Part II New framework for maintained schools
C2 Chapter IV Financing of maintained schools
Budgetary framework
45 Maintained schools to have budget shares.
1
C4F101A
In this Chapter “maintained school” means—
a
a community, foundation or voluntary school,
b
a community or foundation special school, or
c
a maintained nursery school.
F161B
In this Chapter “funding period” means a financial year or such other period as may be prescribed.
2
C13
In this Chapter—
a
references to schools maintained by a local education authority do not include F11pupil referral units;
b
references, in a context referring to a local education authority, to a maintained school or to a school maintained by such an authority shall be read as including a new school—
i
which on implementation of proposals under F1any enactment will be a community, foundation or voluntary school or a community or foundation special school maintained by the authority, and
ii
which has a temporary governing body; and
c
references to the governing body of a maintained school or of a school maintained by a local education authority shall accordingly be read as including the temporary governing body of a new school falling within paragraph (b).
C14
In this Chapter “new school” (without more) has the meaning given by section 72(3).
C345AF2Determination of specified budgets of LEA
1
For the purposes of this Part, a local education authority’s
“LEA budget” for a F19financial yearF19relevant period is the amount appropriated by the authority for meeting all
expenditure by the authority in F20that yearF20that period of a class or description prescribed for the purposes of this subsection.
F211A
In subsection (1) “relevant period” means a financial year or such other period as may be prescribed.
2
For the purposes of this Part, a local education
authority’s “schools budget” for a F22financial yearF22funding period is the amount appropriated by the
authority for meeting all expenditure by the authority in F23that yearF23that period of a class or description prescribed for the purposes of this
subsection (which may include expenditure incurred otherwise than in respect of schools).
F242A
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.
3
For the purposes of this Part, a local education authority’s
“individual schools budget” for a F25financial yearF25funding period is the amount remaining after deducting from
the authority’s schools budget for F26that yearF26that period such planned expenditure by the authority in respect of F26that yearF26that period as they may determine
should be so deducted in accordance with regulations.
4
Regulations under subsection (3) may—
a
prescribe classes or descriptions of expenditure which are authorised or required to be deducted from an authority’s schools budget;
b
provide, in relation to any prescribed class or description of expenditure specified in the regulations, that such expenditure may only be deducted subject to either or both of the following, namely—
i
such limit or limits (however framed) as may be specified by or determined in accordance with the regulations, and
ii
such other conditions as may be so specified or determined.
F274A
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.
5
a
determine the proposed amount of their schools budget for the following
financial year, and
b
give notice of their determination to the Secretary of State and to the
governing body of every school maintained by the authority.
F36
F28For the purposes of this section and section 45B “the schools budget deadline” is—
a
the end of December in the case of an authority in England, and
b
the end of January in the case of an authority in Wales.
45AAF13Power 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.
45ABDuty 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.
45ACPower 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.
F845BF14 Power of Secretary of State to set minimum schools budget for LEAF14Power of Assembly to set minimum schools budget for LEA in Wales
F141
If it appears to the Secretary of State that, in all the circumstances, the amount proposed in a notice under section 45A(5) as a local education authority’s schools budget for a financial year is inadequate, the Secretary of State may, within the period of fourteen days beginning with the F5schools budget deadline in the financial year preceding that financial year, give the authority a notice under subsection (4) or (5).
2
If at the F6schools budget deadline in any financial year a local education authority have failed to give the Secretary of State a notice under section 45A(5) in relation to their schools budget for the following financial year, the Secretary of State may, at any time after F7that deadline, give the authority a notice under subsection (4) or (5).
3
In this section and section 45C “the year under consideration” means the financial year to which the notice under section 45A(5) relates or, in a case falling within subsection (2), the financial year in relation to which such a notice ought to have been given.
4
A notice under this subsection is a notice determining the minimum amount of the authority’s schools budget for the year under consideration.
5
A notice under this subsection is a notice which—
a
specifies the amount which the Secretary of State would have determined as the minimum amount of the authority’s schools budget for the year under consideration if he had acted under subsection (4), and
b
states the Secretary of State’s intention to determine the minimum amount of the authority’s schools budget for the following financial year.
6
A notice under subsection (4) or (5) must include a statement of the Secretary of State’s reasons for giving the notice.
7
The Secretary of State may act under different subsections in relation to different authorities.
F141
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.
F845CF14Effect of notice under section 45B(4)F14Effect of notice under section 45B(6)
F141
The local education authority may, within the period of fourteen days beginning with the date of a notice under section 45B(4), give the Secretary of State notice of their objection to his 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(4) shall cease to have effect, but the Secretary of State may by order prescribe the minimum amount of the authority’s schools budget for the year under consideration.
3
The amount prescribed under subsection (2) must not be greater than the amount specified in the notice under section 45B(4).
4
An order under subsection (2) may relate to two or more authorities.
5
No order under subsection (2) may be made in relation to one or more authorities in England unless a draft of the order has been laid before and approved by a resolution of the House of Commons.
6
Where—
a
a notice under section 45B(4) 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 year under consideration which is not less than the amount specified in relation to the authority in the notice or order.
F141
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.
45DF14Power 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).
F1246Determination of LEA’s local schools budget and individual schools budget.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
47 Determination of school’s budget share.
1
For the purposes of this Part a maintained school’s budget share for a F29financial yearF29funding period is such amount as the local education authority may determine, in accordance with regulations, to allocate to the school out of the authority’s individual schools budget for F30that yearF30that period.
2
Regulations under this section may, in particular, make provision—
a
as to the time when schools’ budget shares are to be initially determined by local education authorities;
b
specifying—
i
factors or criteria which such authorities are to take into account, or
ii
requirements as to other matters with which such authorities are to comply,
in determining such shares, whether generally or in such cases as are specified in the regulations;
c
requiring adjustments to be made to such shares by such authorities in respect of—
i
pupils permanently excluded from schools maintained by them, or
ii
pupils admitted to schools maintained by them who have been permanently excluded from other maintained schools;
d
as to the treatment of new schools, including provision authorising the determination of nil amounts as the budget shares of such schools;
F31dd
authorising or requiring such authorities to take account of matters arising after the initial determination of budget shares for a funding period 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;
e
authorising or requiring such authorities to take account of matters arising during the course of a F32financial yearF32funding period—
in accordance with the regulations, and requiring them in that connection to disregard such matters as may be specified in the regulations;
f
requiring consultation to be carried out by such authorities in relation to the factors or criteria which are to be taken into account in determining such shares and as to the time and manner of such consultation;
F34ff
requiring 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 authority in question;
g
F35enabling the Secretary of State, where it appears to him to be expedient to do so, to authorise such authorities to determine (or redetermine) budget shares, to such extent as he may specify, in accordance with arrangements approved by him (in place of those provided for by the regulations).
F35authorising local education authorities in prescribed cases to determine (or redetermine) budget shares, to such extent as may be prescribed, in accordance with arrangements approved by the authority's schools forum or the Secretary of State in accordance with the regulations (in place of the arrangements provided for by the regulations);
F362A
The time by which regulations made in pursuance of subsection (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.
3
Regulations made in pursuance of subsection (2)(c) may provide for the adjustments to be made on such basis as may be prescribed, which may involve the deduction from one school’s budget share of an amount which is greater or less than that allocated to another school’s budget share in respect of the excluded pupil.
Pt. 2 Ch. 4 (ss. 45-53) modified (20.11.1998) by S.I. 1998/2670, reg. 3(1)(3)