The Regulatory Reform (Voluntary Aided Schools Liabilities and Funding) (England) Order 2002

Explanatory Note

(This note is not part of the Order)

This Order is made under section 1 of the Regulatory Reform Act 2001. It amends sections 22 and 49, paragraphs 3, 4, 5, 6 and 7 of Schedule 3, paragraph 14 of Schedule 6 and Schedule 22 of the School Standards and Framework Act 1998, so as to reform the liabilities and funding arrangements for premises-related work of voluntary aided schools, which impose burdens on governing bodies and local education authorities carrying out certain activities, with a view to reducing the overall burdens on them.

The funding liabilities are set out in section 22(5) of the 1998 Act, which provides that the local education authority are responsible for defraying all expenses of maintaining the school, except any expenses set out in paragraph 3 of Schedule 3, which are payable by the governing body. Paragraph 3 of Schedule 3 has been amended. This provides that governing bodies are responsible for all capital expenditure in relation to the school premises including boundary walls and fences, with the exception of playing fields and buildings thereon used in connection with the playing fields. There is a proviso that capital expenditure will not include expenditure under £2,000. Capital expenditure in consequence of the use of school premises for non school purposes following a direction by the local education authority will remain the liability of the authority. The definition of capital expenditure has been made a free standing provision at Article 13 of the Order and paragraphs (1)-(4) of Article 13 have been made subordinate provisions for the purposes of section 4 of the Regulatory Reform Act 2001, which enables the Secretary of State to change the provisions by way of a subordinate provisions order subject to negative resolution procedure.

Paragraphs 5(3) and 6(5) of Schedule 3 have been amended to enable the Secretary of State to make grants to governing bodies at up to 90 per cent. of their expenditure, and in exceptional circumstances, at up to 100 per cent. By virtue of paragraphs 5(1), 6(1) and 6(2) the Secretary of State may make grants in respect of expenditure “incurred” by the governing body, or promoters. The Order amends this provision to include expenditure “to be incurred”, which will enable the grant to be made for expenditure which has not been discharged by the governing body, or promoters.

By virtue of paragraph 5(5), there is a duty on the Secretary of State to give priority to paying grants, at 85 per cent., for expenditure which is necessary to ensure that the school premises conform to standards prescribed under section 542 of the Education Act 1996. The Order amends this provision to provide for grant to be paid at no less than 90 per cent. and to include expenditure necessary to comply with any enactment relating to health and safety.

By virtue of paragraph 14 of Schedule 6 the local education authority are responsible for the implementation of proposals under section 28 of the 1998 Act to establish or alter a school insofar as relating to the provision of “relevant premises”, which includes playing fields and buildings other than school buildings which includes caretakers' dwellings, medical and dental rooms, kitchens and dining halls. The Order omits the definition of “relevant premises”, and amends sub-paragraphs (2) and (3) of paragraph 14, so as to provide that the local authority will be responsible only for the implementation of proposals insofar as relating to playing fields.

By virtue of paragraph 7 of Schedule 3, the Secretary of State may make loans to governing bodies for capital expenditure in respect of school buildings incurred in alterations to a school, the transfer to a new site, or the establishment of a new school. The Order amends this provision to include all buildings within the school premises.

Schedule 22 has been amended by the insertion of Part IV. This provides that, upon a disposal by the local education authority of a building other than a school building, the authority must, if the value of the land has been enhanced by capital expenditure incurred by the governing body, pay an amount to the governing body of the proceeds of disposal as is agreed between them or, in default of agreement, as is determined by the Secretary of State.

The transitional provisions of the Order provide that the Secretary of State may pay grant at up to 100 per cent. in respect of capital expenditure on such buildings as referred to in article 14 of this Order for a period of 5 years from the date of the Order.

The Order also provides for the transitional arrangements of existing projects. Where, before the commencement date, a supplementary credit approval has been issued under section 54 of the Local Government and Housing Act 1989, the existing arrangements in respect of division of liabilities will continue in respect of that project. The new rate of grant will apply only where the governing body were notified to receive grant under paragraph 5 of Schedule 3 within three years preceding commencement of the Order and such grant has not been paid in full before the commencement date.

Where, before the commencement date, grant has been paid under Section 484 of the Education Act 1996 the existing arrangements in respect of division of liabilities will continue in respect of that project. The new rate of grant will apply only where grant to be paid to the governing body under paragraph 5 of Schedule 3 has not been paid in full before the commencement date.

Where, before the commencement date, a project under the local authority co-ordinated voluntary aided programme has begun, the existing arrangements in respect of division of liabilities will continue in respect of that project. The new rate of grant will apply only to such a project which began within one year of the commencement of the Order and where grant to be paid to the governing body under paragraph 5 of Schedule 3 has not been paid in full before the commencement date.