Schools should 'self-fund' building projects, says ex-DfE property boss

Schools can “self-fund” building projects through “creative” uses of their site - such as installing padel courts - the former head of the Department for Education’s property company has said. 

Lara Newman, former chief executive of LocatED, said schools could also host community services and offices on their sites to raise cash for repairs or new buildings, rather than always relying on public funding. 

Income could be generated by renting out surplus space for offices, nurseries, childminding, tutoring organisations, vocational education and language schools, she said.

Ms Newman also suggested using sites for film and TV location shoots, corporate conferences and away days. 

However, leaders have previously told Tes that some of these ideas would be unrealistic for most schools. 

‘Never enough money’

Ms Newman’s comments come as reports suggest the government could raid the school capital budget to help fund a £15 billion increase in defence spending. 

The DfE’s capital budget has been between £6 billion and 7 billion in recent years. However, the National Audit Office has estimated that it would cost at least £13.8 billion to address the backlog of repairs and remedial work across English schools.

Cuts to the capital funding budget could also harm the government’s ambition for every secondary school in England to build spaces to support inclusion in mainstream settings. 

Ms Newman told Tes: “We know that there is never going to be enough money to bring the entire estate up to scratch, so we need to be looking at how we self-fund projects.”

Some schools could also consider using surplus land or buildings for mixed-use developments, with income used to rebuild or improve existing facilities on the rest of the site, she said. 

She added: “There’s no reason why really creative ideas could not be used, with the income generated from development used to rebuild or improve existing buildings and facilities on the rest of the site without the need to apply for public funding.”

Ms Newman was formerly paid at least £220,000 as CEO of LocatED, which was set up by the DfE in 2017 to find sites for free schools, although its mission was later broadened to include looking at efficiencies across the school estate.

She also chaired a review into curriculum resources quango Oak National Academy. 

LocatED was absorbed into the DfE in April, and Ms Newman now runs estates consultancy Common Ground.

Falling rolls to free up space

Ms Newman’s comments come amid growing concerns over funding at a time of falling pupil rolls, particularly in London and other urban areas.

Pupil numbers have been falling since 2019, with a further 400,000 drop across schools expected in England by the end of the decade, according to the Education Policy Institute. 

This could lead to more school sites becoming available for “creative development and use” until the population recovers, Ms Newman said. 

Schools with falling rolls could also use spare space to create resource provisions and inclusion bases, as the government looks to expand special educational needs and disabilities support in mainstream settings, she added. 

Greater responsibility on schools

However, Ms Newman warned the DfE’s 10-year education estates strategy places greater responsibility on academy trusts and local authorities.

Schools serving disadvantaged communities may feel less equipped to make use of their land and buildings, particularly where they have poor-quality buildings or less obvious commercial opportunities, she said. 

“I worry about these schools and trusts,” she said. “What they need is practical expertise, because they will feel less equipped than other schools.” Experts have previously raised concerns about growing disparities in the system regarding schools’ ability to generate income this way. 

Although the DfE has provided advice to schools and trusts on how to manage their estate, Ms Newman warned that property management was not the main job of school leaders.

“There is something to be said for upskilling the responsible bodies, but the thing is that schools have so much to do, and this is not core to them,” she said.

Schools as community hubs

Schools are often among the largest physical assets in their communities, but are not utilised as well as they could be, Ms Newman said. 

Schools could host medical clinics, food banks, debt advice, and community projects, she suggested. 

Another potential source of income could involve commercial sports, including padel, which has seen rapid growth in recent years. Operators would pay for the installation of padel courts, with schools using them during the day and retaining rental income.

The government’s education estates strategy, published earlier this year, said responsible bodies should take a “strategic approach” to managing their buildings and land, including identifying opportunities to make better use of their estate.