Education and Inspections Bill

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Session 2005 - 06
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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
159

Schedule 4
Section 36

Disposals and changes of use of land
Part 1
Amendments to Schedule 22 to SSFA 1998
1
Schedule 22 to SSFA 1998 (disposal of land by foundation, voluntary or
5
foundation special schools and disposals on discontinuance) is amended as
follows.
2
Before Part 1 of the Schedule insert—
“Part A1
Foundation, voluntary and foundation special schools in england:
10
disposals of land
Disposal of land by governing body of foundation, voluntary or foundation special
school
A1    (1)
This paragraph applies to any disposal by the governing body of
a foundation, voluntary or foundation special school in England
15
of—
(a)
any land acquired under a transfer under section 201(1)(a)
of the Education Act 1996,
(b)
any land acquired under any of the following—
paragraph 2 of Schedule 3;
20
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;
25
paragraph 28(2) of Schedule 2 to the Education and
Inspections Act 2006 (including that provision as
applied by any enactment),
(c)
any land acquired under any regulations made under—
section 24 of the Education and Inspections Act 2006
30
by virtue of subsection (3)(b) of that section, or
section 27 of that Act by virtue of subsection (2)(b) of
that section,
(d)
any land acquired from a foundation body,
(e)
any land acquired from the Funding Agency for Schools,
35
(f)
any land acquired, or enhanced in value, wholly or partly
by means of any maintenance, special purpose or capital
grant (within the meaning of Chapter 6 of Part 3 of the
Education Act 1996),
(g)
any land acquired, or enhanced in value, wholly or partly
40
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

Education and Inspections Bill
Schedule 4 — Disposals and changes of use of land
Part 1 — Amendments to Schedule 22 to SSFA 1998
160

relation to which notice is given in accordance with
paragraph A27,
(h)
any land acquired, or enhanced in value, wholly or partly
by means of expenditure incurred for the purposes of the
school and treated by the local education authority as
5
expenditure of a capital nature, or
(i)
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 (h).
10
      (2)
But this paragraph does not apply to any disposal which—
(a)
is made by the governing body of a foundation or
foundation special school after the commencement of this
sub-paragraph, and
(b)
is a disposal to the trustees of the school made on the
15
school becoming a school with a foundation established
otherwise than under this Act.
      (3)
Sub-paragraph (1)(h) does not apply in the case of any
expenditure incurred on or after the appointed day unless the
authority—
20
(a)
prepared an appropriate statement in relation to the
expenditure, and
(b)
sent a copy of the statement to the governing body either
before, or no later than 12 months after, the expenditure
was incurred.
25
      (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
30
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-
35
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, paragraphs A3 to A5 and
paragraph A19—
40
(a)
references to the disposal are to the disposal by the
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.
45
      (5)
That notification must specify—

Education and Inspections Bill
Schedule 4 — Disposals and changes of use of land
Part 1 — Amendments to Schedule 22 to SSFA 1998
161

(a)
the relevant capital expenditure upon which it is proposed
the publicly funded proceeds of disposal are to be used,
and
(b)
the estimated amount of the proceeds of disposal.
      (6)
For the purposes of this paragraph and paragraphs A3 and A4, the
5
“publicly funded proceeds of disposal” means the proceeds of
disposal which are attributable to the land having been acquired
or enhanced in value, or both, as the case may be, as mentioned in
the relevant paragraph or paragraphs of sub-paragraph (1) of
paragraph A1.
10
      (7)
The authority may, within the requisite period, give the governing
body any or all of the following—
(a)
notice of their objection to the disposal, giving reasons for
their objection;
(b)
notice of their objection to the proposed use of the publicly
15
funded proceeds of disposal, giving reasons for their
objection;
(c)
notice of their claim to the whole or a part of the publicly
funded proceeds of disposal.
      (8)
The “requisite period” means the period of 6 weeks beginning
20
with the date upon which the governing body gave notification of
the disposal to the authority under sub-paragraph (4).
      (9)
A notice given under sub-paragraph (7) may be withdrawn at any
time by the authority giving the governing body notice to that
effect.
25
     (10)
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
relinquish any right to give notice under sub-paragraph
(7)(a) in relation to the disposal, or
30
(b)
in a case where the authority give notice of their objection
to the disposal in accordance with sub-paragraph (7)(a),
the relevant requirements in relation to such a notice are
met.
     (11)
If the authority give notice of their objection to the disposal in
35
accordance with sub-paragraph (7)(a), the governing body may
not make the disposal on or after the expiry of the requisite period
until the relevant requirements in relation to such a notice are met.
     (12)
The “relevant requirements” in relation to a notice given under
sub-paragraph (7)(a) are met if—
40
(a)
the adjudicator has approved the disposal on a reference
made under paragraph A3(1), or
(b)
the authority have withdrawn notice of their objection to
the disposal in accordance with sub-paragraph (9).
     (13)
If the authority give either or both of the following notices in
45
relation to the disposal in accordance with sub-paragraph (7)—
(a)
notice of their objection to the proposed use of the publicly
funded proceeds of disposal under sub-paragraph (7)(b);

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

(b)
notice of their claim to the whole or a part of the publicly
funded proceeds of disposal under sub-paragraph (7)(c),

the governing body may not use the publicly funded proceeds of
disposal until the relevant requirements in relation to each notice
so given are met.
5
     (14)
The “relevant requirements” in relation to a notice given under
sub-paragraph (7)(b) are met if—
(a)
the relevant capital expenditure upon which the publicly
funded proceeds of disposal are to be used has been
determined in accordance with paragraph A3(2), or
10
(b)
the authority have withdrawn notice of their objection to
the proposed use of the publicly funded proceeds of
disposal in accordance with sub-paragraph (9).
     (15)
The “relevant requirements” in relation to a notice given under
sub-paragraph (7)(c) are met if—
15
(a)
the “appropriate amount” has been determined in
accordance with paragraph A3(3), or
(b)
the authority have withdrawn notice of their claim in
accordance with sub-paragraph (9).
A3    (1)
Where the authority give the governing body notice of their
20
objection to the disposal in accordance with paragraph A2(7)(a),
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
25
objection to the proposed use of the publicly funded proceeds of
disposal in accordance with paragraph A2(7)(b), the relevant
capital expenditure upon which those proceeds are to be used is to
be determined—
(a)
by agreement between the governing body and the
30
authority, or
(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
35
been determined by agreement between the
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 publicly funded proceeds of disposal
in accordance with paragraph A2(7)(c), the amount of those
40
proceeds which it is appropriate for the governing body to pay to
the authority (the “appropriate amount”) is to be determined—
(a)
by agreement between the governing body and the
authority, or
(b)
by the adjudicator where—
45
(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.
50

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

      (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.
      (5)
On a reference under sub-paragraph (1), (2)(b) or (3)(b), the
5
adjudicator may determine the proportion (if any) of the proceeds
of disposal that are or will be the publicly funded proceeds of
disposal.
A4    (1)
This paragraph applies where the disposal is made.
      (2)
The governing body must notify the authority that the disposal
10
has been made and of the amount of the proceeds of disposal.
      (3)
Where—
(a)
the authority gave notice of their claim to the whole or a
part of the publicly funded proceeds of disposal in
accordance with paragraph A2(7)(c), and
15
(b)
the “appropriate amount” has been determined in
accordance with paragraph A3(3) to be an amount greater
than zero,

the governing body must pay the “appropriate amount” to the
authority.
20
      (4)
The governing body must ensure that the remaining publicly
funded proceeds of disposal are used on the agreed relevant
capital expenditure.
      (5)
If the amount of the remaining publicly funded proceeds of
disposal exceeds the amount of the agreed relevant capital
25
expenditure, then the governing body must ensure that the
surplus amount is used on relevant capital expenditure.
      (6)
The “agreed relevant capital expenditure” means—
(a)
in a case where—
(i)
no notice of objection to the proposed use of the
30
publicly funded proceeds of disposal was given by
the authority in accordance with paragraph
A2(7)(b), or
(ii)
such a notice was so given and was then
withdrawn in accordance with paragraph A2(9),
35

the relevant capital expenditure specified in the
notification of the disposal given to the authority under
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
40
which the publicly funded proceeds of disposal are to be
used as determined in accordance with paragraph A3(2).
      (7)
The “remaining publicly funded proceeds of disposal” means the
amount of the publicly funded proceeds of disposal which
remains after deducting the “appropriate amount” (if any)
45
determined in accordance with paragraph A3(3).

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

      (8)
Sub-paragraphs (3), (4) and (5) are subject to paragraph A2(13)
(restriction on use of publicly funded proceeds of disposal where
notices given under paragraph A2(7)(b) or (c)).
A5    (1)
This paragraph applies where—
(a)
the authority gave notice of their objection to the disposal
5
in accordance with paragraph A2(7)(a), and
(b)
the adjudicator has determined that he does not approve
the disposal.
      (2)
The governing body may apply to the adjudicator for an order to
be made by him requiring the land or any part of the land to be
10
transferred to such local authority as he may specify subject to the
payment by that authority of such sum by way of consideration (if
any) as he determines to be appropriate.
      (3)
Before making an application under sub-paragraph (2), the
governing body must give the local education authority notice of
15
their intention to make the application.
A6    (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—
20
(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
25
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.
Disposal of land by foundation body
30
A7    (1)
This paragraph applies to any disposal by a foundation body in
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
35
provision as applied by any enactment);
paragraph 5 or 6 of Schedule 21;
paragraph 5(4B)(d) of this Schedule;
any regulations made under paragraph 5 of Schedule
8,
40
(b)
any 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;
45

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

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 24 of that Act by
virtue of subsection (3)(b) of that section;
5
any regulations made under section 27 of that Act by
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,
10
(e)
any land acquired, or enhanced in value, wholly or partly
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),
15
(f)
any land acquired, or enhanced in value, 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
20
paragraph A27,
(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
25
expenditure of a capital nature, or
(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).
30
      (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—
35
(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
40
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—
45
(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.
50