The Education (London Residuary Body) (Capital Money) Order 1991

Explanatory Note

(This note is not part of the Order)

This Order provides for the distribution of capital receipts and certain other money received by the London Residuary Body (“the LRB”), pursuant to the Education Reform Act 1988 and consequent upon the abolition of the Inner London Education Authority, to charging authorities in Inner London (the Common Council of the City of London and the inner London councils) and to the City of London and the Central London Polytechnics.

Article 3 specifies a description of “capital money” for the purposes of section 77 of the Local Government Act 1985 and section 185 of the Education Reform Act 1988. This is capital money to be paid out by the LRB under articles 4 and 5.

Article 4(2) requires the LRB to pay to the charging authorities listed in Schedule 1 as a special distribution of capital money the sums set out in that Schedule which in aggregate form the amount to be set aside by the LRB in article 4(1).

Article 5 and Schedule 2 require the LRB to pay the balance of the capital money specified in article 3, after deducting certain sums, to the charging authorities in inner London in the specified percentages as a general distribution of capital money in each financial year commencing with the financial year beginning 1st April 1991.

Articles 6 and 7 set out certain administrative arrangements for the general distribution of capital money.

Article 8 sets out how capital money received in the general distribution may be applied.

Article 9 specifies an additional description of “capital money” for the purposes of section 77 of the Local Government Act 1985 which is not within the description specified in article 3. The LRB is required to pay out this sum between the City of London and the Central London Polytechnics.