spending review optimism
6 days ago

First steel goes up on giant car battery site

Severfield gets to work on McAlpine Somerset site
5 days ago

Permasteelisa wins cladding deal on Bovis city tower

Facade specialist lands package at 60 Gracechurch Street
5 days ago

Fox buys recycled asphalt specialist Fisher

Acquisition adds major recycled asphalt capacity in north west
5 days ago