(This note is not part of the Regulations)
The Local Authorities (Capital Finance and Accounting) (England) Regulations 2003 (“the 2003 Regulations”) make provision about the accounting practices to be followed by local authorities, including (in particular) with respect to the charging of expenditure to revenue accounts.
These Regulations insert new regulation 30L into the 2003 Regulations. New regulation 30L provides that where a local authority has a deficit on its school budget, the authority must not charge any such deficit to its revenue account. Instead, new regulation 30L provides that local authorities must charge any such deficit to a separate account, established and usable solely for that purpose.
New regulation 30L will apply to accounts prepared for the financial years beginning in 2020, 2021 and 2022, and provides formulas for calculating whether a local authority has a schools budget deficit in relation to each such financial year.
A full regulatory impact assessment has not been produced for this instrument as no impact on the private or voluntary sectors is foreseen.