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
168

(c)
for the purposes of paragraph A21 as being, or as not
being, capital expenditure of any trustees, or any
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
5
expenditure of a particular class or description, is to be
treated for the purposes of paragraph A7 as being, or as not
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
10
treated for the purposes of paragraph A14 as being, or as
not being, capital expenditure of that body;
(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,
15
capital expenditure of those persons.
      (5)
Directions under sub-paragraph (4) may be expressed to have
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,
20
means those accounting practices—
(a)
which, whether by virtue of any enactment or by reference
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
25
be, those persons, or
(b)
which, whether by virtue of any enactment or by reference
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
30
authority.
      (2)
The “relevant local education authority” means the local
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
35
within paragraph (a) of sub-paragraph (1) and those falling within
paragraph (b) of that sub-paragraph, only those falling within
paragraph (a) are to be regarded as proper accounting practices.
Land required by local education authority for certain purposes
A26   (1)
A local education authority in England may apply to the
40
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
foundation special school by the governing body of the
school,
45
(b)
is held by a foundation body for the purposes of the group
of schools for which it acts, or

Education and Inspections Bill
Schedule 4 — Disposals and changes of use of land
Part 1 — Amendments to Schedule 22 to SSFA 1998
169

(c)
is held, or held on trust, for the purposes of a foundation,
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
5
authority, subject to the payment by the authority of such sum by
way of consideration (if any) as the adjudicator determines to be
appropriate.
      (3)
In determining whether to make an application under sub-
paragraph (1) for a transfer order, a local education authority must
10
have regard, in particular, to any guidance given from time to time
by the Secretary of State.
      (4)
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
15
authority’s intention to make the application.
      (5)
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”).
      (6)
In relation to the content of such an application, a local education
20
authority must have regard, in particular, to any guidance given
from time to time by the Secretary of State.
      (7)
Where an application is made under sub-paragraph (1) for a
transfer order in relation to publicly funded land, the adjudicator
may make a transfer order if he is satisfied that—
25
(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,
(c)
the stated purpose is a qualifying purpose, and
(d)
it is appropriate for the land to be used for that purpose.
30
      (8)
For the purposes of sub-paragraph (7)(c) the stated purpose is a
qualifying purpose if it falls within one or more of the following
descriptions of purpose—
(a)
the land is required for the purposes of any school or
institution which is, or is to be, maintained by the
35
authority, or which they have power to assist;
(b)
the land is otherwise required for the purposes of the
exercise of any of the functions of the authority;
(c)
the land is required for the provision of children’s services
by or on behalf of the local authority who are that authority
40
in the exercise of any of the relevant functions of that local
authority.
      (9)
For the purposes of sub-paragraph (8)(c)—
“children’s services” are services provided for or in relation
to any of the following persons (whether or not they are
45
also provided for or in relation to any other persons)—
(a)
children;
(b)
persons aged 18 or 19;

Education and Inspections Bill
Schedule 4 — Disposals and changes of use of land
Part 1 — Amendments to Schedule 22 to SSFA 1998
170

(c)
persons over the age of 19 who are receiving services
under sections 23C to 24D of the Children Act 1989;
(d)
persons over the age of 19 but under the age of 25 who
have a learning difficulty, within the meaning of
section 13 of the Learning and Skills Act 2000, and are
5
receiving services under that Act;
“relevant functions” means the functions described in any of
paragraphs (a), (c), (d) or (e) of subsection (1) of section 126
of the Education and Inspections Act 2006.
     (10)
Before making a transfer order the adjudicator must consult the
10
body or trustees holding the land in relation to which the
application for the transfer order is made.
     (11)
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.
15
     (12)
Where a transfer order is made, the authority must use the land to
which it relates for the stated purpose.
     (13)
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
20
him by a relevant person in relation to the order, and
(b)
before making the further order, the adjudicator consults
such persons as he considers appropriate.
     (14)
A “relevant person” in relation to a transfer order means—
(a)
the local education authority who applied for the transfer
25
order, or
(b)
the body or trustees who held the land to which the order
relates.
A27   (1)
For the purposes of paragraph A26, land held for the purposes of
a foundation, voluntary or foundation special school by the
30
governing body of the school is “publicly funded land” if it is—
(a)
land acquired under a transfer under section 201(1)(a) of
the Education Act 1996,
(b)
land acquired under any of the following—
paragraph 2 of Schedule 3;
35
paragraph 16 of Schedule 6 (including that provision
as applied by any enactment);
paragraph 5(4)(c), 5(4B)(d) or 8A of this Schedule;
any regulations made under paragraph 5 of Schedule
8;
40
paragraph 28(2) of Schedule 2 to the Education and
Inspections Act 2006 (including that provision as
applied by any enactment),
(c)
land acquired under any regulations made under—
section 22 of the Education and Inspections Act 2006
45
by virtue of subsection (3)(b) of that section, or
section 25 of that Act by virtue of subsection (2)(b) of
that section,

Education and Inspections Bill
Schedule 4 — Disposals and changes of use of land
Part 1 — Amendments to Schedule 22 to SSFA 1998
171

(d)
land acquired from a foundation body,
(e)
land acquired from the Funding Agency for Schools,
(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
5
Education Act 1996), or
(ii)
any grant paid under any regulations made under
paragraph 4 of Schedule 32 to this Act other than a
grant paid under such regulations to the governing
body of a voluntary aided school,
10
(g)
land acquired wholly or partly 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,
15
(h)
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
(i)
land acquired wholly with the proceeds of disposal of any
land acquired as mentioned in any of paragraphs (a) to (h).
20
      (2)
Sub-paragraph (1)(h) 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
25
(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—
30
(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
35
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 under any of the following—
40
paragraph 2, 4 or 9 of Schedule 3;
paragraph 16 or 20 of Schedule 6 (including that
provision as applied by any enactment);
paragraph 5 or 6 of Schedule 21;
paragraph 5(4B)(d) of this Schedule;
45
any regulations made under paragraph 5 of Schedule
8,
(b)
land acquired under any of the following—
paragraph 8(5) of Schedule 8 to the Education Act
2002;
50

Education and Inspections Bill
Schedule 4 — Disposals and changes of use of land
Part 1 — Amendments to Schedule 22 to SSFA 1998
172

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 (including that
provision as applied by any enactment);
5
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,
(c)
land acquired from the governing body of a maintained
10
school,
(d)
land acquired from another foundation body,
(e)
land acquired wholly by means of—
(i)
any grant provided by the Secretary of State on or
after the appointed day other than a grant made on
15
or after 1st April 2007 under paragraph 5 of
Schedule 3 (including that provision as applied by
any enactment), or
(ii)
any grant paid under any regulations made under
paragraph 4 of Schedule 32 to this Act other than a
20
grant paid under such regulations to the governing
body of a voluntary aided school,
(f)
land acquired wholly or partly 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
25
as applied by any enactment) in relation to which notice is
given in accordance with paragraph A30,
(g)
land acquired wholly 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
30
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
expenditure incurred on or after the appointed day unless the
35
authority—
(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
40
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
acquisition or works funded (or to be funded) by such
45
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.
A29   (1)
For the purposes of paragraph A26, land held, or held on trust, for
50
the purposes of a foundation, voluntary or foundation special

Education and Inspections Bill
Schedule 4 — Disposals and changes of use of land
Part 1 — Amendments to Schedule 22 to SSFA 1998
173

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
Act 1996,
(b)
land acquired under any of the following—
5
paragraph 2 of Schedule 3;
paragraph 16 of Schedule 6 (including that provision
as applied by any enactment);
paragraph 5(4B)(d) of this Schedule;
any regulations made under paragraph 5 of Schedule
10
8,
(c)
land acquired under any of the following—
paragraph 4 or 9 of Schedule 3;
paragraph 20 of Schedule 6 (including that provision
as applied by any enactment),
15
(d)
land acquired under any of the following—
paragraph 8(5) of Schedule 8 to the Education Act
2002;
paragraph 14(5) of Schedule 10 to the Education Act
2005;
20
paragraph 28(2) or 31(1) of Schedule 2 to the
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,
25
(e)
land acquired wholly 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)
land acquired from the Funding Agency for Schools,
30
(g)
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),
(ii)
any grant paid under section 216(2) of that Act, or
35
(iii)
any grant paid under any regulations made under
paragraph 4 of Schedule 32 to this Act other than a
grant paid under such regulations to the governing
body of a voluntary aided school,
(h)
land acquired wholly or partly by means of any grant
40
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,
(i)
land acquired wholly with the proceeds of disposal of any
45
land acquired as mentioned in any of paragraphs (f) to (h),
or
(j)
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).
50

Education and Inspections Bill
Schedule 4 — Disposals and changes of use of land
Part 1 — Amendments to Schedule 22 to SSFA 1998
174

      (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
5
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
10
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
15
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—
20
(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
25
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
30
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
school is not “publicly funded land” for the purposes of paragraph
35
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
Act,
40

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
unless the authority—
45
(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
incurred.
50