Education and Inspections Bill

House of Lords

Session 2005 - 06
Internet Publications
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
166

      (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
5
that acquisition or those works, and
(b)
indicates that the expenditure was being treated by the
authority as expenditure of a capital nature.
A8    (1)
This paragraph applies to a disposal of land to which paragraph
A7 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, paragraphs A9 to A11 and
paragraph A19—
15
(a)
references to the disposal are to the disposal by the
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.
20
      (5)
That notification must specify—
(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.
25
      (6)
For the purposes of this paragraph and paragraphs A9 and A10,
the “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
30
paragraph A7.
      (7)
The authority may, within the requisite period, give the
foundation body any or all of the following—
(a)
notice of their objection to the disposal, giving reasons for
their objection;
35
(b)
notice of their objection to the proposed use of the publicly
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.
40
      (8)
The “requisite period” means the period of 6 weeks beginning
with the date upon which the foundation 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 foundation body notice to that
45
effect.

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

     (10)
The foundation body may not make the disposal within the
requisite period unless within that period—
(a)
the authority give the foundation body notice that they
relinquish any right to give notice under sub-paragraph
(7)(a) in relation to the disposal, or
5
(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
10
accordance with sub-paragraph (7)(a), the foundation 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—
15
(a)
the adjudicator has approved the disposal on a reference
made under paragraph A9(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
20
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);
(b)
notice of their claim to the whole or a part of the publicly
funded proceeds of disposal under sub-paragraph (7)(c),
25

the foundation body may not use the publicly funded proceeds of
disposal until the relevant requirements in relation to each notice
so given are met.
     (14)
The “relevant requirements” in relation to a notice given under
sub-paragraph (7)(b) are met if—
30
(a)
the relevant capital expenditure upon which the publicly
funded proceeds of disposal are to be used has been
determined in accordance with paragraph A9(2), or
(b)
the authority have withdrawn notice of their objection to
the proposed use of the publicly funded proceeds of
35
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—
(a)
the “appropriate amount” has been determined in
accordance with paragraph A9(3), or
40
(b)
the authority have withdrawn notice of their claim in
accordance with sub-paragraph (9).
A9    (1)
Where the authority give the foundation body notice of their
objection to the disposal in accordance with paragraph A8(7)(a),
the foundation body or the authority may refer the matter to the
45
adjudicator for a determination by him as to whether he approves
the disposal.
      (2)
Where the authority give the foundation body notice of their
objection to the proposed use of the publicly funded proceeds of

Education and Inspections Bill
Schedule 4 — Disposals and changes of use of land
Part 1 — Amendments to Schedule 22 to SSFA 1998
168

disposal in accordance with paragraph A8(7)(b), the relevant
capital expenditure upon which those proceeds are to be used is to
be determined—
(a)
by agreement between the foundation body and the
authority, or
5
(b)
by the adjudicator where—
(i)
the foundation body refers 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
10
foundation body and the authority.
      (3)
Where the authority give the foundation body notice of their claim
to the whole or a part of the publicly funded proceeds of disposal
in accordance with paragraph A8(7)(c), the amount of those
proceeds which it is appropriate for the foundation body to pay to
15
the authority (the “appropriate amount”) is to be determined—
(a)
by agreement between the foundation body and the
authority, or
(b)
by the adjudicator where—
(i)
the foundation body refers or the authority refer
20
the matter to him for determination, and
(ii)
by the time of his determination the matter has not
been determined by agreement between the
foundation body and the authority.
      (4)
Before making a reference to the adjudicator under sub-paragraph
25
(1), (2)(b) or (3)(b), the foundation body or, as the case may be, the
authority, must give the other notice of its or their intention to
make the reference.
      (5)
On a reference under sub-paragraph (1), (2)(b) or (3)(b), the
adjudicator may determine the proportion (if any) of the proceeds
30
of disposal that are or will be the publicly funded proceeds of
disposal.
A10   (1)
This paragraph applies where the disposal is made.
      (2)
The foundation body must notify the authority that the disposal
has been made and of the amount of the proceeds of disposal.
35
      (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 A8(7)(c), and
(b)
the “appropriate amount” has been determined in
40
accordance with paragraph A9(3) to be an amount greater
than zero,

the foundation body must pay the “appropriate amount” to the
authority.
      (4)
The foundation body must ensure that the remaining publicly
45
funded proceeds of disposal are used on the agreed relevant
capital expenditure.

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

      (5)
If the amount of the remaining publicly funded proceeds of
disposal exceeds the amount of the agreed relevant capital
expenditure, then the foundation body must ensure that the
surplus amount is used on relevant capital expenditure.
      (6)
The “agreed relevant capital expenditure” means—
5
(a)
in a case where—
(i)
no notice of objection to the proposed use of the
publicly funded proceeds of disposal was given by
the authority in accordance with paragraph
A8(7)(b), or
10
(ii)
such a notice was so given and was then
withdrawn in accordance with paragraph A8(9),

the relevant capital expenditure specified in the
notification of the disposal given to the authority under
paragraph A8(4), and
15
(b)
in a case where such notice of objection was so given and
was not withdrawn, the relevant capital expenditure upon
which the publicly funded proceeds of disposal are to be
used as determined in accordance with paragraph A9(2).
      (7)
The “remaining publicly funded proceeds of disposal” means the
20
amount of the publicly funded proceeds of disposal which
remains after deducting the “appropriate amount” (if any)
determined in accordance with paragraph A9(3).
      (8)
Sub-paragraphs (3), (4) and (5) are subject to paragraph A8(13)
(restriction on use of publicly funded proceeds of disposal where
25
notices given under paragraph A8(7)(b) or (c)).
A11   (1)
This paragraph applies where—
(a)
the authority gave notice of their objection to the disposal
in accordance with paragraph A8(7)(a), and
(b)
the adjudicator has determined that he does not approve
30
the disposal.
      (2)
The foundation 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
transferred to such local authority as he may specify subject to the
payment by that authority of such sum by way of consideration (if
35
any) as he determines to be appropriate.
      (3)
Before making an application under sub-paragraph (2), the
foundation body must give the local education authority notice of
its intention to make the application.
A12   (1)
For the purposes of paragraphs A8 to A10, “relevant capital
40
expenditure”, in relation to a disposal of land by a foundation
body, means capital expenditure in relation to the premises of—
(a)
any of the schools comprising the group for which the
body acts,
(b)
any existing foundation, voluntary or foundation special
45
school, city technology college, city college for the
technology of the arts, or Academy, or
(c)
any proposed foundation, voluntary or foundation special
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
170

      (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 trustees of foundation, voluntary or foundation special school
A13   (1)
This sub-paragraph applies to any disposal by the trustees of a
5
foundation, voluntary or foundation special school in England
of—
(a)
any land acquired under section 60, 61 or 70 of the
Education Act 1996,
(b)
any land acquired under any of the following—
10
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
15
8,
(c)
any 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),
20
(d)
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;
25
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,
30
(e)
any land acquired, or enhanced in value, wholly or partly
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,
35
(f)
any land acquired from the Funding Agency for Schools,
(g)
any land acquired, or enhanced in value, wholly or partly
by means of—
(i)
any maintenance, special purpose or capital grant
(within the meaning of Chapter 6 of Part 3 of the
40
Education Act 1996), or
(ii)
any grant paid under section 216(2) of that Act,
(h)
any land acquired wholly or partly with the proceeds of
disposal of any land acquired or enhanced in value as
mentioned in paragraph (f) or (g),
45
(i)
any land acquired, or enhanced in value, wholly or partly
by means of any grant made in pursuance of a special
agreement (as defined by section 32(5) of the Education
Act 1996),

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

(j)
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
5
paragraph A27, or
(k)
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 paragraph (j).
      (2)
This sub-paragraph applies to any disposal by the trustees of a
10
foundation or foundation special school in England of—
(a)
any land acquired by the trustees from the governing body
of the school or of another foundation or foundation
special school which was land—
(i)
acquired by the governing body under a transfer
15
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
under paragraph 8A of this Schedule, or
(iii)
acquired by the governing body, or enhanced in
20
value, wholly or partly with the proceeds of
disposal of land acquired as mentioned in sub-
paragraph (i) or (ii), or
(b)
any land acquired, or enhanced in value, wholly or partly
with the proceeds of disposal of any land acquired as
25
mentioned in sub-paragraph (1)(b).
      (3)
This sub-paragraph applies to any disposal by the trustees of a
voluntary school in England of—
(a)
any land acquired by the trustees from the governing body
of the school which was land acquired by the governing
30
body—
(i)
under a transfer under section 201(1)(a) of the
Education Act 1996, or
(ii)
wholly or partly with the proceeds of disposal of
any land so acquired,
35

and transferred by the governing body to be held on trust
by the trustees, or
(b)
in the case of a school to which sub-paragraph (4) applies,
any land acquired, or enhanced in value, wholly or partly
by means of expenditure incurred under section 63 or 64 of
40
the Education Act 1996.
      (4)
This sub-paragraph applies to a voluntary aided school which
was, immediately before the appointed day, a controlled school
within the meaning of the Education Act 1996.
      (5)
Sub-paragraph (1)(e) does not apply in the case of any expenditure
45
unless the authority—
(a)
prepared an appropriate statement in relation to the
expenditure, and

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

(b)
sent a copy of the statement to the trustees either before, or
no later than 12 months after, the expenditure was
incurred.
      (6)
An “appropriate statement” in relation to expenditure is a
statement in writing which—
5
(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
10
authority as expenditure of a capital nature.
      (7)
Where the trustees of a foundation, voluntary or foundation
special school 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 the
15
preceding provisions of this paragraph and paragraphs A14 to
A16 apply (subject to the modifications specified in paragraphs
A14(18), A15(5) and A16(9)) as if any such change of use of the
land were a disposal of the land.
A14   (1)
This paragraph applies to a disposal of land to which sub-
20
paragraph (1), (2) or (3) of paragraph A13 applies.
      (2)
But this paragraph only applies to a disposal if, or to the extent
that, it comprises a disposal of non-playing field land which does
not fall within sub-paragraph (5).
      (3)
“Non-playing field land” means land which does not include
25
playing fields within the meaning of section 77.
      (4)
Accordingly, in this paragraph, paragraphs A15 to A17 and
paragraph A19—
(a)
references to the disposal are to the disposal by the trustees
of the non-playing field land, and
30
(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—
(a)
land acquired under section 60 or 61 of the Education Act
1996, or
35
(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,
within the further education sector (as defined by section 4(3) of
the Education Act 1996).
40
      (6)
The trustees must give the local education authority notice of their
intention to dispose of the land.
      (7)
That notification must specify—
(a)
the relevant capital expenditure upon which it is proposed
the publicly funded proceeds of disposal are to be used,
45
and
(b)
the estimated amount of the proceeds of disposal.