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
161

and treated by the local education authority as
expenditure of a capital nature,
(f)
land acquired from the Funding Agency for Schools,
(g)
land acquired wholly by means of—
(i)
any maintenance, special purpose or capital grant
5
(within the meaning of Chapter 6 of Part 3 of the
Education Act 1996),
(ii)
any grant paid under section 216(2) of that Act, or
(iii)
any grant paid under any regulations made under
paragraph 4 of Schedule 32 to this Act,
10
(h)
land acquired wholly with the proceeds of disposal of any
land acquired as mentioned in paragraph (f) or (g), or
(i)
land acquired wholly by means of any grant made in
pursuance of a special agreement (as defined by section
32(5) of the Education Act 1996).
15
      (2)
For the purposes of paragraph A26, land held, or held on trust, for
the purposes of a foundation or foundation special school by the
trustees of the school is also “publicly funded land” if it is—
(a)
land acquired by the trustees from the governing body of
the school or of another foundation or foundation special
20
school which was land—
(i)
acquired by the governing body under a transfer
under section 201(1)(a) of the Education Act 1996,
(ii)
acquired by the governing body under any of the
provisions mentioned in sub-paragraph (1)(b) or
25
under paragraph 8A of this Schedule, or
(iii)
acquired by the governing body wholly with the
proceeds of disposal of land acquired as mentioned
in sub-paragraph (i) or (ii), or
(b)
land acquired wholly with the proceeds of disposal of any
30
land acquired as mentioned in sub-paragraph (1)(b).
      (3)
For the purposes of paragraph A26, land held, or held on trust, for
the purposes of a voluntary school by the trustees of the school is
also “publicly funded land” if it is—
(a)
land acquired by the governing body of the school—
35
(i)
under a transfer under section 201(1)(a) of the
Education Act 1996, or
(ii)
wholly with the proceeds of disposal of any land so
acquired,

and transferred by the governing body to be held on trust
40
by the trustees, or
(b)
in the case of a school to which sub-paragraph (4) applies,
land acquired wholly 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
45
was, immediately before the appointed day, a controlled school
within the meaning of the Education Act 1996.
      (5)
Land held, or held on trust, for the purposes of a foundation,
voluntary or foundation special school by the trustees of the

Education and Inspections Bill
Schedule 4 — Disposals and changes of use of land
Part 1 — Amendments to Schedule 22 to SSFA 1998
162

school is not “publicly funded land” for the purposes of paragraph
A26 if it is—
(a)
land acquired under section 60 or 61 of the Education Act
1996, or
(b)
land acquired under paragraph 2 or 4 of Schedule 3 to this
5
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).
      (6)
Sub-paragraph (1)(e) does not apply in the case of any expenditure
10
unless the authority—
(a)
prepared an appropriate statement in relation to the
expenditure, and
(b)
sent a copy of the statement to the trustees either before, or
no later than 12 months after, the expenditure was
15
incurred.
      (7)
An “appropriate statement” in relation to expenditure is a
statement in writing which—
(a)
contains details of the amount of the expenditure, the
acquisition or works funded (or to be funded) by such
20
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.”
3
In the heading to Part 1 of the Schedule after “SCHOOLS” insert “IN
25
WALES”.
4     (1)
Paragraph 1 is amended as follows.
      (2)
In sub-paragraph (1) after “foundation special school” insert “in Wales”.
      (3)
In sub-paragraphs (2) and (3) for “Secretary of State” substitute “Assembly”.
      (4)
In sub-paragraph (3)—
30
(a)
for “his” substitute “its”,
(b)
for “he”, wherever occurring, substitute “the Assembly”, and
(c)
for “him” substitute “the Assembly”.
5     (1)
Paragraph 2 is amended as follows.
      (2)
In sub-paragraph (1)—
35
(a)
after “by a foundation body” insert “in Wales”, and
(b)
in paragraph (d) for “Secretary of State” substitute “the Assembly”.
      (3)
After that sub-paragraph insert—
   “(1A)
A “foundation body in Wales” means a foundation body where
each of the schools comprising the group of schools for which the
40
foundation body acts is maintained by a local education authority
in Wales.”
      (4)
In sub-paragraphs (2) and (3) for “Secretary of State” substitute “Assembly”.
      (5)
In sub-paragraph (3)—

Education and Inspections Bill
Schedule 4 — Disposals and changes of use of land
Part 1 — Amendments to Schedule 22 to SSFA 1998
163

(a)
for “his” substitute “its”, and
(b)
for “he”, wherever occurring, substitute “the Assembly”.
6     (1)
Paragraph 2A is amended as follows.
      (2)
In sub-paragraph (1) after “trustees of a foundation or foundation special
school” insert “in Wales”.
5
      (3)
In sub-paragraphs (3) and (4) for “Secretary of State” substitute “Assembly”.
      (4)
In sub-paragraph (4)—
(a)
for “his” substitute “its”, and
(b)
for “he”, wherever occurring, substitute “the Assembly”.
      (5)
In sub-paragraph (6) after “foundation special school” insert “in Wales”.
10
7     (1)
Paragraph 3 is amended as follows.
      (2)
In sub-paragraph (1) after “foundation special school” insert “in Wales”.
      (3)
In sub-paragraph (2) after “voluntary aided school” insert “in Wales”.
      (4)
In sub-paragraphs (3) and (4) for “Secretary of State” substitute “Assembly”.
      (5)
In sub-paragraph (9)—
15
(a)
for “Secretary of State”, wherever occurring, substitute “Assembly”,
and
(b)
for “he” substitute “the Assembly”.
      (6)
In sub-paragraph (12) after “foundation special school” insert “in Wales”.
8     (1)
Paragraph 4 is amended as follows.
20
      (2)
In sub-paragraph (1)—
(a)
after “local education authority” insert “in Wales”, and
(b)
for “Secretary of State” substitute “Assembly”.
      (3)
In sub-paragraph (2)—
(a)
for “Secretary of State” substitute “Assembly”, and
25
(b)
for “he” substitute “the Assembly”.
9     (1)
Paragraph 5 is amended as follows.
      (2)
In sub-paragraph (1)(b), for “Secretary of State” substitute “appropriate
authority”.
      (3)
In sub-paragraph (2) for the words from “Secretary of State” to the end
30
substitute “appropriate authority for it to exercise its powers under sub-
paragraph (4) below in relation to—
(a)
if the school is in England, any land falling within paragraphs (a) to
(h) of paragraph A1(1), or
(b)
if the school is in Wales, any land falling within paragraphs (a) to (f)
35
of paragraph 1(1),

which is held by the body for the purposes of the school.”
      (4)
In sub-paragraph (3) for the words from “Secretary of State” to the end
substitute “appropriate authority for it to exercise its powers under sub-
paragraph (4) below in relation to—
40

Education and Inspections Bill
Schedule 4 — Disposals and changes of use of land
Part 1 — Amendments to Schedule 22 to SSFA 1998
164

(a)
if the school is in England, any land falling within paragraphs (a) to
(g) of paragraph A8(1), or
(b)
if the school is in Wales, any land falling within paragraphs (a) to (f)
of paragraph 2(1),

which is held by the body for the purposes of the schools comprising the
5
group.”
      (5)
In sub-paragraph (4)—
(a)
for “Secretary of State” substitute “appropriate authority”,
(b)
for paragraph (a) substitute—
“(a)
require the land or any part of the land to be
10
transferred to such local authority as the
appropriate authority may specify, subject to the
payment by that local authority of such sum by
way of consideration (if any) as the appropriate
authority determines to be appropriate;”
15
(c)
in paragraph (b) for “him” and “he” substitute “the appropriate
authority”, and
(d)
in paragraph (c) for “he” substitute “the appropriate authority”.
      (6)
In sub-paragraph (4A) for the words from “Secretary of State” to the end
substitute “appropriate authority for it to exercise its powers under sub-
20
paragraph (4B) below in relation to—
(a)
if the school is in England, any land falling within paragraph
A15(1)(b) or (2), or
(b)
if the school is in Wales, any land falling within paragraph (a), (b) or
(c) of paragraph 2A(1),
25

which is held by the trustees for the purposes of the school.”
      (7)
In sub-paragraph (4B)—
(a)
for “Secretary of State” substitute “appropriate authority”,
(b)
for paragraph (a) substitute—
“(a)
require the land or any part of the land to be
30
transferred to such local authority as the
appropriate authority may specify, subject to the
payment by that local authority of such sum by
way of consideration (if any) as the appropriate
authority determines to be appropriate;”, and
35
(c)
in paragraphs (b), (c) and (d) for “he”, wherever occurring, substitute
“the appropriate authority”.
      (8)
In sub-paragraph (5) for “Secretary of State” substitute “appropriate
authority”.
      (9)
After that sub-paragraph insert—
40
   “(5A)
Where the school is in England and the trustees of the school—
(a)
dispose of any land falling within paragraph A15(1) or (3)
other than, in the case of a foundation or a foundation
special school, land falling within paragraph A15(1)(b), or
(b)
wish to use any such land for purposes not connected with
45
the provision of education in maintained schools,

paragraph 3 shall apply to them with the modifications specified
in sub-paragraph (5B).

Education and Inspections Bill
Schedule 4 — Disposals and changes of use of land
Part 1 — Amendments to Schedule 22 to SSFA 1998
165

     (5B)
Those modifications are that paragraph 3 applies—
(a)
as if the school were a school in Wales,
(b)
as if references to the Assembly were references to the
Secretary of State, and
(c)
as if references to “it” or “its” in relation to the Assembly
5
were accordingly references to “him” or “his”.”
     (10)
In sub-paragraph (6) after “Where” insert “the school is in Wales and”.
10    (1)
Paragraph 6 is amended as follows.
      (2)
In sub-paragraph (1) for “Secretary of State’s” substitute “appropriate
authority’s”.
10
      (3)
In sub-paragraph (2)—
(a)
for “Secretary of State” substitute “appropriate authority”,
(b)
for “he”, wherever occurring, substitute “the appropriate authority”,
(c)
for “the authority”, wherever occurring, substitute “the local
education authority”, and
15
(d)
for “him” substitute “the appropriate authority”.
      (4)
After sub-paragraph (3) insert—
   “(3A)
Where the school is in England and the trustees of the school—
(a)
dispose of any land falling within paragraph A15(1) or (3),
or
20
(b)
wish to use any such land for purposes not connected with
the provision of education in maintained schools,

paragraph 3 shall apply to them with the modifications specified
in sub-paragraph (3B).
     (3B)
Those modifications are that paragraph 3 applies—
25
(a)
as if the school were a school in Wales,
(b)
as if references to the Assembly were references to the
Secretary of State, and
(c)
as if references to “it” or “its” in relation to the Assembly
were accordingly references to “him” or “his”.”
30
      (5)
In sub-paragraph (4) after “Where” insert “the school is in Wales and”.
11
In paragraph 7, in sub-paragraphs (2)(ii), (3)(c) and (6), for “Secretary of
State” substitute “appropriate authority”.
12
In paragraph 8(2)—
(a)
for “Secretary of State” substitute “appropriate authority”,
35
(b)
for “he”, wherever occurring, substitute “the appropriate authority”,
(c)
for “him” substitute “the appropriate authority”, and
(d)
for “the authority”, wherever occurring, substitute “the local
education authority”.

Education and Inspections Bill
Schedule 4 — Disposals and changes of use of land
Part 1 — Amendments to Schedule 22 to SSFA 1998
166

13
After paragraph 8 insert—
“Part 2A
Maintained school: transfer of land from trustee to governing body
8A    (1)
This paragraph applies where the trustee of one or more
foundation or foundation special schools falling within sub-
5
paragraph (2) is a body corporate.
      (2)
A foundation or foundation special school falls within this sub-
paragraph if it is a school in England—
(a)
which, after the commencement of section 23A, is
established with a foundation or altered so as to acquire a
10
foundation, or
(b)
which does not fall within paragraph (a) but whose
instrument of government provides for the majority of
governors to be foundation governors.
      (3)
Where—
15
(a)
the body corporate has under any enactment passed a
resolution for its winding up,
(b)
a court has made an order for the winding up of the body
corporate,
(c)
the body corporate has been removed under subsection (4)
20
of section 3 of the Charities Act 1993 from the register of
charities kept under that section, or
(d)
prescribed conditions relating to the ability of the body
corporate to pay its debts or to its continued existence as a
body corporate or as a charity are met,
25

the Secretary of State may make an order under this paragraph.
      (4)
Conditions may be prescribed under sub-paragraph (3)(d) by
reference to the opinion of the Secretary of State as to any
prescribed matter.
      (5)
An order under this paragraph is an order directing that any land
30
falling within paragraph A15(1)(b) or (2) held by the body
corporate on trust for the school or schools falling within sub-
paragraph (2) is to be transferred to, and by virtue of the order vest
in—
(a)
the governing body of the school, or
35
(b)
where the land is held on trust for two or more schools,
such of the governing bodies of the schools as the Secretary
of State thinks proper.
      (6)
In a case where—
(a)
proposals to establish a new foundation or foundation
40
special school fall to be implemented under Schedule 2 to
the Education and Inspections Act 2006, and
(b)
the local education authority have before the school
opening date transferred land to be held on trust for the
school,
45

references in this paragraph to a foundation or foundation special
school include references to a proposed such school and

Education and Inspections Bill
Schedule 4 — Disposals and changes of use of land
Part 1 — Amendments to Schedule 22 to SSFA 1998
167

references to a governing body include references to a proposed
governing body.
      (7)
In this paragraph—
“charity” has the same meaning as in the Charities Act 1993;
“foundation” means a foundation established otherwise than
5
under this Act.”
14
In paragraph 9(1)—
(a)
after “paragraph” insert “A26,”, and
(b)
for “or 8(2)(b)” substitute “, 8(2)(b) or 8A”.
15    (1)
Paragraph 10 is amended as follows.
10
      (2)
In sub-paragraph (1) after paragraph (d) insert—
“(e)
“the appropriate authority” means—
(i)
in relation to a school in England, the Secretary of
State, and
(ii)
in relation to a school in Wales, the Assembly.”
15
      (3)
In sub-paragraph (3) after “paragraphs” insert “A1(1), A15(1), (2) or (3)(a),
A27 to A29,”.
      (4)
In sub-paragraph (4) after “paragraphs” insert “A1(1), A15(1), (2) or (3)(a),”.
      (5)
In sub-paragraph (5) for “paragraph 1(1)” substitute “paragraphs A1(1) and
1(1)”.
20
16    (1)
Paragraph 11 is amended as follows.
      (2)
For paragraph (a) of sub-paragraph (1) substitute—
“(a)
subject to sub-paragraph (7), “capital expenditure” means
expenditure of the governing body in question which falls
to be capitalised in accordance with proper accounting
25
practices;”.
      (3)
In paragraph (b) of that sub-paragraph for “that Order” substitute “the
Regulatory Reform (Voluntary Aided Schools Liabilities and Funding)
(England) Order 2002”.
      (4)
After sub-paragraph (6) insert—
30
    “(7)
The Secretary of State may—
(a)
by regulations prescribe classes or descriptions of
expenditure which are to be treated for the purposes of this
paragraph as being, or as not being, capital expenditure of
any governing body or of any prescribed class or
35
description of governing body;
(b)
by direction provide that expenditure of a particular
governing body which is expenditure of a particular class
or description is to be treated for the purposes of this
paragraph as being, or as not being, capital expenditure of
40
that body.
      (8)
Directions under sub-paragraph (7)(b) may be expressed to have
effect in specified circumstances or subject to specified
conditions.”