Legalize / United Kingdom / Public General Act

Education Act 1993 (repealed)

Type Public General Act

Publication 1993-07-27

Last updated 1996-11-01

State In force

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

(3) Where the governing body of a grant-maintained school include sponsor governors, the funding authority shall, if directed to do so by the Secretary of State, pay capital grant of such amount as may be specified in the directions in respect of such expenditure falling within subsection (1) above as is incurred, or to be incurred, by the governing body for such purposes as may be specified in the directions.

(4) Before giving a direction under subsection (3) above, the Secretary of State shall consult the funding authority.

(5) A direction under subsection (3) above may not be given after the end of the period of twelve months beginning—

(a) in the case of a governing body incorporated in pursuance of proposals for acquisition of grant-maintained status which include sponsor governors on the incorporation date, with that date,

(b) in the case of a governing body incorporated in pursuance of proposals for the establishment of a new grant-maintained school which include sponsor governors on the date of implementation of the proposals, with that date, and

(c) in any other case, with the date when the instrument of government naming a person as the sponsor of the school came into effect.

Imposition of requirements on governing body in receipt of grant.

84

(1) A governing body to whom any payments in respect of maintenance grant, capital grant or special purpose grant are made shall comply with such requirements of a kind mentioned in subsection (2) below as the funding authority may from time to time impose.

(2) The kinds of requirements which may be imposed under subsection (1) above are—

(a) requirements specified in grant regulations as requirements which may be imposed by the funding authority on governing bodies to whom such payments are made, and

(b) requirements determined in accordance with grant regulations by the funding authority.

(3) Requirements imposed under subsection (1) above—

(a) may be imposed on or at any time after the making of any payment by reference to which they are imposed, and

(b) subject to subsection (4) below, may at any time be varied by the funding authority.

(4) The power of the funding authority to vary such a requirement—

(a) does not apply to a requirement of the kind mentioned in subsection (2)(a) above, or a requirement required to be imposed by the regulations (by virtue of subsection (9) below) or by directions under section 9 of this Act, unless the Secretary of State has consented to the variation, and

(b) is subject, in the case of a requirement of the kind mentioned in subsection (2)(b) above, to the provisions of the regulations relating to the determination of the requirements that may be imposed in the case of payments in respect of the grant in question.

(5) Requirements imposed under subsection (1) above may at any time be waived or removed by the funding authority with the consent of the Secretary of State.

(6) The requirements—

(a) which may be specified in or authorised by grant regulations as requirements which may be imposed on governing bodies to whom payments are made in respect of special purpose grant, or

(b) which may be imposed by the funding authority on a governing body to whom payments in respect of capital grant are made,

may, in particular, if any conditions specified in the requirements are satisfied, require the payment to the funding authority of the whole or any part of the following amount.

(7) That amount is—

(a) the amount of the payments made in respect of the grant, or

(b) so much of the value of any premises or equipment in respect of which the grant was paid as is determined in accordance with the requirements to be properly attributable to the payment of such grant,

whichever is the greater.

(8) No such requirement as is referred to in subsection (6) above may be imposed where any payment is made in respect of capital grant if—

(a) the grant is made in respect of the provision, alteration or repair of premises for a school, and

(b) any freehold interest in the premises in respect of which the grant is made is, or is to be, held on trust for the purposes of the school.

(9) Grant regulations may require the funding authority to impose any such requirements as may be imposed under the preceding provisions of this section.

Grants: further provisions.

85

(1) The times at which, and the manner in which, payments are made in respect of—

(a) maintenance grant for a grant-maintained school in respect of any financial year,

(b) special purpose grant, and

shall be such as may be determined from time to time by the funding authority.

(2) Payments in respect of maintenance grant for a school in respect of any financial year may be made, before any amount has been determined in accordance with grant regulations as the amount of such grant payable for that year in respect of the school, by reference to an estimate of the amount which will be so payable made by the funding authority.

(3) Where in respect of any financial year an over-payment of maintenance grant is made to the governing body of a school, a sum equal to the amount of that over-payment shall be recoverable from the governing body by the funding authority.

(4) Where a sum is payable by the governing body of a school to the funding authority—

(a) in respect of an over-payment of maintenance grant in respect of a financial year, or

(b) by way of repayment of special purpose grant or capital grant (whether by virtue of a requirement such as is mentioned in section 84(6) of this Act or otherwise),

the funding authority may (without prejudice to any other mode of recovery) recover the whole or any part of that sum by deducting it from any grant payable by them to the governing body.

(5) In this section, references to an over-payment of maintenance grant in respect of a financial year are to any amount by which the aggregate amount of any payments in respect of maintenance grant made to the governing body of the school in question in respect of the year exceeds the amount finally determined in accordance with grant regulations as the amount of maintenance grant payable for that year in respect of the school.

(6) The funding authority shall exercise any power conferred on them by sections 53 and 81 to 84 of this Act, paragraph 6 of Schedule 4 to this Act or this section in such manner (if any) as may be specified in or determined in accordance with grant regulations.

Grants: Wales (until establishment of the SFCW)

Application of sections 87 to 91.

86

Before the Schools Funding Council for Wales begin to exercise their functions, sections 87 to 91 of this Act shall have effect in relation to grant-maintained schools in Wales in place of sections 81(1) and (3), 82(1), 83(1), 84 and 85 of this Act.

Maintenance grants.

87

(1) Subject to the provisions of this Part of this Act, the Secretary of State shall make annual grants (to be known as maintenance grants) to the governing body of each grant-maintained school, each such grant being made in respect of expenditure for the purposes of the school incurred or to be incurred by the governing body in the financial year to which the grant relates.

(2) Subject to—

(a) any provision made by virtue of section 69(6) of this Act,

(b) any requirements imposed by the Secretary of State under section 90(1) or (3) of this Act, and

the governing body of a grant-maintained school shall apply any payments made to them in respect of maintenance grant solely for the purposes of the school.

Special purpose grants.

88

Grant regulations may provide for the payment by the Secretary of State to the governing bodies of grant-maintained schools of grants (to be known as special purpose grants) in respect of expenditure incurred or to be incurred by them of any class or description specified in the regulations—

(a) for or in connection with educational purposes of any class or description so specified,

(b) in making any provision (whether of educational services or facilities or otherwise) of any class or description so specified which appears to the Secretary of State to be required for meeting any special needs of the population of the area served by the school, or

(c) in respect of expenses of any class or description so specified, being expenses which it appears to the Secretary of State the governing bodies of such schools cannot reasonably be expected to meet from maintenance grant.

Capital grants.

89

Grant regulations may provide for the payment by the Secretary of State to the governing bodies of grant-maintained schools of grants (to be known as capital grants) in respect of expenditure of a capital nature, of any class or description specified in the regulations, incurred or to be incurred by the governing bodies.

Imposition of requirements on governing body in receipt of grant.

90

(1) A governing body to whom any payments in respect of maintenance grant or special purpose grants are made shall comply with such requirements of a kind mentioned in subsection (2) below as the Secretary of State may from time to time impose.

(2) The kinds of requirements which may be imposed under subsection (1) above are—

(a) requirements specified in grant regulations as requirements which may be imposed by the Secretary of State on governing bodies to whom such payments are made, and

(b) requirements determined in accordance with grant regulations by the Secretary of State.

(3) A governing body to whom any payments in respect of capital grant are made shall comply with such requirements determined by the Secretary of State as he may from time to time impose.

(4) Requirements imposed under subsection (1) or (3) above—

(a) may be imposed on or at any time after the making of any payment by reference to which they are imposed, and

(b) may at any time be waived or removed or, subject to subsection (5) below, varied by the Secretary of State.

(5) The power of the Secretary of State to vary such a requirement—

(a) does not apply to a requirement of the kind mentioned in subsection (2)(a) above, and

(b) is subject, in the case of a requirement of the kind mentioned in subsection (2)(b) above, to the provisions of the regulations relating to the determination of the requirements that may be imposed in the case of payments in respect of the grants in question.

(6) The requirements—

(a) which may be specified in or authorised by grant regulations as requirements which may be imposed on governing bodies to whom payments are made in respect of special purpose grant, or

(b) which may be imposed by the Secretary of State on a governing body to whom payments in respect of capital grant are made,

may, in particular, if any conditions specified in the requirements are satisfied, require the payment to the Secretary of State of the whole or any part of the following amount.

(7) That amount is—

(a) the amount of the payments made in respect of the grant, or

(b) so much of the value of any premises or equipment in respect of which the grant was paid as is determined in accordance with the requirements to be properly attributable to the payment of such grant,

whichever is the greater.

(8) No such requirement as is referred to in subsection (6) above may be imposed where any payment is made in respect of capital grant if—

(a) the grant is made in respect of the provision, alteration or repair of premises for a school, and

(b) any freehold interest in the premises in respect of which the grant is made is, or is to be, held on trust for the purposes of the school.

Grants: further provisions.

91

(1) The times at which, and the manner in which, payments are made in respect of—

(a) maintenance grant for a grant-maintained school in respect of any financial year,

(b) special purpose grants, and

shall be such as may be determined from time to time by the Secretary of State.

(2) Payments in respect of maintenance grant for a school in respect of any financial year may be made, before any amount has been determined in accordance with grant regulations as the amount of such grant payable for that year in respect of the school, by reference to an estimate of the amount which will be so payable made by the Secretary of State.

(3) Where in respect of any financial year an over-payment of maintenance grant is made to the governing body of a school, a sum equal to the amount of that over-payment shall be recoverable from the governing body by the Secretary of State.

(4) Where a sum is payable by the governing body of a school to the Secretary of State—

(a) in respect of an over-payment of maintenance grant in respect of a financial year, or

(b) by way of repayment of special purpose grant or capital grant (whether by virtue of a requirement such as is mentioned in section 90(6) of this Act or otherwise),

the Secretary of State may (without prejudice to any other mode of recovery) recover the whole or any part of that sum by deducting it from any grant payable by him to the governing body.

(5) In this section, references to an over-payment of maintenance grant in respect of a financial year are to any amount by which the aggregate amount of any payments in respect of maintenance grant made to the governing body of the school in question in respect of the year exceeds the amount finally determined in accordance with grant regulations as the amount of maintenance grant payable for that year in respect of the school.

Loans

Loans to governing bodies.

92

(1) The appropriate authority may make loans to the governing bodies of grant-maintained schools in respect of expenditure of any class or description specified in regulations (referred to in this section as “loan regulations”) incurred or to be incurred by the governing bodies for or in connection with such purposes as may be so specified.

(2) Any loan under this section shall be made on such terms as loan regulations may require, being terms specified in or determined in accordance with the regulations.

(3) Where any sum is payable by the governing body of a grant-maintained school to the appropriate authority in respect of the principal of, or interest on, any loan under this section, the appropriate authority may (without prejudice to any other mode of recovery) recover the whole or any part of that sum by deducting it from any grant payable by them to the governing body.

(4) In this section, the “appropriate authority”—

(a) in relation to England before the Funding Agency for Schools begin to exercise their functions, and

(b) in relation to Wales before the Schools Funding Council for Wales begin to exercise their functions,

means the Secretary of State and, in any other case, means the funding authority.

(5) The funding authority shall exercise any power conferred on them by this section in such manner (if any) as may be specified in or determined in accordance with loan regulations.

Recovery from local funds

Recovery from local funds of sums in respect of maintenance grant.

93

(1) Where the Secretary of State so determines, this section applies to a local education authority in respect of any financial year for which the determination is made; and the determination may apply this section in respect of all grant-maintained schools in the area of the authority or in respect of such grant-maintained schools in that area as may be ascertained by or in accordance with the determination.

(2) The Secretary of State shall in respect of each financial year for which he makes a determination under subsection (1) above in respect of a local education authority, give notice in writing to the authority of the terms of the determination.

(3) The Secretary of State may recover from a local education authority to which this section applies in respect of any financial year sums in respect of the maintenance grant payable for that year to the governing bodies of any grant-maintained schools in respect of which the determination applies.

(4) Subject to subsection (5) below, sums recoverable by virtue of this section in respect of a school for any financial year—

(a) shall be of such amounts, and

(b) shall fall due on such date or dates,

as may be determined by the Secretary of State.

(5) The amount of any sum so recoverable shall be determined by reference to any amount—

(a) which has previously been determined under section 94 of this Act as the total amount recoverable in respect of the school and financial year in question, or

(b) (where no amount has previously been determined as mentioned in paragraph (a) above) which is estimated by the Secretary of State as the amount which will initially be determined under section 94 of this Act as the total amount recoverable in respect of the school and financial year in question,

and which the Secretary of State considers it appropriate to adopt for the time being as a basis for determining the amounts of sums so recoverable.

(6) The Secretary of State may recover sums due to him under this section in either or both of the following ways—

(a) by requiring the local education authority to pay the whole or any part of any such sum at such time or times as he thinks fit, and

(b) by deducting, at such time or times as he thinks fit, the whole or any part of any such sum from any grant payable by him to the authority under any enactment (whenever passed) or from any amount payable by him to the authority under Part III of Schedule 8 to the Local Government Finance Act 1988 (redistributed non-domestic rates).

(7) Any sums received by the Secretary of State by virtue of this section shall be paid into the Consolidated Fund.

Determination of total amount recoverable under section 93.

94

(1) The total amount recoverable by virtue of section 93 of this Act in respect of a school for any financial year shall be such as may be determined (and from time to time revised) in accordance with regulations made by the Secretary of State (referred to in this section as “recoupment regulations”).

(2) Subject to any provision made by such regulations by virtue of subsection (3) below, recoupment regulations shall provide for the total amount so recoverable to be determined by reference to any amount determined under grant regulations as the amount of the maintenance grant payable in respect of the school and the financial year in question (as from time to time revised).

(3) Recoupment regulations may provide for reducing any amount which would otherwise fall to be determined under the regulations as the total amount recoverable from any local education authority by virtue of section 93 of this Act for a financial year by reference to any excess amounts recovered under that section in respect of any previous financial year.

(4) For the purposes of subsection (3) above, an excess amount is recovered under section 93 of this Act in respect of a financial year if the aggregate amount of the sums recovered under that section for that year from the local education authority—

(a) in respect of any school in respect of which sums are recoverable from the authority under that section, or

(b) where there is more than one such school, in respect of both or all of those schools,

exceeds the total amount recoverable in accordance with recoupment regulations in respect of that school or (as the case may be) in respect of both or all of those schools for that year.

Provisions consequential on section 93.

95

(1) For the purposes of sections 51 and 52 of the Education (No. 2) Act 1986 (recoupment for provision for education of pupils belonging to, or having connection with, area of another authority), the provision for education made in any financial year in respect of a registered pupil at a grant-maintained school which is not made by the local education authority shall, if sums are recoverable under section 93 of this Act in respect of the school and that year from the authority, be taken to have been made by them.

(2) The reference in subsection (1) above to provision for education includes a reference to provision of any benefits or services for which provision is made by or under this Act or any other enactment relating to education.

(3) The governing body of a grant-maintained school shall, if sums are recoverable under section 93 of this Act in respect of the school from a local education authority, provide the authority with such information relating to the registered pupils at the school as the authority may require for the purpose of claiming any amount in respect of such a pupil from another authority by virtue of regulations under section 51 or 52 of the Education (No. 2) Act 1986.

Chapter VII — ALTERATION ETC. OF GRANT-MAINTAINED SCHOOLS

Proposals for change of character etc. by governing body.

96

(1) Subject to subsection (2) below, where the governing body of a grant-maintained school intend to make a significant change in the character, or significant enlargement of the premises, of the school or to transfer the school to a new site they shall—

(a) publish proposals for that purpose in such manner as may be prescribed, and

(b) submit to the Secretary of State a copy of the published proposals.

(2) No proposals shall be published under this section for the purpose of making a significant change in the religious character of a school unless the trustees under any trust deed relating to the school have given their consent in writing to the change in question.

(3) Before publishing any proposals under this section, the governing body shall consult such persons as appear to them to be appropriate; and in discharging their duty under this subsection, the governing body shall have regard to any guidance given to them from time to time by the Secretary of State.

(4) Proposals published under this section shall include particulars—

(a) of the proposed time or times of implementation of the proposals, and

(b) of the number of pupils proposed to be admitted to the school in each relevant age group in the first school year in relation to which the proposals have been wholly implemented,

and, if pupils are proposed to be admitted for nursery education, shall give the prescribed information.

(5) Proposals published under this section shall be accompanied by a statement which—

(a) describes any effect the implementation of the proposals would have on provision at the school for pupils who have special educational needs, and

(b) explains the effect of subsection (6) below.

(6) Within the period of two months beginning with the date of publication of the proposals, objections to the proposals may be made by any of the following—

(a) if the proposals affect the provision of education to which section 2(1) of the Further and Higher Education Act 1992 applies, the appropriate further education funding council,

(b) any ten or more local government electors for the area,

(d) any local education authority concerned,

and objections under this subsection shall be submitted to the Secretary of State.

(7) Where the proposals are to transfer a school to a site in a different area, objections under subsection (6) above to the proposals may also be made by any ten or more local government electors for that area.

(8) No decision taken at a meeting of the governing body of a grant-maintained school that would result in the publication of proposals under this section shall have effect unless it is confirmed at a second meeting of the governing body held not less than twenty-eight days after the first.

Proposals for change of character etc. by funding authority.

97

(1) This section has effect in respect of the area of a local education authority if an order under section 12(1) of this Act applies to the area.

(2) Where the funding authority are of the opinion that—

(a) a significant change should be made in the character of a grant-maintained school,

(b) a significant enlargement of the premises of such a school should be made, or

(c) such a school should be transferred to a new site in the area or in another area to which an order under that section applies,

they may publish proposals for that purpose in such manner as may be prescribed and submit a copy of the published proposals to the Secretary of State.

(3) No proposals shall be published under this section for the purpose of making a significant change in the religious character of a school.

(4) Before publishing any proposals under this section the funding authority shall consult—

(a) such persons as appear to them to be appropriate, and

(b) in the case of a Church of England, Church in Wales or Roman Catholic Church school having any foundation governor who is appointed by the appropriate diocesan authority, that authority;

and in discharging their duty under paragraph (a) above, the funding authority shall have regard to any guidance given to them from time to time by the Secretary of State.

(5) Proposals published under this section shall include particulars—

(a) of the proposed time or times of implementation of the proposals, and

(b) of the number of pupils proposed to be admitted to the school in each relevant age group in the first school year in relation to which the proposals have been wholly implemented,

and, if pupils are proposed to be admitted for nursery education, shall give the prescribed information.

(6) Proposals published under this section shall be accompanied by a statement which—

(a) describes any effect the implementation of the proposals would have on provision at the school for pupils who have special educational needs, and

(b) explains the effect of subsection (7) below.

(7) Within the period of two months beginning with the date of publication of the proposals, objections to the proposals may be submitted to the funding authority by any of the following—

(a) if the proposals affect the provision of education to which section 2(1) of the Further and Higher Education Act 1992 applies, the appropriate further education funding council,

(b) any ten or more local government electors for the area,

(d) the governing body of any other school affected by the proposals, and

(e) any local education authority concerned.

(8) Where the proposals are to transfer a school to a site in a different area, objections under subsection (7) above to the proposals may also be made by any ten or more local government electors for that area.

(9) Not later than one month after the end of that period, the funding authority shall send to the Secretary of State copies of all such objections made (and not withdrawn in writing) together with their observations on them.

Approval, adoption or rejection of proposals.

98

(1) Proposals published under section 96 of this Act require the approval of the Secretary of State.

(2) Proposals published under section 97 of this Act require the approval of the Secretary of State if—

(a) he gives notice to that effect to the funding authority within two months after the submission to him of the published proposals, or

(b) objections have been made under subsection (7) of that section within the period allowed under that subsection (unless all objections so made have been withdrawn in writing within that period).

(3) Where under subsection (1) or (2) above any proposals require the approval of the Secretary of State, he may reject them, approve them without modification or, after consulting the governing body and, in the case of proposals published under section 97 of this Act, the funding authority, approve them with such modifications as he thinks desirable.

(4) Where proposals published under section 97 of this Act do not require the approval of the Secretary of State, the funding authority shall determine whether to adopt the proposals.

(5) The funding authority shall—

(a) make any determination under subsection (4) above not later than four months after the publication of the proposals, and

(b) give notice in writing to the Secretary of State and the governing body of their determination.

Approval of school premises.

99

(1) Where the governing body of a grant-maintained school publish proposals under section 96 of this Act, they shall if the funding authority so direct submit to the authority, at such time and in such form and manner as the authority may direct, the particulars mentioned in subsection (3) below; and particulars so submitted require the approval of the funding authority under this section.

(2) Where the funding authority publish proposals under section 97 of this Act, they shall if in their opinion the circumstances so require prepare the particulars mentioned in subsection (3) below; and particulars so prepared require adoption by the funding authority under this section.

(3) The particulars are—

(a) particulars of the provision made or to be made in respect of the means of access to and within the premises or proposed premises of the school, and

(b) such other particulars in respect of the premises or proposed premises of the school as the funding authority may require or, in the case of proposals published under section 97 of this Act, as may be required.

(4) The particulars prepared or submitted under subsection (3)(a) above shall indicate the extent to which the provision referred to conforms with the minimum requirements, so far as they are relevant to school premises, of—

(a) Design Note 18 “Access for Disabled People to Educational Buildings” published in 1984 on behalf of the Secretary of State, or

(b) if that Note has been replaced by a document prescribed by regulations made or having effect as if made under the Town and Country Planning Act 1990, that document.

Implementation of proposals, etc.

100

(1) Where any proposals are approved or adopted under section 98 of this Act, it shall be the duty of the governing body of the school to which the proposals relate to implement them.

(2) Proposals required to be implemented under this section shall be implemented in accordance with any particulars approved or adopted under section 99 of this Act.

(3) The Secretary of State may, at the request of a governing body, modify any proposals published under section 96 of this Act which the governing body are required to implement under this section.

(4) The Secretary of State may—

(a) at the request of a governing body, or

(b) at the request of the funding authority and after consulting the governing body,

modify any proposals published under section 97 of this Act which the governing body are required to implement under this section.

(5) Neither the governing body of a grant-maintained school nor any other person shall make any significant change in the character, or significant enlargement of the premises, of the school or transfer the school to a new site, or undertake to do any of those things, unless proposals have been published under section 96 or 97 of this Act and any requirements of section 98 have been complied with.

(6) Subsection (5) above does not—

(a) prevent the Secretary of State allowing such steps to be taken by the governing body of a grant-maintained school, pending compliance with those requirements and the giving or making of the approval or adoption, as the Secretary of State considers reasonable in the circumstances, or

(b) apply to the transfer of a school to a new site if at the time of transfer the school is intended to return to the existing site within three years.

Power to transfer functions under preceding provisions etc.

101

(1) The Secretary of State may by order provide for this Part of this Act to have effect with the modifications in subsections (2) to (7) below in relation to any proposals published by the governing body of a grant-maintained school under section 96 of this Act after the coming into force of the order.

(2) The governing body shall submit a copy of the proposals to the funding authority as well as to the Secretary of State.

(3) Any objections under subsection (6) of that section to the proposals shall be submitted to the funding authority instead of to the Secretary of State.

(4) If any objection is made under subsection (6) of that section within the period allowed under that subsection and not withdrawn in writing within that period, then, not later than one month after the end of that period—

(a) the funding authority shall send to the Secretary of State copies of all such objections made (and not withdrawn in writing) together with their observations on them, and

(b) may themselves submit to the Secretary of State an objection to the proposals.

(5) Sections 98(1) and 100(3) of this Act shall not apply to the proposals unless—

(a) the Secretary of State gives notice to the funding authority within two months after the submission to him of the published proposals that the proposals require his approval, or

(b) objections have been made under subsection (6) of section 96 of this Act within the period allowed under that subsection (unless all objections so made have been withdrawn in writing within that period).

(6) Where sections 98(1) and 100(3) of this Act do not apply to the proposals—

(a) the proposals shall require the approval of the funding authority,

(b) the funding authority may reject them, approve them without modification or, after consulting the governing body, approve them with such modifications as they think desirable, and

(c) where the governing body are required to implement the proposals under section 100 of this Act, the funding authority may at their request modify the proposals.

(7) Paragraph 20 of Schedule 2 to this Act shall not apply in relation to the proposals.

(8) In this Part of this Act—

(a) references to approval under, or the requirements of, section 98 of this Act include approval under, or the requirements of, this section, and

(b) references to the modification of proposals under section 100(3) of this Act include the modification of proposals under subsection (6)(c) above.

(9) This section does not apply to proposals published under section 272 of this Act (to which this Chapter is applied by subsection (3)); and section 100(3) is not disapplied by this section in the case of proposals treated (by virtue of section 273(6) of this Act) for the purposes of this Part of this Act as if they had been approved under section 98 of this Act.

Proposals for change of character approved before school becomes grant-maintained.

102

(1) This section applies where—

(a) proposals for a change in the character or an enlargement of the premises of a county or voluntary school, or for the transfer of a county or voluntary school to a new site, have been approved under section 12 or 13 of the Education Act 1980, and

(b) the school becomes a grant-maintained school before the proposals are implemented.

(2) The proposals—

(a) shall be treated for the purposes of this Part of this Act as if they had been published under section 97 and approved under section 98 of this Act, and

(b) shall be implemented in accordance with any particulars approved under section 14 of that Act.

(3) Subsection (2) above is subject to section 47(1) to (4) of this Act.

Chapter VII: interpretation.

103

(1) References in this Part of this Act to a change in the character of a school include, in particular, changes in character resulting from—

(a) education beginning or ceasing to be provided for pupils above or below a particular age, for boys as well as girls or for girls as well as boys, or

(b) the making or alteration of arrangements for the admission of pupils by reference to ability or aptitude,

but do not include such a change as is mentioned in subsection (2) below.

(2) The change excluded by subsection (1) above is a change resulting only from persons beginning or ceasing to be provided with—

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

(b) part-time education suitable to the requirements of junior pupils who have not attained the age of five years where the school provides full-time education for junior pupils of the same age, or

(3) References in this Chapter, where proposals for a significant change in the character, or significant enlargement of the premises, of a school or for the transfer of a school to a new site have been approved or adopted under section 98 of this Act, to the proposals are references to the proposals as approved or adopted, subject to any modifications of the proposals under section 100(3) or (4) of this Act.

Chapter VIII — DISCONTINUANCE OF GRANT-MAINTAINED SCHOOLS

Proposals for discontinuance

Proposals by governing body for discontinuance.

104

(1) The governing body of a grant-maintained school may publish proposals under this section for the discontinuance of the school if they—

(a) decide by a resolution passed at a meeting of that body to publish such proposals, and

(b) confirm that decision by a resolution passed at a subsequent meeting of the governing body held not less than twenty-eight days after that at which the first resolution was passed.

(2) Before passing such a resolution as is mentioned in subsection (1)(a) above, the governing body shall consult such persons as appear to them to be appropriate; and in discharging their duty under this subsection, the governing body shall have regard to any guidance given to them from time to time by the Secretary of State.

(3) The governing body shall, as soon as practicable after the passing of the second resolution, give notice in writing of the second resolution to the local education authority.

(4) The governing body may, within the period of six months beginning with the date of the second resolution, publish proposals for the discontinuance of the school in such manner as may be prescribed and, where they do so, shall submit to the Secretary of State a copy of the published proposals.

(5) The published proposals shall specify the proposed date of discontinuance of the school.

(6) The published proposals shall be accompanied by a statement—

(a) indicating whether or not there are any proposals for the premises of the school to be used by any new or existing school, and

(b) explaining the effect of subsection (7) below.

(7) Within the period of two months beginning with the date of publication of the proposals, objections to the proposals may be submitted to the Secretary of State by any of the following—

(a) if the proposals affect the provision of education to which section 2(1) of the Further and Higher Education Act 1992 applies, the appropriate further education funding council,

(b) any ten or more local government electors,

(d) any local education authority concerned.

Proposals by funding authority for discontinuance.

105

(1) This section has effect in respect of the area of a local education authority if an order under section 12(1) of this Act applies to the area.

(2) The funding authority may publish, in such manner as may be prescribed, proposals for the discontinuance of any grant-maintained school and, where they do so, shall submit to the Secretary of State a copy of the published proposals.

(3) The published proposals shall specify the proposed date of discontinuance of the school.

(4) Before publishing any proposals under this section the funding authority shall consult—

(a) such persons as appear to them to be appropriate, and

(b) in the case of a Church of England, Church in Wales or Roman Catholic Church school having any foundation governor who is appointed by the appropriate diocesan authority, that authority;

and in discharging their duty under paragraph (a) above, the funding authority shall have regard to any guidance given to them from time to time by the Secretary of State.

(5) The published proposals shall be accompanied by a statement—

(a) indicating whether or not there are any proposals for the premises of the school to be used by any new or existing school, and

(b) explaining the effect of subsection (6) below.

(6) Within the period of two months beginning with the date of publication of the proposals, objections to the proposals may be submitted to the funding authority by any of the following—

(a) if the proposals affect the provision of education to which section 2(1) of the Further and Higher Education Act 1992 applies, the appropriate further education funding council,

(b) any ten or more local government electors,

(d) the governing body of any school affected by the proposals, and

(e) any local education authority concerned.

(7) Not later than one month after the end of that period, the funding authority shall send to the Secretary of State copies of all such objections made (and not withdrawn in writing) together with their observations on them.

Approval, adoption or rejection of proposals.

106

(1) Proposals published under section 104 of this Act require the approval of the Secretary of State.

(2) Proposals published under section 105 of this Act require the approval of the Secretary of State if—

(a) he gives notice to that effect to the funding authority within two months after the submission to him of the published proposals, or

(b) objections have been made under subsection (6) of that section within the period allowed under that subsection (unless all objections so made have been withdrawn in writing within that period).

(3) Where under subsection (1) or (2) above any proposals require the approval of the Secretary of State, he may reject them, approve them without modification or, after consulting the governing body and, in the case of proposals published under section 105 of this Act, the funding authority, approve them with the substitution of a different date for the date of discontinuance proposed.

(4) Where the Secretary of State approves any such proposals he shall give notice in writing of that fact and of the discontinuance date to the governing body and (except where the school is in Wales and the Schools Funding Council for Wales have not begun to exercise their functions) the funding authority.

(5) Where proposals published under section 105 of this Act do not require the approval of the Secretary of State, the funding authority shall determine whether to adopt the proposals.

(6) The funding authority shall—

(a) make any determination under subsection (5) above not later than four months after the publication of the proposals, and

(b) give notice in writing to the Secretary of State and the governing body of their determination and, if they adopt the proposals, of the discontinuance date.

Implementation of proposals.

107

(1) Where any proposals are approved under section 106 of this Act, the governing body shall cease to conduct the school on the discontinuance date.

(2) In this section, “the discontinuance date” means—

(a) the date of discontinuance specified in the proposals as approved, or

(b) if—

(i) at the request of the governing body, or

(ii) in the case of proposals published under section 105 of this Act, at the request of the funding authority and after consulting the governing body,

the Secretary of State subsequently fixes another date (whether in substitution for the date specified in the proposals as approved or in substitution for a date previously fixed under this subsection), that date.

(3) The governing body of a grant-maintained school shall not discontinue the school except in pursuance of proposals published under section 104 or 105 of this Act and approved or adopted under section 106 of this Act.

Power to transfer functions under preceding provisions.

108

(1) The Secretary of State may by order provide for this Part of this Act to have effect with the modifications in subsections (2) to (7) below in relation to any proposals published by the governing body of a grant-maintained school under section 104 of this Act after the coming into force of the order.

(2) The governing body shall submit a copy of the proposals to the funding authority as well as to the Secretary of State.

(3) Any objections under subsection (7) of that section to the proposals shall be submitted to the funding authority instead of to the Secretary of State.

(4) If any objection is made under subsection (7) of that section within the period allowed under that subsection and not withdrawn in writing within that period, then, not later than one month after the end of that period—

(a) the funding authority shall send to the Secretary of State copies of all such objections made (and not withdrawn in writing) together with their observations on them, and

(b) may themselves submit to the Secretary of State an objection to the proposals.

(5) Section 106(1) of this Act shall not apply to the proposals unless—

(a) the Secretary of State gives notice to the funding authority within two months after the submission to him of the published proposals that the proposals require his approval, or

(b) objections have been made under subsection (7) of section 104 of this Act within the period allowed under that subsection (unless all objections so made have been withdrawn in writing within that period).

(6) Where section 106(1) of this Act does not apply to the proposals—

(a) the proposals shall require the approval of the funding authority,

(b) the funding authority may reject them, approve them without modification or, after consulting the governing body, approve them with the substitution of a different date for the date of discontinuance proposed,

(c) where the funding authority approve them, they shall give notice in writing of that fact and of the discontinuance date to the governing body, and

(d) the reference in section 107(2)(b) of this Act to the Secretary of State shall be read as a reference to the funding authority.

(7) Paragraph 21(b) of Schedule 2 to this Act shall not apply in relation to the proposals.

(8) References in this Part of this Act to approval under section 106 of this Act include approval under this section.

Withdrawal of grant

Withdrawal of grant where school is unsuitable to continue as grant-maintained school.

109

(1) This section applies where the Secretary of State is satisfied that a grant-maintained school as currently constituted or conducted is unsuitable to continue as a grant-maintained school on either or both of the following grounds—

(a) that the number of registered pupils at the school is too small for sufficient and suitable instruction to be provided for them at reasonable cost, and

(b) that the governing body have been guilty of substantial or persistent failure to comply or secure compliance with any other requirement imposed by or under this Act or any other enactment.

(2) The Secretary of State may give to the governing body a notice in writing stating the grounds on which he considers that the school as currently constituted or conducted is unsuitable to continue as a grant-maintained school together with full particulars of the matters relevant to each such ground.

(3) Where any of those matters are stated in the notice to be in the opinion of the Secretary of State irremediable, the notice shall also state that the funding authority’s duty to maintain the school will cease on a date specified in the notice.

(4) Where subsection (3) above does not apply, the notice shall—

(a) state that the funding authority’s duty to maintain the school will cease unless the matters of which particulars are given in the notice are remedied,

(b) specify the measures necessary in the opinion of the Secretary of State to remedy those matters, and

(c) specify the time, not being less than six months after the date on which the notice is given to the governing body, within which the governing body are required to take those measures.

(5) Where the governing body fail to take the measures required under subsection (4)(b) above by the notice within the time specified in the notice (or allowed by any previous notice under this subsection), the Secretary of State shall, within the period of two months beginning with the date next following the end of that time, either—

(a) give notice in writing to the governing body extending the time within which those measures are required to be taken, or

(b) after consulting the local education authority and, if the school provides education to which section 2(1) of the Further and Higher Education Act 1992 applies, the appropriate further education funding council, give notice in writing to the governing body that the funding authority’s duty to maintain the school will cease on a specified date.

(6) Where the Secretary of State gives a notice under subsection (2) or (5) above which states that the funding authority’s duty to maintain the school will cease on a specified date—

(a) he shall give a copy of the notice to the funding authority, and

(b) the funding authority shall cease to be under a duty to make maintenance grants to the governing body of the school in respect of any period beginning on or after that date and shall cease on that date to have the power to pay capital or special purpose grant to the governing body.

(7) In relation to a school in Wales before the Schools Funding Council for Wales have begun to exercise their functions, this section and section 110 of this Act shall have effect as if subsection (6)(a) above and section 110(4) and (5) were omitted.

Withdrawal or variation of notice under section 109.

110

(1) The Secretary of State may by giving notice in writing to the governing body—

(a) withdraw a notice under section 109(2) or (5)(b) of this Act,

(b) vary a notice under section 109(2) of this Act in relation to which section 109(3) of this Act applies or a notice under section 109(5)(b) of this Act by substituting another date for the date for the time being specified in the notice as the date on which the funding authority’s duty to maintain the school will cease, or

(c) vary a notice under section 109(2) of this Act, so far as relates to any measures specified in it by virtue of section 109(4)(b) of this Act.

(2) If by virtue of subsection (1)(c) above the Secretary of State varies a notice so as to require different measures to be taken, he shall also substitute for the time specified in the notice by virtue of section 109(4)(c) of this Act a time which is not earlier than that time or, where the time so specified has been extended under section 109(5)(a) of this Act, than that time as so extended.

(3) Any variation under subsection (2) above of the time specified in a notice is without prejudice to any further extension of that time under section 109(5)(a) of this Act.

(4) Where the Secretary of State withdraws a notice by virtue of subsection (1)(a) above, he shall give notice in writing of that fact to the funding authority.

(5) Where the Secretary of State varies a notice by virtue of subsection (1)(b) above, he shall give a copy of the notice as varied to the funding authority.

Winding up and disposal of property

Power to provide by order for winding-up and disposal of property.

111

(1) Where—

(a) proposals for the discontinuance of a grant-maintained school have been approved or adopted under section 106 of this Act, or

(b) the Secretary of State has given notice to the governing body of a grant-maintained school under section 109 of this Act specifying a date on which the funding authority’s duty to maintain the school will cease,

the Secretary of State may by order make provision for the winding up of the governing body and the disposal of the school property.

(2) Subsections (3) to (7) below apply for the purposes of this section and sections 112 to 116 of this Act.

(3) “Governing body in liquidation” means a governing body in respect of which any order has been made under this section.

(4) “School property”, in relation to a grant-maintained school conducted or formerly conducted by a governing body in liquidation, means—

(a) the premises used or formerly used for the purposes of the school,

(b) any interest belonging to the governing body, or held by any trustees on trust for the purposes of the school, in a dwelling house used or held or formerly used or held for occupation by a person employed to work at the school, and

(c) all other equipment and property used or held or formerly used or held for the purposes of the school (including any right to such property), except money and any investments to which section 116 of this Act applies.

(5) References to a grant-maintained school formerly conducted by a governing body in liquidation apply in circumstances where the school has been discontinued before the dissolution date and refer to the school as conducted immediately before discontinuance (and “formerly” in subsection (4)(a) to (c) above applies in the same circumstances and refers to the time immediately before the discontinuance of the school concerned).

(6) “Dissolution date”, in relation to a governing body in liquidation or the grant-maintained school conducted or formerly conducted by such a body, means the date appointed in relation to that body by virtue of section 112(5) of this Act.

(7) “Section 105 loan liabilities”, in relation to a governing body in liquidation, means any liabilities in respect of any loans made under section 105 of the Education Act 1944 (loans by Secretary of State towards initial capital expenditure of aided and special agreement schools) which were transferred to the governing body under section 38 of this Act.

Winding up.

112

(1) An order under section 111 of this Act may set out a proposed timetable for the winding up of the governing body and, in particular, for—

(a) securing that all property belonging to the governing body or held by any trustees on trust for the purposes of the school is brought into the custody or control of that body or those trustees (as the case may require),

(b) discharging any liabilities of the governing body,

(d) the preparation and audit of the governing body’s final accounts.

(2) The provision referred to in subsection (1)(c) above is provision authorised to be made—

(a) by section 114 of this Act (for or in connection with the transfer of the school property), or

(b) by section 115 of this Act (in respect of the discharge of the liabilities of the governing body).

(3) An order under section 111 of this Act may make provision as to the exercise of the governing body’s functions in relation to the school including, in particular—

(a) provision requiring the governing body in the exercise of those functions to comply with any directions given by the Secretary of State,

(b) provision authorising any of those functions to be exercised by a member of the governing body specified in the order, and

(c) provision for the application of the seal of the governing body to be authenticated by the signature of a person specified in the order.

(4) An order under section 111 of this Act—

(a) may make provision for conferring or imposing functions on the governing body in relation to the winding up and the management and disposal of the school property, and

(b) may require the governing body to give to persons employed by them notice terminating their contracts of employment as from a date specified in the order.

(5) Subject to subsection (6) below, an order under section 111 of this Act may appoint a date on which the governing body are to be dissolved.

(6) The Secretary of State shall not appoint a dissolution date unless he is satisfied that—

(a) all liabilities of the governing body (other than any section 105 loan liabilities which fall to be transferred or terminated under section 115 of this Act) have been discharged,

(b) all costs of the winding up have been met,

(c) any provision authorised by any of sections 114 to 116 of this Act which is possible and expedient in the circumstances of the case has been made, and

(d) anything required to be done by the governing body for the purposes of or in connection with any such provision has been done.

Grants to governing body in liquidation.

113

(1) The funding authority may make grants to a governing body in liquidation for the purpose of—

(a) discharging any liabilities of that governing body (other than section 105 loan liabilities), and

(b) meeting any costs incurred by that governing body for the purposes of the winding up in pursuance of an order under section 111 of this Act.

(2) The funding authority may impose on a governing body to whom such a payment is made such requirements as they may from time to time determine (whether before, at or after the time when the payment in question is made).

Disposal of school property.

114

(1) Subject to the provisions of any order under section 111 of this Act, any school property held by the governing body in liquidation immediately before the dissolution date, other than property held by them on trust for the purposes of the school, shall—

(a) in the case of a governing body incorporated in pursuance of proposals for acquisition of grant-maintained status, vest on that date in the local education authority, and

(b) in the case of a governing body incorporated in pursuance of proposals for the establishment of a new grant-maintained school, vest on that date in the funding authority.

(2) Such an order may on such date as may be specified in the order as the transfer date vest the school property or any part of it in any person specified in the order and, where the order does so, it may provide for any property so vested to be held beneficially or on such trusts as may be specified in the order.

(3) Where any school property is vested in any person other than the funding authority under subsection (1) above or is vested in pursuance of an order under section 111 of this Act, such an order may require the person in whom any property is so vested to pay in respect of the property to the Secretary of State or to such other person as may be so specified such consideration (not exceeding the maximum) as may be so specified.

(4) Subsection (3) above does not apply to property held on trust for the purposes of the school otherwise than by the governing body; but where an order under section 111 of this Act vests property so held otherwise than by the governing body in any person the order shall require that person to pay to the trustees the maximum consideration in respect of the property.

(5) The maximum consideration that may be specified in such an order in respect of any school property is—

(a) so far as the property consists of premises (including any interest in a dwelling-house such as is mentioned in section 111(4)(b) of this Act), such an amount as the Secretary of State determines to be the market value of the premises as at, or as at a date no earlier than six months before, the dissolution date or, as the case may be, the transfer date, and

(b) so far as it consists of other property, such an amount as the Secretary of State determines to be a fair consideration for the transfer of that property.

(6) Where such an order requires any person in whom any premises are vested to pay any consideration in respect of the premises, the order shall specify the amount determined by the Secretary of State under subsection (5)(a) above; and any dispute as to that amount may be referred to the Lands Tribunal by—

(a) the person in whom the premises are vested,

(b) the person from whom they are transferred, or

and shall then be determined by the Tribunal.

(7) Where—

(a) by virtue of subsection (3) or (4) above such an order requires any person in whom any premises are vested to pay any consideration in respect of the premises, and

(b) on a reference under subsection (6) above the Lands Tribunal determine a different amount from that determined by the Secretary of State,

he shall consider whether the amount of the consideration specified in the order requires alteration in the light of the determination of the Tribunal and, if it does, he shall vary the order accordingly.

(8) Where—

(a) any school property has been vested in the funding authority, or a local education authority, under subsection (1) above and, in the case of property vested in the local education authority, no order under section 111 of this Act required them to pay any consideration in respect of the property, and

(b) the funding authority or local education authority subsequently dispose of the property so vested, or any part of it,

the Secretary of State may require the authority concerned to pay to him or to such person as he may specify the whole or any part of the proceeds of the disposal.

(9) Nothing in subsection (1) above or in any provision included in an order under section 111 of this Act by virtue of this section shall affect any interest or right of a person in, to or over any school property, being an interest or right which is held by that person otherwise than for the purposes of the school.

Disposal of school property: supplementary.

115

(1) Where by virtue of an order under section 111 of this Act the premises used or formerly used for the purposes of the school, or any part of those premises, are vested in persons proposing to establish a new independent school on the premises—

(a) such an order may require those persons to discharge any liabilities of the governing body in liquidation in respect of redundancy payments, and

(b) where the order does so, those liabilities shall be taken into account in determining the amount of consideration (if any) which those persons are required to pay by virtue of section 114(3) of this Act.

(2) Subsection (1) above does not apply to any property held on trust for the purposes of the school otherwise than by the governing body.

(3) Where the premises used or formerly used for the purposes of the school, or any part of those premises, are to be used for the purposes of a new or existing grant-maintained school, an order under section 111 of this Act may provide for the transfer to the governing body of the new or existing school of such rights or liabilities of the governing body in liquidation as were acquired or incurred in connection with the premises which are to be so used.

(4) If—

(a) the school was an aided or special agreement school immediately before it became grant-maintained,

(b) proposals have been approved under section 13 of the Education Act 1980 (establishment and alteration of voluntary schools) for the maintenance as a voluntary school of a school which is proposed to be established on the school premises, and

any section 105 loan liabilities of the governing body in liquidation shall on the dissolution date be transferred to and become liabilities of the temporary governing body of the new school (subject to any variation of the terms applicable in relation to the loans in question immediately before that date that may be agreed between the Secretary of State and that governing body).

(5) If—

(a) subsection (4)(a) and (b) above apply, but

(b) no direction that the proposed school shall be an aided school has been given before the dissolution date,

any section 105 loan liabilities of the governing body shall be terminated on that date.

(6) If—

(a) any liabilities of the governing body have been terminated by virtue of subsection (5) above, and

(b) a new voluntary school is established in pursuance of any proposals approved under section 13 of the Education Act 1980 on the school premises,

the amount of those liabilities shall be treated for the purposes of section 14 of the Education Act 1944 (restrictions on discontinuance of voluntary schools by governors) as expenditure incurred by the Secretary of State (otherwise than in connection with repairs) in respect of the premises of the new school.

Surplus money and investments.

116

(1) Subject to the following provisions of this section—

(a) any money held by or for a governing body in liquidation (whether in cash or to their account at or on deposit with any bank or other institution), and

(b) any investments to which this section applies held by or for such a governing body,

shall, after discharge of the liabilities and costs mentioned in subsection (2) below, be paid or (as the case may be) transferred by the governing body to the Secretary of State.

(2) The liabilities and costs referred to in subsection (1) above are—

(a) all the liabilities of the governing body in liquidation (other than any not required to be discharged before the dissolution date is appointed), and

(b) all costs of the winding up.

(3) Where the Secretary of State is satisfied as to the whole or any part of any such money or as to any such investments—

(a) that the money or that part of it was derived or (as the case may be) those investments were acquired otherwise than from grants paid by him or the funding authority under this Part of this Act, and

(b) that it ought to be paid, or the investments ought to be transferred, to a local education authority or to some other person,

he may require the governing body to pay the money or (as the case may be) an amount equal to the part in question, or to transfer those investments, to such local education authority or other person as he may specify, either beneficially or to be held on trust for such purposes as he may specify.

(4) Where the premises of the school are to be used for the purposes of a new or existing grant-maintained school, the Secretary of State may require the governing body in liquidation, after discharge of the liabilities mentioned in subsection (2) above—

(a) to pay any money held by or for them, and

(b) to transfer any investments to which this section applies held by or for them,

to the governing body of the new or existing grant-maintained school, either beneficially or to be held on trust for such purposes as he may specify.

(5) Without prejudice to the powers of the Secretary of State under subsections (3) and (4) above, any payment of money or transfer of investments under this section shall be free of any trusts on which the money or investments are held by the governing body before the payment or transfer is made.

(6) This section applies to any investment within the meaning of the Financial Services Act 1986 which falls within—

(a) any of paragraphs 1 to 6 of Schedule 1 to that Act (investments and investment business), or

(b) paragraph 11 of that Schedule, so far as referring to investments falling within any of paragraphs 1 to 6.

(7) References in subsection (6) above to any paragraphs of Schedule 1 to the Financial Services Act 1986 include references to those paragraphs as amended by any order under section 2 of that Act (power to extend or restrict scope of Act) which amends those paragraphs for the purposes of all the provisions of that Act.

Chapter IX — GROUPS OF GRANT-MAINTAINED SCHOOLS

Nature of group.

117

(1) Subject to the provisions of this Chapter, two or more grant-maintained schools may be conducted as a group by a single governing body.

(2) In the case of such a group—

(a) there shall be an instrument (to be known as the instrument of government) providing for the constitution of the governing body, and

(b) for each school in the group there shall be an instrument (to be known as the articles of government) in accordance with which the school is to be conducted.

(3) The instrument and articles of government—

(a) shall comply with any requirements imposed by or under this Chapter, and

(b) may make any provision authorised by or under this Chapter to be made and such other provision as may be necessary or desirable.

(4) Subject to any express provision of the instrument or articles of government, each school in such a group shall be conducted in accordance with any trust deed relating to it.

(5) Schedules 5 and 6 to this Act shall have effect in relation to groups of grant-maintained schools with such modifications as may be prescribed.

(6) Subject to any provision made by or under this Chapter, where there is a group of grant-maintained schools any provision of an enactment which applies to such schools shall apply separately in relation to each of the schools.

(7) References in this Chapter to a group are to a group of grant-maintained schools conducted, or to be conducted, by a single governing body.

Instruments and articles of government for group.

118

(1) The initial instrument of government for the governing body of a group and the initial articles of government for each school in the group shall be such as are prescribed.

(2) The initial instrument of government shall have effect as from the date on which the governing body are incorporated.

(3) The initial articles of government shall have effect as from the date of implementation of the proposals in pursuance of which the school became a member of the group.

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