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Westminster Weekly – 25 June 2010

This week's Westminster Update looks at the emergency budget cuts.
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1. Osborne announces 25% cuts across government departments in emergency budget

George Osborne has laid out the coalition’s plans for reducing the budget deficit with last week’s budget. The bulk of savings would come from spending cuts rather than tax rises, with public spending cuts making up 77 per cent of the total ‘cuts package’.

With the NHS and DFID budgets protected, all other departments will face average cuts of 25 per cent. No specific reference was made to either the further or higher education sectors, except to state that the government will look into offering discounts for the early repayment of student loans and continue to look into selling off the student loan book.

The specific funding cuts for each government department will be announced in the Comprehensive Spending Review, which Osborne has said will be published on Wednesday 20th October.

2. United for Education day of action

A United for Education coalition ‘day of action’ on 21 June involved over 100 actions up and down the country. In Westminster, a joint meeting with MPs and representatives from all 7 members of the coalition took place in the Houses of Parliament.

Further information about the coalition and future actions can be found at: www.unitedforeducation.org.uk.

3. Parliamentary questions

Gibb – Education Maintenance Allowance
Thursday 24 June 2010 | House of Commons - Oral Question
Angela Smith: To ask the Secretary of State for Business, Innovation and Skills what plans he has for the future provision of financial support for students aged between 16 and 19 years.
Mr Gibb: I have been asked to reply.
I can confirm that the education maintenance allowance (EMA) will be paid in full this year. In addition, eligible students may also get support for child care costs through the care to learn scheme, and hardship funds are provided to eligible students through discretionary learner support funds. Longer term plans for financial support for students aged between 16 and 19 will be considered in the context of the Comprehensive Spending Review in the autumn.

Jackson – Further Education: Finance
Thursday 24 June 2010 | House of Commons - Written Question

Glenda Jackson: To ask the Secretary of State for Business, Innovation and Skills (1) what criteria will be used to determine the allocation of the £50 million fund for further education capital development announced on 17 June 2010;

(2) what proportion of the £50 million for further education capital development announced on 17 June 2010, will be allocated to the College of North West London under that programme;
(3) if he will take steps to compensate further education colleges whose capital budgets have been reduced as a result of Learning and Skills Agency management; and if he will make a statement.
Mr Hayes: This Government fully appreciates the disappointment of those colleges who had planned capital projects put on hold by the Learning and Skills Council due to the lack of funding last year.
This Government cannot undo the previous mismanagement of the FE Capital Programme but will ensure that all efforts are made to ensure it does not happen again.
On the 24 May, as part of the Chancellor of the Exchequer's statement on the £6 billion of efficiency savings to be realised in 2010/11, it was announced that £50 million would be re-prioritised from Train to Gain to further education capital. On the 21 June, government made a further announcement setting out the details for how this additional money would be invested.
All colleges that received less than £5 million in grant support since 2001 will receive a share of the £30 million renewal grant. This will support approximately 150 colleges in total across the country. Each will receive approximately £225,000, with an expectation that such investment will facilitate considerable additional private finance.
The remaining £20 million will be made available to the same colleges through an enhanced renewal grant. At least 20 colleges will have the opportunity to add to their renewal grant, by bidding to build their total allocation to £1 million. Colleges will be expected to attract substantial additional private finance, resulting in final projects of significant value.
Applications for the enhanced renewal grant will be assessed using key criteria, including the existing condition of bidding colleges' estates and facilities; resulting benefits to learners; and the contribution which each applicant's proposals make to the regeneration of their local community. Projects will be expected to meet exacting design standards, ensuring a built legacy of which all concerned can be proud.
I understand that the College of North West London had previously received capital grant support, and as such, will not be eligible to access the £50 million fund. It is recognised that this may leave ineligible colleges feeling disappointed, but this Government believe it is right to target resource at those who have to date benefited least and believe we will see significant improvements for learners as a result.

Cunningham – Graduates: Employment Schemes
Wednesday 23 2010 | House of Commons - Oral Question
Mr Jim Cunningham: To ask the Secretary of State for Business, Innovation and Skills whether he plans to maintain the previous Government's policy of a Graduate Guarantee.
Chris Grayling: I have been asked to reply.
The Graduate Guarantee was introduced by the previous Administration as a temporary measure, for 2009 graduates who reach six months unemployment.
This Government are committed to providing targeted support and will be introducing a single, integrated work programme to deliver personalised support for the unemployed, including appropriate graduates. Until this is introduced, we will ensure that unemployed graduates receive the support they need.

Lammy – Higher Education and Student Finance Independent Review
Monday 21 June 2010 | House of Commons - Oral Question
Mr Lammy: To ask the Secretary of State for Business, Innovation and Skills when he expects the Browne Review of higher education funding and student finance to report its findings.
Mr Willetts: The terms of reference for the Independent Review of Higher Education Funding and Student Finance state that it will report by the autumn.
Mr Evennett: To ask the Secretary of State for Business, Innovation and Skills when he expects the report on Lord Browne's review of higher education finance to be published.
Mr Willetts: The terms of reference for the Independent Review of Higher Education Funding and Student Finance state that it will report by the autumn.

Lammy – National Union of Students
Monday 21 June 2010 | House of Commons - Oral Question
Mr Lammy: To ask the Secretary of State for Business, Innovation and Skills how many times (a) he and (b) other Ministers and officials in his Department have (i) met, (ii) spoken on the telephone and (iii) corresponded with representatives of the National Union of Students since their appointment. [2951]
Mr Willetts: My right hon. Friend the Secretary of State met Aaron Porter on 1 June, when they were both visiting the Student Loans Company in Glasgow.
I spoke with the former NUS President Wes Streeting last on 24 May, and I met with the new NUS President Aaron Porter on 21 June, for what I hope will be the first of many such meetings.
In addition, there are a number of regular contacts between BIS officials and the NUS as part of normal business.