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

      (4)
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
expenditure, and the total cost (or estimated total cost) of
5
that acquisition or those works, and
(b)
indicates that the expenditure was being treated by the
authority as expenditure of a capital nature.
A2    (1)
This paragraph applies to a disposal of land to which paragraph
A1 applies if, or to the extent that, it comprises a disposal of non-
10
playing field land.
      (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 A3 to A6—
(a)
references to the disposal are to the disposal by the
15
governing body of the non-playing field land, and
(b)
references to the land are to that non-playing field land.
      (4)
The governing body must give the local education authority notice
of their intention to dispose of the land.
      (5)
That notification must specify—
20
(a)
the relevant capital expenditure upon which it is proposed
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 governing
body any or all of the following—
25
(a)
notice of their objection to the disposal, giving reasons for
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
30
of disposal.
      (7)
The “requisite period” means the period of 6 weeks beginning
with the date upon which the governing 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A notice given under sub-paragraph (6) may be withdrawn at any
35
time by the authority giving the governing body notice to that
effect.
      (9)
The governing body may not make the disposal within the
requisite period unless within that period—
(a)
the authority give the governing body notice that they
40
relinquish any right to give notice under sub-paragraph (6)
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
45
met.

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

     (10)
If the authority give notice of their objection to the disposal in
accordance with sub-paragraph (6)(a), the governing body may
not make the disposal until—
(a)
the adjudicator has approved the disposal on a reference
made under paragraph A3(1), or
5
(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 governing body may not make the disposal until—
10
(a)
the relevant capital expenditure upon which the proceeds
of disposal are to be used is determined in accordance with
paragraph A3(2), or
(b)
the authority withdraw notice of their objection to the
proposed use of the proceeds of disposal in accordance
15
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 governing body may not make the disposal until—
(a)
the “appropriate amount” has been determined in
20
accordance with paragraph A3(3), or
(b)
the authority withdraw notice of their claim in accordance
with sub-paragraph (8).
A3    (1)
Where the authority give the governing body notice of their
objection to the disposal in accordance with paragraph A2(6)(a),
25
the governing 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 governing body notice of their
objection to the proposed use of the proceeds of disposal in
30
accordance with paragraph A2(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 governing body and the
authority, or
35
(b)
by the adjudicator where—
(i)
the governing body 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
40
governing body and the authority.
      (3)
Where the authority give the governing body notice of their claim
to the whole or a part of the proceeds of disposal in accordance
with paragraph A2(6)(c), the amount of the proceeds of disposal
which it is appropriate for the governing body to pay to the
45
authority (the “appropriate amount”) is to be determined—
(a)
by agreement between the governing body and the
authority, or
(b)
by the adjudicator where—

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

(i)
the governing body 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
governing body and the authority.
5
      (4)
Before making a reference to the adjudicator under sub-paragraph
(1), (2)(b) or (3)(b), the governing body or, as the case may be, the
authority, must give the other notice of their intention to make the
reference.
A4    (1)
Where the disposal is made, the governing body must—
10
(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 A3(3) to the authority (where
that amount is determined to be greater than zero).
15
      (2)
The governing 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
governing body must ensure that the surplus amount is used on
20
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
25
accordance with paragraph A2(6)(b), or
(ii)
such a notice was so given and was then
withdrawn in accordance with paragraph A2(8),

the relevant capital expenditure specified in the
notification of the disposal given to the authority under
30
paragraph A2(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 A3(2).
35
      (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 A3(3), and
(b)
the “relevant amount” (if any) determined in accordance
40
with paragraph A5(6).
      (6)
Sub-paragraphs (2) and (3) are subject to paragraph A5(4) and (5)
(restriction on use of proceeds where a claim is made).
A5    (1)
This paragraph applies where the amount of the proceeds of
disposal notified to the authority in accordance with paragraph
45
A4(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 A2(4) (“amount E”).

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

      (2)
The authority may, within the review period, give the governing
body 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 governing body gave notification of the
disposal to the authority under paragraph A4(1)(a).
      (4)
The governing body may not use the excess amount within the
review period unless within that period—
(a)
the authority give the governing body notice that they
10
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 governing body
notice of their claim to the whole or a part of the excess
amount in accordance with sub-paragraph (2), the
15
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
governing body 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 governing body notice of their claim
to the whole or a part of the excess amount, the amount of the
25
excess amount which it is appropriate for the governing body to
pay to the authority (the “relevant amount”) is to be determined—
(a)
by agreement between the governing body and the
authority, or
(b)
by the adjudicator where—
30
(i)
the governing body 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
governing body and the authority.
35
      (7)
Before making a reference to the adjudicator under sub-paragraph
(6)(b), the governing body 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 governing body
40
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
governing body must pay the “relevant amount” to the authority.
A6    (1)
This paragraph applies where—
45
(a)
the “appropriate amount” (if any) determined in
accordance with paragraph A3(3) is determined to be an
amount greater than zero, and

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

(b)
the amount of the proceeds of disposal notified to the
authority in accordance with paragraph A4(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 A2(4).
5
      (2)
The governing body 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 governing body gave notification of the
10
disposal to the authority under paragraph A4(1)(a).
      (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
15
determined—
(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
20
matter to him for determination, and
(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
25
(4)(b), the governing body or, as the case may be, the authority,
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.
30
      (7)
Where the “refund amount” is determined in accordance with
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
35
disposal for the purposes of paragraph A4.
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—
40
(a)
the school,
(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
45
school, or Academy.

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

      (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
5
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);
10
paragraph 5 or 6 of Schedule 21;
paragraph 5(4B)(d) of this Schedule;
any regulations made under paragraph 5 of Schedule
8,
(b)
any land acquired under any of the following—
15
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
20
Education and Inspections Act 2006 (including that
provision as applied by any enactment);
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
25
virtue of subsection (2)(b) of that section,
(c)
any land acquired from the governing body of a
maintained school,
(d)
any land acquired from another foundation body,
(e)
any land acquired, or enhanced in value, wholly or partly
30
by means of any grant provided by the Secretary of State
on or after the appointed day other than a grant made on
or after 1st April 2007 under paragraph 5 of Schedule 3
(including that provision as applied by any enactment),
(f)
any land acquired, or enhanced in value, wholly or partly
35
by means of any grant made on or after 1st April 2007 by
the Secretary of State under paragraph 5 of Schedule 3
(including that provision as applied by any enactment) in
relation to which notice is given in accordance with
paragraph A30,
40
(g)
any land acquired, or enhanced in value, wholly or partly
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
45
(h)
any land acquired, or enhanced in value, wholly or partly
with the proceeds of disposal of any land acquired or
enhanced in value 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
153

      (2)
A “foundation body in England” means a foundation body where
each of the schools comprising the group of schools for which the
foundation body acts is maintained by a local education authority
in England.
      (3)
But this paragraph does not apply to any disposal which—
5
(a)
is made by a foundation body after the commencement of
this sub-paragraph, and
(b)
is a disposal to the trustees of a foundation or foundation
special school made on the school leaving the group for
which the foundation body acts and becoming a school
10
with a foundation established otherwise than under this
Act.
      (4)
Sub-paragraph (1)(g) does not apply in the case of any
expenditure incurred on or after the appointed day unless the
authority—
15
(a)
prepared an appropriate statement in relation to the
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.
20
      (5)
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
expenditure, and the total cost (or estimated total cost) of
25
that acquisition or those works, and
(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-
30
playing field land.
      (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
35
foundation body of the non-playing field land, and
(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—
40
(a)
the relevant capital expenditure upon which it is proposed
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—
45
(a)
notice of their objection to the disposal, giving reasons for
their objection;