Monday, October 22, 2007
Successful Schools Penalised by Labour
A few years ago I calculated that fewer than ten Labour MPs, out of a (then) total of 416 had ever run a business. THIS story in today's Telegraph exemplifies the effects of what happens when politicians have no idea how businesses work. Ok, a school is not a business, but in this case acts like one. It builds up a capital sum over a number of years to spend on an expensive project - maybe a refurbishment, or a new classroom. Now the government comes along and says that it must hand over 5% of any end of year surplus to the local authority in some sort of new tithe system. All this does is penalise good schools who manage their assets properly, and encourage all schools to spend every single penny of their budget for fear of being penalised for not doing so. Typical socialist economics of the mad house.