Education Bill [HL]

House of Lords

Session 2004 - 05
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Education Bill [HL]

Education Bill [HL]
Schedule 16 — Funding of maintained schools
135

45AB
Duty of LEAs in Wales to determine schools budget
(1)
Before the schools budget deadline in any funding period, a local
education authority in Wales must—
(a)
determine the proposed amount of their schools budget for
the following funding period, and
5
(b)
give notice of their determination to the National Assembly
for Wales and to the governing body of every school
maintained by the authority.
(2)
For the purposes of this section “the schools budget deadline”, in
relation to an authority in Wales, means the end of January or such
10
other time as may be prescribed.
45AC
Power to require LEAs in Wales to determine schools budget
(1)
Regulations may require a local education authority in Wales, not
later than the prescribed date, to make an initial determination of
their schools budget for a funding period.
15
(2)
The date prescribed for the purposes of subsection (1) may be a date
falling up to 48 months before the beginning of the funding period.
(3)
Regulations under subsection (1) may—
(a)
authorise or require local education authorities in Wales to
take account of matters arising after the initial determination
20
of their schools budgets for the funding period but before the
beginning of the funding period, by redetermining their
schools budgets for the period in accordance with the
regulations, and
(b)
require notice of any initial determination or revised
25
determination to be given in accordance with the regulations
to the Assembly and to the governing bodies of schools
maintained by the local education authority.
(4)
Regulations under subsection (1) are not to have effect in relation to
an authority’s schools budget for any funding period if section 45AB
30
is in force in relation to that funding period.”
5
For sections 45B and 45C of the 1998 Act substitute—
"45B
Power of Assembly to set minimum schools budget for LEA in Wales
(1)
If it appears to the National Assembly for Wales that, in all the
circumstances, the proposed amount of a local education authority’s
35
schools budget for a funding period is inadequate, the Assembly
may, within the period of fourteen days beginning with the schools
budget deadline in the funding period preceding that funding
period, give the authority a notice under subsection (6) or (7).
(2)
In subsection (1), the reference to the proposed amount of a local
40
education authority’s schools budget for a funding period is—
(a)
if section 45AB is in force in relation to that funding period, a
reference to the amount specified in a notice under section
45AB(1)(b), or
(b)
if regulations under section 45AC(1) are in force in relation to
45
that funding period, a reference to such amount, determined
by the authority in accordance with those regulations and

Education Bill [HL]
Schedule 16 — Funding of maintained schools
136

specified in a notice required by those regulations to be given
to the Assembly, as may be prescribed.
(3)
If at the schools budget deadline in any funding period, a local
education authority in Wales have failed to give the Assembly a
notice under section 45AB(1)(b) or a notice required as mentioned in
5
subsection (2)(b), the Assembly may, at any time after that deadline,
give the authority a notice under subsection (6) or (7).
(4)
In this section “the schools budget deadline”—
(a)
in a case falling within subsection (2)(a), has the same
meaning as in section 45AB, and
10
(b)
in a case falling within subsection (2)(b), means the time in
the funding period preceding the funding period to which
the schools budget relates by which regulations under
section 45AC(1) require notice of a revised determination of
the schools budget to be given to the Assembly.
15
(5)
In this section and section 45C “the period under consideration”
means the funding period to which the notice mentioned in
subsection (2)(a) or (b) relates or, in a case falling within subsection
(3), the funding period in relation to which such a notice ought to
have been given.
20
(6)
A notice under this subsection is a notice determining the minimum
amount of the authority’s schools budget for the period under
consideration.
(7)
A notice under this subsection is a notice which—
(a)
specifies the amount which the Assembly would have
25
determined as the minimum amount of the authority’s
schools budget for the period under consideration if the
Assembly had acted under subsection (4), and
(b)
states the Assembly’s intention to determine the minimum
amount of the authority’s schools budget for the following
30
funding period.
(8)
A notice under subsection (6) or (7) must include a statement of the
Assembly’s reasons for giving the notice.
(9)
The Assembly may act under different subsections in relation to
different authorities.
35
"45C
Effect of notice under section 45B(6)
(1)
The local education authority may, within the period of fourteen
days beginning with the date of a notice under section 45B(6), give
the National Assembly for Wales notice of their objection to the
Assembly’s determination, giving reasons for their objection.
40
(2)
Where the local education authority have given notice of their
objection under subsection (1), the notice under section 45B(6) shall
cease to have effect, but the Assembly may by order prescribe the
minimum amount of the authority’s schools budget for the period
under consideration.
45
(3)
The amount prescribed under subsection (2) must not be greater than
the amount specified in the notice under section 45B(6).

Education Bill [HL]
Schedule 16 — Funding of maintained schools
137

(4)
An order under subsection (2) may relate to two or more authorities.
(5)
Where—
(a)
a notice under section 45B(6) has been given to a local
education authority and no notice of objection has been given
during the period specified in subsection (1), or
5
(b)
an order has been made under subsection (2),

the local education authority shall determine a schools budget for the
period under consideration which is not less than the amount
specified in relation to the authority in the notice or order.
"45D
Power of Assembly to repeal Wales-only school funding provisions
10
The Assembly may by order—
(a)
repeal any of the following provisions—
section 45AB,
section 45AC(4), and
sections 45B and 45C, and
15
(b)
make any amendments of the other provisions of this
Chapter which appear to the Assembly to be necessary or
expedient in consequence of any repeal made by virtue of
paragraph (a).”
Determination of schools’ budget shares
20
6     (1)
Section 47 of the 1998 Act (determination of school’s budget share) is
amended as follows.
      (2)
In subsection (1)—
(a)
for “financial year” substitute “funding period”, and
(b)
for “that year” substitute “that period”.
25
      (3)
In subsection (2)—
(a)
after paragraph (d) insert—
“(dd)
authorising or requiring such authorities to take
account of matters arising after the initial
determination of budget shares for a funding period
30
but before the beginning of the funding period, by
redetermining budget shares for that period in
accordance with the regulations, and requiring them
in that connection to disregard such matters as may
be specified in the regulations;”,
35
(b)
in paragraph (e) for “financial year” substitute “funding period” and
for “year” in sub-paragraphs (i) and (ii) substitute “funding period”,
(c)
after paragraph (f) insert—
“(ff)
requiring notice of any initial determination or
revised determination to be given in accordance with
40
the regulations to the governing bodies of schools
maintained by the authority in question;”, and
(d)
for paragraph (g) substitute—
“(g)
authorising local education authorities in prescribed
cases to determine (or redetermine) budget shares, to
45
such extent as may be prescribed, in accordance with
arrangements approved by the authority’s schools

Education Bill [HL]
Schedule 17 — Foundation, voluntary and foundation special schools: disposal of land
138

forum or the Secretary of State in accordance with the
regulations (in place of the arrangements provided
for by the regulations);”.
      (4)
After subsection (2) insert—
“(2A)
The time by which regulations made in pursuance of subsection
5
(2)(a) require an initial determination of schools’ budget shares for a
funding period to be made may be up to 48 months before the
beginning of the funding period.”
Functions of schools forum
7
In section 47A of the 1998 Act (schools forums) for subsection (3)
10
substitute—
“(3)
The purpose of a schools forum is—
(a)
to advise the relevant authority on such matters relating to
the authority’s schools budget as may be prescribed by
regulations under section 45A(3) or by regulations under this
15
subsection, and
(b)
to exercise any function that may be imposed on the schools
forum by virtue of section 45A(4A) or 47(2)(g).”
Schedule 17
Section 103

Foundation, voluntary and foundation special schools: disposal of land
20
1
Schedule 22 to the School Standards and Framework Act 1998 (c. 31)
(disposal of land in case of certain schools and disposals on discontinuance)
is amended as follows.
2     (1)
Paragraph 1 (disposal of land by governing body of foundation, voluntary
or foundation special school) is amended as follows.
25
      (2)
At the beginning of sub-paragraph (1) insert “Subject to sub-paragraph
(1A)”.
      (3)
After sub-paragraph (1) insert—
   “(1A)
This paragraph does not apply to any disposal which—
(a)
is made by the governing body of a foundation or
30
foundation special school after the commencement of this
sub-paragraph, and
(b)
is a disposal to the trustees of the school made on the
school becoming a school with a foundation falling within
section 21(1)(a).”
35
      (4)
In sub-paragraph (2), for “any such disposal” substitute “any disposal to
which this paragraph applies”.
      (5)
In sub-paragraph (3), after “any such disposal” insert “and he decides to give
that consent”.
3
In paragraph 2 (disposal of land by foundation body), in sub-paragraph (3)
40
after “any such disposal” insert “and he decides to give that consent”.

Education Bill [HL]
Schedule 17 — Foundation, voluntary and foundation special schools: disposal of land
139

4
After paragraph 2 insert—
“Disposal of land by trustees of foundation school or foundation special school
2A    (1)
This paragraph applies to any disposal by the trustees of a
foundation or foundation special school of—
(a)
any land acquired under paragraph 2 of Schedule 3, under
5
paragraph 16 of Schedule 6 (including that provision as
applied by any enactment) or under any regulations made
under paragraph 5 of Schedule 8,
(b)
any land acquired, or enhanced in value, wholly or partly
with the proceeds of disposal of any land acquired as
10
mentioned in paragraph (a), or
(c)
any land falling within sub-paragraph (2) which was
acquired by the trustees from the governing body of the
school.
      (2)
Land falls within this sub-paragraph if—
15
(a)
it had been acquired by the governing body—
(i)
under a transfer under section 201(1)(a) of the
Education Act 1996, or
(ii)
under any of the provisions mentioned in sub-
paragraph (1)(a), or
20
(b)
it had been acquired by the governing body, or enhanced
in value, wholly or partly with the proceeds of disposal of
land acquired as mentioned in paragraph (a).
      (3)
The trustees shall not make any disposal to which this paragraph
applies without the written consent of the Secretary of State.
25
      (4)
Where the trustees apply to the Secretary of State for his consent
to any such disposal and he decides to give that consent, he may
do one or more of the following, namely—
(a)
require the land or any part of the land to be transferred to
such local authority as he may specify, subject to the
30
payment by that authority of such sum by way of
consideration (if any) as he determines to be appropriate;
and
(b)
give the trustees, when the land or any part of the land is
disposed of—
35
(i)
a direction to pay to such local authority as he may
specify the whole or any part of the proceeds of the
disposal; and
(ii)
a direction as to the use to which the whole or any
part of the proceeds of disposal should be put.
40
      (5)
More than one direction may be given under sub-paragraph
(4)(b)(i) in relation to a disposal of land within sub-paragraph (1)
where it is just to do so, in particular where the disposal involves
the creation of a lease.
      (6)
Where the trustees of a foundation or foundation special school
45
wish, in the case of any land held by them for the purposes of the
school, to use the land for purposes not connected with the
provision of education in maintained schools—

Education Bill [HL]
Schedule 17 — Foundation, voluntary and foundation special schools: disposal of land
140

(a)
the preceding provisions of this paragraph shall apply as if
any such change of use of the land were a disposal of the
land; and
(b)
the value of the land as at the date of any direction under
sub-paragraph (4)(b)(i) or (ii) shall be treated as proceeds
5
of the disposal of the land.”
5     (1)
Paragraph 3 (disposal of land by trustees of foundation, voluntary or
foundation special school) is amended as follows.
      (2)
At the beginning of subsection (1) insert “Subject to sub-paragraph (2A),”.
      (3)
After sub-paragraph (2) insert—
10
   “(2A)
Nothing in sub-paragraph (1) applies in relation to any disposal to
the extent that it is a disposal to which paragraph 2A applies.”
6     (1)
Paragraph 5 (discontinuance of foundation, voluntary and foundation
special schools: land) is amended as follows.
      (2)
After sub-paragraph (4) insert—
15
   “(4A)
Where the school is a foundation or foundation special school
which has a foundation, the trustees of the school shall apply to
the Secretary of State for him to exercise his powers under sub-
paragraph (4B) in relation to any land falling within paragraph
2A(1)(a), (b) or (c) which is held by the trustees for the purposes of
20
the school.
     (4B)
On an application under sub-paragraph (4A), the Secretary of
State may do one or more of the following, namely—
(a)
make any such requirement as is mentioned in paragraph
2A(4)(a);
25
(b)
direct the trustees to pay to such local authority as he may
specify the whole or any part of the value, as at the date of
the direction, of the whole or any part of the land referred
to in sub-paragraph (4A); and
(c)
in a case where the discontinuance of the school is
30
connected with proposals under any enactment to
establish, or to make a prescribed alteration to, any other
school or schools, require the land or any part of the land
to be transferred—
(i)
to the trustees, foundation body or governing body
35
of such maintained school as he may specify, or
(ii)
to the trustees, foundation body or temporary
governing body of such new school as he may
specify.”
      (3)
In sub-paragraph (5)—
40
(a)
for “or foundation body” substitute “, foundation body or trustees”,
(b)
for “(2) or (3)” substitute “(2), (3) or (4A)”, and
(c)
for “(4)” substitute “(4) or (4B), as the case may be”.
      (4)
In sub-paragraph (6)(a), after “falling within paragraph 3(1) or (2)” insert
“but not within paragraph 2A(1)(a), (b) or (c)”.
45