Budget Statement 17th November 2022

17th Nov 2022

What have we learnt from the budget statement announcement today for the future of school budgets? 

The government pledges to protect NHS and Education Budgets, relative to other public departments to have stronger NHS and Education system. 

The chancellor said, “Being pro-education is being pro-growth,” and “world class education” is at the “heart” of its (government’s) vision for the country.  

Schools’ budgets will increase over the next two years to invest an additional £2.3billion each year. 

“This restores 2010 levels of per pupil funding in real terms” and provides an “average cash increase for every pupil of more than £1,000 by 2024-25, compared to 2021-22.”  HM Treasury Autumn Statement 2022 

Office of Budget Responsibility (OBR) forecast CPI inflation to be 9.1% for 2022 and 7.4% for 2023.

What does this mean?

Whilst schools will welcome this announcement, the unknown factors around inflation, energy prices and pay, will impact on how far this can make a difference. 

Further details will need to be provided on exactly how the additional £2.3billion will be distributed into schools’ budgets.

Other points of note:

  • Energy price guarantee to continue to house holds increasing from £2,500 to £3,000 in April 2023 
  • A new Energy Efficiency Task Force will be created to reduce overall energy consumption including public sector with an addition £6billion funding to support 
  • 9.7% increase in National Living Wage to £10.42/hour 
  • New mayoral devolution deals that could see new mayors in Suffolk, Cornwall, North East of England and Norfolk. 
  • Government to secure UK’s energy security through delivering new nuclear power, including Sizewell C (subject to final agreement), and the roll-out of cheap, clean renewables, including wind and solar.  

What to watch out for in more detail
The full Autumn statement can be found here: AUTUMN STATEMENT 2022 (publishing.service.gov.uk)