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
147

(a)
any land acquired under section 60, 61 or 70 of the
Education Act 1996,
(b)
any land acquired under any of the following—
paragraph 2 of Schedule 3;
paragraph 16 of Schedule 6 (including that provision
5
as applied by any enactment);
paragraph 5(4B)(d) of this Schedule;
any regulations made under paragraph 5 of Schedule
8,
(c)
any land acquired under any of the following—
10
paragraph 4 or 9 of Schedule 3;
paragraph 20 of Schedule 6 (including that provision
as applied by any enactment),
(d)
any land acquired under any of the following—
paragraph 8(5) of Schedule 8 to the Education Act
15
2002;
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;
20
any regulations made under section 22 of that Act by
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,
(e)
any land acquired, or enhanced in value, wholly or partly
25
by means of expenditure incurred on or after the
appointed day for the purposes of the school and treated
by the local education authority as expenditure of a capital
nature,
(f)
any land acquired from the Funding Agency for Schools,
30
(g)
any land acquired, or enhanced in value, wholly or partly
by means of—
(i)
any maintenance, special purpose or capital grant
(within the meaning of Chapter 6 of Part 3 of the
Education Act 1996), or
35
(ii)
any grant paid under section 216(2) of that Act,
(h)
any land acquired wholly or partly with the proceeds of
disposal of any land acquired or enhanced in value as
mentioned in paragraph (f) or (g), or
(i)
any land acquired, or enhanced in value, wholly or partly
40
by means of any grant made in pursuance of a special
agreement (as defined by section 32(5) of the Education
Act 1996).
      (2)
This sub-paragraph applies to any disposal by the trustees of a
foundation or foundation special school in England of—
45
(a)
any land acquired by the trustees from the governing body
of the school or of another foundation or foundation
special school which was land—
(i)
acquired by the governing body under a transfer
under section 201(1)(a) of the Education Act 1996,
50

Education and Inspections Bill
Schedule 4 — Disposals and changes of use of land
Part 1 — Amendments to Schedule 22 to SSFA 1998
148

(ii)
acquired by the governing body under any of the
provisions mentioned in sub-paragraph (1)(b) or
under paragraph 8A of this Schedule, or
(iii)
acquired by the governing body, or enhanced in
value, wholly or partly with the proceeds of
5
disposal of land acquired as mentioned in sub-
paragraph (i) or (ii), or
(b)
any land acquired, or enhanced in value, wholly or partly
with the proceeds of disposal of any land acquired as
mentioned in sub-paragraph (1)(b).
10
      (3)
This sub-paragraph applies to any disposal by the trustees of a
voluntary school in England of—
(a)
any land acquired by the governing body of the school—
(i)
under a transfer under section 201(1)(a) of the
Education Act 1996, or
15
(ii)
wholly or partly with the proceeds of disposal of
any land so acquired,

and transferred by the governing body to be held on trust
by the trustees, or
(b)
in the case of a school to which sub-paragraph (4) applies,
20
any land acquired, or enhanced in value, wholly or partly
by means of expenditure incurred under section 63 or 64 of
the Education Act 1996.
      (4)
This sub-paragraph applies to a voluntary aided school which
was, immediately before the appointed day, a controlled school
25
within the meaning of the Education Act 1996.
      (5)
Sub-paragraph (1)(e) does not apply in the case of any expenditure
unless the authority—
(a)
prepared an appropriate statement in relation to the
expenditure, and
30
(b)
sent a copy of the statement to the trustees either before, or
no later than 12 months after, the expenditure was
incurred.
      (6)
An “appropriate statement” in relation to expenditure is a
statement in writing which—
35
(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
(b)
indicates that the expenditure was being treated by the
40
authority as expenditure of a capital nature.
      (7)
Where the trustees of a foundation, voluntary or foundation
special school wish, in the case of any land held by them for the
purposes of the school, to use the land for purposes not connected
with the provision of education in maintained schools the
45
preceding provisions of this paragraph and paragraphs A16 to
A18 apply (subject to the modifications specified in paragraphs
A16(15), A17(5) and A18(7)) as if any such change of use of the
land were a disposal of the land.

Education and Inspections Bill
Schedule 4 — Disposals and changes of use of land
Part 1 — Amendments to Schedule 22 to SSFA 1998
149

A16   (1)
This paragraph applies to a disposal of land to which sub-
paragraph (1), (2) or (3) of paragraph A15 applies.
      (2)
But this paragraph only applies to a disposal if, or to the extent
that, it comprises a disposal of non-playing land which does not
fall within sub-paragraph (5).
5
      (3)
“Non-playing field land” means land which does not include
playing fields within the meaning of section 77.
      (4)
Accordingly, in this paragraph and paragraphs A17 to A20—
(a)
references to the disposal are to the disposal by the trustees
of the non-playing field land, and
10
(b)
references to the land are to that non-playing field land.
      (5)
A disposal of non-playing field land falls within this sub-
paragraph if it is a disposal of—
(a)
land acquired under section 60 or 61 of the Education Act
1996, or
15
(b)
land acquired under paragraph 2 or 4 of Schedule 3 to this
Act,

by the trustees of an institution which is, or has at any time been,
within the further education sector (as defined by section 4(3) of
the Education Act 1996).
20
      (6)
The trustees must give the local education authority notice of their
intention to dispose of the land.
      (7)
That notification must specify—
(a)
the relevant capital expenditure upon which it is proposed
the proceeds of disposal are to be used, and
25
(b)
the estimated amount of those proceeds.
      (8)
The authority may, within the requisite period, give the trustees
any or all of the following—
(a)
notice of their objection to the disposal, giving reasons for
their objection;
30
(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.
      (9)
The “requisite period” means the period of 6 weeks beginning
35
with the date upon which the trustees gave notification of the
disposal to the authority under sub-paragraph (6).
     (10)
A notice given under sub-paragraph (8) may be withdrawn at any
time by the authority giving the trustees notice to that effect.
     (11)
The trustees may not make the disposal within the requisite
40
period unless within that period—
(a)
the authority give the trustees notice that they relinquish
any right to give notice under sub-paragraph (8) in relation
to the disposal, or

Education and Inspections Bill
Schedule 4 — Disposals and changes of use of land
Part 1 — Amendments to Schedule 22 to SSFA 1998
150

(b)
in a case where notice is given in accordance with sub-
paragraph (8), the requirements of whichever one or more
of sub-paragraphs (12), (13) or (14) are applicable are met.
     (12)
If the authority give notice of their objection to the disposal in
accordance with sub-paragraph (8)(a), the trustees may not make
5
the disposal until—
(a)
the adjudicator has approved the disposal on a reference
made under paragraph A17(1), or
(b)
the authority withdraw notice of their objection to the
disposal in accordance with sub-paragraph (10).
10
     (13)
If the authority give notice of their objection to the proposed use
of the proceeds of disposal in accordance with sub-paragraph
(8)(b), the trustees may not make the disposal until—
(a)
the relevant capital expenditure upon which the proceeds
of disposal are to be used is determined in accordance with
15
paragraph A17(2), or
(b)
the authority withdraw notice of their objection to the
proposed use of the proceeds of disposal in accordance
with sub-paragraph (10).
     (14)
If the authority give notice of their claim to the whole or a part of
20
the proceeds of disposal in accordance with sub-paragraph (8)(c),
the trustees may not make the disposal until—
(a)
the “appropriate amount” has been determined in
accordance with paragraph A17(3), or
(b)
the authority withdraw notice of their claim in accordance
25
with sub-paragraph (10).
     (15)
In its application in the case of a disposal of land to which sub-
paragraph (1), (2) or (3) of paragraph A15 applies by virtue of sub-
paragraph (7) of that paragraph, this paragraph is modified as
follows—
30
(a)
in sub-paragraph (7) for paragraphs (a) and (b) substitute
“the purposes for which it is proposed the land is to be
used”,
(b)
in sub-paragraph (8)—
(i)
omit paragraphs (a) and (c), and
35
(ii)
in paragraph (b), for “proposed use of the proceeds
of disposal” substitute “proposed purposes for
which the land is to be used”, and
(c)
in sub-paragraph (13)—
(i)
for “proposed use of the proceeds of disposal” (in
40
both places) substitute “proposed purposes for
which the land is to be used”, and
(ii)
for “relevant capital expenditure upon which the
proceeds of disposal are to be used is” substitute
“purposes for which the land is to be used are”.
45
A17   (1)
Where the authority give the trustees notice of their objection to
the disposal in accordance with paragraph A16(8)(a), the trustees
or the authority may refer the matter to the adjudicator for a
determination by him as to whether he approves the disposal.

Education and Inspections Bill
Schedule 4 — Disposals and changes of use of land
Part 1 — Amendments to Schedule 22 to SSFA 1998
151

      (2)
Where the authority give the trustees notice of their objection to
the proposed use of the proceeds of disposal in accordance with
paragraph A16(8)(b), the relevant capital expenditure upon which
the proceeds of disposal are to be used is to be determined—
(a)
by agreement between the trustees and the authority, or
5
(b)
by the adjudicator where—
(i)
the trustees 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
10
trustees and the authority.
      (3)
Where the authority give the trustees notice of their claim to the
whole or a part of the proceeds of disposal in accordance with
paragraph A16(8)(c), the amount of the proceeds of disposal
which it is appropriate for the trustees or their successors to pay to
15
the authority (the “appropriate amount”) is to be determined—
(a)
by agreement between the trustees and the authority, or
(b)
by the adjudicator where—
(i)
the trustees or the authority refer the matter to him
for determination, and
20
(ii)
by the time of his determination the matter has not
been determined by agreement between the
trustees and the authority.
      (4)
Before making a reference to the adjudicator under sub-paragraph
(1), (2)(b) or (3)(b), the trustees or, as the case may be, the
25
authority, must give the other notice of their intention to make the
reference.
      (5)
In the application of this paragraph in the case of a disposal of land
to which sub-paragraph (1), (2) or (3) of paragraph A15 applies by
virtue of sub-paragraph (7) of that paragraph, sub-paragraph (2) is
30
modified as follows—
(a)
for “proposed use of the proceeds of disposal” substitute
“proposed purposes for which the land is to be used”, and
(b)
for “relevant capital expenditure upon which the proceeds
of disposal are to be used is” substitute “purposes for
35
which the land is to be used are”.
A18   (1)
Where the disposal is made, the trustees must—
(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
40
accordance with paragraph A17(3) to the authority (where
that amount is determined to be greater than zero).
      (2)
The trustees and their successors must ensure that the remaining
proceeds of disposal are used on the agreed relevant capital
expenditure.
45
      (3)
If the amount of the remaining proceeds of disposal exceeds the
amount of the agreed relevant capital expenditure, then the
trustees and their successors must ensure that the surplus amount
is used on relevant capital expenditure.

Education and Inspections Bill
Schedule 4 — Disposals and changes of use of land
Part 1 — Amendments to Schedule 22 to SSFA 1998
152

      (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
accordance with paragraph A16(8)(b), or
5
(ii)
such a notice was so given and was then
withdrawn in accordance with paragraph A16(10),

the relevant capital expenditure specified in the
notification of the disposal given to the authority under
paragraph A16(6), and
10
(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 A17(2).
      (5)
The “remaining proceeds of disposal” means the amount of the
15
proceeds of disposal which remains after deducting—
(a)
the “appropriate amount” (if any) determined in
accordance with paragraph A17(3), and
(b)
the “relevant amount” (if any) determined in accordance
with paragraph A19(6).
20
      (6)
Sub-paragraphs (2) and (3) are subject to paragraph A19(4) and (5)
(restriction on use of proceeds where a claim is made).
      (7)
In its application in the case of a disposal of land to which sub-
paragraph (1), (2) or (3) of paragraph A15 applies by virtue of sub-
paragraph (7) of that paragraph, this paragraph is modified as
25
follows—
(a)
in sub-paragraph (1) omit the words from “and of the
amount” to the end,
(b)
in sub-paragraph (2) for “remaining proceeds of disposal
are used on the agreed relevant capital expenditure”
30
substitute “land is used for the agreed purposes”,
(c)
omit sub-paragraph (3), and
(d)
in sub-paragraph (4)—
(i)
for “agreed relevant capital expenditure”
substitute “agreed purposes”,
35
(ii)
for “proposed use of the proceeds of disposal”
substitute “proposed purposes for which the land
is to be used”,
(iii)
for “relevant capital expenditure” substitute
“proposed purposes”, and
40
(iv)
for “relevant capital expenditure upon which the
proceeds of disposal are to be used” substitute
“purposes for which the land is to be used”.
A19   (1)
This paragraph applies where the amount of the proceeds of
disposal notified to the authority in accordance with paragraph
45
A18(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 A16(6) (“amount E”).

Education and Inspections Bill
Schedule 4 — Disposals and changes of use of land
Part 1 — Amendments to Schedule 22 to SSFA 1998
153

      (2)
The authority may, within the review period, give the trustees
notice of their claim to the whole or a part of the amount 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
5
the date upon which the trustees gave notification of the disposal
to the authority under paragraph A18(1)(a).
      (4)
The trustees may not use the excess amount within the review
period unless within that period—
(a)
the authority give the trustees notice that they relinquish
10
any right to give notice under sub-paragraph (2) in relation
to that amount, or
(b)
in a case where the authority give the trustees notice of
their claim to the whole or a part of the excess amount in
accordance with sub-paragraph (2), the requirements of
15
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
trustees may not use the excess amount until—
(a)
the “relevant amount” has been determined in accordance
20
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 trustees notice of their claim to the
whole or a part of the excess amount, the amount of the excess
25
amount which it is appropriate for the trustees to pay to the
authority (the “relevant amount”) is to be determined—
(a)
by agreement between the trustees and the authority, or
(b)
by the adjudicator where—
(i)
the trustees or the authority refer the matter to him
30
for determination, and
(ii)
by the time of his determination the matter has not
been determined by agreement between the
trustees and the authority.
      (7)
Before making a reference to the adjudicator under sub-paragraph
35
(6)(b), the trustees or, as the case may be, the authority, must give
the other notice of their intention to make the reference.
      (8)
A notice of claim given under sub-paragraph (2) may be
withdrawn at any time by the authority giving the trustees notice
to that effect.
40
      (9)
Where the “relevant amount” is determined in accordance with
sub-paragraph (6) to be an amount greater than zero, the trustees
must pay the “relevant amount” to the authority.
A20   (1)
This paragraph applies where—
(a)
the “appropriate amount” (if any) determined in
45
accordance with paragraph A17(3) is determined to be an
amount greater than zero, and