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

(a)
references to the disposal are to the disposal by the trustees
of the non-playing field land, and
(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—
5
(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
Act,

by the trustees of an institution which is, or has at any time been,
10
within the further education sector (as defined by section 4(3) of
the Education Act 1996).
      (6)
The trustees must give the local education authority notice of their
intention to dispose of the land.
      (7)
That notification must specify—
15
(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.
      (8)
The authority may, within the requisite period, give the trustees
any or all of the following—
20
(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
25
of disposal.
      (9)
The “requisite period” means the period of 6 weeks beginning
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A notice given under sub-paragraph (8) may be withdrawn at any
30
time by the authority giving the trustees notice to that effect.
     (11)
The trustees may not make the disposal within the requisite
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
35
to the disposal, or
(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
40
accordance with sub-paragraph (8)(a), the trustees may not make
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
45
disposal in accordance with sub-paragraph (10).

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

     (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
5
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
10
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
15
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—
20
(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
25
(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
30
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”.
35
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.
      (2)
Where the authority give the trustees notice of their objection to
40
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
(b)
by the adjudicator where—
45
(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
trustees and the authority.
50

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

      (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
the authority (the “appropriate amount”) is to be determined—
5
(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
10
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
authority, must give the other notice of their intention to make the
15
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
modified as follows—
20
(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
which the land is to be used are”.
25
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
accordance with paragraph A17(3) to the authority (where
30
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.
      (3)
If the amount of the remaining proceeds of disposal exceeds the
35
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.
      (4)
The “agreed relevant capital expenditure” means—
(a)
in a case where—
40
(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
(ii)
such a notice was so given and was then
withdrawn in accordance with paragraph A16(10),
45

the relevant capital expenditure specified in the
notification of the disposal given to the authority under
paragraph A16(6), and

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

(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
5
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).
10
      (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
15
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”
20
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”,
25
(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
30
(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
35
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”).
      (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
40
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 trustees gave notification of the disposal
to the authority under paragraph A18(1)(a).
45
      (4)
The trustees 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
165

(a)
the authority give the trustees 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 trustees notice of
their claim to the whole or a part of the excess amount in
5
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
trustees 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 trustees notice of their claim to the
15
whole or a part of the excess amount, the amount of the excess
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—
20
(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
trustees and the authority.
25
      (7)
Before making a reference to the adjudicator under sub-paragraph
(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
30
to that effect.
      (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—
35
(a)
the “appropriate amount” (if any) determined in
accordance with paragraph A17(3) is determined to be an
amount greater than zero, and
(b)
the amount of the proceeds of disposal notified to the
authority in accordance with paragraph A18(1)(a) is less
40
than the estimated amount of the proceeds of disposal
specified in the notification of the disposal given to the
authority under paragraph A16(6).
      (2)
The trustees may, within the review period, give the authority
notice of their claim to the whole or a part of the “appropriate
45
amount”.

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

      (3)
The “review period” means the period of 6 weeks beginning with
the date upon which the trustees gave notification of the disposal
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
5
“appropriate amount” which it is appropriate for the authority to
pay to the trustees (the “refund 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
10
for determination, and
(ii)
by the time of his determination the matter has not
been determined by agreement between the
trustees and the authority.
      (5)
Before making a reference to the adjudicator under sub-paragraph
15
(4)(b), the trustees 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 trustees giving the authority notice
to that effect.
20
      (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
trustees, and
(b)
that amount is to be treated as part of the proceeds of
25
disposal for the purposes of paragraph A18.
A21   (1)
For the purposes of paragraphs A16 to A18, “relevant capital
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—
30
(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
35
school, or Academy.
      (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.
Duty to have regard to guidance
40
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
reference to the adjudicator, under any of paragraphs A2
45
to A20, or

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

(b)
in determining the “appropriate amount”, the “relevant
amount” or the “refund amount” in accordance with any of
those paragraphs.
      (2)
In determining any matter on a reference made under any of the
provisions mentioned in sub-paragraph (1), the adjudicator must
5
have regard, in particular, to any guidance given from time to time
by the Secretary of State.
Power to vary or revoke determinations
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
10
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
(b)
before making the further determination, the adjudicator
consults such persons as he considers appropriate.
15
      (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
in relation to which the determination was made, or
(b)
any other of those persons who could have made that
20
reference.
Meaning of “capital expenditure”
A24   (1)
This paragraph applies to the references to capital expenditure in
the definition of “relevant capital expenditure” in paragraphs A7,
A14 and A21.
25
      (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
to be incurred by the governing body, would fall to be
capitalised in accordance with proper accounting
30
practices;
(b)
in the case of paragraph A14, expenditure which, if it were
to be incurred by the foundation body, would fall to be
capitalised in accordance with proper accounting
practices;
35
(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.
      (3)
The Secretary of State may by regulations prescribe classes or
descriptions of expenditure which are to be treated—
40
(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;
(b)
for the purposes of paragraph A14 as being, or as not
being, capital expenditure of any foundation body, or any
45
prescribed class or description of foundation body;