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Statutory Instruments

2008 No. 377

Education, England

The Education (Budget Statements) (England) Regulations 2008

Made

15th February 2008

Laid before Parliament

27th February 2008

Coming into force

20th March 2008

The Secretary of State for Children, Schools and Families makes the following Regulations in exercise of the powers conferred by sections 52(1), (1A), (3) and (4) and 138(7) of the School Standards and Framework Act 1998(1).

Citation, commencement and application

1.—(1) These Regulations may be cited as the Education (Budget Statements) (England) Regulations 2008 and come into force on 20th March 2008.

(2) These Regulations apply only in relation to England and only in relation to budget statements prepared for the period prescribed in regulation 3.

Interpretation

2.—(1) In these Regulations—

“the 1996 Act” means the Education Act 1996(2);

“the 1998 Act” means the School Standards and Framework Act 1998;

“the 2000 Act” means the Learning and Skills Act 2000(3);

“the 2002 Act” means the Education Act 2002(4);

“the 2005 Act” means the Education Act 2005(5);

“the 2006 Act” means the Education and Inspections Act 2006(6);

“the 2008 Regulations” means the School Finance (England) Regulations 2008(7);

“adult and community learning” means part-time education (including vocational, social, physical, recreational training and organised leisure-time occupation) provided by a local education authority to persons of any age living or working in their area which is not primary education, secondary education, FE or HE;

“AEN” means additional educational needs comprising—

(a)

language needs associated with English as an Additional Language (EAL),

(b)

learning needs related to autistic spectrum disorders, dyslexia, dyspraxia, attention deficit hyperactivity disorder, speech and language difficulties, sensory impairment and physical disabilities,

(c)

social need arising from deprivation, and

(d)

other additional learning needs not associated with the matters referred to in (a), (b) or (c), including the need to improve attainment and emotional and behavioural needs;

“allocation formula” means a local education authority’s formula under regulation 9 of the 2008 Regulations used to determine schools’ budget shares;

“AWPU” means age-weighted pupil unit;

“budget statement” means the statement referred to in section 52(1) of the 1998 Act;

“capital expenditure” means expenditure of a local authority which falls to be capitalised in accordance with proper practices, or expenditure which shall be treated as capital expenditure by virtue of any regulations or directions made under section 16 of the Local Government Act 2003(8);

“central expenditure” means the total amount deducted by a local education authority from their schools budget;

“central expenditure limit” means the limit on central expenditure imposed by regulation 7 of the 2008 Regulations;

“centrally retained budgets” means expenditure on the classes or descriptions of planned expenditure specified in Schedule 2 to the 2008 Regulations;

“CERA” means capital expenditure which a local authority expects to charge to a revenue account of the authority as defined in section 22 of the Local Government Act 2003;

“combined services” has the meaning given to that expression in regulation 1(4) of the 2008 Regulations;

“Connexions” means a multi-agency information advice and guidance service for all young people aged 13-19 and for young people up to the age of 25 with learning difficulties or disabilities;

“contribution to combined budgets” means expenditure by a local education authority on combined services;

“Dedicated Schools Grant” (“DSG”) means a grant under that name paid to a local education authority by the Secretary of State under section 14 of the 2002 Act;

“devolved” means paid to schools, but not as part of their budget shares;

“discretionary award” means an award which a local education authority may bestow on persons ordinarily resident in their area in connection with attendance on education or training courses or for the purposes of conducting research under the provisions of section 2 of the Education Act 1962(9);

“Education Welfare Service” means a service provided by a local education authority for the purpose of reducing levels of unauthorised absence from schools;

“early years expenditure on the free entitlement” means expenditure on nursery education for three and four year olds provided by PVI providers or in primary schools;

“factor” means one of the additional factors or criteria set out in Schedule 3 to the 2008 Regulations which may be taken into account in a local education authority’s formula under regulation 19 of those Regulations;

“FTE” means full time equivalent;

“funding period 1” is the financial year beginning on 1st April 2008;

“funding period 2” is the financial year beginning on 1st April 2009;

“funding period 3” is the financial year beginning on 1st April 2010;

“ghost-funding” means the funding of places in infant classes as a formula factor under paragraph 35 of Schedule 3 to the 2008 Regulations(10);

“HE” means higher education;

“ISB” means the individual schools budget;

“KS” means a key stage as defined in section 82 of the 2002 Act;

“LSC” means the Learning and Skills Council for England(11);

“MFG” means minimum funding guarantee, that is to say the amount calculated in accordance with regulation 20 of, and Schedule 4 to, the 2008 Regulations which must be included in any determination or redetermination of a maintained school’s budget share in accordance with regulation 20 of those Regulations;

“non-devolved” means held as central expenditure;

a reference to “parent partnership” means a reference to planned expenditure on services provided by local education authorities under section 332A of the 1996 Act(12);

“Performance Reward Grant” means a grant of that name paid under section 31 of the Local Government Act 2003 by the Secretary of State to a local authority for the purpose of rewarding improvements in local services;

“place-led funding” means the funding of places in schools where a local education authority exercise their discretion to do so under regulation 16 or 17 of the 2008 Regulations;

“primary or secondary school” means a primary or secondary school which is a community, foundation, voluntary or maintained nursery school;

“proper practices” means those accounting practices which a local authority are required to follow by virtue of any enactment, or which, so far as they are consistent with any such enactment are generally regarded, whether by reference to any generally recognised published code or otherwise, as proper accounting practices to be followed in the keeping of the accounts of local authorities, either generally or of the description concerned;

“prudential borrowing” has the meaning given to that expression in regulation 1(4) of the 2008 Regulations;

“prudential borrowing costs” means expenditure incurred on prudential borrowing;

a reference to “pupil support” means a reference to expenditure on a local education authority’s functions under section 510 and 514 of the 1996 Act (provision of administration of clothing grants and boarding grants) and pursuant to regulations made under section 518(1)(a) of that Act;

“pupil-led funding” means the funding of pupils in maintained schools in accordance with regulation 15, 17(1)(a) or 17(3)(a) of the 2008 Regulations;

“PVI providers” means persons other than governing bodies of primary schools, local education authorities or the proprietors of Academies who provide nursery education for three and four year olds for which no charge is made;

“school” means a maintained school(13);

“School Development Grant” means a grant of that name paid to a local education authority by the Secretary of State under section 14 of the 2002 Act;

“schools specific contingency” has the meaning given to that expression in regulation 1(4) of the 2008 Regulations;

“School Standards Grant – Maintained Schools” means a grant of that name paid to a local education authority by the Secretary of State under section 14 of the 2002 Act;

“School Standards Grant (Personalisation) – Maintained Schools” means a grant of that name paid to a local education authority by the Secretary of State under section 14 of the 2002 Act;

“School Standards Grant (Personalisation) – Pupil Referral Units” means a grant of that name paid to a local education authority by the Secretary of State under section 14 of the 2002 Act;

“School Standards Grant – Pupil Referral Units” means a grant of that name paid to a local education authority by the Secretary of State under section 14 of the 2002 Act;

“Standards Fund Grant” means a grant of that name paid to a local education authority by the Secretary of State under section 14 of the 2002 Act;

“SEN” means special educational needs, which has the meaning given to that expression by section 312 of the 1996 Act;

“SEN transport” has the meaning given to that expression in regulation 1(4) of the 2008 Regulations;

“statement”, in relation to a pupil with special educational needs, means a statement made under section 324 of the 1996 Act;

“support for schools in financial difficulty” means a class of planned expenditure which may be deducted from the schools budget of a local education authority under paragraph 32 of Schedule 2 to the 2008 Regulations;

“termination of employment costs” has the meaning given to that expression in regulation 1(4) of the 2008 Regulations;

“youth service” is a service provided by a local education authority under sections 15B(14) and 507A and 507B(15) of the 1996 Act and section 114 of the 2000 Act.

(2) In these Regulations—

(a)references to the number, or numbers, of registered pupils at one or more schools are references to the number, or numbers, of such pupils required under the allocation formula to be used for the initial determination of that school’s budget share, or those schools’ budget shares, for funding periods 1, 2 and 3 but ignoring any weighting in accordance with regulation 15(4) or 17(7) or any adjustments under regulation 15(9) of the 2008 Regulations; and

(b)a reference to a particular class or description of expenditure in relation to maintained schools and to pupils registered at such schools includes any expenditure of that class or description as the local education authority may incur in relation to Academies(16).

Period to which a budget statement must relate

3. For the purposes of section 52(1) of the 1998 Act, the period prescribed in accordance with section 52(1A) is funding periods 1, 2 and 3.

Form of, and information to be contained in, budget statements

4.—(1) For the purposes of section 52(3)(a) of the 1998 Act, the first budget statement published under these Regulations must be prepared in four parts, and contain the information prescribed for the purposes of section 52(1) of that Act as specified below—

(a)Part 1 of the first budget statement must be in the form prescribed in Part 1 of Schedule 1, and contain a summary of the amounts of a local education authority’s planned expenditure for funding periods 1, 2 and 3 deriving from each of the main sources of funding available to the authority for appropriation under section 45A(2) of the 1998 Act as their schools budgets;

(b)Part 2 of the first budget statement must be in the forms prescribed in Part 2 of Schedule 1, and contain details of the amounts of a local education authority’s planned expenditure for appropriation for meeting classes or descriptions prescribed under sections 45A(1) and 45A(2) of the 1998 Act as their LEA budget and schools budget for funding period 1, and planned expenditure for appropriation as their schools budgets for funding periods 2 and 3 as follows(17)—

(i)Table 1 for funding period 1 (planned expenditure for the purposes of the LEA and schools budget),

(ii)Table 1 for funding period 2 (planned expenditure for the purposes of the schools budget),

(iii)Table 1 for funding period 3 (planned expenditure for the purposes of the schools budget),

(iv)the Central Expenditure Limit Annex for funding periods 1, 2 and 3,

(v)the Early Years Expenditure Annex for funding period 1, and

(vi)the Youth Service Annex for funding period 1;

(c)Part 3 of the first budget statement must be in the forms prescribed in Part 3 of Schedule 1, and contain information relating to the determination of each school’s budget share for funding periods 1, 2 and 3;

(d)Part 4 of the first budget statement must be in the forms prescribed in Part 4 of Schedule 1, and contain information relating to a local education authority’s allocation formulae for funding periods 1, 2 and 3.

(2) The information prescribed under paragraph (1) must comprise actual planned figures in respect of funding period 1 and estimated planned figures in respect of funding periods 2 and 3.

(3) For the purposes of section 52(3)(a) of the 1998 Act, the second budget statement published under these Regulations must be prepared in four parts, and contain the information prescribed for the purposes of section 52(1) of that Act in Schedule 2 as specified below—

(a)Part 1 of the second budget statement must be in the form prescribed in Part 1 of Schedule 2, and contain a summary of the amounts of a local education authority’s planned expenditure for funding periods 2 and 3 deriving from each of the main sources of funding available to the authority for appropriation under section 45A(2) of the 1998 Act as their schools budget;

(b)Part 2 of the second budget statement must be in the forms prescribed in Part 2 of Schedule 2, and contain details of the amounts of a local education authority’s planned expenditure for appropriation for meeting the classes or descriptions prescribed under sections 45A(1) and 45A(2) of the 1998 Act as their LEA budget and schools budget for funding period 2, and planned expenditure for appropriation as their schools budget for funding period 3 as follows—

(i)Table 1 for funding period 2 (planned expenditure for the purposes of the LEA and schools budget),

(ii)Table 1 for funding period 3 (planned expenditure for the purposes of the schools budget),

(iii)the Central Expenditure Limit Annex for funding periods 2 and 3,

(iv)the Early Years Expenditure Annex for funding period 2, and

(v)the Youth Service Annex for funding period 2;

(c)Part 3 of the second budget statement must be in the forms prescribed in Part 3 of Schedule 2, and contain information relating to the determination of each school’s budget share for funding periods 2 and 3;

(d)Part 4 of the second budget statement must be in the forms prescribed in Part 4 of Schedule 2, and contain information relating to a local education authority’s allocation formulae for funding periods 2 and 3.

(4) The information prescribed under paragraph (3) must comprise actual planned figures in respect of funding period 2 and revised estimated planned figures in respect of funding period 3 in place of the estimated planned figures in the first budget statement.

(5) For the purposes of section 52(3)(a) of the 1998 Act, the third budget statement published under these Regulations must be prepared in four parts, and contain the information prescribed for the purposes of section 52(1) of that Act in Schedule 3, as specified below—

(a)Part 1 of the third budget statement must be in the form prescribed in Part 1 of Schedule 3, and contain a summary of the amounts of a local education authority’s planned expenditure for funding period 3 deriving from each of the main sources of funding available to the authority for appropriation under section 45A(2) of the 1998 Act as their schools budget;

(b)Part 2 of the third budget statement must be in the forms prescribed in Part 2 of Schedule 3, and contain details of the amounts of a local education authority’s planned expenditure for appropriation for meeting the classes or descriptions prescribed under sections 45A(1) and 45A(2) of the 1998 Act as their LEA budget and schools budget for funding period 3 as follows—

(i)Table 1 for funding period 3 (planned expenditure for the purposes of the LEA and schools budget),

(ii)the Central Expenditure Limit Annex for funding period 3,

(iii)the Early Years Expenditure Annex for funding period 3, and

(iv)the Youth Service Annex for funding period 3;

(c)Part 3 of the third budget statement must be in the forms prescribed in Part 3 of Schedule 3, and contain information relating to the determination of each school’s budget share for funding period 3;

(d)Part 4 of the third budget statement must be in the form prescribed in Part 4 of Schedule 3, and contain information relating to a local education authority’s allocation formulae for funding period 3.

(6) The information prescribed under paragraph (5) must comprise actual planned figures in respect of funding period 3 in place of the revised estimated planned figures in the second budget statement.

Manner and time of publication of a budget statement

5.—(1) For the purposes of section 52(3)(b) of the 1998 Act, a budget statement is published by—

(a)supplying a copy to the Secretary of State for Children, Schools and Families; and

(b)making a copy available for inspection at all reasonable times and free of charge—

(i)at the offices of the local education authority, and

(ii)on a website maintained by the local education authority and accessible to the public.

(2) The first budget statement must be published before the beginning of funding period 1; the second before the beginning of funding period 2; and the third before the beginning of funding period 3.

(3) A budget statement published under paragraph (2) may not be revised after publication except—

(a)to correct errors contained in it; or

(b)to reflect a redetermination under regulation 12 of the 2008 Regulations (redetermination of schools budgets and individual schools budgets).

(4) Where a local education authority revise a budget statement under paragraph (3), they must ensure that any revised budget statement is in the appropriate form as prescribed in regulation 4, and is published in the manner prescribed in paragraph (1).

(5) A local education authority must provide the governing body and head teacher of each school maintained by them with a copy of Parts 1, 2 and 4 of the first, second and third budget statements before the beginning of funding period 1, 2 and 3, as the case may be.

(6) Where the governing body or head teacher of a school request a copy of Part 3 of any budget statement to which these Regulations relate, a local education authority must provide them with a copy of that Part.

Jim Knight

Minister of State

Department for Children, Schools and Families

15th February 2008

Regulation 4(1) - (2)

SCHEDULE 1FORM OF THE FIRST BUDGET STATEMENT

PART 1

PART 2

PART 3

PART 4

Regulation 4(3) – (4)