Education Act 1996

116 Effect of financial delegation

(1) This section applies where a local education authority’s financial provision for county and voluntary schools is subject to regulation by a scheme.

(2) In the case of any county or voluntary school maintained by the authority in respect of which financial delegation is required for a financial year under the scheme, the authority shall put at the disposal of the governing body in respect of the year a sum equal to the school’s budget share for the year, to be spent for the purposes of the school.

(3) The times at which, and the manner in which, any such sum is put at the disposal of the governing body shall be such as may be provided by or under the scheme.

(4) Subject to section 125 (financial delegation apart from schemes) and section 489(2) (grants for education support and training), the authority may not delegate to the governing body of any school required to be covered by the scheme in a financial year the power to spend any appropriated amount otherwise than as required or permitted under the scheme; and for this purpose “appropriated amount” means a sum appropriated by the authority for the purposes of the school in that year.

(5) The governing body of a school which has a delegated budget—

(a) shall be entitled, subject to any provision made by or under the scheme, to spend any sum made available to them in respect of the school’s budget share for a financial year as they think fit for the purposes of the school, and

(b) may delegate to the head teacher, to such extent as may be permitted by or under the scheme, their power under paragraph (a) in relation to any part of that sum.

(6) In subsection (5) “the purposes of the school” does not include purposes wholly referable to the provision of—

(a) part-time education suitable to the requirements of persons of any age over compulsory school age, or

(b) full-time education suitable to the requirements of persons who have attained the age of 19.

(7) The governing body of a school which has a delegated budget shall not exercise their powers under subsection (5) to pay to governors any allowances other than travelling and subsistence allowances.

(8) The governors of a school shall not incur any personal liability in respect of anything done in good faith in the exercise or purported exercise of their powers under subsection (5).