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
154

(b)
the amount of the proceeds of disposal notified to the
authority in accordance with paragraph A18(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 A16(6).
5
      (2)
The trustees may, within the review period, give the authority
notice of their claim to the whole or a part of the “appropriate
amount”.
      (3)
The “review period” means the period of 6 weeks beginning with
the date upon which the trustees gave notification of the disposal
10
to the authority under paragraph A18(1)(a).
      (4)
Where the trustees 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 trustees (the “refund amount”) is to be determined—
15
(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
(ii)
by the time of his determination the matter has not
20
been determined by agreement between the
trustees and the authority.
      (5)
Before making a reference to the adjudicator under sub-paragraph
(4)(b), the trustees or, as the case may be, the authority, must give
the other notice of their intention to make the reference.
25
      (6)
A notice of claim given under sub-paragraph (2) may be
withdrawn at any time by the trustees giving the authority notice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—
30
(a)
the authority must pay the “refund amount” to the
trustees, and
(b)
that amount is to be treated as part of the proceeds of
disposal for the purposes of paragraph A18.
A21   (1)
For the purposes of paragraphs A16 to A18, “relevant capital
35
expenditure”, in relation to a disposal of land by the trustees of a
foundation, voluntary or foundation special school, means capital
expenditure in relation to the premises of—
(a)
the school,
(b)
any existing foundation, voluntary or foundation special
40
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
45
proposals have yet been published under any enactment in
respect of the proposed school or Academy in question.

Education and Inspections Bill
Schedule 4 — Disposals and changes of use of land
Part 1 — Amendments to Schedule 22 to SSFA 1998
155

Duty to have regard to guidance
A22   (1)
A local education authority, a governing body, a foundation body
and trustees must have regard, in particular, to any guidance
given from time to time by the Secretary of State—
(a)
in determining whether to give a notice, or make a
5
reference to the adjudicator, under any of paragraphs A2
to A20, or
(b)
in determining the “appropriate amount”, the “relevant
amount” or the “refund amount” in accordance with any of
those paragraphs.
10
      (2)
In determining any matter on a reference made under any of the
provisions mentioned in sub-paragraph (1), the adjudicator must
have regard, in particular, to any guidance given from time to time
by the Secretary of State.
Power to vary or revoke determinations
15
A23   (1)
A determination made by the adjudicator on a reference made to
him under any of paragraphs A3 to A20 may be varied or revoked
by a further determination made by him if—
(a)
the matter is referred to him by a relevant person in
relation to the determination, and
20
(b)
before making the further determination, the adjudicator
consults such persons as he considers appropriate.
      (2)
A “relevant person” in relation to a determination means—
(a)
the local education authority, governing body, foundation
body or trustees who made the reference to the adjudicator
25
in relation to which the determination was made, or
(b)
any other of those persons who could have made that
reference.
Meaning of “capital expenditure”
A24   (1)
This paragraph applies to the references to capital expenditure in
30
the definition of “relevant capital expenditure” in paragraphs A7,
A14 and A21.
      (2)
Subject to sub-paragraphs (3) and (4), such references are
references to—
(a)
in the case of paragraph A7, expenditure which, if it were
35
to be incurred by the governing body, would fall to be
capitalised in accordance with proper accounting
practices;
(b)
in the case of paragraph A14, expenditure which, if it were
to be incurred by the foundation body, would fall to be
40
capitalised in accordance with proper accounting
practices;
(c)
in the case of paragraph A21, expenditure which, if it were
to be incurred by the trustees, would fall to be capitalised
in accordance with proper accounting practices.
45

Education and Inspections Bill
Schedule 4 — Disposals and changes of use of land
Part 1 — Amendments to Schedule 22 to SSFA 1998
156

      (3)
The Secretary of State may by regulations prescribe classes or
descriptions of expenditure which are to be treated—
(a)
for the purposes of paragraph A7 as being, or as not being,
capital expenditure of any governing body, or any
prescribed class or description of governing body;
5
(b)
for the purposes of paragraph A14 as being, or as not
being, capital expenditure of any foundation body, or any
prescribed class or description of foundation body;
(c)
for the purposes of paragraph A21 as being, or as not
being, capital expenditure of any trustees, or any
10
prescribed class or description of trustee.
      (4)
The Secretary of State may by direction provide that—
(a)
expenditure of a particular governing body, which is
expenditure of a particular class or description, is to be
treated for the purposes of paragraph A7 as being, or as not
15
being, capital expenditure of that body;
(b)
expenditure of a particular foundation body, which is
expenditure of a particular class or description, is to be
treated for the purposes of paragraph A14 as being, or as
not being, capital expenditure of that body;
20
(c)
expenditure of particular trustees, which is expenditure of
a particular class or description, is to be treated for the
purposes of paragraph A21 as being, or as not being,
capital expenditure of those persons.
      (5)
Directions under sub-paragraph (4) may be expressed to have
25
effect in specified circumstances or subject to specified conditions.
A25   (1)
For the purposes of paragraph A24, “proper accounting practices”,
in relation to a governing or foundation body, or to trustees,
means those accounting practices—
(a)
which, whether by virtue of any enactment or by reference
30
to any generally recognised published code or otherwise,
are regarded as proper accounting practices to be followed
in the keeping of accounts by that body, or as the case may
be, those persons, or
(b)
which, whether by virtue of any enactment or by reference
35
to any generally recognised published code or otherwise,
are regarded as proper accounting practices to be followed
in the keeping of accounts by the relevant local education
authority.
      (2)
The “relevant local education authority” means the local
40
education authority to whom notice of the disposal in question is
required to be given under paragraph A2, A9 or A16.
      (3)
In the event of conflict between the accounting practices falling
within paragraph (a) of sub-paragraph (1) and those falling within
paragraph (b) of that sub-paragraph, only those falling within
45
paragraph (a) are to be regarded as proper accounting practices.

Education and Inspections Bill
Schedule 4 — Disposals and changes of use of land
Part 1 — Amendments to Schedule 22 to SSFA 1998
157

Land required by local education authority for certain purposes
A26   (1)
A local education authority in England may apply to the
adjudicator for a transfer order under this paragraph in relation to
publicly funded land which—
(a)
is held for the purposes of a foundation, voluntary or
5
foundation special school by the governing body of the
school,
(b)
is held by a foundation body for the purposes of the group
of schools for which it acts, or
(c)
is held, or held on trust, for the purposes of a foundation,
10
voluntary or foundation special school by the trustees of
the school.
      (2)
A transfer order is an order requiring the land in relation to which
it is made to be transferred by the body or trustees holding it to the
authority, subject to the payment by the authority of such sum by
15
way of consideration (if any) as the adjudicator determines to be
appropriate.
      (3)
Before making an application under sub-paragraph (1) for a
transfer order in relation to publicly funded land, the authority
must give the body or trustees holding the land notice of the
20
authority’s intention to make the application.
      (4)
An application under sub-paragraph (1) must state the purpose
for which the land to which it relates is required by the authority
(“the stated purpose”).
      (5)
Where an application is made under sub-paragraph (1) for a
25
transfer order in relation to publicly funded land, the adjudicator
may make a transfer order if he is satisfied that—
(a)
the land is not required for the purposes of the school or,
as the case may be, the schools in the group,
(b)
the land is required by the authority for the stated purpose,
30
(c)
the stated purpose is that the land—
(i)
is required for the purposes of any school or
institution which is, or is to be, maintained by the
authority, or which they have power to assist,
(ii)
is otherwise required for the purposes of the
35
exercise of any of the education functions of the
local authority who are that authority, or
(iii)
is required for the provision of services by or on
behalf of that local authority in the exercise of any
of their functions as described in any of paragraphs
40
(b) to (e) of subsection (1) of section 121 of the
Education and Inspections Act 2006, and
(d)
it is appropriate for the land to be used for that purpose.
      (6)
Before making a transfer order the adjudicator must consult the
body or trustees holding the land in relation to which the
45
application for the transfer order is made.

Education and Inspections Bill
Schedule 4 — Disposals and changes of use of land
Part 1 — Amendments to Schedule 22 to SSFA 1998
158

      (7)
In determining whether to make a transfer order, the adjudicator
must have regard, in particular, to any guidance given from time
to time by the Secretary of State.
      (8)
Where a transfer order is made, the authority must use the land to
which it relates for the stated purpose.
5
      (9)
A transfer order made by the adjudicator may be varied or
revoked by a further order made by the adjudicator if—
(a)
an application for its variation or revocation is made to
him by a relevant person in relation to the order, and
(b)
before making the further order, the adjudicator consults
10
such persons as he considers appropriate.
     (10)
A “relevant person” in relation to a transfer order means—
(a)
the local education authority who applied for the transfer
order, or
(b)
the body or trustees who held the land to which the order
15
relates.
A27   (1)
For the purposes of paragraph A26, land held for the purposes of
a foundation, voluntary or foundation special school by the
governing body of the school is “publicly funded land” if it is—
(a)
land acquired under a transfer under section 201(1)(a) of
20
the Education Act 1996,
(b)
land acquired under any of the following—
paragraph 2 of Schedule 3;
paragraph 16 of Schedule 6 (including that provision
as applied by any enactment);
25
paragraph 5(4)(c), 5(4B)(d) or 8A of this Schedule;
any regulations made under paragraph 5 of Schedule
8,
(c)
land acquired under any regulations made under—
section 22 of the Education and Inspections Act 2006
30
by virtue of subsection (3)(b) of that section, or
section 25 of that Act by virtue of subsection (2)(b) of
that section,
(d)
land acquired from a foundation body,
(e)
land acquired from the Funding Agency for Schools,
35
(f)
land acquired wholly 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
(ii)
any grant paid under any regulations made under
40
paragraph 4 of Schedule 32 to this Act,
(g)
land acquired wholly by means of expenditure incurred
for the purposes of the school and treated by the local
education authority as expenditure of a capital nature, or
(h)
land acquired wholly with the proceeds of disposal of any
45
land acquired as mentioned in any of paragraphs (a) to (g).

Education and Inspections Bill
Schedule 4 — Disposals and changes of use of land
Part 1 — Amendments to Schedule 22 to SSFA 1998
159

      (2)
Sub-paragraph (1)(g) 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
expenditure, and
5
(b)
sent a copy of the statement to the governing body either
before, or no later than 12 months after, the expenditure
was incurred.
      (3)
An “appropriate statement” in relation to expenditure is a
statement in writing which—
10
(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
15
authority as expenditure of a capital nature.
A28   (1)
For the purposes of paragraph A26, land held by a foundation
body for the purposes of the group of schools for which it acts is
“publicly funded land” if it is—
(a)
land acquired by a governing body of one of the schools in
20
the group under a transfer under section 201(1)(a) of the
Education Act 1996,
(b)
land acquired under any of the following—
paragraph 2, 4 or 9 of Schedule 3;
paragraph 16 or 20 of Schedule 6 (including that
25
provision as applied by any enactment);
paragraph 5 or 6 of Schedule 21;
any regulations made under paragraph 5 of Schedule
8,
(c)
land acquired under any of the following—
30
paragraph 8(5) of Schedule 8 to the Education Act
2002;
paragraph 14(5) of Schedule 10 to the Education Act
2005;
paragraph 28(2) or 31(1) of Schedule 2 to the
35
Education and Inspections Act 2006;
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,
40
(d)
land acquired from the governing body of a maintained
school,
(e)
land acquired from another foundation body,
(f)
land acquired wholly by means of—
(i)
any grant provided by the Secretary of State on or
45
after the appointed day, or
(ii)
any grant paid under any regulations made under
paragraph 4 of Schedule 32 to this Act,
(g)
land acquired wholly by means of expenditure incurred
for the purposes of any of the schools comprising the
50

Education and Inspections Bill
Schedule 4 — Disposals and changes of use of land
Part 1 — Amendments to Schedule 22 to SSFA 1998
160

group for which the body acts and treated by the local
education authority as expenditure of a capital nature, or
(h)
land acquired wholly with the proceeds of disposal of any
land acquired as mentioned in any of paragraphs (a) to (g).
      (2)
Sub-paragraph (1)(g) does not apply in the case of any
5
expenditure incurred on or after the appointed day unless the
authority—
(a)
prepared an appropriate statement in relation to the
expenditure, and
(b)
sent a copy of the statement to the foundation body either
10
before, or no later than 12 months after, the expenditure
was incurred.
      (3)
An “appropriate statement” in relation to expenditure is a
statement in writing which—
(a)
contains details of the amount of the expenditure, the
15
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
authority as expenditure of a capital nature.
20
A29   (1)
For the purposes of paragraph A26, land held, or held on trust, for
the purposes of a foundation, voluntary or foundation special
school by the trustees of the school is “publicly funded land” if it
is—
(a)
land acquired under section 60, 61 or 70 of the Education
25
Act 1996,
(b)
land acquired under any of the following—
paragraph 2 of Schedule 3;
paragraph 16 of Schedule 6 (including that provision
as applied by any enactment);
30
paragraph 5(4B)(d) of this Schedule;
any regulations made under paragraph 5 of Schedule
8,
(c)
land acquired under any of the following—
paragraph 4 or 9 of Schedule 3;
35
paragraph 20 of Schedule 6 (including that provision
as applied by any enactment),
(d)
land acquired under any of the following—
paragraph 8(5) of Schedule 8 to the Education Act
2002;
40
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
45
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)
land acquired wholly by means of expenditure incurred on
or after the appointed day for the purposes of the school
50