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1 We were briefed by Tony Blair that we should work on the assumption that any expenditure had to be funded out of existing expenditure votes.

2 To repeat what was said in the introduction to this report, we have not produced a blueprint; and so we have not costed this report as a blueprint.

3 However, alongside our previously stated opinion that whatever funding is necessary should be allocated, some general observations are worth making.

Assuming that Government solve the problem of making the cost of usage affordable and predictable ...

The main "repeater" cost will be the replacement of old equipment.

As we have explained in "Hardware", however this is unlikely to pose a major problem for Government.

  • In the short run it is doubtful whether the kind of major step jump in purchase of equipment speculated about by both parties would be of benefit since there is unlikely to be sufficient levels of teaching expertise or software backup to justify it: much better that there should be an aggregation of small cumulative steps.

  • In the longer term, as Government initiatives start resolving the current log jams imposed mainly by lack of software and teachers with the appropriate skills and confidence, so we anticipate a greater willingness to spend the funds at the school and LEA level both by increasing the percentage of total expenditure on ICT as is already happening (1) and also by using dedicated funding mechanisms such as GEST.

  • This should not obscure the reality that ...

    4 A number of the other measures we have discussed (e.g. increased teacher training, the establishment of an external network for teachers, stimulus to software development etc.) will have costs. We have not produced a detailed budget because that is not our purpose, but we are clear that a Government with a clear commitment to this area could finance them without major reallocation of funds.

    Cross references to McKinsey:
    (1) Exhibit 4

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