Concrete crisis: Why are schools struggling to pay for repairs?

Published

2 years ago

September 5, 2023

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The amount of money available for schools to repair and maintain their buildings has fallen by more than a quarter since 2010 (28%), a real terms cut of £2.2bn per year.

Since the Conservatives formed a majority government in 2015, the Department for Education’s capital budget has averaged £5.6bn per year – compared with £7.8bn per year in the last four years under Labour.

That is the money earmarked for things like construction, maintenance and repair work.

More than 100 schools and colleges have been told to shut buildings, partially or completely, because of concerns about the safety of the reinforced autoclaved aerated concrete (RAAC) used to construct them.

The Prime Minister Rishi Sunak has denied suggestions that he is to blame for cuts to schools’ repair and maintenance budgets, saying it was “completely and utterly wrong” to suggest he was to blame for failing to fully fund a programme to rebuild England’s crumbling schools.

Funding for the repair and maintenance of schools has fallen significantly since 2010, when Conservative education secretary Michael Gove scrapped Labour’s Building Schools for the Future Programme.

Since then, capital spending has remained far below levels seen under Labour, dropping to just £5bn during the pandemic before rising to £5.3bn last year.

Yet the department’s overall budget has grown significantly, from an average of £72bn per year during Labour’s last four years in office to £87bn under the Conservatives, a real terms increase of 23%.

The entirety of that increase has gone into the department’s fund for day-to-day spending, its resource budget, which has received an £18bn boost. At the same time, the capital budget has been cut by £2.2bn.

As a result, many schools in need of funding for repairs and maintenance have been raiding their resource budgets, which are used to pay salaries and energy bills, to fund capital projects.

A report released in June by the National Audit Office found that, in 2021-22, 71% of academy trusts used resource funding for capital projects, transferring a total of £518m from their day-to-day running costs – despite growing pressure on teachers’ pay and rising energy bills.

“The government’s own analysis shows that the school estate is in a very poor state of repair – that includes ceilings and concrete, but it also includes gas and electric,” says Luke Sibieta, a research fellow at the Institute for Fiscal Studies.

“Those sorts of issues can become urgent, so it’s not surprising at all to be seeing schools raiding their day-to-day budgets to spend on capital budgets – those capital expenditures may well be urgent.”

Schools’ electrical and plumbing systems are also in urgent need of repair

The report by the National Audit Office found, based on data from 2020, that schools required £8.5bn of repairs for issues “key to the building remaining usable and safe”, as well as £425m for things that “could present major issues”.

Among the most serious items were £2.5bn of repairs needed to schools’ electrical services, and £2.1bn to mechanical services such as plumbing.

Within the capital budget, the money ring-fenced specifically for maintenance and repairs has also fallen significantly in recent years.

The Department for Education spent £5bn on maintenance and repairs in the two years to March. Accounting for inflation in the construction sector, that is a drop of 20% compared with the two years to March 2017.

“It’s not surprising that we’re seeing a crisis in school repairs and school maintenance,” says Mr Sibieta.

“The government has been underinvesting in school repairs and maintenance for around 10-15 years now. The amount of spending falls short of what the government itself thinks it needs.

“As part of the spending review in 2020, the Department for Education thought we needed around £5.3bn per year just to repair and maintain the existing school estate. In the end, the Treasury allocated around £3bn per year.”

What is RAAC?

Also known as ‘bubbly’ concrete, reinforced autoclaved aerated concrete (RAAC) is a building material that was popular in the post-war period as a cheap, lightweight alternative to traditional concrete mixes. It was used in UK public buildings from the 1950s to the 1990s, mostly in roofing.

Its convenience came at a cost, however, as the material was found to be less durable than ‘traditional’ reinforced concrete and is prone to crumbling and cracking, especially after exposure to moisture.

Failures in RAAC roof panels started to become apparent in the 1980s, and a string of reports identified its weaknesses and short 30-year lifespan.

The issue reignited in 2018, when a Kent school roof containing RAAC collapsed, although no one was injured.

Then this summer, an RAAC beam previously thought to be low risk collapsed, leading the government to label all buildings containing RAAC potentially dangerous and order the closure of classrooms in hundreds of schools.

Sarah Skinner, chief executive of the Penrose Learning Trust, has been forced to close 12 classrooms at Surrey’s East Bergholt High School due to the presence of RAAC.

She has secured six temporary replacements, but hasn’t been told when they’ll be available.

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“Once we get the porta cabins, we will get children back, but they won’t have specialist resourcing,” she says.

“We think it will be months before the remedial works can be undertaken – at a huge cost. So, I am worried about getting children back in classrooms before Christmas.”

The Data and Forensics team is a multi-skilled unit dedicated to providing transparent journalism from Sky News. We gather, analyse and visualise data to tell data-driven stories. We combine traditional reporting skills with advanced analysis of satellite images, social media and other open source information. Through multimedia storytelling we aim to better explain the world while also showing how our journalism is done.

Politics

Bitcoin more of a ‘diversifier’ than safe-haven asset: Report

Published

1 hour ago

May 14, 2025

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Bitcoin more of a ‘diversifier’ than safe-haven asset: Report

Bitcoin’s fluctuating correlation with US equities is raising questions about its role as a global safe-haven asset during periods of financial stress.

Bitcoin (BTC) exhibited a strong negative correlation with the US stock market when analyzing the short-term, seven-day trailing correlation, according to new research from blockchain data provider RedStone Oracles, shared exclusively with Cointelegraph.

However, RedStone said that the 30-day indicator signals a “variable correlation” between Bitcoin price and the S&P 500 index, with the correlation coefficient ranging from -0.2 to 0.4.

This fluctuating correlation suggests that Bitcoin “doesn’t consistently function as a true hedge for equities” due to its lack of a strong negative correlation below -0.3, which is needed for “reliable counter movement during market stress,” the report said.

The research suggests that while Bitcoin may not be a dependable hedge against stock market declines, it offers value as a portfolio diversifier.

This fluctuating dynamic signals that Bitcoin often moves independently from other assets, potentially offering additional returns while other assets are struggling. Still, Bitcoin has yet to mirror the safe-haven dynamics of gold and government bonds, RedStone suggests.

Bitcoin needs to “mature” before decoupling from stock market

While Bitcoin is poised to grow into a safe-haven asset in the future, the world’s first cryptocurrency still needs to “mature” as a global asset, according to Marcin Kazmierczak, co-founder and chief operating officer at RedStone.

“Bitcoin still needs to mature before decoupling from stock markets,” Kazmierczak told Cointelegraph, adding:

“Increased institutional adoption will absolutely help — we’re already seeing this effect with corporate treasury investments reducing Bitcoin’s 30-day volatility and with BlackRock repetitively praising BTC as an asset in a portfolio.”

Meanwhile, Bitcoin will see growing recognition as a portfolio diversifier, with an annualized return of over 230% for the past five years, which “significantly outperformed” both stocks and traditional safe-haven assets, Kazmierczak said, adding that “even a small 1–5% Bitcoin allocation can meaningfully enhance a portfolio’s risk-adjusted returns.”

Meanwhile, Bitcoin’s declining volatility supports BTC’s growing maturity as a global financial asset. Bitcoin’s weekly volatility hit a 563-day low on April 30, a development that may signal more stable price action.

Bitcoin’s price volatility fell below the realized volatility of the S&P 500 and the Nasdaq 100, signaling that investors are increasingly treating Bitcoin as a long-term investment vehicle, Cointelegraph reported on May 13.

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Politics

Ex-Reform MP Rupert Lowe will not be charged over alleged ‘verbal threats’

Published

3 hours ago

May 14, 2025

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Ex-Reform MP Rupert Lowe will not be charged over alleged 'verbal threats'

Former Reform MP Rupert Lowe will not be charged after facing allegations of making threats, the Crown Prosecution Service (CPS) has said.

Malcolm McHaffie, head of the Crown Prosecution Service’s Special Crime Division, said after considering a number of witness statements they have concluded that there is “insufficient evidence to provide a realistic prospect of conviction”.

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He added: “The Crown Prosecution Service’s function is not to decide whether a person is guilty of a criminal offence, but to make fair, independent, and objective assessments about whether it is appropriate to present charges for a criminal court to consider.

“Based on the careful consideration of this evidence, we have decided that our legal test for a criminal prosecution has not been met.”

Mr Lowe was suspended by Reform UK and reported to police following allegations that the MP threatened violence towards party chairman Zia Yusuf.

He always denied wrongdoing and claimed he was the victim of a witch hunt after speaking out against party leader Nigel Farage in the media.

In a lengthy statement following the CPS’s decision, the Great Yarmouth MP said he was referred to the police in “a sinister attempt to weaponise the criminal justice system against me – putting not just my political future, but my liberty at risk”.

He said this was “all because I dared to raise constructive criticisms of Nigel Farage, stood firm on deporting illegal migrants, and pushed for Reform to be run democratically – not as a vehicle to stroke one man’s ego”.

Reform responded “with a brutal smear campaign”, he said, claiming figures in the party briefed journalists he had dementia.

Farage ‘a coward and a viper’

Mr Lowe said: “I am ashamed to have shared a parliamentary platform with them. Ashamed to have trusted them. Ashamed to have called them friends. Farage is no leader – he is a coward and a viper. I feel deeply embarrassed that I ever thought he was the man to lead.

“It’s my view that the police process was weaponised to silence a party colleague who raised reasonable concerns.

“If Farage were ever to control the vast power of the British state, I believe he would not hesitate to do to his adversaries what they have tried to do to me. With real power, I fear he would wield that immense responsibility to crush dissent – as he has done time and again over the years.

“Smearing my innocent staff in a pathetic attempt to attack me was disgusting, alongside briefings to journalists from senior Reform figures suggesting I had dementia – the lowest, vilest tactics I have seen in my 67 years. They are not fit to lead. They are not fit to be MPs.”

Mr Lowe went onto say that “for the good of our country, Nigel Farage must never be prime minister”.

In a hint at his political future he added: “When the time soon comes, we will work together to advance a political movement that is credible, professional, decent, democratic and honest. There will, very soon, be an alternative to the rotten leadership of Reform.

“You’ll be hearing a lot more from me, very soon.”

Sky News has contacted Reform UK for comment.

The row poses danger for a party that has its sights on entering government at the next election after a meteoric rise in the polls.

It broke out in March after Mr Lowe gave an interview to the Daily Mail in which he said it was “too early to know” if Mr Farage will become prime minister and warned Reform remains a “protest party led by the Messiah” under the Clacton MP.

Soon after, Reform UK announced it had referred him to police and suspended him, alleging he made “verbal threats” against chairman Zia Yousaf.

The party also claimed it had received complaints from two female employees about bullying in his constituency offices, which he also denied.

Mr Lowe was one of the five Reform MPs elected to parliament in July and now sits as an independent.

He previously sat as the chairman of Southampton Football Club before entering politics.

During Mr Farage’s online falling out with Elon Musk in January, in which the world’s richest man said Reform needed a new leader, Mr Lowe drew praise from Mr Musk.

Politics

Ex-SEC Chair Gary Gensler privately supported crypto — McHenry

Published

5 hours ago

May 14, 2025

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Ex-SEC Chair Gary Gensler privately supported crypto — McHenry

Former US Securities and Exchange Commission (SEC) Chair Gary Gensler may not have been as hostile to crypto behind closed doors as he appeared to be in public, according to former US Representative Patrick McHenry.

In a May 13 appearance on the Crypto in America podcast, McHenry revealed that during private meetings with Gensler, the former regulator expressed a far more nuanced view of digital assets.

“Did he come across, or was he as anti-crypto in private as he did in public?” McHenry was asked. His response: “No… Nope.”

McHenry noted that Gensler “saw the value of digital assets” and acknowledged the potential of blockchain technology during his time at the Massachusetts Institute of Technology.

Gerald Gallagher, general counsel at Sei Labs, also noted that Gensler played a role in developing the concept of the airdrop during his academic work, calling it a largely forgotten chapter in his background.

However, once Gensler became SEC chair, McHenry said, his stance shifted dramatically. “I had this weird, mistaken, stupid belief that he wouldn’t be that bad as SEC chair,” McHenry admitted. “And I mean, just the level of dismay.”

Gensler’s crypto stance was “confusing”

McHenry said discussions with Gensler on crypto regulation were often confusing.

McHenry said conversations with Gensler about legal frameworks and content structures often started off as reasonable, but quickly became contradictory. He described how Gensler would initially agree with certain points, only to later reject the same facts he had acknowledged moments earlier.

According to McHenry, Gensler’s public opposition may have been shaped more by “Senate politics and confirmation politics than anything else.”

After departing the SEC on Jan. 20, Gensler returned to the Massachusetts Institute of Technology to teach fintech and AI.

Under Gensler’s tenure, which started in 2021, the SEC took an aggressive regulatory stance toward crypto, bringing upward of 100 regulatory actions against industry companies.

The regulatory hostility caused Gensler and his team much scrutiny and backlash from industry leaders.

In December 2024, Coinbase CEO Brian Armstrong announced that the crypto exchange would sever ties with law firms employing former SEC officials involved in what he said was an effort to “unlawfully kill” the crypto industry.