Janet Daley posts with a perfectly justifiable sense of outrage about the latest data on education. She says:
The Office for National Statistics points out that the amount spent on state education has risen by 43 per cent since 2000 but school “productivity” – measured by GCSE and stats results - has actually declined by 7.5 per cent.
There is what statisticians call an inverse correlation between the amount of money spent by the state on schools and their academic success.
Surely this fact should figure in any future argument about public spending. The Conservatives should stop apologising for the need to make cuts and speak the truth: more cash is not the answer to improvement in the essential services of health and education.
She is quite right to argue that this finding is central to the debate. So let's consider carefully what it does and does not mean.
First, the overall decline has been in productivity and not in standards. The figures do not show that more spending is accompanied by overall falling standards, let alone that it causes falling standards.
Second, the figures show that as we put more money in, productivity fell. This might be due, of course, to diminishing returns. In other words you wouldn't expect your tenth pound to deliver as much satisfaction as your first pound.
Third, just because standards did not rise enough as spending rose does not mean that as you cut spending standards won't fall. the dynamic going down could be completely different from that going up.
Fourth, the figures do not show that you can necessarily get better standards by not spending, merely that we failed to get sufficiently better standards when we did spend. One might need money and reform.
On the other side of the ledger are these points:
First, it was an outrage to spend all that money and have so little to show for it. While theoretically it is possible that all we are seeing is diminishing returns, I strongly suspect (although i can't go further than that) that this isn't the real explanation. i think we wasted money by spending poorly.
Second, it is clear that some areas actually are doing worse even though more money is in the system. In these areas it is clearly not just productivity that is falling.
Thirdly, measures to improve productivity should precede spending rather than the other way around.
While I think these figures show a monumental failure, it is worth understanding just what that failure has been.


