Education Act 2005

Determination of budgets E+W

3 (1) Section 45A of the 1998 Act (determination of specified budgets of LEA) is amended as follows. E+W

(2) In subsection (1)—

(a) for “financial year” substitute “ relevant period ”, and

(b) for “that year” substitute “ that period ”.

(3) After subsection (1) insert—

“(1A) In subsection (1) “relevant period” means a financial year or such other period as may be prescribed.”

(4) In subsection (2)—

(a) for “financial year” substitute “ funding period ”, and

(b) for “that year” substitute “ that period ”.

(5) After that subsection insert—

“(2A) The amount referred to in subsection (2) includes the amount of any grant which is appropriated, for meeting the expenditure mentioned in that subsection, in accordance with a condition which—

(a) is imposed under section 16 of the Education Act 2002 (terms on which assistance under section 14 of that Act is given) or any other enactment, and

(b) requires that the grant be applied as part of the authority's schools budget for the funding period.”

(6) In subsection (3)—

(a) for “financial year” substitute “ funding period ”, and

(b) for “that year” (in both places) substitute “ that period ”.

(7) After subsection (4) insert—

“(4A) Regulations under subsection (3) may also make provision—

(a) enabling any expenditure falling outside any classes or descriptions of expenditure prescribed by virtue of subsection (4)(a) to be deducted from the authority's schools budget if the deduction of such expenditure is authorised, on the application of the authority, by the authority's schools forum or the Secretary of State, and

(b) enabling any limit or condition that would otherwise apply by virtue of subsection (4)(b)(i) or (ii) to be varied or excluded, on the application of the authority, by the authority's schools forum or the Secretary of State.”

(8) Omit subsections (5) and (6).

Commencement Information

I1 Sch. 16 para. 3 partly in force; Sch. 16 para. 3 not in force at Royal Assent see s. 125; Sch. 16 para. 3 in force for E. at 1.11.2005 by S.I. 2005/2034, art. 8

4 E+W After section 45A insert—

“45AA Power to require LEAs in England to determine schools budget

(1) Regulations may require a local education authority in England, not later than the prescribed date, to make an initial determination of their schools budget for a funding period.

(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 England to take account of matters arising after the initial determination of their schools budgets for any 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 determination to be given in accordance with the regulations to the governing bodies of schools maintained by the local education authority.

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

(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 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.

(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 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 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 is in force in relation to that funding period.”

Commencement Information

I2 Sch. 16 para. 4 partly in force; Sch. 16 para. 4 not in force at Royal Assent see s. 125; Sch. 16 para. 4 in force for E. for certain purposes at 1.11.2005 by S.I. 2005/2034, art. 8

5 E+W 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 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 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 that funding period, a reference to such amount, determined by the authority in accordance with those regulations and 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 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

(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.

(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.

(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 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 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.

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.

(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.

(3) The amount prescribed under subsection (2) must not be greater than the amount specified in the notice under section 45B(6).

(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

(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

The Assembly may by order—

(a) repeal any of the following provisions—

• section 45AB,

• section 45AC(4), and

• sections 45B and 45C, and

(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).”

Commencement Information

I3 Sch. 16 para. 5 partly in force; Sch. 16 para. 5 not in force at Royal Assent see s. 125; Sch. 16 para. 5 in force for E. at 1.11.2005 by S.I. 2005/2034, art. 8