Funding bid to Treasury for third phase to 拢4.4bn PSBP follows 拢900m cut to school building budgets
The Department for Education is understood to be bidding to the Treasury for a multibillion-pound third phase to the 拢4.4bn Priority School 黑洞社区 Programme.
The bid, worked up by the Education and Skills Funding Agency (ESFA), comes in advance of chancellor Philip Hammond鈥檚 inaugural autumn Budget, expected in November.
Several separate sources told 黑洞社区 they understood a significant bid for a 鈥渞olling programme鈥� had been made 鈥� although it is not known whether any subsequent programme would be rolled out under the Priority School 黑洞社区 Programme (PSBP) label or whether it would be given a new name.
The bid follows a 拢900m raid on funding for school buildings made by education secretary Justine Greening in July to help fund a 拢1.3bn boost to the teaching budget for the next two years.
One source close to the department said: 鈥淭he ESFA is bidding for more money than you can possibly imagine. While it looks like capital funding has lost out at the moment, there鈥檚 an autumn Budget coming up and what you give up one minute can come back the next.鈥�
The PSBP programme is designed to replace schools in the worst condition 鈥� the first phase cost 拢2.3bn and will produce 214 new schools and a further 46 through private finance. The second phase cost just over 拢2bn and will rebuild buildings at 277 schools.
The source added that the department was understood to be aiming to get Treasury approval for a capital spend programme, with private finance under the PF2 method a fallback option.
Steve Beechey, group strategy director at contractor Wates, declined to comment on reports of a PSBP3 specifically, but said: 鈥淲e know there is a significant pipeline of schools work planned in addition to what鈥檚 been declared as officially in the pipeline.鈥�
Jonathan Stewart, main board public sector lead at consultant Gleeds, added: 鈥淭he department will be interested in a re-energised and enlarged priority schools programme.鈥�
The news comes amid concern over the impact of Greening鈥檚 拢900m grab on school building funding, which includes a cut of 拢315m to a new fund for sports facilities and equipment, 拢280m from the Free Schools鈥� programme and 拢200m from revenue funding for maintenance of school buildings.
The ESFA declined to comment.
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