Education and Inspections Bill

House of Commons

Session 2005 - 06
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Other Bills before Parliament

Education and Inspections Bill

Education and Inspections Bill
Schedule 4 — Disposals and changes of use of land
Part 1 — Amendments to Schedule 22 to SSFA 1998
140

      (4)
Where the governing body give the authority notice of their claim
to the whole or a part of the “appropriate amount”, the amount of
the “appropriate amount” which it is appropriate for the authority
to pay to the governing body (the “refund amount”) is to be
determined—
5
(a)
by agreement between the governing body and the
authority, or
(b)
by the adjudicator where—
(i)
the governing body or the authority refer the
matter to him for determination, and
10
(ii)
by the time of his determination the matter has not
been determined by agreement between the
governing body and the authority.
      (5)
Before making a reference to the adjudicator under sub-paragraph
(4)(b), the governing body or, as the case may be, the authority,
15
must give the other notice of their intention to make the reference.
      (6)
A notice of claim given under sub-paragraph (2) may be
withdrawn at any time by the governing body giving the authority
notice to that effect.
      (7)
Where the “refund amount” is determined in accordance with
20
sub-paragraph (4) to be an amount greater than zero—
(a)
the authority must pay the “refund amount” to the
governing body, and
(b)
that amount is to be treated as part of the proceeds of
disposal for the purposes of paragraph A4.
25
A7    (1)
For the purposes of paragraphs A2 to A4, “relevant capital
expenditure”, in relation to a disposal of land by the governing
body of a foundation, voluntary or foundation special school,
means capital expenditure in relation to the premises of—
(a)
the school,
30
(b)
any existing foundation, voluntary or foundation special
school, city technology college, city college for the
technology of the arts, or Academy, or
(c)
any proposed foundation, voluntary or foundation special
school, or Academy.
35
      (2)
For the purposes of sub-paragraph (1)(c) it is irrelevant whether
proposals have yet been published under any enactment in
respect of the proposed school or Academy in question.
Disposal of land by foundation body
A8    (1)
This paragraph applies to any disposal by a foundation body in
40
England of—
(a)
any land acquired under any of the following—
paragraph 2, 4 or 9 of Schedule 3;
paragraph 16 or 20 of Schedule 6 (including that
provision as applied by any enactment);
45
paragraph 5 or 6 of Schedule 21;

Education and Inspections Bill
Schedule 4 — Disposals and changes of use of land
Part 1 — Amendments to Schedule 22 to SSFA 1998
141

any regulations made under paragraph 5 of Schedule
8,
(b)
any land acquired under any of the following—
paragraph 8(5) of Schedule 8 to the Education Act
2002;
5
paragraph 14(5) of Schedule 10 to the Education Act
2005;
paragraph 28(2) or 31(1) of Schedule 2 to the
Education and Inspections Act 2006;
any regulations made under section 22 of that Act by
10
virtue of subsection (3)(b) of that section;
any regulations made under section 25 of that Act by
virtue of subsection (2)(b) of that section,
(c)
any land acquired from the governing body of a
maintained school,
15
(d)
any land acquired from another foundation body,
(e)
any land acquired, or enhanced in value, wholly or partly
by means of any grant provided by the Secretary of State
on or after the appointed day,
(f)
any land acquired, or enhanced in value, wholly or partly
20
by means of expenditure incurred for the purposes of any
of the schools comprising the group for which the body
acts and treated by the local education authority as
expenditure of a capital nature, or
(g)
any land acquired, or enhanced in value, wholly or partly
25
with the proceeds of disposal of any land acquired or
enhanced in value as mentioned in any of paragraphs (a)
to (f).
      (2)
A “foundation body in England” means a foundation body where
each of the schools comprising the group of schools for which the
30
foundation body acts is maintained by a local education authority
in England.
      (3)
Sub-paragraph (1)(f) does not apply in the case of any expenditure
incurred on or after the appointed day unless the authority—
(a)
prepared an appropriate statement in relation to the
35
expenditure, and
(b)
sent a copy of the statement to the foundation body either
before, or no later than 12 months after, the expenditure
was incurred.
      (4)
An “appropriate statement” in relation to expenditure is a
40
statement in writing which—
(a)
contains details of the amount of the expenditure, the
acquisition or works funded (or to be funded) by such
expenditure, and the total cost (or estimated total cost) of
that acquisition or those works, and
45
(b)
indicates that the expenditure was being treated by the
authority as expenditure of a capital nature.
A9    (1)
This paragraph applies to a disposal of land to which paragraph
A8 applies if, or to the extent that, it comprises a disposal of non-
playing field land.
50

Education and Inspections Bill
Schedule 4 — Disposals and changes of use of land
Part 1 — Amendments to Schedule 22 to SSFA 1998
142

      (2)
“Non-playing field land” means land which does not include
playing fields within the meaning of section 77.
      (3)
Accordingly, in this paragraph and paragraphs A10 to A13—
(a)
references to the disposal are to the disposal by the
foundation body of the non-playing field land, and
5
(b)
references to the land are to that non-playing field land.
      (4)
The foundation body must give the local education authority
notice of its intention to dispose of the land.
      (5)
That notification must specify—
(a)
the relevant capital expenditure upon which it is proposed
10
the proceeds of disposal are to be used, and
(b)
the estimated amount of those proceeds.
      (6)
The authority may, within the requisite period, give the
foundation body any or all of the following—
(a)
notice of their objection to the disposal, giving reasons for
15
their objection;
(b)
notice of their objection to the proposed use of the
proceeds of disposal, giving reasons for their objection;
(c)
notice of their claim to the whole or a part of the proceeds
of disposal.
20
      (7)
The “requisite period” means the period of 6 weeks beginning
with the date upon which the foundation body gave notification of
the disposal to the authority under sub-paragraph (4).
      (8)
A notice given under sub-paragraph (6) may be withdrawn at any
time by the authority giving the foundation body notice to that
25
effect.
      (9)
The foundation body may not make the disposal within the
requisite period unless within that period—
(a)
the authority give the foundation body notice that they
relinquish any right to give notice under sub-paragraph (6)
30
in relation to the disposal, or
(b)
in a case where notice is given in accordance with sub-
paragraph (6), the requirements of whichever one or more
of sub-paragraphs (10), (11) and (12) are applicable are
met.
35
     (10)
If the authority give notice of their objection to the disposal in
accordance with sub-paragraph (6)(a), the foundation body may
not make the disposal until—
(a)
the adjudicator has approved the disposal on a reference
made under paragraph A10(1), or
40
(b)
the authority withdraw notice of their objection to the
disposal in accordance with sub-paragraph (8).
     (11)
If the authority give notice of their objection to the proposed use
of the proceeds of disposal in accordance with sub-paragraph
(6)(b), the foundation body may not make the disposal until—
45

Education and Inspections Bill
Schedule 4 — Disposals and changes of use of land
Part 1 — Amendments to Schedule 22 to SSFA 1998
143

(a)
the relevant capital expenditure upon which the proceeds
of disposal are to be used is determined in accordance with
paragraph A10(2), or
(b)
the authority withdraw notice of their objection to the
proposed use of the proceeds of disposal in accordance
5
with sub-paragraph (8).
     (12)
If the authority give notice of their claim to the whole or a part of
the proceeds of disposal in accordance with sub-paragraph (6)(c),
the foundation body may not make the disposal until—
(a)
the “appropriate amount” has been determined in
10
accordance with paragraph A10(3), or
(b)
the authority withdraw notice of their claim in accordance
with sub-paragraph (8).
A10   (1)
Where the authority give the foundation body notice of their
objection to the disposal in accordance with paragraph A9(6)(a),
15
the foundation body or the authority may refer the matter to the
adjudicator for a determination by him as to whether he approves
the disposal.
      (2)
Where the authority give the foundation body notice of their
objection to the proposed use of the proceeds of disposal in
20
accordance with paragraph A9(6)(b), the relevant capital
expenditure upon which the proceeds of disposal are to be used is
to be determined—
(a)
by agreement between the foundation body and the
authority, or
25
(b)
by the adjudicator where—
(i)
the foundation body refers or the authority refer
the matter to him for determination, and
(ii)
by the time of his determination the matter has not
been determined by agreement between the
30
foundation body and the authority.
      (3)
Where the authority give the foundation body notice of their claim
to the whole or a part of the proceeds of disposal in accordance
with paragraph A9(6)(c), the amount of the proceeds of disposal
which it is appropriate for the foundation body to pay to the
35
authority (the “appropriate amount”) is to be determined—
(a)
by agreement between the foundation body and the
authority, or
(b)
by the adjudicator where—
(i)
the foundation body refers or the authority refer
40
the matter to him for determination, and
(ii)
by the time of his determination the matter has not
been determined by agreement between the
foundation body and the authority.
      (4)
Before making a reference to the adjudicator under sub-paragraph
45
(1), (2)(b) or (3)(b), the foundation body or, as the case may be, the
authority, must give the other notice of its or their intention to
make the reference.
A11   (1)
Where the disposal is made, the foundation body must—

Education and Inspections Bill
Schedule 4 — Disposals and changes of use of land
Part 1 — Amendments to Schedule 22 to SSFA 1998
144

(a)
notify the authority that the disposal has been made and of
the amount of the proceeds of disposal, and
(b)
pay the “appropriate amount” (if any) determined in
accordance with paragraph A10(3) to the authority (where
that amount is determined to be greater than zero).
5
      (2)
The foundation body must ensure that the remaining proceeds of
disposal are used on the agreed relevant capital expenditure.
      (3)
If the amount of the remaining proceeds of disposal exceeds the
amount of the agreed relevant capital expenditure, then the
foundation body must ensure that the surplus amount is used on
10
relevant capital expenditure.
      (4)
The “agreed relevant capital expenditure” means—
(a)
in a case where—
(i)
no notice of objection to the proposed use of the
proceeds of disposal was given by the authority in
15
accordance with paragraph A9(6)(b), or
(ii)
such a notice was so given and was then
withdrawn in accordance with paragraph A9(8),

the relevant capital expenditure specified in the
notification of the disposal given to the authority under
20
paragraph A9(4), and
(b)
in a case where such notice of objection was so given and
was not withdrawn, the relevant capital expenditure upon
which the proceeds of disposal are to be used as
determined in accordance with paragraph A10(2).
25
      (5)
The “remaining proceeds of disposal” means the amount of the
proceeds of disposal which remains after deducting—
(a)
the “appropriate amount” (if any) determined in
accordance with paragraph A10(3), and
(b)
the “relevant amount” (if any) determined in accordance
30
with paragraph A12(6).
      (6)
Sub-paragraphs (2) and (3) are subject to paragraph A12(4) and (5)
(restriction on use of proceeds where a claim is made).
A12   (1)
This paragraph applies where the amount of the proceeds of
disposal notified to the authority in accordance with paragraph
35
A11(1)(a) (“amount A”) exceeds the estimated amount of the
proceeds of disposal specified in the notification of the disposal
given to the authority under paragraph A9(4) (“amount E”).
      (2)
The authority may, within the review period, give the foundation
body notice of their claim to the whole or a part of the amount
40
which is the difference between amount A and amount E (“the
excess amount”).
      (3)
The “review period” means the period of 6 weeks beginning with
the date upon which the foundation body gave notification of the
disposal to the authority under paragraph A11(1)(a).
45
      (4)
The foundation body may not use the excess amount within the
review period unless within that period—

Education and Inspections Bill
Schedule 4 — Disposals and changes of use of land
Part 1 — Amendments to Schedule 22 to SSFA 1998
145

(a)
the authority give the foundation body notice that they
relinquish any right to give notice under sub-paragraph (2)
in relation to that amount, or
(b)
in a case where the authority give the foundation body
notice of their claim to the whole or a part of the excess
5
amount in accordance with sub-paragraph (2), the
requirements of sub-paragraph (5) are met.
      (5)
If the authority give notice of their claim to the whole or a part of
the excess amount in accordance with sub-paragraph (2), the
foundation body may not use the excess amount until—
10
(a)
the “relevant amount” has been determined in accordance
with sub-paragraph (6), or
(b)
the authority withdraw notice of their claim in accordance
with sub-paragraph (8).
      (6)
Where the authority give the foundation body notice of their claim
15
to the whole or a part of the excess amount, the amount of the
excess amount which it is appropriate for the foundation body to
pay to the authority (the “relevant amount”) is to be determined—
(a)
by agreement between the foundation body and the
authority, or
20
(b)
by the adjudicator where—
(i)
the foundation body refers or the authority refer
the matter to him for determination, and
(ii)
by the time of his determination the matter has not
been determined by agreement between the
25
foundation body and the authority.
      (7)
Before making a reference to the adjudicator under sub-paragraph
(6)(b), the foundation body or, as the case may be, the authority,
must give the other notice of its or their intention to make the
reference.
30
      (8)
A notice of claim given under sub-paragraph (2) may be
withdrawn at any time by the authority giving the foundation
body notice to that effect.
      (9)
Where the “relevant amount” is determined in accordance with
sub-paragraph (6) to be an amount greater than zero, the
35
foundation body must pay the “relevant amount” to the authority.
A13   (1)
This paragraph applies where—
(a)
the “appropriate amount” (if any) determined in
accordance with paragraph A10(3) is determined to be an
amount greater than zero, and
40
(b)
the amount of the proceeds of disposal notified to the
authority in accordance with paragraph A11(1)(a) is less
than the estimated amount of the proceeds of disposal
specified in the notification of the disposal given to the
authority under paragraph A9(4).
45
      (2)
The foundation body may, within the review period, give the
authority notice of its claim to the whole or a part of the
“appropriate amount”.

Education and Inspections Bill
Schedule 4 — Disposals and changes of use of land
Part 1 — Amendments to Schedule 22 to SSFA 1998
146

      (3)
The “review period” means the period of 6 weeks beginning with
the date upon which the foundation body gave notification of the
disposal to the authority under paragraph A11(1)(a).
      (4)
Where the foundation body gives the authority notice of its claim
to the whole or a part of the “appropriate amount”, the amount of
5
the “appropriate amount” which it is appropriate for the authority
to pay to the foundation body (the “refund amount”) is to be
determined—
(a)
by agreement between the foundation body and the
authority, or
10
(b)
by the adjudicator where—
(i)
the foundation body refers or the authority refer
the matter to him for determination, and
(ii)
by the time of his determination the matter has not
been determined by agreement between the
15
foundation body and the authority.
      (5)
Before making a reference to the adjudicator under sub-paragraph
(4)(b), the foundation body or, as the case may be, the authority,
must give the other notice of its or their intention to make the
reference.
20
      (6)
A notice of claim given under sub-paragraph (2) may be
withdrawn at any time by the foundation body giving the
authority notice to that effect.
      (7)
Where the “refund amount” is determined in accordance with
sub-paragraph (4) to be an amount greater than zero—
25
(a)
the authority must pay the “refund amount” to the
foundation body, and
(b)
that amount is to be treated as part of the proceeds of
disposal for the purposes of paragraph A11.
A14   (1)
For the purposes of paragraphs A9 to A11, “relevant capital
30
expenditure”, in relation to a disposal of land by a foundation
body, means capital expenditure in relation to the premises of—
(a)
any of the schools comprising the group for which the
body acts,
(b)
any existing foundation, voluntary or foundation special
35
school, city technology college, city college for the
technology of the arts, or Academy, or
(c)
any proposed foundation, voluntary or foundation special
school, or Academy.
      (2)
For the purposes of sub-paragraph (1)(c) it is irrelevant whether
40
proposals have yet been published under any enactment in
respect of the proposed school or Academy in question.
Disposal of land by trustees of foundation, voluntary or foundation special school
A15   (1)
This sub-paragraph applies to any disposal by the trustees of a
foundation, voluntary or foundation special school in England
45
of—