Deferment of governing body’s right to delegated budget
5(1)A maintained school falling within section 49(1) shall not have a delegated budget as from the day on which section 49 comes into force if—
(a)the governing body’s right to a delegated budget has been suspended under section 117 of the [1996 c. 56.] Education Act 1996 (suspension of financial delegation for mismanagement etc.) or section 28 of the [1996 c. 57.] School Inspections Act 1996 (suspension of right to delegated budget); and
(b)that suspension has not been previously revoked with effect from that or any earlier day.
(2)Such a school shall, however, have a delegated budget as from the day with effect from which that suspension is revoked.
(3)The Secretary of State may by order determine that a relevant school shall not have a delegated budget as from the day on which section 49 comes into force where he considers that it would not be expedient for the school to have such a budget as from that day for reasons connected with—
(a)the financial position, or
(b)the financial management,
of the school.
(4)Where the Secretary of State makes an order under sub-paragraph (3) in relation to a school—
(a)for the purposes of Part II of this Act the right of the governing body to a delegated budget shall be treated as if it had been suspended by the local education authority under paragraph 1 of Schedule 15 on the day on which section 49 comes into force;
(b)paragraphs 2 to 4 (but not 3(1)(a)) of that Schedule shall apply to any such suspension; and
(c)the school shall have a delegated budget as from the day with effect from which that suspension is revoked.
(5)Any reference in any of sections 54 to 57 to any suspension of a school’s delegated budget under Schedule 15 includes a reference to—
(a)any suspension of a school’s delegated budget by virtue of sub-paragraph (1); and
(b)(in accordance with sub-paragraph (4)), any such suspension by virtue of sub-paragraph (3).
(6)Where the day on which section 49 comes into force is earlier than the day appointed under section 20(7) any reference in this paragraph to a maintained school is a reference to a school which is (within the meaning of the [1996 c. 56.] Education Act 1996)—
(a)a school maintained by a local education authority, or
(b)a grant-maintained or grant-maintained special school,
and to which section 49 applies in accordance with regulations under section 144(1).
(7)In this paragraph—
(a)“relevant school” means a maintained school which immediately before the day on which section 49 comes into force was a grant-maintained or grant-maintained special school within the meaning of the [1996 c. 56.] Education Act 1996; and
(b)references to a school having a delegated budget or to a governing body’s right to such a budget shall be construed in accordance with section 49(7).