School Standards and Framework Act 1998

1 (1) This paragraph applies where it appears to the local education authority that the governing body of a school which has a delegated budget—

(a) have been guilty of a substantial or persistent failure to comply with any delegation requirement or restriction, or

(b) are not managing in a satisfactory manner the expenditure or appropriation of the sum referred to in section 50(1).

(2) The authority may suspend the governing body’s right to a delegated budget by giving the governing body not less than one month’s notice of the suspension, unless by reason of any gross incompetence or mismanagement on the part of the governing body or other emergency it appears to the authority to be necessary—

(a) to give the governing body a shorter period of notice, or

(b) to give the governing body a notice suspending their right to such a budget with immediate effect.

(3) The notice must specify the grounds for the suspension, giving particulars—

(a) of any alleged failure on the part of the governing body to comply with any delegation requirement or restriction;

(b) of any alleged mismanagement on their part; and

(c) if applicable, of the basis upon which a period of notice of less than one month was given under sub-paragraph (2).

(4) The notice must also inform the governing body of their right to appeal against the suspension under paragraph 3 and of the time within which such an appeal may be brought.

(5) A copy of the notice must be given to the head teacher of the school at the same time as the notice is given to the governing body.

(6) The authority shall send a copy of the notice to the Secretary of State.

(7) In this paragraph “delegation requirement or restriction” means any requirement or restriction applicable, under or by virtue of the scheme or section 50(3), to the management by the governing body of the school’s budget share.

(8) Any notice given under this paragraph must be in writing.